One major reason businesses seek investment is to Option B. boost their productivity by improving their inputs.
Investment can provide businesses with the capital needed to acquire new machinery and equipment, improve their production processes, and hire skilled workers. By investing in these areas, businesses can increase their efficiency and productivity, which can ultimately lead to increased profits.
Investment can also help businesses to expand their operations, enter new markets, and develop new products. These activities require significant amounts of capital, which may not be available from the company's own resources. Seeking investment from external sources such as venture capitalists, angel investors, or through public stock offerings can provide businesses with the funding they need to pursue these growth opportunities.
Additionally, seeking investment can help businesses to reduce their reliance on debt financing, which can be costly and risky. By raising capital through equity financing, businesses can avoid taking on additional debt, which can improve their creditworthiness and reduce their financial risk.
In summary, businesses seek investment to boost their productivity, expand their operations, develop new products, and reduce their reliance on debt financing. Investment can provide the capital needed to acquire new machinery and equipment, improve production processes, and hire skilled workers, which can ultimately lead to increased profits and long-term growth. Therefore, Option B is Correct.
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One major reason businesses seek investment is to:
A. increase the opportunity cost of making new products.
B. boost their productivity by improving their inputs.
C. give them the ability to ignore production possibilities curves.
D. reduce their need for consistent financial growth.
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