L6) The External Business Environment

Which of the following is a key topic covered in the unit overview of The Business Environment?

• Marketing strategies

• Supply and demand

• Consumer behavior

• Product development

What topic related to economic conditions is included in the unit overview?

• Inflation, deflation and interest rates

• Economic growth

• Wage levels

• Employment rates

Which topic concerning governance is mentioned in the unit overview?

• Legal restrictions

• Governmental control

• Policy making

• Regulatory compliance

What aspect of business uncertainty is highlighted in the unit overview?

• Investment risks

• Uncertainty and risk

• Market volatility

• Business cycles

Which of the following topics is included in the unit overview related to fiscal policy?

• Taxation

• Budget deficits

• Public expenditure

• National debt

What primarily determines the prices in a market according to the text?

• Government regulations

• Consumer preferences and what the market can bear

• Fixed costs only

• Competition among businesses

What is the role of a market in the business environment?

• To set government policies

• To provide jobs to people

• To facilitate the exchange of goods and services between buyers and sellers

• To control the national economy

What determines a consumer's decision to book a hotel room according to the example provided on supply and demand?

• The proximity of the hotel to tourist attractions

• The price of the room and the availability of desired facilities

• The rating of the hotel on travel websites

• The weather conditions at the time of the stay

If there is a shortage of available accommodation in an area, what must consumers decide according to the text?

• Whether to pay a higher price or not stay at all

• Whether to travel to another city

• Whether to complain to the hotel management

• Whether to book the room regardless of the price

What is likely to happen if a hotel charges only £50 a night for a room when there are many rooms available but few consumers?

• The hotel will make a large profit.

• The hotel will likely cover all associated costs and make a reasonable profit.

• The hotel's revenue per room is unlikely to cover the associated costs, risking business failure.

• Consumer demand for rooms will significantly increase.