14 Jun 2022


Economic and Tax Advantages of Business Expansion

Format: APA

Academic level: University

Paper type: Essay (Any Type)

Words: 305

Pages: 1

Downloads: 0

The business expansion offers various benefits to the business owners, customers, suppliers, and even government through its agencies and authorities. Business expansions will have economic advantages to the people in the community. For example, the business expansion will create employment opportunities to the people, which will improve the standard of living through the salary and other earnings. The infrastructure within the area of business expansion will be improved to ensure that the movement of people, materials, and finished goods can reach the business destinations and markets without any challenge ( Daude et al., 2017 ). Business expansion will offer a wide tax base for the government, as the tax collected will increase. With the increase in tax base and tax collection, the rate of project developments within the area of business expansion and the entire region will increase. 

Economic and tax implications will have various influences when making decisions whether to expand or not to expand the business. Business expansion will mean that the market for the products offered by an organization will increase and the range of products will increase. Since it will be advantageous to the organization, it will influence the decision to expand. Considering the taxes, business organizations might not be willing to expand their business if the taxes played will be more than the revenue collected from the business ( Daude et al., 2017 ). When the business is focusing on expansion, it considers various factors like the market, infrastructure, and availability of labor. Business expansion will focus on areas with such factors such that its operations will not lead to losses or difficulties in operation. Some business pays lower taxes while other pays higher taxes. Those paying lower taxes will consider expanding their businesses while those paying higher taxes might not consider expanding their businesses. Business expansion will have both tax and economic advantages, which are considered by the responsible individuals and departments before deciding to expand their businesses. 

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay


Daude, C., Gutiérrez, H., & Melguizo, Á. (2017). Doctoring the ball: the political economy of tax incentives for investment in the Dominican Republic. Journal of Economic Studies , 44 (1). 

Cite this page

Select style:


StudyBounty. (2023, September 17). Economic and Tax Advantages of Business Expansion.


Related essays

We post free essay examples for college on a regular basis. Stay in the know!

Texas Roadhouse: The Best Steakhouse in Town

Running Head: TEXAS ROADHOUSE 1 Texas Roadhouse Prospective analysis is often used to determine specific challenges within systems used in operating different organizations. Thereafter, the leadership of that...

Words: 282

Pages: 1

Views: 93

The Benefits of an Accounting Analysis Strategy

Running head: AT & T FINANCE ANALLYSIS 1 AT & T Financial Analysis Accounting Analysis strategy and Disclosure Quality Accounting strategy is brought about by management flexibility where they can use...

Words: 1458

Pages: 6

Views: 81

Employee Benefits: Fringe Benefits

_De Minimis Fringe Benefits _ _Why are De Minimis Fringe Benefits excluded under Internal Revenue Code section 132(a)(4)? _ De minimis fringe benefits are excluded under Internal Revenue Code section 132(a)(4)...

Words: 1748

Pages: 8

Views: 196

Standard Costs and Variance Analysis

As the business firms embark on production, the stakeholders have to plan the cost of offering the services sufficiently. Therefore, firms have to come up with a standard cost and cumulatively a budget, which they...

Words: 1103

Pages: 4

Views: 180

The Best Boat Marinas in the United Kingdom

I. Analyzing Information Needs The types of information that Molly Mackenzie Boat Marina requires in its business operations and decision making include basic customer information, information about the rates,...

Words: 627

Pages: 4

Views: 97

Spies v. United States: The Supreme Court's Landmark Ruling on Espionage

This is a case which dealt with the issue of income tax evasion. The case determined that for income tax evasion to be found to have transpired, one must willfully disregard their duty to pay tax and engage in ways...

Words: 277

Pages: 1

Views: 120


Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.