Future Business Leaders of America (FBLA) Agribusiness Practice Test

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Enhance your FBLA Agribusiness knowledge with our comprehensive test. Dive into flashcards and multiple-choice questions, complete with hints and explanations, to ensure exam success. Prepare confidently for a bright future!

Practice this question and more.

Which of the following is considered a compulsory tax?

Sales tax
Property tax
Both A and B
Neither A nor B

The correct answer is: Both A and B

Compulsory taxes are those that individuals and businesses are legally required to pay to the government, and failure to pay them can result in legal penalties. Both sales tax and property tax fall into this category. Sales tax is imposed on the sale of goods and services and is typically collected by retailers at the point of sale. It is considered compulsory because consumers must pay it when they make purchases, and businesses must remit it to the government. Property tax is a tax based on the value of real estate property. Property owners are required to pay this tax annually or semi-annually, depending on local regulations, and it is used to fund local services such as schools, roads, and public safety. Since both sales tax and property tax are mandated by law and must be paid by individuals and businesses, they are both considered compulsory taxes, making the answer accurate.