4.1 Marco Factors affecting business planning

Question 1

What are Macro Factors

Answer 1

The Factors that impact on a business and are outside the control of any one business

Question 2

List the Macro Factors

Answer 2

STEP

• Social
• Technological
• Economic/Environment
• Political/Legal

Question 3

What are the Economic factors which influence and impact a business

Answer 3

• Interest rates
• Tax rates
• Business and consumer confidence

Question 4

Explain Interest rate as a factor of influence and impact on a business

Answer 4

If the rate of interest is low then it is more likely that business owners might borrow to set up a business, because the repayments are less and easier to manage and maintain

Question 5

Explain Tax rates as a factor of influence and impact on a business

Answer 5

Taxation consideration are important as a business needs to ensure it has the cash to meet is taxation obligations

Question 6

Explain Business and consumer confidence as a factor of influence and impact on a business

Answer 6

If a business and consumer confidence is high the businesses are more likely to look at expanding or increasing production and consumers are more likely to spend as they are comfortable with their financial situation.