External influences on business activity

Question 1

Monopoly

Answer 1

theoretically a situation in which there is only one supplier, but this is very rare: for government policy purposes this is usually redefined as a business controlling at least 25% of the market.

Question 2

Social audit

Answer 2

a report on the impact a business has on society – this can cover pollution levels, health and safety record, sources of supplies, customer satisfaction and contribution to the community.

Question 3

Information technology

Answer 3

the use of electronic technology to gather, store, process and communicate information.

Question 4

Innovation

Answer 4

creating more effective processes, products or ways of doing things in a business.

Question 5

Computer-aided design

Answer 5

using computers and IT when designing products.

Question 6

Computer-aided manufacturing

Answer 6

the use of computers and computer-controlled machinery to speed up the production process and make it more flexible.

Question 7

Environmental audits:

Answer 7

assess the impact of a business’s activities on the environment.