Which of the Following Is the Best Definition of Tax

question 31

Multiple Choice

Which of the following is the best definition of tax planning?

• A)Preparing a client's tax return
• B)Planning taxpayers' financial affairs in an effort to minimize tax liability
• C)Planning taxpayers' financial affairs to find the best way to avoid tax by successfully bending tax law
• D)Researching complex tax issues
• E)None of the above are considered tax planning

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Definitions:

Moral Obligation

A responsibility or duty which is ethically binding but not legally enforceable.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties entering into a contract, often seen as the reason or incentive for a party to enter into an agreement.

Comatose

A state of deep unconsciousness in which a person cannot be awakened; typically resulting from illness or injury.

Output Contracts

An agreement in which a producer agrees to sell all of a specific production to a buyer.