What do new products encourage consumers to do?
Buy more often
Buy less often
Sell more often
Sell less often
An example of a external benefit.
Jobs will be created
Cost of land
Cost of construction
Labour costs
Which one is a pressure group?
SAARC
Greenpeace
WWF
ASEAN
If business damages environment, which of the following could take action to harm the firms’ reputation and sales?
Pressure groups
Court
Political parties
An example of a external cost.
Pollution
An example of a private benefit.
Money made from the sale of products
Other firms may move into the area to provide services to the firm
Important products will be produced to benefit the society
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
An example of a private cost.
Pollution caused by waste products
Health hazards
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
Licenses to pollute up to a certain level.
Penalties
Laws
Pollution permits
