Multiple choice

Which two stakeholders might have a conflict if a VAT is increased?

  1. Owners and Employees

  2. Owners and Government

  3. Owners and Local Community

  4. Employees and Customers
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An increase in Value Added Tax (VAT) is decided by the government, which can increase prices for customers and reduce sales and profits for business owners. This creates a direct conflict of interest between the owners (who want to maximize profit) and the government (which wants to raise tax revenue).

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