BM Unit 1, AOS 2: External Environment

Which of the following is not considered as one of the environments of business?

• Internal

• Macro

• Operating

• Operations

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Business Environments

Over which environment does the business have the largest degree of control?

• Internal

• Macro

• Operating

• Operations

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Business Environments

Which of the following is not a factor from the operating environment?

• Customers

• Suppliers

• Employees

• Competitors

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Operating Environment

Which of the following aspects of a business would be affected by legislation and government regulations?

• Taxation

• The rights of employees

• Permits & licences

• All of the above

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Macro Environment

Which of the following best describes the term ‘trend’ with regards to societal attitudes?

• The general direction in which people’s attitudes or behaviour in society is developing or changing

• A decline in customer awareness of the negative contributions of large businesses to society

• The bottom line of a business’s financial statements

• The boycotting of a company’s products

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Macro Environment

Which of the following best describes consumer confidence?

• How businesses feel about their future in economic terms

• How consumers feel about their future in economic terms

• How consumers feel in terms of their body image

• How consumers feel in social situations

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Macro Environment

Which of the following is the most likely outcome when there is a fall in consumer confidence?

• A decrease in sales as consumers spend less

• An increase in sales as consumers spend more

• A decrease in investment as businesses spend more

• An increase in investment as businesses spend more

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Macro Environment

Which of the following is considered a negative consequence of improvements in technology?

• Technological advances have created jobs in the industries that provide technological products.

• As technology replaces workers, businesses can reduce their labour costs.

• As technology replaces workers, many people are left unemployed.

• All of the above

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Macro Environment

Which of the following is not a benefit of a business being socially responsible?

• Increased sales

• Higher staff morale

• Higher staff turnover

• Better relationships with stakeholders

Answer explanation

Higher staff turnover; is a cost to the business.

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Macro Environment

CSR

Which of the following would be considered a socially responsible practice?

• Donating profits to charities and foundations

• Outsourcing production to nations where labour is cheaper

• Reducing waste in the production process

• Recycling materials for reuse in productions

Answer explanation

Outsourcing production to nations where labour is cheaper is considered to be exploiting the conditions overseas and not an ethical way to behave.

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Macro Environment

CSR