Answer to Question #286936 in Economics of Enterprise for Che²

Question

Enumerate instance when the environment is affected by the production and distributive activities of a firm.what are the positive contributions of the firm in paying the correct amount of taxes due to the government?

Answer 1

Manufacture of textile machinery such as vehicles and electronic equipment involves utilization of chemical substances, electric power, fuel an water. This results in emission of CO2, exhaust gas, and waster water which pollute the environment. Distribution of the finished products by use of trucks and other heavy vehicles, also results in emission of CO2, which further pollutes the environment.

Paying the correct amount of tax, enables the government to provide sufficient funds for environmental guidance following the environmental impact.

Also, the firm may opt to adopt pollution reducing behavior.