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Which of the Following Statements Best Reflects the Approach State

Question 280

Multiple Choice

Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses?


A) State and local governments often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid.
B) State and local governments try to avoid competition with other areas, because such competition usually backfires and creates ill will.
C) State and local governments no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results.
D) State and local governments work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area.

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