Cities and states constantly offer tax incentives to entice businesses

QUESTION

Cities and states constantly offer tax incentives to entice businesses to relocate or build facilities in their region. What forces are working here to influence the business environment?

A) economic
B) technological
C) competitive
D) global
E) social

ANSWER

Answer: A
Explanation: A) Business tax rates are economic forces because they impact potential investment and profit for a business.