Which of the following is a political factor that can affect businesses?

• Change in consumer preferences

• Change in laws

• Change in technology

• Change in climate

How can a change in government impact businesses?

• By altering the weather

• By changing the company's logo

• By influencing business regulations

• By modifying product designs

What is one way that changes in taxation rates can affect businesses?

• By increasing the number of employees

• By altering the company's mission statement

• By affecting the company's financial performance

• By changing the company's name

How can changes in law affect a business?

• They can decrease the costs of the business.

• They can increase the costs of the business.

• They have no effect on the business.

• They always benefit the business.

What might an increase in taxation mean for customers?

• Customers have more money to spend.

• Customers have less money to spend.

• Customers are unaffected.

• Customers receive a tax refund.

What might a firm do if corporation tax is increased?

• Lower prices

• Increase prices

• Hire more employees

• Reduce production

Which of the following is an economic factor that can affect businesses?

• Changes in weather patterns

• Changes in interest rates

• Changes in fashion trends

• Changes in technology

What term describes a period of economic decline in the business cycle?

• Inflation

• Boom

• Recession

• Expansion

Which economic factor involves a general increase in prices and fall in the purchasing value of money?

• Deflation

• Inflation

• Stagnation

• Depression

What happens to the cost of paying back borrowed money if interest rates are increased?

• It becomes cheaper

• It becomes more expensive

• It stays the same

• It becomes free