Chapter 21 - Marketing is the activity, set of institutions, and processes for creating - Tài liệu tham khảo | Đại học Hoa Sen

Exam
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) An income tax is a direct tax. 1) Answer: True False Topic: Income Tax
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the quest
2) The two main objectives of taxation are 2)
A) tax neutrality and tax equity.
B)progressive taxation and tax neutrality. C) complexity and revenue.
D) social engineering and tax equity. Answer:A
Topic: The Objectives of Taxation
3) The three basic types of taxation are 3)
A) personal tax, corporate tax, and operating tax.
B)withholding tax, value-added tax, and corporate tax.
C) income tax, withholding tax, and business tax.
D) income tax, withholding tax, and value-added tax. Answer:D
Topic: The Objectives of Taxation
4) Tax neutrality is determined 4) A) by three criteria. B)by four criteria. C) by one criterion. D) by two criteria. Answer:A Topic: Tax Neutrality
5) Tax neutrality is determined by three criteria: which of the following doesn't belong? 5) A) National neutrality B)Income neutrality C) Capital-export neutrality D) Capital-import neutrality Answer:B Topic: Tax Neutrality 1 6) Tax neutrality 6)
A) has its foundations in the principles of economic efficiency and equity.
B)is determined by three criteria: capital export neutrality, capital import neutrality and national neutrality.
C) can be a difficult principle to apply in practice. D) all of the options Answer:D Topic: Tax Neutrality
7) The idea that an ideal tax should be effective in raising revenue for the government but 7)
not have any negative effects on the economic decision-making process of the taxpayer is referred to as A) capital-import neutrality. B)capital-export neutrality. C) national neutrality. D) none of the options Answer:B Topic: Tax Neutrality
8) The idea that taxable income is taxed in the same manner by the taxpayer's national tax 8)
authority regardless of where in the world it is earned is referred to as A) national neutrality. B)capital-export neutrality. C) capital-import neutrality. D) none of the options Answer:A Topic: Tax Neutrality 9) Capital export neutrality 9)
A) is an example of Mercantilism.
B)is based on MNC home country economic efficiency.
C) is based on host country economic efficiency.
D) is a goal based on worldwide economic efficiency. Answer:D Topic: Tax Neutrality
10)The idea that the tax burden a host country imposes on the foreign subsidiary of an MNC 10)
should be the same regardless of the country in which the MNC is incorporated and the
same as that placed on domestic firms is earned is referred to as A) national neutrality. B)capital-import neutrality. C) capital-export neutrality. D) none of the options Answer:B Topic: Tax Neutrality 2 11)Capital export neutrality 11)
A) implies that the tax burden a host country imposes on the foreign subsidiary of the
MNC should be the same regardless of which country the MNC is incorporated and
the same as that placed on domestic firms.
B)is the criterion that an ideal tax should be effective in raising revenue of the
government and not have any negative effects on the economic decision-making process of the taxpayer.
C) requires that taxable income is taxed in the same manner by the taxpayer's national
tax authority regardless of where in the world it is earned. D) none of the options Answer:B Topic: Tax Neutrality 12)National neutrality 12)
A) requires that taxable income is taxed in the same manner by the taxpayer's national
tax authority regardless of where in the world it is earned.
B)is the criterion that an ideal tax should be effective in raising revenue of the
government and not have any negative effects on the economic decision-making process of the taxpayer.
C) implies that the tax burden a host country imposes on the foreign subsidiary of the
MNC should be the same regardless of which country the MNC is incorporated and
the same as that placed on domestic firms. D) none of the options Answer:A Topic: Tax Neutrality 13)Capital import neutrality 13)
A) requires that taxable income is taxed in the same manner by the taxpayer's national
tax authority regardless of where in the world it is earned.
B)is the criterion that an ideal tax should be effective in raising revenue of the
government and not have any negative effects on the economic decision-making process of the taxpayer.
C) implies that the tax burden a host country imposes on the foreign subsidiary of the
MNC should be the same regardless of which country the MNC is incorporated and
the same as that placed on domestic firms. D) none of the options Answer:C Topic: Tax Neutrality 3
14)The term "capital-import neutrality" refers to 14)
A) the criterion that an ideal tax should be effective in raising revenue for the
government and not have any negative effects on the economic decision-making process of the taxpayer.
B)the criterion that the tax burden a host country imposes on the foreign subsidiary of
an MNC should be the same regardless in which country the MNC is incorporated
and the same as that placed on domestic firms.
