Chapter 2, Problem 7AA

To determine

The best term which completes the sentence with correct meaning.

Answer to Problem 7AA

Option (e) − Expand.

Explanation of Solution

The business is doing well and comes into the picture only when there is huge profit in the business. That profit leads to the expansion of the business and helps it to grow larger.

Maximization of satisfaction of the consumers leads to more demand of the product which ultimately increases the production and the investments of the business and finally comes to the stage of expansion.

No other option fits in the answer to the question because the question talks about the growth of the business which happens with the expansion of the business because of more profits. Other options do not provide any idea about the enlargement of the business.

Economics Concept Introduction

Introduction:

The tradition says that business prevails with the motive of earning profits only but the modern concept of business changes the traditional concept with the idea of consumer satisfaction which is now the major objective of the businesses as consumer satisfaction is the key to the maximization of profits.