2014 BST Multiple Choice

Which of the following is an external influence on the business environment?

• Management

• Technology

• Skills

• Business culture

Answer explanation

Technology is an external influence on the business environment as it affects operations, communication, and market dynamics. In contrast, management, skills, and business culture are internal factors.

Which level of government is responsible for zoning?

• Federal

• State

• Local

• National

Answer explanation

Zoning is primarily a local government responsibility, as it involves land use regulations and planning specific to communities. Local governments create zoning laws to manage development and land use effectively.

Which of the following terms refers to the costs additional to wages for employing labour, such as sick leave and superannuation?

• On-costs

• Off-costs

• Extra-costs

• Marginal costs

Answer explanation

The term 'On-costs' refers to additional costs incurred by employers beyond wages, such as sick leave and superannuation. This distinguishes it from other terms that do not specifically denote these employment-related expenses.

Milky Chocolates Pty Ltd is giving free samples of their new chocolate bar in order to increase sales. What type of promotional strategy is being used?

• Personal selling

• Sales promotion

• Publicity

• Advertising

Answer explanation

Milky Chocolates Pty Ltd is using a sales promotion strategy by giving free samples of their new chocolate bar. This tactic aims to encourage trial and increase sales, distinguishing it from personal selling, publicity, and advertising.

Technology is assisting in the rapid expansion of telecommunication. Which industry will this impact most?

• Primary

• Secondary

• Quinary

• Quaternary

Answer explanation

The quaternary industry, which focuses on knowledge-based services like information technology and research, is most impacted by advancements in telecommunication, enhancing communication and data exchange.

Which of the following is an advantage of becoming a company, as a business structure?

• Easier to attract finance

• Low start-up costs

• No taxes on business profits

• Unlimited liability

Answer explanation

Becoming a company allows for easier access to finance, as companies can issue shares and attract investors. This is a significant advantage over other business structures, which may struggle to secure funding.

Tow Truck Motors aims to increase their market share by 4% by 2030. What type of plan is this?

• Directional

• Operational

• Strategic

• Tactical

Answer explanation

This plan is strategic because it outlines a long-term goal of increasing market share by 4% by 2030, focusing on the overall direction and objectives of Tow Truck Motors.

Which tax is levied by the Federal government on the total amount of wages paid to an employee each year?

• Fringe benefit tax

• Sales tax

• Payroll tax

• Pay-as-you-go tax

Answer explanation

The correct answer is 'Pay-as-you-go tax' as it is levied by the Federal government on the total wages paid to employees, ensuring taxes are withheld from their paychecks throughout the year.

A business that uses higher profits to lower prices of goods and services, is likely to reduce the conflict between which groups of stakeholders?

• Customers and the government

• Employers and unions

• Owners and customers

• Employees and employers

Answer explanation

By using higher profits to lower prices, owners can satisfy customers with better value, reducing potential conflicts over pricing. This aligns the interests of owners and customers, making them the correct choice.

An accounting firm has recently introduced a family friendly program which allows parents to work from home one day a week? Which factor influenced this decision?

• Social influence

• Legal influence

• Geographical influence

• Economic influence

Answer explanation

The decision to allow parents to work from home reflects a response to social influences, such as the growing demand for work-life balance and family-friendly policies, making 'social influence' the correct choice.