Unit 5 Revision Quiz

What is meant by ‘external influence’ in business?

• A decision made by the manager

• An internal policy change

• A factor outside the business's control that affects it

• A staff meeting

Which of the following is an economic influence on business?

• Changes in customer tastes

• Changes in interest rates

• Change in employee motivation

• Change in office layout

If interest rates rise, what is the likely impact on a business with a loan?

• Decreased loan repayments

• Increased sales

• Increased loan repayments

• Reduced fixed costs

Which stakeholder is most interested in receiving dividends from a business?

• Suppliers

• Customers

• Shareholders

• Employees

What is a pressure group?

• A government department

• A group that encourages poor business practice

• An organisation aiming to influence business decisions

• A customer group complaining about prices

Which of the following is a likely objective of a pressure group?

• Increase profits

• Raise interest rates

• Improve ethical practices

• Reduce marketing costs

Which of these is a legal influence on business?

• Rise in raw material costs

• Employment law

• Change in competitor pricing

• Customer needs

Which law protects customers from faulty products?

• Data Protection Act

• Equality Act

• Sale of Goods Act

• Employment Rights Act

Which of these would be a response to increasing unemployment?

• Raise product prices

• Reduce recruitment

• Increase pay

• Launch luxury products

What is the likely impact of high inflation on businesses?

• Lower costs of production

• Reduced consumer spending

• Increased consumer confidence

• Cheaper imports