What does the government expect from successful businesses?

Enhance your preparation for the IGCSE Business Studies Test with flashcards and multiple choice questions. Every query is paired with tailored hints and explanations to boost your confidence. Prepare thoroughly for your exam!

The expectation from successful businesses regarding paying taxes and obeying laws reflects a fundamental role that businesses play in the economy and society. Governments rely on businesses to generate revenue through taxes, which in turn fund essential public services such as education, healthcare, and infrastructure. By adhering to laws and regulations, businesses contribute to the overall stability and fairness of the economic environment. This compliance ensures that businesses operate ethically and responsibly, which benefits consumers and society at large.

In contrast, while increased product prices, more advertising, and higher employee wages can be outcomes influenced by businesses' success, they do not represent the primary expectations placed on businesses by the government. The government prioritizes tax contributions and legal compliance as crucial elements for maintaining a functioning and prosperous economy.

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