An Often Fatal Error Made by Many Small Business Owners

question 96

True/False

An often fatal error made by many small business owners is to open their businesses on a "shoestring," causing them to be undercapitalized.

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Definitions:

Tax Shifting

The process by which the economic burden of a tax is passed from one party to another.

Starting Wage

The initial salary offered to an employee by an employer when they begin a new job.

Excise Taxes

Taxes imposed on specific goods, such as tobacco and alcohol, either as a fixed amount per unit or as a percentage of the price.

Regressive

Relating to a tax system that disproportionately impacts those with lower incomes, or to policies that may reverse political or social progress.