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Terry
0450-18-M-J-11-2d
Chan
TOPIC QUESTION - PAPER 1
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Chan
May 17, 2026 at 7:36:22 AM
May/June 2018
Version 1
6.0 External Influences on Business Activity
6.1 Economic Issues
YOUR ANSWER
High Business Tax Rates: A high business tax rate will reduce the profits for SJD.
Explanation: This may result to lesser profits that can make more of SJD employees redundant.
Cheap imports: Cheap imports reduces demand of SJD steels
Explanation: Customers would prefer buying steels that are imported as they are cheaper. This will reduce SDJ's revenue and market share.
Grade:
6/6
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