Question

Entrepreneurs have to consider a variety of factors when starting a business. If the government were to reduce the tax rate on capital spending, how might this influence entrepreneurial spending?
A. Entrepreneurs would be less likely to risk starting a new business fearing tax hikes in other sectors.

B. Entrepreneurs would view the tax as a variable cost and hold off on further spending and investment.

C. Entrepreneurs would have more incentive to increase spending on acquiring new property.

D. Entrepreneurs would have more incentive to invest in new business, as some of their expenses would be cheaper.

Answer 1

Answer:

D.

Explanation:

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