Saylor Academy BUS101 UPDATED Exam Questions and CORRECT Answers

Saylor Academy BUS101 UPDATED Exam Questions and CORRECT Answers Social Benefit - Correct ANSWER- The total benefit to society from producing or consuming a good or service. Social benefit includes all the private benefits plus any external benefits of production / consumption. If a good has significant external benefits, then the social benefit will be greater than the private benefit. Contract Theory - Correct ANSWER- The belief that business is a community of participants organized around a common purpose. These participants have legitimate interests in how the business is conducted and, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprise being run by employees and managers as a kind of representative democracy.