A Major Factory Closed in Your Area, Which Caused a Drop

question 24

Multiple Choice

A major factory closed in your area, which caused a drop in the average income for the city. Which type of external force would this be considered in the marketing environment?

• A)legal
• B)sociocultural
• C)technological
• D)political
• E)economic

Develop critical thinking skills to analyze how societal norms influence perceptions of gender and sexuality.

Understand the different theories of motivation and how they relate to pay systems.

Identify and define different types of compensation, including financial and nonfinancial.

Recognize the importance of real wage increases and how they are calculated.

---

Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes a company's overall cost of capital while maximizing its stock price.

Common Share Price

The market value of a single share of a company's common stock.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.