When is a scheme likely to be accepted in cost benefit analysis?
When the social benefits is greater than the social costs
When the social benefits is less than the social costs
When the social benefits is equal to the social costs
None of the above
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
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
In cost benefit analysis, when will the government probably refuse permission for a project?
Which of the following is not a disadvantage of new technology?
New machines expensive
Research and development expensive
Staff retraining expensive
Make new products more competitive
What does new products encourage consumers to do?
Buy more often
Buy less often
Sell more often
Sell less often
If business damages environment, which of the following could take action to harm the firms’ reputation and sales?
Pressure groups
Court
Political parties
Something that limits or controls the actions or decisions of a business.
Cost
Benefit
Constraint
Restraint
Which one is an argument in favour of social responsibility of business?
Governments should pay to clean it up.
Protecting the environment is too expensive and reduces profits.
Increased prices mean increased costs.
Using up scarce resources leaves less for future generations and raise prices.
