Operating Within the Environment (Scenario)

question 61

Multiple Choice

Operating Within the Environment (Scenario)
The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organization's environment.
-If the mortgage rate on loans increases, this would be an example of changing ___________ in your general environment.

• A) social conditions
• B) political conditions
• C) economic conditions
• D) competition

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Definitions:

Normal Rates

The standard or average prices, fees, or charges for goods, services, or financial transactions within a specific sector or economy.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Total Revenue

The overall income generated by a firm from its sales activities before any costs or expenses are subtracted.

Normal Return

The minimum profit necessary for a company to remain in business, often equated to covering opportunity costs.