Which of the Following Factors Reduces the Need for Government

question 35

Multiple Choice

Which of the following factors reduces the need for government involvement in the marketplace?

• A) The presence of externalities
• B) The incentive to rent-seek
• C) The need for public goods
• D) Incomplete information

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Definitions:

Angel Capitalism

Investment in start-up companies by wealthy individuals, known as angel investors, who provide capital in exchange for equity or convertible debt.

Venture Capitalism

A form of private equity and financing that investors provide to startup companies and small businesses with long-term growth potential.

Factoring

A financial transaction where businesses sell their accounts receivable to a third party at a discount for immediate cash.

Same-Store Sales

A retail industry metric comparing the revenue earned from established stores in a certain period to the revenue during a similar period in the past.