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WorksheetsNational 5 Bus Mgt External and Internal Factors
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
What external factor may mean a company has to purchase new safety equipment which increases costs and lowers profit
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
2.
What external factor may grant permission for a company to expand current factory and increase output
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
3.
What external factor may make it more expensive to pay back a bank loan which may mean a company will delay any big plans that a company has to expand
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
4.
What external factor may mean that the company has greater sales due to a 'boom' which means higher dividends for to owners or profits to use to purchase new machinery and become more efficient
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
5.
What external factor may mean that suppliers cannot deliver raw materials due to bad weather and customer orders are delayed as a result
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
6.
What external factor may mean that the company must improve how it gets rid of wastage to avoid pollution of local rivers and the bad reputation doing so may bring
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
7.
What external factor may mean that the company has to alter its range of clothing to what customers currently want or face getting into financial difficulties.
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
8.
What external factor may mean that the company needs to carry out market research to find out what is currently in demand and may be in demand in the future (think of Subway and Halal meat)
a)
Political/Legislation
b)
Economic
c)
Social
d)
Environmental
9.
What external factor may mean that the company needs to consider using social media to communicate with customers if they wish to attract new clients
a)
Technological
b)
Economic
c)
Social
d)
Environmental
10.
What external factor may mean that the company will save storage costs and take better decisions since better quality information is available to all staff no matter where they are working
a)
Technological
b)
Economic
c)
Social
d)
Environmental
11.
What external factor may mean that the company needs to take out additional advertising on TV/radio and launch money-off or BOGOF offers to keep customers loyal and avoid a drop in sales
a)
Technological
b)
Economic
c)
Social
d)
Competition
12.
What external factor may mean that the company needs to take out additional advertising on TV/radio and launch money-off or BOGOF offers to keep customers loyal and avoid a drop in sales
a)
Technological
b)
Economic
c)
Social
d)
Competition
13.
The introduction of the National Living Wage of £7.20 for 25 year olds and over in April 2016 is an example of which external factor?
a)
Political
b)
Economic
c)
Social
d)
Competition
14.
The pressure for Easter Egg manufacturers to reconsider their packaging to reduce the materials used is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Environmental
15.
The collapse of the UK steel industry is mainly due to cheap imports from China who have 'over-produced'. This is an example of what external factor?
a)
Political
b)
Social
c)
Competition
d)
Environmental
16.
The withdrawal of the £1 glass Irn Bru bottles in 2015 was partially due to fewer customer returning these 'glass cheques' for 30p refund. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Environmental
17.
The strength of £ sterling against the euro in 2015 meant that it was dearer for companies abroad to purchase UK goods. This is an example of which external factor
a)
Political
b)
Social
c)
Competition
d)
Economic
18.
Low interest rates has meant that it is a good time for companies to consider taking out loans to expand their business or purchase more advanced machinery to increase automation. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Economic
19.
In many towns, fast food outlets such as McDonalds are suffering from falling sales due to a preference for more healthy snacks. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Economic
20.
An increase in working mums and longer hours has led to an increase in the number of companies offering home cleaning services. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Economic
21.
There are three main internal factors. Which is NOT one of these?
a)
Availability of Finance
b)
Availability of Staff
c)
Availability of Current Technology
d)
Availability of Good Publicity
22.
Which of the following is NOT a possible impact of lack of internal funds?
a)
Increase in redundancies of staff
b)
Cancellation/delay of a product launch
c)
Introduction of new advertising campaign
d)
Re-negotiation of rent charges with landlord
23.
The use of ICT and robots will mean that ...
a)
costs will increase and profits reduce
b)
faults will increase and customer complaints rise
c)
staff may find work more repetitive and morale may fall
d)
equality act will be broken and compensation may need to be paid
24.
Availability of expert and capable staff will help a business develop and improve over time. Which department helps to keep staff motivated and working to their best?
a)
HR
b)
Operations
c)
Finance
d)
Marketing
25.
Managers are an internal factor who can greatly influence a business - but how?
a)
Through the quality of the decisions they take
b)
Through the wages and bonuses they earn
c)
By the level of IT skills they have
d)
By the ways they communicate
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