To Use a Market Rationality Means Using the Same Principles

question 23

Multiple Choice

To use a market rationality means using the same principles that guide private business. The main incentive, therefore, is secure profit. In most cases, this securing of profit requires that businesses:

• A) address environmental concerns
• B) respond to the demands of their consumers
• C) obey governmental rules and regulations
• D) stay on top of technological advances

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Definitions:

Financing Activity

Transactions between a business and its financiers, such as issuing stock, paying dividends, or borrowing from lenders, reflecting the flow of cash used to fund the company's operations and expansions.

Manufacturing Equipment

The machinery and tools used in the process of producing goods, often considered a capital expense by companies.

Operating Activities

These refer to the primary revenue-generating activities of a business, such as sales of goods or services, and related expenses.