Government bailouts of failing businesses, like banks during the recent economic crisis, will tend to reduce the motivation among entrepreneurs to make prudent decisions is dealing with business risk.

1. True

2. False.

Question

Jan Chen

Business

1 August, 14:43

Government bailouts of failing businesses, like banks during the recent economic crisis, will tend to reduce the motivation among entrepreneurs to make prudent decisions is dealing with business risk.

1. True

2. False.

+5

Answers (1)

Know the Answer?

Blossom · Answer 1

True

Explanation:

Government bailouts are a good way to stabilise economy. But on the flip side when bailouts become a normal trend when businesses are failing, entrepreneurs will be less motivated to make prudent decisions when concerning business risk.

Entrepreneurs should take business decisions related to risk serious as this will easily lead to business failure. But when they have a safety net believing the government will bail them out, they are more relaxed on dealing with business risk.

Government bailouts of failing businesses, like banks during the recent economic crisis, will tend to reduce the motivation among entrepreneurs to make prudent decisions is dealing with business risk.1. True2. False.

Government bailouts of failing businesses, like banks during the recent economic crisis, will tend to reduce the motivation among entrepreneurs to make prudent decisions is dealing with business risk.

1. True

2. False.