Paper 2 · November 2020 · role of enterprise in the economy
Enterprise widens a country's tax base because new firms
Apay income tax, value added tax and company tax
Bare exempt from every tax throughout their existence
Cemploy only casual unregistered labour
Dreceive subsidies from the treasury
Explanation
Every registered enterprise pays tax on its profit, hands over value added tax on its sales and deducts income tax from wages. That revenue funds public services the state could not otherwise pay for.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2020, Q1