Final answer:
E-business fraud risks can never be completely eliminated due to continual advancements in technology and human ingenuity, despite the use of sophisticated technology and government regulations. Governments can foster innovation, but must also consider potential negative externalities such as security risks and economic divides.
Step-by-step explanation:
E-business fraud risks cannot be completely eliminated. While technology helps mitigate some risks, and government regulations can deter fraud, eliminating all risk is not feasible. Businesses operate in a constantly changing environment with new threats emerging regularly. Human ingenuity often outpaces preventive measures, meaning some fraudsters will find ways around protections. Additionally, broad regulations by the government to outlaw every potential malpractice could stifle legitimate business innovation and would be impractical to enforce.
With regard to the role of governments in supporting new technology investments, it is often seen that governments play a significant role in fostering innovation and addressing externalities associated with new technologies. However, the potential downsides like increasing technological divides and heightened security risks make this a complex issue. The balance between encouraging advancements and safeguarding the public interest is delicate and important for the overall growth of society.