Understanding External Influenceson Business

Question 1

What are external influences on business?

Answer 1

Factors outside a business that can impact its performance and decisions.

Question 2

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

Answer 2

True

Question 3

Fill in the blank: _____ influences include changes in consumer preferences.

Answer 3

Social

Question 4

What does PESTLE stand for?

Answer 4

Political, Economic, Social, Technological, Legal, Environmental

Question 5

Name one political factor that can influence a business.

Answer 5

Government regulations

Question 6

What type of external influence is competition?

Answer 6

Market influence

Question 7

True or False: Technological advancements can create new business opportunities.

Answer 7

True

Question 8

What impact can inflation have on a business?

Answer 8

Increased costs and decreased consumer spending

Question 9

Multiple Choice: Which of the following is NOT a social influence? A) Demographics B) Lifestyle changes C) Interest rates

Answer 9

C) Interest rates

Question 10

What is the effect of legal influences on businesses?

Answer 10

Compliance with laws and regulations affecting operations

Question 11

Fill in the blank: Environmental influences relate to _____ and sustainability.

Answer 11

Ecological factors

Question 12

How can changes in consumer confidence affect businesses?

Answer 12

It can lead to changes in spending habits.

Question 13

What role do global events play in external business influences?

Answer 13

They can affect supply chains, market demand, and regulations.

Question 14

True or False: External influences are static and do not change over time.

Answer 14

False

Question 15

What is a direct external influence on a business’s pricing strategy?

Answer 15

Competitors’ pricing

Question 16

Multiple Choice: Which of the following is an economic influence? A) Tax policies B) Cultural trends C) Technological innovation

Answer 16

A) Tax policies

Question 17

What can businesses do to adapt to external influences?

Answer 17

Implement strategic planning and market research.

Question 18

Fill in the blank: _____ influences can include advancements in technology or changes in production methods.

Answer 18

Technological

Question 19

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

Answer 19

It helps in strategic planning and risk management.

Question 20

True or False: Social influences only affect large corporations.

Answer 20

False

Question 21

What type of external influence would a natural disaster fall under?

Answer 21

Environmental

Question 22

What is the impact of demographic changes on businesses?

Answer 22

It can affect market size and consumer demand.

Question 23

Multiple Choice: Which is an example of a technological influence? A) E-commerce B) New tax laws C) Cultural shifts

Answer 23

A) E-commerce

Question 24

Fill in the blank: Businesses must be aware of _____ to remain competitive.

Answer 24

External influences

Question 25

What is a potential consequence of ignoring external influences?

Answer 25

Loss of market share or business failure.

Question 26

What can be an effect of changes in government policy on businesses?

Answer 26

Altered operational costs and market access.