Which of the following is an example of an external cost of business activity?
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C) Air pollution from factory emissions Air pollution from factory emissions is an external cost because it imposes a negative impact on the environment and society, which is not borne by the business itself.
What is the concept of sustainable development in business?
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B) Meeting the needs of the present without compromising the ability of future generations to meet their own needs Sustainable development in business involves balancing economic growth with environmental and social responsibility, ensuring that resources are used efficiently and responsibly for future generations.
How might a business respond to pressure from environmental groups?
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B) Implementing eco-friendly practices and reducing waste Businesses might respond to pressure from environmental groups by adopting more sustainable practices, such as reducing waste, using renewable energy sources, and improving energy efficiency.
Which of the following is an example of an ethical issue a business might face?
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B) Paying fair wages to suppliers in developing countries Paying fair wages to suppliers in developing countries is an ethical issue because it involves balancing the need for profitability with the responsibility to treat workers fairly and ethically.
What is the role of legal controls over business activity affecting the environment?
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B) To regulate and limit the negative environmental impacts of business activities Legal controls over business activity affecting the environment are designed to ensure that businesses operate in a manner that minimises harm to the environment and promotes sustainability.
Which of the following is an example of a conflict between profits and ethics?
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B) Using child labour to reduce production costs Using child labour to reduce production costs is an example of a conflict between profits and ethics, as it involves exploiting vulnerable workers for financial gain, which is unethical.
How might a business react to ethical issues such as child labour?
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B) Implementing strict supplier codes of conduct and monitoring compliance Businesses might react to ethical issues such as child labour by implementing strict codes of conduct for suppliers, ensuring that they adhere to ethical labour practices and monitoring compliance.
Which of the following is an example of an external benefit of business activity?
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B) Job creation and economic growth Job creation and economic growth are examples of external benefits of business activity, as they positively impact society and the economy beyond the immediate scope of the business.
What is the concept of externalities in business?
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B) The indirect costs and benefits of business activities that affect third parties Externalities in business refer to the indirect costs and benefits of business activities that affect third parties, such as the environment or society, which are not reflected in the market price of goods and services.
How can business activity contribute to sustainable development?
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B) By using resources efficiently and responsibly, and minimising environmental impact Business activity can contribute to sustainable development by using resources efficiently and responsibly, minimising environmental impact, and ensuring that economic growth does not compromise the ability of future generations to meet their own needs.
Which of the following is an example of a business responding to environmental pressures?
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B) Implementing a recycling program to reduce waste Implementing a recycling program to reduce waste is an example of a business responding to environmental pressures by adopting more sustainable practices.
What is the impact of business activity on global warming?
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B) It contributes to global warming through greenhouse gas emissions Business activity can contribute to global warming through the emission of greenhouse gases, such as carbon dioxide, which trap heat in the atmosphere and lead to climate change.
Which of the following is an example of a business facing an ethical dilemma?
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B) Deciding whether to use child labour to reduce costs Deciding whether to use child labour to reduce costs is an example of a business facing an ethical dilemma, as it involves balancing the need for profitability with the responsibility to treat workers fairly and ethically.
How might a business respond to ethical issues such as paying fair prices to suppliers?
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B) Implementing fair trade practices and ensuring suppliers are paid fair prices Businesses might respond to ethical issues such as paying fair prices to suppliers by implementing fair trade practices, ensuring that suppliers are paid fair prices, and promoting ethical sourcing.
Which of the following is an example of a legal control over business activity affecting the environment?
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B) Imposing fines on businesses that violate environmental laws Imposing fines on businesses that violate environmental laws is an example of a legal control over business activity affecting the environment, designed to ensure that businesses operate in a manner that minimises harm to the environment.