FP2 4.01 Factors that affect the business environment

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Every new business owner must pay attention to forces operating outside the company that affect its chances for success. These forces are referred to as

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the external environment.

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At each organization’s core should be a commitment to

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meeting customer needs.

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Amie talks to customers and suppliers from all over the world on a daily basis. Her company’s involvement with people in so many different countries is due to the trend of

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globalization.

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Since Amie deals with people from many different countries, she attempts to become sensitive to differences in their customs and traditions. Amie is developing

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cultural intelligence.

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Antitrust laws are created to keep competition fair. Which of the following external factors are these laws a part of: Ethnic/Cultural, Social, Economic, Political?

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Political

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Which of the following is an example of a governmental regulatory agency: Sporting Goods Manufacturers Association, Better Business Bureau (BBB), Federal Aviation Administration (FAA), Air Conditioning Contractors of America

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Federal Aviation Administration (FAA)

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Industry associations differ from regulatory agencies in that they

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don’t have government authority.

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Which of the following actions must a business take as a result of political factors in the external environment: Paying taxes, Developing cultural intelligence, Looking for new technologies, Adapting to changing values?

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Paying taxes

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Businesses are affected by social factors in the external environment because customer needs are affected by these factors as well.

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customer needs are affected by these factors as well.

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Which of the following is a true statement about the social factor of lifestyle and fashion trends: They influence retail businesses only. They are more important than economic trends. They do not affect customer needs. They change quite frequently.

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They change quite frequently.