Greg Benefited from His Experience Working for an Established Private

question 262

Multiple Choice

Greg benefited from his experience working for an established private company that provided innovative lighting for large music venues. Although confident that he could start his own lighting business, he had limited capital to buy the necessary equipment needed to successfully compete with established companies. Which of the following strategies would best help Greg achieve his goal of business ownership?

• A) Begin by offering to take over management of his employer's business, allowing the owner to enjoy some leisure time
• B) Consider working for a major corporation, live modestly, and save until he has sufficient funds to start his business
• C) Enroll in the closest university and apply for student loans
• D) Open his business and trust that his work experience will bring him success even with insufficient capital

---

Definitions:

Corrective Tax

A tax designed to encourage or discourage certain behaviors or activities by including the cost of externalities, aimed at correcting market outcomes to reflect social costs or benefits.

Supply Curve

A graphical representation showing the relationship between the quantity of a good supplied and its price.

Pollution Rights

Tradable permits or licenses that allow the holder to emit a certain amount of pollution; used as an economic tool for controlling and reducing environmental degradation.

Pollution Permits

Allowances issued by governments that give companies the right to emit a certain amount of pollutants, intended to reduce overall pollution by market mechanisms.