C) the fact that taxable income is taxed in the same manner by the taxpayer's national
tax authority regardless of where in the world it is earned.
D) the underlying principle that all similarly situated taxpayers should participate in the
cost of operating the government according to the same rules. Answer:B Topic: Tax Neutrality
15)The criteria of tax neutrality: capital export neutrality, capital import neutrality and 15) national neutrality
A) are all consistent with one another.
B)are all identical with one another.
C) are not always consistent with one another. D) none of the options Answer:C Topic: Tax Neutrality
16)Implementing capital import neutrality means that 16)
A) a sovereign government follows the taxation policies of foreign tax authorities on
the foreign-source income of its resident MNCs.
B)the tax burden a host country imposes on the foreign subsidiary of an MNC should
be the same as that placed on domestic firms.
C) the tax burden a host country imposes on the foreign subsidiary of an MNC should
be the same regardless of the country in which the MNC is incorporated. D) all of the options Answer:D Topic: Tax Neutrality 17)Tax equity means that 17)
A) regardless of the country in which an affiliate of an MNC earns taxable income, the
same tax rate and tax due date apply.
B)a dollar earned by a foreign affiliate is taxed under the same rules as a dollar earned
by a domestic affiliate of the MNC.
C) similarly situated taxpayers should participate in the cost of operating the
government according to the same rules. D) all of the options Answer:D Topic: Tax Equity 4
18)The underlying principle of tax equity is that 18)
A) all similarly situated taxpayers should participate in the cost of operating the
government according to the same rules.
B)all similarly situated taxpayers should participate in the cost of operating the government on an equal basis. C) none of the options Answer:A Topic: Tax Equity
19)If a dollar earned by a foreign affiliate is taxed under the same rules as a dollar earned by 19)
a domestic affiliate of the MNC, then we have achieved A) capital-export neutrality. B)national neutrality. C) capital-import neutrality. D) tax equity. Answer:D Topic: Tax Equity
20)The organizational form of an MNC can affect the timing of a tax liability. This means 20)
A) as long as, regardless of the country in which an affiliate of an MNC earns taxable
income, the same tax rates apply, then the tax due date doesn't matter.
B)the principle of tax equity might be violated.
C) tax timing will even out over a reporting cycle, so there is no big deal here. D) none of the options Answer:B Topic: Tax Equity
21)There are three basic types of taxation that national governments throughout the world 21) use:
A) import quotas, duties, and tariffs.
B)tariffs, ad valorem taxes, and income taxes.
C) property tax, wealth tax, and death tax.
D) income tax, withholding tax, and value-added tax. Answer:D Topic: Types of Taxation
22)An income tax is defined in your textbook as 22) A) an indirect tax.
B)being collected with a withholding tax. C) a direct tax. D) none of the options Answer:C Topic: Income Tax 5 23)Which statement is false? 23)
A) A withholding tax is a tax levied on passive income earned by an individual or
corporation of one country within the tax jurisdiction of another country.
B)Passive income includes dividends and interest income, and income from royalties,
patents, or copyrights paid to the taxpayer.
C) The current marginal U.S. income tax rate is positioned towards the lower end of
the rates assessed by the majority of other countries.
D) Active income is defined as income that results from production by the firm or
individual or from services that have been provided. Answer:C Topic: Income Tax
24)The current marginal U.S. income tax rate is positioned 24)
A) towards the upper end of the rates assessed by the majority of other countries.
B)towards the lower end of the rates assessed by the majority of other countries.
C) pretty well in the middle of the rates assessed by the majority of other countries. D) none of the options Answer:A Topic: Income Tax
25)A withholding tax is defined in your textbook as 25)
A) the money that the government takes for every worker's paycheck. B)social security taxes.
C) a tax levied on passive income earned by an individual (or corporation) of one
country within the tax jurisdiction of another county.
D) a tax levied on income earned by an individual (or corporation) of one country
within the tax jurisdiction of another county. Answer:C Topic: Withholding Tax
26)The purpose of a withholding tax 26)
A) is to assure the local tax authority that it will receive the tax due on all income
earned within its tax jurisdiction.
B)is to assure the local tax authority that it will receive the tax due on the passive
income earned within its tax jurisdiction.
