General Education Development (GED) Practice Exam

When is a business required to prepare an environmental impact statement under the National Environmental Policy Act of 1967?

1. Hires a new worker

2. Makes a charitable contribution

3. Develops a new marketing initiative

4. Builds a new factory

The correct answer is: Builds a new factory

A business is required to prepare an environmental impact statement (EIS) under the National Environmental Policy Act (NEPA) of 1969 when it undertakes projects that significantly affect the environment. The construction of a new factory clearly falls within this requirement, as such a project can lead to substantial environmental changes, including impacts on land use, air and water quality, noise levels, and local ecosystems. The purpose of the EIS is to assess potential environmental effects and consider alternatives before proceeding with the project. It ensures that decision-makers and the public are informed about the potential consequences of a major federal action, which in this case is building a new facility. In contrast, hiring a new worker, making a charitable contribution, or developing a marketing initiative typically do not involve significant alterations to the physical environment or resource use that would necessitate a detailed environmental review as required by NEPA. Thus, these actions do not trigger the need for an environmental impact statement.