Unit 1 - Learning Aim C

Multiple Choice

Which social factor could influence Greggs' product offerings?

• Technological improvements in ovens

• Cultural shifts towards veganism

• New advertising regulations

• Exchange rate fluctuations

Multiple Choice

What are the factors that impact a business's day-to-day operations, decision making, and strategies?

• Technological advancements

• Rising interest rates

• External environment

• Internal management

Multiple Choice

What is the political environment and how does it impact businesses?

• It is the government actions that impact businesses

• It is only local government actions

• It does not affect businesses

• It is only international government actions

Multiple Choice

What types of support can the government provide to businesses?

• Grants

• Training

• Both Grants and Training

• None of the above

Multiple Choice

Which federal agency helps small firms get loans under special conditions?

• Bank Loan Administration

• Federal Reserve Administration (FRA)

• Small Business Administration (SBA)

• Consumer Protection Administration

Multiple Select

How do entrepreneurs and SMEs impact the economy?

• Provide employment

• Pay taxes

• Social benefits

• Create competition

Multiple Choice

What is the purpose of regulation undertaken by the government?

• To create competitive markets

• To increase prices

• To limit consumer choice

• To reduce government intervention

Multiple Select

What are the arguments for de-regulation?

• Creation of competitive markets leads to greater efficiency

• Less government intervention allows firms to produce to the needs of the market

• Businesses strive to reduce costs to compete effectively

• Businesses strive to meet consumer demand by reducing price

Multiple Choice

What are the three key areas that governments will focus on to improve infrastructure for businesses?

• Transport network

• Provision of utilities

• Provision of information

• Tax incentives

Multiple Choice

What is a criticism of Regional Free Trade Agreements?

• They can lead to trade diversion from more efficient global producers to less efficient regional producers.

• They always result in economic losses for member countries.

• They reduce the sovereignty of member states.

• They eliminate all forms of trade barriers globally.

Multiple Choice

What are some potential positive implications of EU enlargement?

• Increased competition leading to lower prices

• Higher wages for all workers

• Reduced bureaucratic costs for existing members

• Less free trade across geographical areas

Multiple Choice

What are some potential impacts of trading communities on businesses?

• Free trade within the bloc encouraging specialization and trade

• Easier access to knowledge, workers, and components

• May damage domestic industries

• All of the above

Multiple Choice

How does the business cycle show fluctuations in the level of economic activities?

• By measuring GDP

• By tracking unemployment rates

• By analyzing consumer spending

• By observing inflation rates

Open Ended

Highlight which of these bullet points relate to your business. Can you explain why?

Open Ended

If a pair of trainers costs £50 in the UK, how much would they cost in the USA at an exchange rate of £1 = $1.50?

Open Ended

Explain how a weak pound affects businesses that import and export.

Open Ended

What does SPICED stand for in relation to exchange rates?

Multiple Choice

What is the impact of a strong pound on businesses that import and export?

• Imports become cheaper

• Exports become cheaper

• Both imports and exports become cheaper

• No impact on imports or exports

Multiple Choice

What is the impact of changing exchange rates on businesses?

• It affects the company's internal culture

• It influences the cost of importing and exporting goods

• It changes the local weather conditions

• It alters the company's mission statement

Multiple Choice

True or False: A stronger dollar makes selling U.S.-made products and services cheaper for foreign buyers.

• a) True
  

• 1. b) False

Multiple Choice

What is the effect of high interest rates on consumer spending?

• It makes spending more attractive

• It has no effect on spending

• It makes saving more attractive

• It increases disposable income

Open Ended

In 2011 VAT was put back up to 20%. How would this have impacted on your businesses?

Multiple Choice

What is the effect of government spending on businesses?

• It decreases demand for suppliers

• It has no effect on businesses

• It increases demand for suppliers

• It only affects public sector organizations

Open Ended

Using your knowledge of economic influences, explain how businesses will be affected by the stage where the economy is in the business cycle.

Multiple Choice

Businesses are affected by social factors in the external environment because:

• customer needs are also affected by these factors.

• a business must use social networking to survive.

• every business creates consumer products.

• customers no longer value quality.

Multiple Choice

What is the relationship between urbanisation and migration?

• Urbanisation leads to rural depopulation

• Migration increases urban population

• Urbanisation has no effect on migration

• Migration decreases urbanisation

Multiple Choice

What are the potential impacts of demographic changes on UK businesses?

• Increased competition from foreign markets

• Opportunities to enter new markets

• Need to change product ranges for older consumers

• All of the above