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Question

Which of the following do entrepreneurs do and utilise idly lying resources to make profits?

A
Increase literacy
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B
Capital wastage
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C
Increase wages
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D
Capital formation
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Solution

The correct option is D Capital formation
Entrepreneurs help in capital formation by using the idle resources of the public and setting up enterprises. The savings that are deposited in the banks are used to give loans to the entrepreneurs. The entrepreneurs use this money as capital for their enterprises. This way the resources become productive, and there is development in the market.

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