Question

7 What is the basis for the People's Republic of China's current economic system? Government ownership of all businesses and economic resources Private ownership of all business enterprises Competition between state-run entities and private businesses Congressional planning of industrial output and consumption 8 Why do German companies willingly take a conservative position in calculating income? To minimize tax To keep employees from asking for higher wages To report stable income over time for dividend purposes D. All of the above

Answer 1

7. The correct answer is Option C, i.e. Competition between state-run entities and private business.
Currently, China is running on a Socialist Market Economic system. The system is based on the predominance of public ownership and state-owned enterprises within a market economy.

8. The correct answer is Option D, i.e. All of the above.
The main aim to opt for a conservative position is to reduce the tax burden on the companies so that the operating surplus can be well utilized for the betterment of the company and its upliftment. It includes minimizing the tax, giving higher wages to the employees to keep them motivated, and also to report stable income for dividend purposes.