Bachelor of General Studies (BGS) Degree Practice Exam

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What is a common advantage of sustainable practices for businesses?

Higher employee turnover
Cost savings from operational efficiency
Increased regulatory fines
Reduced market competition

The correct answer is: Cost savings from operational efficiency

A common advantage of sustainable practices for businesses is cost savings from operational efficiency. When companies adopt sustainable practices, they often analyze and improve their processes to reduce waste, enhance resource utilization, and lower energy consumption. For instance, implementing energy-efficient technologies can lead to significant reductions in utility bills and operational costs. Additionally, sustainable practices can streamline supply chain operations, reduce material costs by minimizing waste, and even qualify businesses for various incentives or tax benefits. These efficiencies not only contribute to the environment but also strengthen the company’s financial performance, making sustainability advantageous from a business standpoint.