At the State and Local Levels in the United States

question 7

Multiple Choice

At the state and local levels in the United States, the largest source of tax revenue is

• A)individual income taxes.
• B)property tax on real estate.
• C)sales tax.
• D)grants from the federal government.

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Definitions:

Debt/Equity Ratio

A gauge for comparing the mix of a company's funding through shareholders' equity versus debt, frequently applied to understand the company's use of financial leverage.

Retained Earnings

Retained earnings represent the portion of net income left after dividends have been paid to shareholders, which is then reinvested in the business.

Static Theory

A concept in economic theory that assumes conditions remain constant over time.

Capital Structure

The mix of debt and equity financing that a company uses to fund its operations and growth.