Question

Angela wants to sell her business. Sadie has expressed an interest in purchasing it, but is worried about whether or not she will qualify a loan with the interest rates going up. Sadie is worried about a/an Multiple Choice economic force. technological force. demographic force. political-legal force. international force.

Answer 1

Answer:

Sadie is worried about Economic force.

Explanation:

Sadie needs to make an informed decision on how to raise the funds he needs to buy Angela's business as interest rates are going up. Interest rating is a function of economic forces.

Economic forces are factors such as monetary and fiscal policies, interest rate, employment, inflation rate, demographic changes, political changes, energy, security, and natural disasters. All of these have a direct effect on how businesses produce and distribute their products or services.

Economics provides a framework for understanding the actions and decisions of individuals, businesses and governments. It provides a means to understand interactions in a market-driven society and for analyzing government policies that affect the families, jobs and lives of citizens.

Answer 2

Answer:

Option A; ECONOMIC FORCE

Explanation:

Economic forces are factors that influence the success and direction of the economy and the firms that operate in the economy. It often determines the competitiveness of the environment in which the firm operates.

Factors such as level of employment, rate of inflation, rate of interest, demographic changes, and fiscal and monetary policies, determines an enterprise’s volume of demand for its product and affect its marketing strategies and activities.

Investors and businessmen pay attention to economic forces (they take economic forces into consideration) when valuing an investment.

Since Sadie is worried about whether or not she will qualify a loan with the interest rates going up, therefore, Sadie is worried about an ECONOMIC FORCE.