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Business English Exercises
 

Corporate Taxation

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Home > Teaching Business English > Business English Lessons, Advanced Level # 81
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corporate taxation answer 1
Rob Norton, of eCompany Now and Fortune magazines, notes in the article quoted below that corporate taxes are among the least efficient and least defensible of taxes.

Correct answer: (c) defensible

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corporate taxation answer 2
The tax is popular with the man in the street, who believes, incorrectly, that it is paid by corporations.

Correct answer: (b) in the street

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corporate taxation answer 3
The federal corporate income tax applies only to some businesses — those chartered as corporations — and not to partnerships or sole proprietorships.

Correct answer: (c) sole

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corporate taxation answer 4
The federal tax is levied at three different rates on different brackets of income: 15 percent on taxable income under $50,000; 25 percent on income between $50,000 and $75,000; and 34 percent on income above that.

Correct answer: (a) brackets

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corporate taxation answer 5
A good reason that state and local corporate income taxes remain low is that corporations could easily relocate out of states that imposed unusually high taxes.

Correct answer: (c) relocate

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corporate taxation answer 6
Except for emergency taxes in wartime, corporate profits were first taxed in 1909, when Congress enacted a 1 percent tax on corporation income.

Correct answer: (b) enacted

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corporate taxation answer 7
The Tax Reform Act of 1986 was designed to increase the share of federal revenues collected via the corporate income tax and to decrease the share from the individual income tax.

Correct answer: (a) individual

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corporate taxation answer 8
While the top corporate tax rate was cut, deductions for capital expenditures were severely curtailed, and as a result the effective tax rate for many corporations rose.

Correct answer: (b) curtailed

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corporate taxation answer 9
The central problem with the corporate income tax from an economic point of view is that, ultimately, only people can pay taxes.

Correct answer: (c) people

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corporate taxation answer 10
As early as the 17th century, Sir William Petty, one of the progenitors of modern economics, argued that a tax on the production and sale of commodities would eventually be shifted by producers to consumers, who would pay it in the form of higher prices.

Correct answer: (d) progenitors

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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