BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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in countries where individuals and business pay taxes without ommitting them
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beyond the gaze of the tax authorities
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in countries in which there are no taxes or taxes are very low
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only in those countries which are economically succesful
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Detailed explanation-1: -What Is the Black Economy? The black economy is a segment of a country’s economic activity that is derived from sources that fall outside of the country’s rules and regulations regarding commerce. The activities can be either legal or illegal depending on what goods and/or services are involved.
Detailed explanation-2: -The black economy consists of the buying, selling, and producing of goods or services that goes on without the government being informed, so that people can avoid paying tax on them.
Detailed explanation-3: -In India, black money is funds earned on the black market, on which income and other taxes have not been paid. Also, the unaccounted money that is concealed from the tax administrator is called black money. The black money is accumulated by the criminals, smugglers, and tax-evaders.
Detailed explanation-4: -The black economy refers to the country’s economic activity consisting of business dealings, which are outside the formal economy. The business activities carried on in the black economy do not follow the rules and regulations set by the government.