Which best describes the role that government and business play in investments? a. they both use taxes to support a country’s growth. b. they both invest money to earn a profit. c. they both receive capital to use for growth. d. they both act as angel investors for start-ups.

They both receive capital to use for growth

Explanation:

The government invests in the economy to boost its growth, and the main source of revenue for the government is the taxes. The business invests to earn higher profits. Both governments and businesses receive capital to use for growth. On one hand, the government receives capital to invest in public infrastructure, education, and health services to boost the economic growth of the country. On the other hand, the business invests or raises capital to earn profits. We have ruled out option A because the business pays the taxes for carrying out their business activity. These taxes not the investments made by the business. The taxes are paid out.

The correct option is they both receive capital to use for growth.

Further Explanation:

The government made policies so that the economy of the country will boost regularly. The source of the revenue for the government is taxes. On the other hand, businesses invest so that they earn profit. They both (Government and Business) use capital for the growth of the country. Government invests in education, health, infrastructure, agriculture, roads and other public services for the growth of economy of the country. On the other hand, business invests in same fields as government to make money. The option (a) is incorrect since only government use the taxation system in the investment. The option(b) is also incorrect as government is not always earn profit in the investment. Many times they made investment for the welfare of their people. The option (d) is also correct since they both not act as angle investors for start-ups.

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Answer details:

Keywords:

Investments, government, business, best describes, role, taxes, support, country, earn profit, capital, growth, angle investors, start-ups