A key difference between incentives for government and for business is: a busine

Question

A key difference between incentives for government and for business is: a business has a credit rating while a government does not. government must elect its leaders while a publicly traded business does not elect its board members. government can run a budget deficit while a business cannot. government need not hire its employees from the labor market while a business must. a business must make a profit to survive while a government need not. A key difference between incentives for government and for business is: a business has a credit rating while a government does not. government must elect its leaders while a publicly traded business does not elect its board members. government can run a budget deficit while a business cannot. government need not hire its employees from the labor market while a business must. a business must make a profit to survive while a government need not.

Explanation / Answer

Option 5. a business must make a profit to survive while a government need not.

Explanation: Businesses are there to make profits. A business cannot sustain without making profits. On the other hand, the government does not have any such compulsion.

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