C) is to assure the local tax authority that it will receive the tax due on the active
income earned within its tax jurisdiction. D) none of the options Answer:B Topic: Withholding Tax 6 27)A withholding tax is 27) A) a direct tax. B)an indirect tax.
C) both a direct and an indirect tax. D) none of the options Answer:B Topic: Withholding Tax
28)Withholding tax rates imposed through tax treaties are 28) A) bilateral. B)netted. C) multilateral. D) none of the options Answer:A Topic: Withholding Tax
29)The United States withholds ________ of passive income from taxpayers that reside in 29)
countries with which it does not have withholding tax treaties. A) 40 percent B)20 percent C) 30 percent D) 10 percent Answer:C Topic: Withholding Tax 30)A withholding tax 30)
A) assures the local tax authority that it will receive the tax due on the passive income
earned within its tax jurisdiction.
B)is borne by a taxpayer who did not directly generate the income that serves as the source of the passive income. C) is a direct tax on workers.
D) is borne by a taxpayer who did not directly generate the income that serves as the
source of the passive income, and also assures the local tax authority that it will
receive the tax due on the passive income earned within its tax jurisdiction. Answer:D Topic: Withholding Tax
31)Many countries have tax treaties with one another. These generally specify 31)
A) that withholding tax rates imposed through tax treaties are bilateral.
B)the two countries agree to impose the same tax rate on the same category of income.
C) the withholding tax rate applied to various types of passive income. D) all of the options Answer:D Topic: Withholding Tax 7 32)Value-added tax (VAT) is 32)
A) an indirect national tax levied on the value added in the production of a good (or
service) as it moves through various stages of production.
B)a direct national tax levied on the value added in the production of a good (or
service) as it moves through various stages of production.
C) the equivalent of imposing a national sales tax.
D) an indirect national tax levied on the value added in the production of a good (or
service) as it moves through various stages of production, and is also the equivalent
of imposing a national sales tax. Answer:D Topic: Value- Added Tax
33)Assume that a product has the following three stages of production: 33) Production Stage Selling Price 1 € 600 2 € 1,400 3 € 1,700
If the value-added tax (VAT) rate is 15 percent, what is the incremental VAT at Stage 2 of production? A) €75 B)€120 C) €255 D) €210 Answer:B Topic: Value- Added Tax
34)Assume that a product has the following three stages of production: 34) Production Stage Selling Price 1 € 600 2 € 1,400 3 € 1,700
If the value-added tax (VAT) rate is 15 percent, what would be the VAT over all stages of production? A) €255 B)€90 C) €120 D) €465 Answer:A Topic: Value- Added Tax 8
35)Assume that a product has the following three stages of production: 35) Production Stage Selling Price 1 € 100 2 € 250 3 € 1,500
If the value-added tax (VAT) rate is 15 percent, what would be the VAT over all stages of production? A) €90 B)€225 C) €120 D) €465 Answer:B Topic: Value- Added Tax
36)Assume that a product has the following three stages of production: 36) Production Stage Selling Price 1 € 100 2 € 250 3 € 750
If the value-added tax (VAT) rate is 20 percent, what would be the VAT over all stages of production? A) €120 B)€225 C) €150 D) €110 Answer:C Topic: Value- Added Tax
37)Assume that a product has the following three stages of production: 37) Production Stage Selling Price 1 € 80 2 € 160 3 € 320
If the value-added tax (VAT) rate is 20 percent, what would be the VAT over all stages of production? A) €465 B)€64 C) €120 D) €225 Answer:B Topic: Value- Added Tax 9
38)Assume that a product has the following three stages of production: 38) Production Stage Selling Price 1 € 10 2 € 250 3 € 1,500
If the value-added tax (VAT) rate is 20 percent, what would be the VAT over all stages of production? A) €90 B)€225 C) €300 D) €120 Answer:C Topic: Value- Added Tax
39)Assume that a product has the following three stages of production: 39) Production Stage Selling Price 1 € 100 2 € 250 3 € 750
If the value-added tax (VAT) rate is 25 percent, what would be the VAT over all stages of production? A) €150 B)€120 C) €187.50 D) €225 Answer:C Topic: Value- Added Tax
40)Assume that a product has the following three stages of production: 40) Production Stage Selling Price 1 € 80 2 € 160 3 € 360
If the value-added tax (VAT) rate is 10 percent, what would be the VAT over all stages of production? A) €465 B)€225 C) €36 D) €64 Answer:C Topic: Value- Added Tax 10