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The assertion says that tax evasion may increase profit, so it is correct management. The reason says that profit is an organisational objective. Choose the correct option.

Answer and explanation

Correct answer: The assertion is false but the reason is true

The reason is true because profit is a legitimate organisational objective that supports survival, growth, and risk bearing. However, the assertion is false: tax evasion violates tax law and ethical standards, even if it appears to increase short-term profit. A valid objective cannot justify an illegal method. Therefore option A correctly evaluates the assertion and reason.

Related tags

Assertion-ReasonTax EvasionProfitEthical ManagementObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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