Lesson 5 - Macro Factors Flashcards
Name the 3 business environments.
Internal
Operating
Macro
What type of control does the business owner have in the Macro environment?
a) Ful Control
b) Some Control
c) No Control
a) No Control
List for factors that affect the macro environment.
- Legal and Government regulations
- Societal attitudes and behaviour
- Economic conditions
- Technological issues
List one positive impact and one negative impact of societal attitudes and behaviour.
Positive:
Can create new profit generating opportunities for businesses
Adapting to social change means the business is constantly up to date and can offer products in line with customer needs and wants.
Negative:
Social changes can occur frequently and it may not always be possible for the business to respond, this could be a disaster in competitive industries
Which is NOT an example of an economic condition?
a) Low interest rates
b) Technological
c) Unemployment
d) Inflation
b) Technological
Define the term unemployment.
Refers to a person actively seeking for employment but is unable to find work. Unemployment is considered to be a key measure of the health of the economy
True or False:
A fall in inflation would be good for businesses?
True
True or False:
A rise in inflation would be bad for a business
True
Loan repayments would likely fall if interest rates were to increase
False
Which factor is applied when the RBA increase the base rate leading to an increase in interest rates
Economic Factor
Which factor is applied when H&M announce they will offer discounts to customers who bring in old clothing garments to be recycled?
Societal
True or False:
There is no impact on businesses if Australia enters a recession.
False - most people will switch from more expensive goods and services to cheaper options
True or False:
When unemployment decreases, more people will have disposable income.
True
