Paper 1 · government support for small firms
Which of the following is a way the government can assist small firms?
ARequiring small firms to meet higher minimum capital requirements.
BOffering subsidies such as low-cost loans and tax holidays.
CIncreasing tariffs on imports of raw materials used by small firms.
DRemoving small firms' access to market research information.
Explanation: The government supports small firms directly, for example through subsidies like low-cost loans and tax holidays, training workshops, market research assistance and cheap premises. Raising tariffs, imposing higher capital requirements, or withdrawing support services would make it harder, not easier, for small firms to survive.
Derived from ZIMSEC Business_studies Paper 1, November 2019, Q1
