1.5 Understanding External Influences on Businesses

Question 1

The 4 main types of technology use by businesses are:

Answer 1

• e-commerce
• social media
• communications technology
• payment systems

Question 2

Technology tends to have 3 major effects on a business:

Answer 2

• sales
• costs
• marketing mix

Question 3

Major external influence in businesses are: (3)

Answer 3

• changes in economics
• changes in technology
  Changes in legalisation

Question 4

The 2 main types of legalisations that effect businesses are:

Answer 4

• consumer protection

- employee protection

Question 5

The main effects of the economic environment that affects businesses are: (6)

Answer 5

• unemployment
• changing levels of consumer income
• inflation
• changes in interest rates
• government taxation
• changes in exchange rates

Question 6

Business have many ………………. each with slightly different things they expect from the business

Answer 6

Stakeholders

Question 7

…………….. may be able to ………….. the way that the business operates

Answer 7

Stakeholders & Influence

Question 8

Often different stakeholder groups may have conflicting …………….

Answer 8

Objectives

Question 9

Consumer protection legalisation focuses on ………. and …………

Answer 9

Quality & Consumer rights

Question 10

Employee protection legalisation focuses on ………….. , …….. , ………….. and ………………………..

Answer 10

Recruitment, pay, discrimination & health and safety