Influences On Business Flashcards
What are the main external factors that influence business operations?
Economic, social, technological, legal, and environmental factors.
True or False: Government policies can affect how businesses operate.
True
Fill in the blank: The _____ is responsible for setting interest rates and controlling inflation.
central bank
What does the term ‘market competition’ refer to?
The rivalry among businesses to attract customers and increase sales.
Which of the following is a social factor that can influence business? A) Inflation B) Demographics C) Interest rates
B) Demographics
What is the impact of technological advancements on businesses?
They can lead to increased efficiency, new products, and changes in consumer behavior.
True or False: A business can operate independently of legal regulations.
False
What is a ‘stakeholder’ in a business context?
Any individual or group that has an interest in the success or failure of a business.
What is the role of consumer behavior in business?
It influences product development, marketing strategies, and sales approaches.
Fill in the blank: Businesses must comply with _____ regulations to avoid legal issues.
government
What is a SWOT analysis?
A strategic planning tool that evaluates Strengths, Weaknesses, Opportunities, and Threats.
Which of the following is NOT a technological influence on business? A) E-commerce B) Social media C) Corporate taxes
C) Corporate taxes
What is the significance of ethical considerations in business?
They help businesses build trust and maintain a good reputation.
True or False: Economic downturns can lead to decreased consumer spending.
True
What are ‘barriers to entry’ in a market?
Obstacles that make it difficult for new competitors to enter a market.
Fill in the blank: _____ can influence business operations by changing how consumers perceive value.
Trends
What is the effect of globalisation on businesses?
It increases competition and opens up new markets for trade.
Which factor can affect the supply chain of a business?
Natural disasters, political instability, or changes in trade policies.
What does ‘corporate social responsibility’ (CSR) mean?
A business model that helps a company be socially accountable to itself, its stakeholders, and the public.
True or False: A business can ignore environmental factors in its operations.
False
What is ‘consumer protection law’?
Laws designed to ensure the rights of consumers and fair trade.
Fill in the blank: The _____ of a business can greatly influence its decisions and strategies.
culture
What role does marketing play in influencing business success?
It helps businesses understand consumer needs and promotes their products effectively.
Which of the following is an example of a legal influence on business? A) Market trends B) Employment laws C) Consumer preferences
B) Employment laws
