DECA+ Business Management and Administration Practice Exam

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Boost your business management skills with the DECA+ Business Management and Administration Exam. Practice with interactive questions, hints, and detailed explanations. Ace your exam today!

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In a communist command economy, who provides capital for business investment?

Private investors
The government
Nonprofit organizations
International corporations

The correct answer is: The government

In a communist command economy, the government is responsible for providing capital for business investment. This economic system is characterized by centralized planning and state ownership of the means of production. In such a system, the government allocates resources, including financial capital, to various sectors and businesses according to its economic goals and plans. This approach contrasts sharply with market economies, where private investors fund businesses based on market demand and potential profitability. The absence of private investment in a command economy underscores the government's dominant role in economic decision-making and resource distribution.