IGCSE, A Level Business Student Forum

Q13 Analyse the possible objectives of the government towards a business. [6]

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Possible Structure
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Source of tax revenue
[AN] Governments rely on tax revenue from businesses to fund public services and infrastructure.
[AN+] They aim to maximize tax collection while maintaining a fair and transparent tax system.

[KN] Economic growth and employment
[AN] Governments often aim to stimulate economic growth by supporting businesses.
[AN+] They seek to create a favorable environment for entrepreneurship and investment, which, in turn, leads to job creation and increased economic activity.

[KN] Economic Growth
[AN] The promotion of economic growth is one of the government's main goals.
[AN+] The government may encourage companies to invest, generate income, and stimulate the economy in order to accomplish this. Through encouraging business expansion, the government can increase economic prosperity in general.

[KN] Job Creation
[AN] Governments frequently seek to lower unemployment and provide employment opportunities for their people.
[AN+] They might collaborate with companies to support programs that result in more jobs being created, like providing incentives for hiring local labor.

[KN]econ growth adnd stability
[AN]this objective involves creating an environment conducive to investment and job creation
[AN+]policies may include monetary measures to stimulate economic activity.

[KN]tax revenue for governemtn
[AN]They may set taxation policies including corporate taxes and value-added taxes etc
[AN+]this allows them to spend these revenues on other things such as healthcare and education

[kn]tax revenue [an] government will use the business to gain funds through tax revenue like corporate and income tax [an+] these funds can help the government finance its spending on ventures like healthcare

[kn] increase job opportunities [an] the more the businesses the more the jobs available [an+] this will help in the government objective of lowering unemployment

[kn] to achieve economic growth
[AN] GOVERNMNENT MAY AIM TO ACHIEVE ECNOMIC GOWTH b supporting the businesses this can be achieved through policies that encourage investment and innovation and entrepreneurship
[AN+]thus this could reduce regulatory barriers and access to funding and resources that can foster growth

[KN]to gain tax revenue
[AN]government rely on tax revenue to benefit publc services promoting a thriving business sector can increase tax revenue.
[AN+]thus business may face higher taxes but a stable and well fuded government can provide a better infrastructure and services

[KN] a source of taxation
[AN] the government looks forward to get taxs
[AN+] the governments aim is to maximize it's taxes

[KN] job creation
[AN] as the business often increases it's size then the unemployment will decrease as more jobs are created
[AN+] so the governments aims to make sure that more jobs are created

[KN] gain taxes
[AN] Government often spend this tax revenue on the general public such as education and healthcare
[AN+] these funds can help the government finance its spending on ventures like healthcare

[KN] Job opportunities
[AN] more businesses setting up so there will be more jobs available
[AN+] thus reducing unemployment in the country

[kn] gain revenue from taxes
[an] earning revenue from corporate tax the govt can use it for the general pubic such as education and healthcare
[an+] such taxes paid helps government finance its spending for the economy and develop infrastructure
[kn] creates employment
[an] the government wants businesses to expand and invest so that they decrease unemployment
[an+] as this not only reduces burden of poverty and unemployment on govt but also provides higher revenue from income tax

[KN] Creating employment
[AN] ensuring that poverty falls
[AN+] Demand rises In the longer run

[KN] infrastructure development
[AN] Geographical mobility
[AN+] creates a larger pool of labour available to be hired from

[kn] increased GDP
[an] governments want businesses to grow as increased output thus benefits the country
[an+] can collect more taxes as well as increased productive potential of country

[kn] reduce unemployment
[an] businesses create employment opportunities
[an+] main obhective of government is fulfilled and can also collect more income tax

[KN]Increasing GDP
[AN]Govt. may aim for high outputs from businesses to increase national income
[AN]thus this may help in increasing SOLS in the economy

[KN]To earn high tax revenue
[AN]Govt. would aim for high profits from businesses in order to get high corporate tax revenues which can be spent elsewhere eg on infrastructure,education
[AN]this allows to stimulate economic activity

[KN]To make businesses follow rules and regulations
[AN]Govt. may aim to regulate businesses by restricting production of products which create external costs
[AN]Hence there will be less chances of market failure

[KN] Increasing the pool of workers.
[AN] Thus this will happen because of job creation hence will increase SOL of people
[AN+] Thus crime rate will decrease in the economy along with a reduction in poverty.

[KN] Making sure that no black market is created.
[AN] This can exploit customers by maybe charging very high prices for low quality products..
[AN+] Thus with this the supply of demerit goods may also increase which is the thing govt would never want.