BUSINESS TAXATION
2026-VERSION WITH
QUALITY QUESTIONS
AND VERIFIED
ANSWERS 100%
CORRECT WITH
RATIONELS.
1. What is taxation?
A. Voluntary payment to government
B. Compulsory levy by government
,C. Donation to public funds
D. Business profit
Answer: B
Taxation is a compulsory financial charge
imposed by the government on
individuals and businesses.
2. Direct tax includes:
A. VAT
B. Excise duty
C. Income tax
D. Import duty
Answer: C
Income tax is paid directly by the
taxpayer to the government.
,3. Indirect tax is:
A. Paid directly to government
B. Shifted to another person
C. Based on income only
D. Optional payment
Answer: B
Indirect taxes like VAT are passed on to
consumers.
4. VAT stands for:
A. Variable Added Tax
B. Value Added Tax
C. Voluntary Asset Tax
D. Valid Assessment Tax
, Answer: B
VAT is charged on value added at each
production stage.
5. Tax evasion is:
A. Legal tax planning
B. Illegal non-payment of tax
C. Tax exemption
D. Tax relief
Answer: B
Tax evasion is unlawful avoidance of tax
liability.
6. Tax avoidance is:
2026-VERSION WITH
QUALITY QUESTIONS
AND VERIFIED
ANSWERS 100%
CORRECT WITH
RATIONELS.
1. What is taxation?
A. Voluntary payment to government
B. Compulsory levy by government
,C. Donation to public funds
D. Business profit
Answer: B
Taxation is a compulsory financial charge
imposed by the government on
individuals and businesses.
2. Direct tax includes:
A. VAT
B. Excise duty
C. Income tax
D. Import duty
Answer: C
Income tax is paid directly by the
taxpayer to the government.
,3. Indirect tax is:
A. Paid directly to government
B. Shifted to another person
C. Based on income only
D. Optional payment
Answer: B
Indirect taxes like VAT are passed on to
consumers.
4. VAT stands for:
A. Variable Added Tax
B. Value Added Tax
C. Voluntary Asset Tax
D. Valid Assessment Tax
, Answer: B
VAT is charged on value added at each
production stage.
5. Tax evasion is:
A. Legal tax planning
B. Illegal non-payment of tax
C. Tax exemption
D. Tax relief
Answer: B
Tax evasion is unlawful avoidance of tax
liability.
6. Tax avoidance is:
