Several years ago,the government of the small nation of Allegro owned the nation's telephone company and landlines.This relatively poor government relied on taxes to develop this industry and provide service to its citizens.If the government desired to rapidly improve people's access to phone service,its best course of action would involve selling the telephone company to private investors.
Government can actively promote entrepreneurship by encouraging private ownership of businesses.If the government owns the businesses there is little incentive for people to work hard to create profits.

Question

Quizplus · Accepted Answer

Private ownership provides individuals with the incentive to work hard and maximize profits, which in turn can promote entrepreneurship and economic growth. When the government owns businesses, there is less motivation for individuals to take risks and innovate since they may not be able to reap the benefits of their hard work.

Several Years Ago,the Government of the Small Nation of Allegro