Which best describes the role that government and business play in investments?

they both use taxes to support a country’s growth.
they both receive capital to use for growth.
they both act as angel investors for start-ups.

Answer;

They both invest money to earn a profit.

Explanation;

Government policies and investments are a pervasive, important, and often positive influence on the business environment and economic development of any industrialized nation.

The amount and nature of government investments in physical infrastructure and human capital. The legal environment of operating a business encompassing, among other issues, the protection of intellectual property rights and the handling of liability claims.

Governments and businesses invest money to earn a profit. An investment makes money in one of two ways: By paying out income, or by increasing in value to other investors.

The role of business and government in investment is that they both receive capital to use for growth.

Further Explanation:

The government invests in the economy in order to boost its growth, and the main source of revenue for the government is the taxes. The business makes the investment to earn higher profits.

Justification for the correct and incorrect

They both use taxes to support a country’s growth: This option is incorrect.

The taxes are the major source of revenue for the government, and the tax collected are used to boost the country’s economic growth. The taxes are paid by the business for carrying on the business activity and are not the investment made by the business.

They both receive capital to use for growth: This option is correct.  

The Government receives capital to invest in public infrastructure, education, and health services to boost the economic growth of the country. The business makes an investment or raises capital in order to earn a profit.

They both act as angel investors for start-ups: This option is incorrect.

The government implements policies to encourage entrepreneurship in the country but business acts as an angel investor for the startup by providing the capital.

Therefore, the role business and government play in investment is that they receive capital to use for their growth.

Learn more:

1. Learn more about the ideal type of loan for students

2. Learn more about loaning the money

3. Learn more about the mortgage payment

Answer details:

Grade: High School

Subject: Economics

Chapter: Role in investment

Keywords: the role that government and business play in investments, they both use taxes to support a country’s growth, they both receive capital to use for growth, they both act as angel investors for start-ups.

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