Question

What is the impact of the reduction of corporate tax rates on industries?

• A. They might set up businesses in backward areas.
• B. They might set up businesses in metropolitan cities.
• C. They might give employment to the poor.
• D. They might import high-tech machineries.

Answer 1

Answer: (A), (C)

They might give employment to the poor.

The government gives tax incentives like reduction on corporate tax rates to motivate companies to set up industries in backward regions. These industries help the poor get employment.