TAXN 3100 QUIZ 1 (Answers will be encoded on the table of second page)
MODIFIED TRUE OR FALSE
Identify whether the statements below are correctly stated or not. If it is correctly stated, write T,
otherwise F on the table provided for your answers, and on the following column, write the
word/words that makes it wrong, and write the corresponding word/s that makes it right.
*3 points each
Example:
1. The color of mango is yellow.
2. The rainbow has eight different colors.
YOUR ANSWERS ON THE TABLE:
1. T
2. F Eight Seven
1. Collection of taxes primarily purposed for the benefit of those who are responsible
taxpayers.
2. In making business decisions, taxes that play an insignificant role must not be considered
by the management.
3. The end goal of tax planning is the maximization of the payable taxes over a given period
of time.
4. The goal of tax management is tax minimization while tax planning aims to comply with
all the legal requirements in order to avoid penalties.
5. Tax evasion is never a legal act.
6. It is good to compromise one’s strategies in order to attain ideal tax minimization.
7. It is ideal for businesses to be updated with tax laws or other tax expected changes and
adjust the timing of transaction according to one’s anticipation.
8. Businesses may enter into transactions that are tax minimizing but actually doesn’t have
value in the overall company operations.
9. Partners operating under General Professional Partnership are tax exempt.
10. Entity choice must be absolute because it cannot be changed as the operations progresses.
11. Taxes form part in making major business decisions especially that they are compulsory
and were inculcated in the business operations.
12. It can be concluded that corporations are the most expensive type of entity to organize.
13. One goal of strategic tax management is to minimize taxes even to the cost of violation
provisions, government rules and regulations.
14. Partnership taxes, including general professional partnership, for purposes of income
taxes are treated as corporations.
15. Owners of sole proprietors are taxed separately from the sole proprietor even when it is
their only source of income.
