Understanding External Influenceson Business Flashcards

1
Q

What are external influences on business?

A

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

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2
Q

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

A

True

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3
Q

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

A

Social

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4
Q

What does PESTLE stand for?

A

Political, Economic, Social, Technological, Legal, Environmental

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5
Q

Name one political factor that can influence a business.

A

Government regulations

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6
Q

What type of external influence is competition?

A

Market influence

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7
Q

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

A

True

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8
Q

What impact can inflation have on a business?

A

Increased costs and decreased consumer spending

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9
Q

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

A

C) Interest rates

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10
Q

What is the effect of legal influences on businesses?

A

Compliance with laws and regulations affecting operations

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11
Q

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

A

Ecological factors

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12
Q

How can changes in consumer confidence affect businesses?

A

It can lead to changes in spending habits.

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13
Q

What role do global events play in external business influences?

A

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

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14
Q

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

A

False

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15
Q

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

A

Competitors’ pricing

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16
Q

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

A

A) Tax policies

17
Q

What can businesses do to adapt to external influences?

A

Implement strategic planning and market research.

18
Q

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

A

Technological

19
Q

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

A

It helps in strategic planning and risk management.

20
Q

True or False: Social influences only affect large corporations.

21
Q

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

A

Environmental

22
Q

What is the impact of demographic changes on businesses?

A

It can affect market size and consumer demand.

23
Q

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

A

A) E-commerce

24
Q

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

A

External influences

25
What is a potential consequence of ignoring external influences?
Loss of market share or business failure.
26
What can be an effect of changes in government policy on businesses?
Altered operational costs and market access.