Business Studies - Unit 6 External influences

External influences on a business refer to

• Factors that are good for the business

• Factors that are bad for a business

• Factors that are outside the control of the business

• Illegal actions by a business

What do the letters GDP stand for in Business and Economics?

• Gateway Discovery Protocol

• General Defense Plan

• Gross Domestic Product

• Ground Data Processing

The GDP of an economy measures...

• The value of the nation's output

• The national income

• The money spent buying all of the national output

• All of the above

Income that has been adjusted to take account of inflation is called ...

• Income per capita

• Real income

• Average income

• Total Income

Enterprise is the act of ...

• Making a profit

• Borrowing money

• Buying shares

• Taking the risk of starting a business

Two features of an economic boom are ...

• Deflation and rising unemployment

• Labour shortages and inflation

• Rising business investment and low consumer confidence

• Rising profit levels and falling wage rates

Profit is ...

• Another name for revenue

• Revenue plus costs

• The income earned from sales

• Revenue minus costs

Which one of the following is NOT an external influence?

• Minimum wage laws

• The size of the workforce

• Health and Safety regulations

• Bank interest rates

Economic growth is good for most businesses because ...

• Inflation raises the cost of production

• Interest rates rise and more saving takes place

• Rising incomes means higher consumer spending

• Higher levels of tax will be paid

 

If interest rates go up ...

• People with mortgages have to pay more to the bank each month

• People are less likely to buy on credit cards

• People with mortgages have to pay less to the bank each month

• People are more likely to buy on credit cards