Question

1. mc

why do businesses borrow financial capital?
to avoid investing
to buy equipment, expand production, and hire employees
to reduce their profits
to limit economic growth

Explanation:

Businesses borrow financial capital to fund operations and growth. "To avoid investing" is illogical as borrowing often supports investment. "To reduce their profits" is wrong since borrowing aims to increase profits. "To limit economic growth" contradicts business goals. Borrowing is used for activities like buying equipment, expanding production, and hiring employees to grow the business.

Answer:

B. To buy equipment, expand production, and hire employees