Which of the following are the type of activities that conserve the environment or do not deplete scarce resources?
Enviornmentally friendly
Social friendly
Customer friendly
None of the above
If business damages enviornment, who could take action to harm the firm's reputation and sales?
Pressure groups
Court
Political parties
Assertion (A): National wealth affects the economic growth of a country.
Reason (R): The wealth of a nation lies in its natural resources and other productive assets.
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not a correct explanation of A.
A is true but R is false
A is false but R is true
The nations of the world are increasingly considering economic growth in terms of its.
Prosperity
Sustainability
Efficiency
Profitability
There are different ways of trying to put a money value on environmental impacts. The method that uses the actual costs faced by people and firms is called:
Contingency valuation
Financial costs
Cost-benefit analysis
Revealed preference
Assertion (A): Businesses must change how they operate to minimise their costs and avoid legal action.
Reason (R): There is a danger that their current products, or methods of production and distribution will have a negative impact on people outside the business.
Which type of growth provides lasting benefit for a nation?
Sustainable
Balanced
Rapid
Slow
Which of the following are 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
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 the media.
Consumer boycotts cause reduced sales.
