Define cost benefit analysis.
The financial gains made by a business as a result of a business decision
The provision of a product or a service to satisfy consumer wants and needs
The income to a business during a period of time from the sale of goods or services
The valuation by a government agency of all external and private costs and benefits resulting from a business decision
Why might a firm NOT respond to pressure group activity?
Well organized and funded
The cost to the business of changing its methods is more than the possible cost of poor image and lost sales
They have public support and in the media
Consumer boycotts cause reduced sales
The costs paid by the rest of society, other than the business, as a result of a business decision.
External cost
Private cost
Social cost
Total cost
An example of a private cost.
Cost of land
Pollution caused by waste products
Health hazards
Money made from the sale of products
Which one is a pressure group?
SAARC
Greenpeace
WWF
ASEAN
What do new products encourage consumers to do?
Buy more often
Buy less often
Sell more often
Sell less often
Which of the following is NOT a disadvantage of new technology?
New machines are expensive
Research and development expensive
Staff retraining expensive
Make new products more competitive
An example of a external cost.
Cost of construction
Labour costs
Pollution
What is an advantage of technological change?
Workers will require training
New products encourage consumers to buy
Expensive to buy and introduced with no certainty that it will succeed
Customers still prefer personal contact
Licenses to pollute up to a certain level.
Penalties
Laws
Pollution permits
Pressure groups
