Business Taxes Quiz

What is a proportional tax?

• A sales tax that applies only to selected goods or services

• One in which the tax rate remains the same regardless of the amount on which the tax is imposed

• A tax on the profits of businesses and the earnings of individuals

• A tax based on the ability to pay

Which describes a progressive tax?

• Tax on the retail price of goods and services at the time they are sold

• A tax on the profits of businesses and the earnings of individuals.

• One in which the tax rate remains the same regardless of the amount on which the tax is imposed

• Higher incomes pay a higher percentage

What is a regressive tax?

• Tax on the retail price of goods and services at the time they are sold

• Everyone pays the same percentage rate

• A tax based on the ability to pay

• Taxation wherein the actual tax rate decreases as the taxable amount increases

What is the most common type of tax on individual earnings and business profits?

• FICA Taxes

• Sales tax

• Property tax

• Income tax

What is a sales tax?

• A tax levied on the retail price of goods and services at the time they are sold

• A sales tax that applies only to selected goods or services

• A tax on the profits of businesses and the earnings of individuals

• A tax on material goods owned

What is a property tax?

• A tax on possessions that are movable, such as furniture, machinery, and equipment

• A tax on real estate, which is land and buildings

• A tax on material goods owned.

• A tax based on the ability to pay

What is real property tax?

• A tax levied on the retail price of goods and services at the time they are sold

• A tax on possessions that are movable, such as furniture, machinery, and equipment

• A tax on real estate, which is land and buildings

• A tax on the profits of businesses and the earnings of individuals

What is personal property tax?

• A tax on the profits of businesses and the earnings of individuals

• A tax on real estate, which is land and buildings

• A tax on possessions that are movable, such as furniture, machinery, and equipment

• A tax levied on the retail price of goods and services at the time they are sold

What is assessed valuation?

• The value of property determined by tax officials

• A tax on the profits of businesses and the earnings of individuals

• A tax on real estate, which is land and buildings

• A tax on possessions that are movable, such as furniture, machinery, and equipment

Which tax policy results in lower incomes paying a higher percentage?

• Regressive tax

• Property tax

• Progressive tax

• Flat tax