Which of the following is a potential threat in the business environment?

Practice Questions

Q1
Which of the following is a potential threat in the business environment?
  1. Emerging market opportunities
  2. Technological advancements
  3. New regulations that increase operational costs
  4. Changing consumer preferences

Questions & Step-by-Step Solutions

Which of the following is a potential threat in the business environment?
Correct Answer: New regulations
  • Step 1: Understand what a potential threat is in a business environment. A threat is something that can negatively impact a business.
  • Step 2: Identify what types of threats can exist. These can include economic changes, new regulations, competition, and more.
  • Step 3: Focus on the example given: 'New regulations that increase operational costs.'
  • Step 4: Recognize that if regulations change and require businesses to spend more money to comply, this can reduce their profits.
  • Step 5: Conclude that increased operational costs from new regulations can make it harder for businesses to operate efficiently and profitably.
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