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What is the primary benefit of proper land and nonrenewable resources management and...

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lilylee | Student, College Freshman | Salutatorian

Posted June 1, 2013 at 4:33 PM via web

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What is the primary benefit of proper land and nonrenewable resources management and utilization to a business?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted June 1, 2013 at 4:58 PM (Answer #1)

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For a business, the primary benefit of managing and utilizing land and nonrenewable resources properly is profit.  If a business manages these resources properly, it is much more likely to be able to make a profit than if it does not.

In today’s world, the business environment is very competitive.  This means that firms are constantly having to compete to stay alive.  Only firms that can run themselves efficiently can manage to survive in this environment.  What this means is that the firms need to manage and utilize their resources effectively.

Let us say that you own a trucking company.  You use a great deal of fuel, which is a nonrenewable resource.  What this means is that you will need to use as little fuel as possible if you are to survive.  If you waste fuel, you will not make the highest possible profit.  Let us say, then, that you discover a way to manage your trucks so that they use less fuel.  The result is going to be that you will make more profit.  This will be true because your unit costs will fall and you can either make more profit at your current prices or drop your prices to take market share away from your competitors.  Either way, you get more profit by managing your resources properly.

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