Question

Government can encourage entrepreneurs by

A.)tax incentives
B.)raising interest
C.)raising taxes
D.)making it harder to start a buisness

Answer 1

A. Tax incentives. Entrepreneurs are being encouraged by the government to put up business through tax incentives. Tax incentives may be in the form of tax holiday wherein the firm will not pay taxes for a certain period of time provided that it meets all the conditions laid out by the government. Another incentive would be a tax reduction or rebates. Tax exemptions are also a form of tax incentive to invite entrepreneurs to do business.