Which Two of the Following Industry-Level and Business Environment Factors

question 97

Multiple Choice

Which two of the following industry-level and business environment factors present higher inherent risks? (choose two options)

• A)A new industry with little or no government support
• B)Heavily regulated industry with special taxes and unique regulations
• C)Demand is not seasonal which provides steady revenue flow
• D)Industry minimally affected by trends

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Definitions:

Say's Law

An economic theory proposing that supply creates its own demand, meaning production inherently creates the means to purchase other goods.

Keynesian Theory

Keynesian Theory is an economic theory stating that government intervention through fiscal and monetary policy is necessary to manage aggregate demand and address economic cycles.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and monetary policies.

Expected Rate Of Profit

The anticipated return on an investment, taking into account the risk and time value of money.