Theme 1.5

Question 1

What are external influences on a business?

Answer 1

Factors outside the business that can affect its operations and decisions.

Question 2

True or False: Economic conditions are considered an external influence on business.

Answer 2

True

Question 3

Fill in the blank: _____ refers to the overall economic performance of a country.

Answer 3

Economic growth

Question 4

What is the impact of inflation on businesses?

Answer 4

Inflation can increase costs and affect pricing strategies.

Question 5

Which external factor can lead to changes in consumer spending?

Answer 5

Economic conditions

Question 6

What does PESTLE stand for in external analysis?

Answer 6

Political, Economic, Social, Technological, Legal, Environmental

Question 7

How can technological advancements influence a business?

Answer 7

They can lead to improved efficiency and new product opportunities.

Question 8

True or False: Legal factors do not affect how a business operates.

Answer 8

False

Question 9

What is the role of competition as an external influence?

Answer 9

It drives businesses to innovate and improve their offerings.

Question 10

Fill in the blank: Changes in consumer _____ can impact demand for products.

Answer 10

preferences

Question 11

What is the effect of government policies on businesses?

Answer 11

They can create regulations that businesses must comply with.

Question 12

Multiple choice: Which of the following is NOT a PESTLE factor? A) Social B) Technical C) Environmental D) Legal

Answer 12

B) Technical

Question 13

How do environmental factors influence business operations?

Answer 13

They can affect resource availability and consumer attitudes.

Question 14

True or False: Social trends can have no impact on business strategies.

Answer 14

False

Question 15

What is a potential consequence of high unemployment rates for businesses?

Answer 15

Decreased consumer spending power.

Question 16

Fill in the blank: A _____ is a government-imposed restriction on trade.

Answer 16

tariff

Question 17

What is the significance of understanding external influences for a business?

Answer 17

It helps businesses adapt and remain competitive.

Question 18

Multiple choice: Which factor is likely to affect labor costs? A) Economic B) Technological C) Environmental D) Legal

Answer 18

A) Economic

Question 19

How can changes in laws affect a business?

Answer 19

They can change operational procedures and compliance costs.

Question 20

True or False: Cultural factors are irrelevant to business operations.

Answer 20

False

Question 21

What is the impact of globalization on businesses?

Answer 21

Increased competition and access to global markets.

Question 22

Fill in the blank: _____ is an example of a social influence.

Answer 22

Changing lifestyle trends

Question 23

What does it mean for a business to be adaptable to external influences?

Answer 23

The ability to change strategies based on external conditions.

Question 24

Multiple choice: Which of the following is an example of a technological influence? A) New regulations B) Online marketing C) Tax changes D) Consumer preferences

Answer 24

B) Online marketing

Question 25

How can a recession affect a business?

Answer 25

It typically leads to decreased sales and lower profits.

Question 26

True or False: Businesses should ignore external influences if they have a strong internal strategy.

Answer 26

False

Question 27

What is the importance of market research in understanding external influences?

Answer 27

It helps identify trends and consumer needs in the market.