Which statement correctly describes the purpose of the Board of Investment act?

Which statement correctly describes the purpose of the Board of Investment act?

• A. It sets standards for foods and drugs
• B. It creates the Board of Investment and provides incentives for investment
• C. It establishes a patent office
• D. It defines unfair competition

Answer: (B)

The main idea being tested is how a Board of Investment act functions in government policy. This act is designed to set up a dedicated agency—the Board of Investment—that is tasked with promoting economic development by attracting and facilitating investment. It also spells out the incentives and tools the board can use to encourage investors, such as streamlined licensing, tax breaks, or import duty exemptions. That combination—creating the investment-promoting body and granting incentives to attract investment—best captures the purpose of the act. It’s not about setting standards for foods and drugs, which is the role of health and safety regulatory bodies. It doesn’t establish a patent office, since patents fall under intellectual property systems, nor does it define unfair competition, which belongs to competition law.

The main idea being tested is how a Board of Investment act functions in government policy. This act is designed to set up a dedicated agency—the Board of Investment—that is tasked with promoting economic development by attracting and facilitating investment. It also spells out the incentives and tools the board can use to encourage investors, such as streamlined licensing, tax breaks, or import duty exemptions. That combination—creating the investment-promoting body and granting incentives to attract investment—best captures the purpose of the act.

It’s not about setting standards for foods and drugs, which is the role of health and safety regulatory bodies. It doesn’t establish a patent office, since patents fall under intellectual property systems, nor does it define unfair competition, which belongs to competition law.