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

question 5

Multiple Choice

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

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

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Present Value

The contemporary valuation of a future amount of money or cash flow sequence, based on an identified rate of return.

Corporate Profits Tax

A tax imposed by governments on the income of corporations, differentiating from personal income taxes.

Ceteris Paribus

A Latin phrase that means "all other things being equal," used in economics to isolate the effect of one variable changes while holding others constant.