How can tax laws and rules governing affect entrepreneurs

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Question: A Bend in the River, Nobel Prize winner V. S. Naipaul describes an underdeveloped country in which the government's constantly changing tax policies and vague laws regarding ownership of property cause entrepreneurs to become demoralized and unresponsive to economic opportunities. Could this be a case of idle or unemployed entrepreneurs? How can tax laws and rules governing property affect entrepreneurs' willingness to start new businesses or improve existing enterprises?

Reference no: EM131442835

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