Taxation
Question : Case Study 11: Role of Government Schemes
A group of young entrepreneurs started a tech company with a vision to bridge the digital divide in rural areas. The government supported their initiative by providing financial assistance and incentives.
Question:
How did the government's financial assistance impact the tech company?
Option 1: It led to the closure of the company
Option 2: It increased competition from other tech firms
Option 3: It supported the company's initiative in rural areas
Option 4: It increased taxation for the company
Correct Answer: It supported the company's initiative in rural areas
Solution : The correct answer is (c) It supported the company's initiative in rural areas
The government's financial assistance supported the tech company's initiative to bridge the digital divide in rural areas. This assistance likely played a crucial role in helping the company implement its vision and contribute to digital inclusion in rural regions.
Question : Case Study 3:
PQR Enterprises is a retail company that has been affected by changes in government policies related to taxation. The company needs to adapt its operations to comply with the new policies and minimize the impact on its profitability.
Q:- How can PQR Enterprises adapt to the changes in government policies?
Option 1: By seeking government subsidies
Option 2: By finding alternative suppliers
Option 3: By implementing cost-cutting measures
Option 4: By diversifying into unrelated businessescu
Correct Answer: By finding alternative suppliers
Solution : The correct answer is (B) By finding alternative suppliers
Adapting to changes in government policies, particularly in the context of taxation, may involve finding alternative suppliers, optimizing the supply chain, or making adjustments to the procurement process to minimize the impact of the policy changes on the company's operations and profitability.
Option 4: By diversifying into unrelated businesses
Q:- Which dimension of the business environment is highlighted in this case?
Option 1: Economic environment
Option 2: Social environment
Option 3: Technological environment
Option 4: Political environment
Correct Answer: Political environment
Solution : The correct answer is (D) Political environment
The dimension of the business environment highlighted in this case is the political environment. The case involves changes in government policies related to taxation, which fall under the political environment. This dimension includes government regulations, policies, and political factors that can significantly impact businesses.
Q:- What is the business environment factor affecting PQR Enterprises in this case?
Option 2: Technological environment
Option 3: Government policies
Option 4: Social environment
Correct Answer: Government policies
Solution : The correct answer is (C) Government policies
The business environment factor affecting PQR Enterprises in this case is government policies, particularly those related to taxation. Changes in government policies can have a significant impact on a business, and in this scenario, PQR Enterprises needs to adapt its operations to comply with these new policies and minimize the impact on its profitability.
Question : Which objective of government budget is highlighted here? The taxation and government spending helps to Set up production unit in the economically backward areas.
Option 1: Management of public enterprises
Option 2: Economic growth
Option 3: Reducing regional disparities
Option 4: Employment generation
Correct Answer: Reducing regional disparities
Solution : Under Reducing regional disparities, the government aims to reduce such disparities with the help of setting up such industries in the economically backward areas. Taxation and expenditure policy helps to achieve this objective. Hence Option C is correct.
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