Why Did the South Fail to Attract Significant Economic Development

question 2

Multiple Choice

Why did the South fail to attract significant economic development in the wake of Reconstruction?

• A) Northern investors stayed away, appalled by southern race relations.
• B) Northerners considered a South without African-Americans in chains too risky for investment.
• C) Investors came to the South for cheap labor and low taxes, so they made few capital investments in the region.
• D) Southern white supremacists tended to scare off northern capital industries.

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Definitions:

Taxable Entity

A taxable entity refers to any individual, business, or organization that is subject to tax by governments.

Business Organization

The structure by which a business is organized and operated, which can range from sole proprietorships to corporations.

Going-Concern Principle

The assumption that a company will continue to operate in the foreseeable future, not planning to liquidate or cease operations.

Asset Values

The worth of a company's assets, determined by factors like cost, depreciation, and market value.