Which factor is likely to result from higher taxes on a business?

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Higher taxes on a business generally lead to a decrease in profits available for reinvestment, which can create several economic pressures on the organization. As the company faces the increased financial burden of taxes, it may need to pass some of these costs onto consumers, often resulting in higher prices for its products or services. This can discourage spending among consumers, leading to lower sales overall.

While businesses may try to mitigate the effects of taxation through various strategies, such as increasing productivity or enhancing marketing efforts, the immediate consequence of higher taxes is typically a decrease in available capital, which directly impacts the company's ability to generate sales. Thus, the correct choice reflects this relationship between taxation and sales performance.

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