The US Small Business Administration Issues a New Regulation That Will

question 36

Multiple Choice

The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except

• A) measure the cost that the rule will impose on small businesses.
• B) consider less burdensome alternatives.
• C) conduct a regulatory flexibility analysis.
• D) adjust the rule to the satisfaction of the regulated businesses.

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Definitions:

Tolerance for Risk

The degree to which an individual or organization can withstand risk, particularly in investment, without experiencing adverse effects.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize, monitor, and control the probability or impact of undesirable events.

Command Systems

Economic systems where decisions about production, investment, and distribution are regulated by a central authority or government rather than market forces.

Consumer Sovereignty

The principle that consumer preferences and choices dictate the production and sale of goods and services in an economy.