Chapter-25

Question 1

How can overuse of a country’s natural resources negatively affect the environment?

Answer 1

Overuse of resources like water for swimming pools, hotels, and golf courses can lead to resource depletion and environmental damage.

Question 2

What is a negative environmental effect of increased tourism?

Answer 2

It can cause more pollution through littering, noise, and air pollution.

Question 3

How can tourism reduce harmful activities like overfishing?

Answer 3

Employment generated through tourism can offer alternative income sources, reducing dependence on activities harmful to the environment.

Question 4

What is a negative impact of construction due to tourism development?

Answer 4

Construction can lead to soil erosion and loss of natural habitats for animals.

Question 5

How does tourism benefit local construction businesses?

Answer 5

It creates additional work opportunities for local construction firms through increased demand for infrastructure.

Question 6

In what ways can business activity affect people and the environment?

Answer 6

i) Pollution

ii) Waste

iii) Emission of greenhouse gases

iv) Use of energy

v) Use of natural resources

Question 7

How can business activity cause air pollution?

Answer 7

Business activity can cause air pollution through fumes released from manufacturing units and exhaust emissions from vehicles. This can lead to respiratory disorders in humans and harm plants and animals. Corrosive chemicals in the air can also damage buildings.

Question 8

How does business activity contribute to land pollution?

Answer 8

Land pollution is caused when waste that cannot be recycled ends up in landfills. Harmful and sometimes nuclear waste from factories can also end up in landfills, where it can take a long time to decompose and remain toxic, affecting the environment.

Question 9

What is thermal pollution and how does it affect the environment?

Answer 9

Thermal pollution occurs when exhaust fumes trap heat in the air, increasing air temperatures. Water used as coolant in factories is returned to the environment at a higher temperature, which can damage local plant and animal life.

Question 10

How does light pollution affect the environment?

Answer 10

Light pollution, caused by over-illumination and electronic billboards, can interfere with ecosystems and disrupt astronomical observations, negatively impacting both wildlife and human activities.

Question 11

What causes water pollution in business activities?

Answer 11

Water pollution results from improper waste disposal and the release of toxic chemical waste from factories into water bodies. This can harm plant and animal life in the water and be hazardous to humans if consumed.

Question 12

How does visual pollution affect the environment?

Answer 12

Visual pollution is caused by unattractive elements, such as power lines and overcrowded areas, which can prevent people from enjoying natural landscapes and disrupt the aesthetic value of the environment.

Question 13

What is noise pollution and how does it affect people?

Answer 13

Noise pollution is caused by sounds from manufacturing plants, cars, and airplanes. It can be an irritant, reducing the quality of life for people living near noisy environments.

Question 14

What is an externality in the context of business activities?

Answer 14

An externality is the effect of business activities on unrelated parties.

Question 15

What is social cost?

Answer 15

Social cost refers to the negative impact of a business decision on society.

Question 16

What is social benefit?

Answer 16

Social benefit is the positive impact of a business decision on society.

Question 17

What is cost-benefit analysis?

Answer 17

Cost-benefit analysis is the analysis of the costs and benefits of a project, focusing on the social costs and benefits.

Question 18

How can a business achieve sustainability?

Answer 18

i) Use renewable sources of energy

ii) Promote a work-from-home policy to avoid unnecessary travel

iii) Reduce the use of chemicals that produce toxic waste

iv) Use packaging made of recycled materials

v) Use packaging that can be recycled or reused

vi) Implement energy-efficient processes and equipment

vii) Reduce waste or find markets for it as a raw material

viii) Work fairly with employees, customers, and suppliers.

Question 19

What is sustainable development in the context of business activity?

Answer 19

Activities that have a positive overall impact on the environment and stakeholders, ensuring the business’s survival and success in the future.

Question 20

How can a business contribute to sustainable development through environmental practices?

Answer 20

A business can contribute to sustainable development by conserving natural resources, protecting forests and habitats for endangered animals and plants, using renewable energy sources like solar and wind power, and reducing greenhouse gas emissions through greener energy sources. Proper waste management, such as recycling, can also help control pollution levels.

Question 21

How can a business contribute to sustainable development through social practices?

Answer 21

A business can promote sustainable development socially by ensuring gender equality through relevant human resource policies, making ethical business decisions, conducting social cost-benefit analysis for projects, and providing fair compensation to employees.

Question 22

How can a business contribute to sustainable development through economic practices?

Answer 22

Economically, businesses can contribute by reducing unemployment, setting up training and knowledge-sharing programs to increase literacy rates, generating products and services that boost GDP, and improving standards of living by offering fair pay and improving working conditions.

