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PRC-3 · Chapter 1 · Question 59 of 61

Why does a national government generally encourage the formation and growth of private businesses in a free-market system?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) Because businesses create employment, serve consumers, and contribute to GDP through taxes

Explanation

Governments act as stakeholders because successful businesses reduce unemployment, satisfy consumer needs, and generate vital tax revenues that fund the state.

All 61 questions in Chapter 1Nature of Business MCQs with answers

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