Forces That Occur Outside of the Business That Affect the Business

question 31

Multiple Choice

Forces that occur outside of the business that affect the business and its owner are referred to as

• A) Financial factors
• B) Controlled factors
• C) Environmental factors
• D) Internal factors

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Definitions:

MRC

Marginal Revenue Cost, often used interchangeably with Marginal Cost, refers to the increase in cost associated with producing one additional unit of output.

Profitable

The condition of earning more revenue than the costs incurred, leading to a financial gain or profit for the individual or organization.

Innovation

The first commercially successful introduction of a new product, use of a new method of production, or creation of a new form of business organization.

Invention

The conception of a new product or process combined with the first proof that it will work.