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What are the stimuli that drive a firm to take action known as?

A) Reactive motivations
B) Incentive motivations
C) Proactive motivations
D) Passive motivations

User Rachel
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Final answer:

The stimuli that drive a firm to take action are known as proactive motivations, which are steps a firm takes looking towards future possibilities and influencing outcomes, contrasted with reactive responses to situations that have already occurred.

Step-by-step explanation:

The stimuli that drive a firm to take action are known as proactive motivations. Proactive motivations embody the actions a firm takes in anticipation of future potential situations. Unlike reactive motivations, which occur in response to external situations that have already happened, proactive motivations show a desire to influence outcomes and take charge of the firm's future. For example, a company might proactively invest in research and development to innovate and stay ahead of the competition.

Looking at the supplemental information provided, we see various types of motivations and incentives that can influence behavior. Carl mowing his neighbor's yard for $20 is driven by extrinsic motivation, as he is motivated by the external reward of receiving money. When firms consider supply factors, what motivates them is profits, indicating that the financial stimulus (the potential to increase profit) is another example where firms may take proactive action to adjust their production or operational strategy.

User Ishuar
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