Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To increase future benefits
B
To reduce current expenses
C
To avoid government regulations
D
To hire more employees
Understanding the Answer
Let's break down why this is correct
Answer
Businesses invest in long-term projects mainly to ensure future growth and stability. These projects, like building new factories or developing new products, often require a lot of money and time upfront but can lead to greater profits over many years. For example, if a company invests in renewable energy sources, it may spend a significant amount initially, but in the long run, it can save on energy costs and attract environmentally-conscious customers. Additionally, successful long-term projects can strengthen a company's position in the market and create jobs, which benefits the economy. Overall, the goal is to create sustainable value that will pay off well into the future.
Detailed Explanation
Businesses invest in long-term projects to gain more benefits in the future. Other options are incorrect because Some might think that investing in long-term projects helps save money now; It's a common belief that businesses invest to avoid rules from the government.
Key Concepts
future benefits
Topic
Investment and Long-Run Supply
Difficulty
easy level question
Cognitive Level
understand
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