Lakewood municipal officials hope that if they offer Acme Manufacturing a sub-
. y$ X( @4 G- Bstantial reduction in local taxes, Acme will not relocate its plant to another region.
& `, f- g0 T( b( Z% f1 k: uIf Acme accepts the offer and stays, Lakewood will lose a substantial portion of
0 I% a6 W4 ?# q3 `2 _: W' I7 gits a x revenue. Interestingly, the officials are not even considering an offer from
' t; G: R& d6 k* t4 c7 VZenex Corporation to take over Acme's facilities if Acme leaves and to pay taxes / J, B7 ]4 H2 }/ W, o
at the currently prevailing rates.
" o0 B( z# U6 h- S& \5 I Which of the following, if true, provides the strongest rationale for the officials to % N9 n4 E1 ^2 u* T, `6 N8 q( ~ @
prefer giving Acme a tax reduction over accepting Zenex's offer?
% l5 W9 P5 M. L& u A Risks associated with the hazardous chemicals that Zenex uses would cause
, @+ s- I. B: c5 ~) b1 \6 ?# v& U the value of property around what is now the Acme plant to decline steeply.
1 ^) | s0 w$ m4 I4 S B If Zenex were to take over Acme's manufacturing facilities in Lakewood, it
" d Z2 Y$ [2 {# q% f0 g: { would take about a month for Zenex to adapt the facilities to its own pur-6 q5 O3 ?* |# u- |
poses and to go into operation. ; ]7 H! ]: V( b% }0 A- d
C Even if Acme accepts Lakewood's offer, employment at the Acme plant is " _) W* q5 ~; Y& b3 m
unlikely to increase.
0 S3 V. w# L& i% H$ W# j D There are no large manufacturing plants located in Lakewood other than the 4 Y- E0 [7 n- f( d4 a
Acme plant. " `& N0 ]& y4 V% ?
E Zenex has a stronger reputation than Acme does for being a major corporate1 T6 z$ S# F4 d, X7 m, |0 [
sponsor of cultural and recreational activities in the places in which it
; O: u1 e7 ~) o; I operates manufacturing plants.
: r# j0 i% D( L. Q( D1 `! v: r答案 A |