The third answer is correct (C).
Eventually, the government encourages the development of new firms through the tax incentive to entrepreneurship. Entrepreneurial activity aims to create new products, services and markets through innovative projects that need private or governmental investment to be implemented. Another form of entrepreneurship is the entry of new companies into an existing market, which is also beneficial since it stimulates competition.
Thus, by stimulating entrepreneurship, goveno encourages the development of capitalism and consequently generates economic benefits to society by creating new jobs, increasing the supply of goods and services, and ultimately increasing the country's wealth.