How are profits handled in communist systems? Multiple Choice Profits earned by small businesses may be reinvested in the business. Individuals are free to keep profits after paying taxes. Businesses are free to keep profits after paying taxes. Excess income goes to the government. Only profits from government-owned industries go to the government.
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Communist systems are characterized by collective ownership of the means of production and the distribution of resources according to the needs of the people. The state typically plays a central role in managing the economy. Show more…
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