When a Business Affects the Life of a Member of the Surrounding

question 8

Multiple Choice

When a business affects the life of a member of the surrounding community without meaning to, the company has wielded

• A) coercive power.
• B) deliberate power.
• C) hidden power.
• D) unintentional power.

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Definitions:

State And Local Governments

The subdivisions of the federal government with their own specific powers and responsibilities, managing local affairs and providing public services.

Higher Interest Rate

An increased cost of borrowing money reflected in the percentage charged on the principal amount by lenders to borrowers.

Financially Shaky Corporations

Companies that are experiencing financial instability or distress, potentially leading to increased risk for investors and creditors.

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, facilitating the flow of funds in the financial system, such as banks and investment companies.