The "Spotlight on Small Business" box in Chapter 2 is titled, "The Key to Capitalism is Capital." Which of the following statements best describes the message of this story?
A)This box explains that the only important factor of production for most businesses is capital.
B)This story explains that loans for large capital investments come with sizeable interest rates, but usually produce better results.
C)Corruption has prevented good will institutions from making large capital investments in developing countries.
D)Micro-lending has proven to lift impoverished entrepreneurs to a better standard of living.

Question

Quizplus · Accepted Answer

The story in the "Spotlight on Small Business" box discusses how micro-lending has helped impoverished entrepreneurs access capital and improve their standard of living. It emphasizes the importance of capital for small businesses but also highlights the challenges they face in obtaining it. Option A and B are incorrect as the story does not suggest that capital is the only important factor of production, nor does it make a comparison between large and small capital investments. Option C is incorrect as corruption is not the focus of the story.

The "Spotlight on Small Business" Box in Chapter 2 Is