Question 23

What methods do pressure groups use to make their point?

Answer 23

i) Demonstrations: Protesting about a business’s actions or policies, either through rallies or outside company offices.

ii) Boycotting: Refusing to buy a business’s products or services and encouraging others to do the same.

iii) Petitioning: Making official complaints, either oral or written, to the government or concerned authorities.

iv) Lobbying: Attempting to influence government policymaking.

v) Increasing awareness: Using the pressure group’s website and media to raise awareness and possibly generate negative publicity.

Question 24

How do businesses respond to environmental pressures?

Answer 24

i) Using green manufacturing methods: Businesses adopt methods that produce less waste and pollution.

ii) Reducing energy use: Implementing strategies to minimize energy consumption.

iii) Obeying government regulations and standards: Ensuring compliance with environmental laws and guidelines.

iv) Following sustainable business practices: Committing to actions that ensure long-term environmental and societal well-being.

v) Taking legal action: Businesses may take legal action against pressure groups if they believe their actions are damaging the business’s reputation or operations.

vi) Defending business decisions: Companies may defend their decisions to improve their image, especially if negative publicity from pressure groups has affected their reputation.

Question 25

Why do businesses respond to environmental pressures?

Answer 25

1) Threats from non-compliance: i) Failure to respond may damage the business’s reputation, leading to a loss of customers, employees, and investors. ii) Not following government regulations regarding greener production methods may result in the business being closed down. iii) Inability to meet regulations may cause legal problems for the business. iv) Pressure groups may oppose the business, generate negative publicity, and hinder growth. 2) Positive influence: i) Pressure groups may approve of environmentally friendly businesses, offering positive publicity and support.

Question 26

What opportunities do environmental pressures present to businesses?

Answer 26

i) Cost savings: Recycling and using energy-efficient machinery can lead to reduced operational costs. ii) Government incentives: Governments may offer financial incentives for businesses that adopt environmentally friendly practices. iii) Attracting customers, employees, and investors: Greener practices can boost a business's reputation and attract new stakeholders while retaining existing ones. iv) Telecommuting benefits: Encouraging employees to work from home can be an environmentally friendly option that also serves as an employee motivator. v) Growth of new businesses: The green revolution has led to the rise of businesses focused on environmental management. vi) Competitive advantage: Adhering to government standards can give a business an edge over competitors.

Question 27

How do governments use legal controls to limit the negative effects of business activity on the environment?

Answer 27

i) Governments may impose penalties such as fines, closure of facilities, or imprisonment on businesses that fail to meet pollution targets or waste disposal regulations. ii) They may charge a levy or tax on the commercial use of energy, encouraging businesses to become more energy-efficient. iii) Governments set standards for businesses to meet when using natural resources, such as requiring a certain percentage to come from renewable sources. iv) Certain areas may be off-limits for businesses to set up in due to environmental concerns.

Question 28

How do governments help businesses to be environmentally friendly?

Answer 28

i) Governments can make environmental information more accessible by setting up organizations to provide environmental management advice. ii) They can enable recycling by providing waste collection vehicles, containers, and organizing waste collection services for businesses.

Question 29

What are common government incentives for businesses to be environmentally friendly?

Answer 29

i) Governments may reward the greenest companies with tax credits, incentivizing businesses to adopt environmentally friendly practices to improve their profits. ii) Policies can allow tax exemptions for businesses using renewable energy sources or being energy-efficient.

Question 30

What are some examples of unethical practices in finance?

Answer 30

i) Failing to inform customers about extra or add-on costs. ii) Insider trading, where individuals with access to non-public information trade the company’s stocks.

Question 31

What are some examples of unethical marketing practices?

Answer 31

i) -False advertising of products and services. ii) Providing products and services that are unsafe for use. iii) Failing to disclose risks associated with the product or service.

Question 32

What are some examples of unethical operations practices?

Answer 32

i) Dumping, which involves selling products at very low cost internationally to drive out competition. ii) Improper waste disposal. iii) Exceeding pollution limits set by the government.

Question 33

What are the advantages of ethical business practices?

Answer 33

i) Improved image and reputation, helping to attract new investors and support business growth. ii) Can motivate existing staff, aiding in employee retention. iii) Meeting customer demand for eco-friendly and fairly produced products can improve brand awareness and recognition.

Question 34

What are the disadvantages of ethical business practices?

Answer 34

i) High costs may be involved when choosing ethical raw materials, such as recycled materials, which may lead to lower profits. ii) Costs may increase when improving working conditions and employee pay, and avoiding cheap child labor, which can also result in lower profits.