Question

A business performs a cost-benefit analysis when it:

A. creates a new incentive to convince customers to buy its
products.
B. considers the possible advantages and drawbacks of a decision.
C. chooses to increase the price of a product to generate more
profits.
D. avoids making a major decision with far-reaching economic
consequences.

Answer 1

D. avoids making a major decision with far-reaching economic consequences.

Step-by-step explanation:

A cost-benefit analysis in a business is a method to analyse the decisions made for the economic growth of the organization.

In cost-benefit analysis, the analyst interprets the major decisions and avoids to make the decisions which can affect the economy negatively in future. In this analysis all the benefits are counted and then avoid the costs associated with taking that action.

Hence, the correct option is D. avoids making a major decision with far-reaching economic consequences.

Answer 2

Answer: The correct answer is B

Consider the possible advantages and drawbacks of a decision