test bank for McGraw-Hill’s Taxation of Individuals and Business Entities 2025 Edition Spilker
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) Taxes influence many types of business decisions but generally do not influence personal decisions.
⊚ true
⊚ false
2) Taxes influence business decisions such as where a business should locate or how a business should be structured.
⊚ true
⊚ false
3) Tax policy rarely plays an important part in presidential campaigns.
⊚ true
⊚ false
4) Margaret recently received a parking ticket. This is a common example of a local tax.
⊚ true
⊚ false
5) George recently paid $50 to renew his driver’s license. The $50 payment is considered a tax.
⊚ true
⊚ false
6) A 1 percent charge imposed by a local government on football tickets sold is not considered a tax if all proceeds are earmarked to fund local schools.
⊚ true
⊚ false
7) One key characteristic of a tax is that it is a required payment to a governmental agency.
⊚ true
⊚ false
8) Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.
⊚ true
⊚ false
9) One benefit of a sin tax (e.g., a tax on cigarettes) is that it should increase the demand for the products being taxed.
⊚ true
⊚ false
10) In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic or social objectives).
⊚ true
⊚ false
