Free Practice Question
CR · Critical Reasoning
655-705
Complete the Passage
Legislator: Recently, the state's artisan guild proposed a plan to allow small (as defined by law) craft shops to deduct the cost of unsold products from their tax liability. The guild's spokesperson emphasized that, since smaller businesses have limited funds for purchasing materials, the proposed measure would help those smaller artisans remain competitive with their larger counterparts. Nevertheless, in practical terms, fair enforcement of the plan would be infeasible, because ________.
Answer Choices
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(A) several new state employees would have to be hired to audit the new deductions
B
(B) it is not possible to distinguish unsold products from the shop owners' personal items
C
(C) shops would have to repay the deducted amount of tax if they sold the products in question at a later date
D
(D) the threshold of revenue below which a business legally qualifies as 'small' was set by the state legislature in response to a different proposal
E
(E) small businesses are less likely than their larger counterparts to have sophisticated inventory management systems
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S
SanjanaMar 21, 2025
thanks
Details
Difficulty
655-705
Type
CR