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Statement: The government has announced a reduction in the corporate tax rate.
Inference:
I. The government wants to attract more foreign investment.
II. The government wants to increase revenue by encouraging more companies to register.
III. The government wants to improve the profitability of domestic companies.
Inference:
I. The government wants to attract more foreign investment.
II. The government wants to increase revenue by encouraging more companies to register.
III. The government wants to improve the profitability of domestic companies.
- a)If only I follows
- b)If only II follows
- c)If both I and III follow
- d)If both II and III follow
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Statement: The government has announced a reduction in the corporate t...
The statement mentions that the government has announced a reduction in the corporate tax rate. From this, it can be inferred that the government wants to improve the profitability of domestic companies. Additionally, it can be inferred that the government wants to attract more foreign investment by making it more attractive to do business in the country. Therefore, options I and III are both possible inferences from the statement. Option II is incorrect as there is no mention of the government wanting to increase revenue by encouraging more companies to register in the statement.
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Statement: The government has announced a reduction in the corporate t...
Understanding the Government's Tax Rate Reduction
The statement indicates that the government has reduced the corporate tax rate, which can have several implications. Let’s analyze the given inferences.
Inference I: Attracting Foreign Investment
- A reduction in the corporate tax rate can make a country more appealing to foreign investors.
- Lower tax rates typically enhance the potential returns on investment, encouraging foreign companies to establish or expand their operations in the country.
- Therefore, this inference is plausible as a strategic move to attract foreign capital.
Inference II: Increasing Revenue through Company Registrations
- While a lower tax rate might encourage more companies to register, it does not guarantee an immediate increase in government revenue.
- The rationale behind this inference is that more registrations could lead to a broader tax base.
- However, the initial tax rate reduction may lead to lower revenue in the short term, as existing companies may pay less tax initially.
- Hence, this inference is less certain.
Inference III: Improving Profitability of Domestic Companies
- Reducing the corporate tax rate directly benefits domestic companies, enhancing their profitability.
- Increased profitability can lead to higher reinvestment in the business, wage growth, and overall economic stimulation.
- This inference aligns well with the goal of reducing the corporate tax rate.
Conclusion
The correct answer is option 'C' because both Inference I and Inference III logically follow from the statement regarding the reduction in the corporate tax rate. Inference II, while possible, lacks the same level of direct correlation with the government's intentions.
The statement indicates that the government has reduced the corporate tax rate, which can have several implications. Let’s analyze the given inferences.
Inference I: Attracting Foreign Investment
- A reduction in the corporate tax rate can make a country more appealing to foreign investors.
- Lower tax rates typically enhance the potential returns on investment, encouraging foreign companies to establish or expand their operations in the country.
- Therefore, this inference is plausible as a strategic move to attract foreign capital.
Inference II: Increasing Revenue through Company Registrations
- While a lower tax rate might encourage more companies to register, it does not guarantee an immediate increase in government revenue.
- The rationale behind this inference is that more registrations could lead to a broader tax base.
- However, the initial tax rate reduction may lead to lower revenue in the short term, as existing companies may pay less tax initially.
- Hence, this inference is less certain.
Inference III: Improving Profitability of Domestic Companies
- Reducing the corporate tax rate directly benefits domestic companies, enhancing their profitability.
- Increased profitability can lead to higher reinvestment in the business, wage growth, and overall economic stimulation.
- This inference aligns well with the goal of reducing the corporate tax rate.
Conclusion
The correct answer is option 'C' because both Inference I and Inference III logically follow from the statement regarding the reduction in the corporate tax rate. Inference II, while possible, lacks the same level of direct correlation with the government's intentions.
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Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer? for SSC CGL 2025 is part of SSC CGL preparation. The Question and answers have been prepared according to the SSC CGL exam syllabus. Information about Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for SSC CGL 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer?.
Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer? for SSC CGL 2025 is part of SSC CGL preparation. The Question and answers have been prepared according to the SSC CGL exam syllabus. Information about Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for SSC CGL 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Statement: The government has announced a reduction in the corporate tax rate.Inference:I. The government wants to attract more foreign investment.II. The government wants to increase revenue by encouraging more companies to register.III. The government wants to improve the profitability of domestic companies.a)If only I followsb)If only II followsc)If both I and III followd)If both II and III followCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for SSC CGL.
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