Which source of finance could be given to a business to create jobs in areas of high unemployment?
Answer options:
A.
Government grant
B.
Mortgage
C.
Share issue
D.
Trade credit
How to approach this question
The question links a source of finance to a specific social objective: creating jobs in areas of high unemployment. This is a common goal for governments. Therefore, a government grant is the most logical source of finance provided for this purpose.
Full Answer
A.Government grant✓ Correct
The correct answer is A. A government grant is money given by the government to businesses for specific purposes, such as creating jobs in deprived areas. This money does not usually need to be repaid.
A government grant is a sum of money awarded by the government to a business for a specific purpose. These purposes often align with government policy, such as boosting employment in economically deprived regions, encouraging research and development, or promoting environmentally friendly practices. Unlike loans, grants do not typically need to be repaid.
Common mistakes
✗ Choosing a loan-based finance option like a mortgage, which is for property and must be repaid.
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