Which of the Following Is True

question 111

Multiple Choice

Which of the following is true?

• A) A regressive tax rate structure imposes an increasing marginal tax rate as the tax base increases
• B) Regressive tax structures are the most common tax rate structure
• C) An example of a regressive tax is an excise tax
• D) In terms of effective tax rates, a sales tax can be viewed as a regressive tax
• E) None of these

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Definitions:

Target Income

The specific amount of net income that a company aims to achieve for a certain period.

Investment Turnover

Investment turnover measures how efficiently a company generates sales from its investment in fixed assets.

Profit Margin

The percentage of revenue remaining after all expenses, taxes, and costs have been deducted from total sales.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the cost of the investment.