Question

Ali is working with a company that makes custom-designed shoes for its customers. The customers have accepted the product concept, but Ali finds that his company is unable to proceed because of a lack of funds. His company has decided to obtain a low-cost loan from a government bank to boost the business. Which functional role of the government will help Ali’s company through this process?

Answer 1

economic role (managing economic conditions)

Step-by-step explanation:

Since Ali's company is a startup (products are at concept level), it needs funding to successfully start operating. Government loans are a good, financially-effective option for startups and SMEs, since it is a government function to effectively manage the conditions of the economy. It is reasonable that it is tough for a new business to succeed in the free market, so government aid is good way to pave the way to success.