A) A poor person who smokes pays a higher percentage of her income in cigarette excise tax than a rich person. B) The cigarette excise tax is a regressive tax. C) The cigarette excise tax is a direct tax. D) None is false.
North Bank has lent Sophie Limited $600 000. Part of the loan contract prevents Sophie from borrowing money in the future from other banks without the permission of North. As a result of this relationship:
A) North Bank is regarded as a parent entity of Sophie Limited. B) Sophie Limited is regarded as a subsidiary of North Bank. C) a parent-subsidiary relationship does not exist between these two parties. D) a parent-subsidiary relationship exists between these two parties as North Bank is able to direct the relevant activities of Sophie Limited.