Which of the Following Is an Accurate Statement Regarding the Business

question 78

Multiple Choice

Which of the following is an accurate statement regarding the business aspects of voluntary pollution prevention?

• A) Because of the involuntary nature of actions under the Pollution Prevention Act of 1990, pollution prevention is becoming an important concept in business today.
• B) In recognition of the "harsh realities" of their industry, chemical companies refuse to see waste as avoidable.
• C) There are remarkably few examples of firms that are "jumping" on the pollution prevention "bandwagon."
• D) Dupont, America's largest producer of chemicals, voluntarily cut its greenhouse gas emissions by more than 50 percent from its 1991 levels.

Discuss the concept of weak axiom of profit maximization (WAPM) and its implications.

Understand the distinction between fixed and variable factors in production.

Explain the principles of diminishing returns to scale and their implications on firm's profit.

Recognize profit maximization in different market structures and the role of government interventions.

---

Definitions:

Transactions Balance

The amount of money held to facilitate day-to-day financial transactions, reflecting the liquidity needed for regular expenditures.

Loan Requirement

A set of criteria established by lenders that a borrower must meet to qualify for a loan.

Accruals

The accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Working Capital

Current assets minus current liabilities, indicating the short-term liquidity of a company and its ability to pay off its obligations.