Ethical Growth and Its Implications

What is one way a business can respect the local environment and wildlife as it grows?

• By building factories without considering the local ecosystem

• By ensuring new factories do not harm local ecosystems and making buildings eco-friendly

• By ignoring local wildlife and focusing solely on profit

• By using non-renewable resources extensively

Answer explanation

The correct choice emphasizes the importance of building factories in a way that protects local ecosystems and incorporates eco-friendly practices, which is essential for respecting the environment and wildlife as a business grows.

Why is it important for a business to be aware of local people when expanding?

• To increase noise levels and pollution

• To prevent conflicts with residents and avoid potential fines or legal issues

• To disregard the well-being of the local community

• To solely focus on increasing profits

Answer explanation

Being aware of local people helps businesses prevent conflicts with residents, which can lead to fines or legal issues. Understanding community needs fosters positive relationships and supports sustainable growth.

How can fair pricing and ethical sourcing benefit a business?

• By attracting customers who support ethical businesses

• By increasing negative publicity

• By leading to potential boycotts

• By reducing customer loyalty

Answer explanation

Fair pricing and ethical sourcing attract customers who prioritize supporting businesses that align with their values, leading to increased customer loyalty and positive brand reputation.

What is a benefit of providing a safe working environment for employees?

• Increased employee turnover

• Reduced employee satisfaction

• Improved employee satisfaction and productivity

• Higher costs associated with hiring new staff

Answer explanation

Providing a safe working environment leads to improved employee satisfaction and productivity, as employees feel valued and secure, which enhances their overall performance and commitment to the organization.

Why should a business ensure disability access in its facilities?

• To exclude people with disabilities

• To promote inclusivity and equal opportunities

• To avoid expanding the customer base

• To ignore legal requirements

Answer explanation

Ensuring disability access promotes inclusivity and equal opportunities, allowing all individuals, regardless of ability, to participate fully in society and benefit from the services offered by the business.

What is the ethical implication of providing more employment opportunities as a business grows?

• Increased local unemployment

• Reduced employee morale

• Boosted employee morale and loyalty

• Decreased workforce motivation

Answer explanation

Providing more employment opportunities can lead to boosted employee morale and loyalty, as workers feel valued and secure in their jobs, fostering a positive work environment and commitment to the company.

How can increased profits be ethically used by a business?

• By reducing employee wages

• By raising employee wages

• By ignoring employee satisfaction

• By increasing turnover costs

Answer explanation

Increased profits can be ethically used by raising employee wages, which enhances morale, productivity, and loyalty. This approach fosters a positive work environment, benefiting both employees and the business.

What is a potential negative impact of a business's growth on smaller businesses?

• Increased support for local enterprises

• Decreased competition

• Potential closure of smaller businesses

• Enhanced market diversity

Answer explanation

A potential negative impact of a business's growth on smaller businesses is the potential closure of smaller businesses. Larger businesses can dominate the market, making it difficult for smaller ones to compete effectively.

How can a business's growth positively impact the community?

• By reducing tax contributions

• By sponsoring local charitable events

• By ignoring community needs

• By focusing solely on profit

Answer explanation

A business's growth can positively impact the community by sponsoring local charitable events, which supports social causes and enhances community well-being, fostering a positive relationship between the business and its surroundings.

What is a negative impact of increased market share leading to monopoly power?

• More choice for customers

• Lower prices due to competition

• Small business closure and less choice for customers

• Enhanced competition

Answer explanation

Increased market share can lead to monopoly power, resulting in small business closures. This reduces competition and ultimately leads to less choice for customers, as fewer options are available in the market.