Tom and His Managers Are Discussing the Unemployment,inflation,and Interest Rate

question 34

Multiple Choice

Tom and his managers are discussing the unemployment,inflation,and interest rate trends that might affect his chain of coffee shops over the next 12 months and the projected growth in the areas where his stores are located.The managers are studying the ______ forces in their organization's general environment.

• A)technological
• B)socio-cultural
• C)political
• D)economic
• E)international

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Definitions:

Business Risk

The potential for losses or less-than-expected returns stemming from the operations or environment of a particular company or industry.

Firm's Owners

Individuals or entities that hold ownership rights in a company, gaining profits and bearing losses from its operation.

Investors

Investors are individuals or entities that allocate capital with the expectation of receiving a financial return, often through the purchase of stocks, bonds, or real estate.

Trade-off

The concept of sacrificing one good or service to purchase or produce another.