PrepTest 84, Section 3, Question 21
Finance minister: The World Bank's �Doing Business� report ranks countries in terms of ease of doing business in them. In producing the rankings, the World Bank assesses how difficult it is for a hypothetical business to comply with regulations and pay taxes. Since the last �Doing Business� report came out, our government has dramatically simplified tax filing for small and even midsized businesses. So our �Doing Business� ranking will probably improve.
Finance minister: The World Bank's �Doing Business� report ranks countries in terms of ease of doing business in them. In producing the rankings, the World Bank assesses how difficult it is for a hypothetical business to comply with regulations and pay taxes. Since the last �Doing Business� report came out, our government has dramatically simplified tax filing for small and even midsized businesses. So our �Doing Business� ranking will probably improve.
Finance minister: The World Bank's �Doing Business� report ranks countries in terms of ease of doing business in them. In producing the rankings, the World Bank assesses how difficult it is for a hypothetical business to comply with regulations and pay taxes. Since the last �Doing Business� report came out, our government has dramatically simplified tax filing for small and even midsized businesses. So our �Doing Business� ranking will probably improve.
Finance minister: The World Bank's �Doing Business� report ranks countries in terms of ease of doing business in them. In producing the rankings, the World Bank assesses how difficult it is for a hypothetical business to comply with regulations and pay taxes. Since the last �Doing Business� report came out, our government has dramatically simplified tax filing for small and even midsized businesses. So our �Doing Business� ranking will probably improve.
The answer to which one of the following questions would most help in evaluating the finance minister's argument?
If the finance minister's country made it easier for small businesses to comply with regulations, would the rate at which new businesses are formed increase?
Has compliance with tax laws by small and midsized businesses increased since tax filing was simplified?
For small and midsized businesses in the finance minister's country, is tax preparation and filing more difficult than complying with other regulations?
Is what the finance minister considers to be a midsized business smaller than the hypothetical business used to produce the �Doing Business� report?
Was the finance minister in office when the last �Doing Business� report was issued?
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