Which word describes a tax imposed on the amount of business done?

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Improve your CELPIP skills with our vocabulary test. Use flashcards and multiple-choice questions, complete with hints and answers. Prepare for success!

The term that describes a tax imposed on the amount of business done is "excise." This word specifically refers to a type of indirect tax levied on the sale or production of certain goods, often used to generate revenue from businesses for specific purposes, such as funding public services or regulating consumption. Excise taxes can apply to a wide range of products, including alcohol, tobacco, and fuel, and are typically included in the price paid by consumers.

In contrast, the other choices do not relate to the context of taxation. "Expediency" refers to a means of achieving a particular end, especially one that is convenient or practical, often disregarding what is morally right. "Eschew" means to deliberately avoid or abstain from something, which does not relate to the concept of taxation. "Exactitude" denotes precision and accuracy, characteristics that may apply to various contexts but do not convey the idea of a business-related tax. Thus, "excise" is the term that most accurately captures the essence of a tax based on business activity.

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