The development of many new businesses helps limit which of the following?

• A. Unemployment
• B. Taxation
• C. Revenue
• D. Risk

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the economic concepts involved. The question asks which economic issue is limited by the development of many new businesses. The options are Unemployment, Taxation, Revenue, and Risk.
2. Step 2: Recall the role of new businesses in the economy. New businesses typically create job opportunities, which can reduce the number of unemployed individuals. This relates directly to the concept of unemployment.
3. Step 3: Analyze each option in relation to new business development: Taxation is related to government revenue and policies, Revenue refers to income for businesses or government, and Risk involves uncertainty in business outcomes. While new businesses may affect these, their primary direct effect is on employment.
4. Step 4: Conclude that the development of many new businesses helps limit Unemployment because they provide more jobs and reduce the number of people without work.
5. Step 5: Summarize that the key economic impact of new business development in this context is the reduction of unemployment, making it the correct answer.