Businesses Fail Because

question 28

Multiple Choice

Businesses fail because:

• A) they follow the principle of consumer sovereignty too closely.
• B) the invisible hand determines that they are not producing something that is socially valuable.
• C) they earn excessive profits.
• D) entrepreneurship is present.

Understand the historical average annual compound return for stocks and the impact of inflation on these returns.

Recognize the role of the stock market in channeling individual savings into wealth-creating activities and the historical comparison between stocks and bonds returns.

Grasp the concept of risk and return in stock ownership, including the variability of returns and the rationale behind the higher average returns of stocks compared to bonds.

Identify the key characteristics of stocks and bonds, including their risk profiles and returns.

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Definitions:

Retention Tool

Strategies or practices employed by organizations to keep valuable employees and reduce turnover.

Productivity Measurement

The evaluation of the efficiency of a worker, machine, or system in converting inputs into useful outputs.

Evaluation System

A formal process used to assess the performance, effectiveness, or value of individuals, projects, or programs.

ProMES

A performance management system that focuses on measuring and improving job performance through specific goals and feedback.