Unit 1.5.5 External Influences

If a business doesn't respond to changes in technology, it risks becoming obsolete.

• True

• False

The growth of online businesses is a result of changes in which external influence?

• Economic climate

• Legislation

• Technology

If the value of the £ increases against other currencies, a UK business which exports good is likely to experience?

• An increase in sales

• A decrease in sales

• An increase in profit

• No change

Which one is most likely to lead to a business increasing its selling prices?

• Low levels of unemployment

• High interest rates

• High levels of unemployment

• Low levels of employment

As levels of consumer income decrease, which businesses are most likely to experience a decrease in sales as a result?

• Discount supermarket

• Premium fashion retailer

• Premium supermarket

• Discount fashion retailer

An increase to the amount of money a business must pay its employees is a result of a change in which external influence?

• Legislation

• Economic climate

• Technology

If interest rates rise, what impact is this likely to have on a business in relation to the amount it borrows?

• Borrow less

• Borrow more

• No change

If interest rates rise, what impact is this likely to have on consumer behaviour?

• Save more

• Save less

• Spend more

• Spend less

When levels of unemployment are low, what actions can a business take to attract and recruit the best people in the market?

• Increase wages

• Decrease wages

• Improve employee perks

• Invest in marketing

When the economic climate is negative, a business which is experiencing a decline in sales is likely to?

• Increase their product range

• Invest in product development

• Recruit more employees

• Reduce selling prices