Variations in a firm's tax rate and tax-related charges over time due to changing tax laws and regulations is called:
A)interest rate risk
B)business risk
C)tax risk Deleted-answer is too obvious
D)purchasing power risk
E)none of the above

Question

Quizplus · Accepted Answer

Tax risk refers to the potential variation in a firm's tax-related expenses due to changes in tax laws and regulations. This includes changes in tax rates, deductions, credits, and other tax-related charges that can impact a company's financial performance. Therefore, option C is the correct answer. Options A, B, D and E are not related to tax risk.

Variations in a Firm's Tax Rate and Tax-Related Charges Over