Georgia Assessments for the Certification of Educators GACE Practice Test

According to the National Environmental Policy Act of 1967, a business is required to prepare an environmental impact statement (EIS) when it:

1. Builds a new factory

2. Develops a new marketing initiative

3. Hires a new worker

4. Makes a charitable contribution

The correct answer is: Builds a new factory

The correct choice is related to situations where a business is planning to undertake significant projects that may have substantial environmental impacts. The National Environmental Policy Act (NEPA) of 1969 requires federal agencies to assess the environmental effects of their proposed actions before making decisions. In the context of building a new factory, this action typically involves significant land use, resource consumption, and potential alterations to the environment. An environmental impact statement (EIS) is mandated to evaluate and disclose the potential environmental consequences of such a project. This process helps ensure that environmental factors are considered in the decision-making process, allowing for informed choices that can either mitigate damage or enhance environmental protection. The other options -- developing a new marketing initiative, hiring a new worker, and making a charitable contribution -- generally do not involve the same level of environmental impact or land use changes that necessitate an EIS. These activities are typically associated with day-to-day business operations and do not require the same extensive environmental review processes mandated by NEPA.