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WorksheetsSGS Business 1.5.6 External influences on Business
Total questions: 27
Worksheet time: 17mins
Which of the following functional areas is most likely to use twitter to increase customer engagement?
Business Operations
Marketing
Finance
Human Resources
Which law would be broken if an employee refused to wear safety equipment provided by the business?
Equality Act (2010)
Health and Safety at Work Act (1974)
Consumer Rights Act (2015)
Trades Description Act (1968)
A business reduces the level of chemical emissions from its factory. Which of the following is the business aiming to reduce?
Noise pollution
Traffic congestion
Recycling
Air pollution
Which of the following is a feature of a weak economic climate?
High levels of consumer spending
Low levels of consumer spending
High levels of employment
Low levels of unemployment
Which of the following laws prevents employees being discriminated against on the basis of characteristics such as gender and race?
Equality Act (2010)
Health and Safety at Work Act (1974)
Consumer Rights Act (2015)
Trades Description Act (1968)
Which of the following is true in relation to the Health and Safety at Work Act (1974)?
Visitors to a business are not covered by the act
Employees must follow health and safety procedures set by the firm
Employees are the only people covered by the act
Customers visiting business premises are not covered by the act
Which of the following is a possible impact facing a hotel chain if facilities and accommodation are falsely described?
Sales may increase
Customer numbers may increase
Profits may increase
Reputation may decrease
Which of the following demonstrates the impact of a weak pound on a UK business that imports raw materials and exports finished goods?
Imported raw materials dearer and exported finished goods cheaper
Imported raw materials cheaper and exported finished goods cheaper
Imported raw materials dearer and exported finished goods dearer
Imported raw materials cheaper and exported finished goods dearer
Which of the following is a drawback to a business of behaving in an environmentally responsible way?
Sales increase due to positive public image
Brand reputation is improved
Publicity may not persuade customers to buy
Easier to motivate and recruit employees
Which of the following statements is true in relation to UK legislation?
Product descriptions must be true, accurate and not misleading
Employers do not have to pay the national minimum or living wage
Customers cannot reject a falsely described product once purchased
Gender is not a protected characteristic of the Equality Act (2010)
Which of the following statements best describes the national living wage? The hourly pay rate set by the Government which must be paid to:
All employees
All employees aged over 21
All employees aged under 25
All employees aged over 25
Which of following is most likely to occur as interest rates fall?
Sales of luxury products increase
Sales of essential products increase
Sales of luxury products decrease
Sales of essential products decrease
Which of the following is an example of a business minimising risk by selling products in different markets?
British fashion house, Burberry, selling its products in China
UK grocer, Sainsbury’s, aims to open more UK Sainsbury’s Local stores
British retailer, Argos, opens outlets in UK Sainsbury stores
UK retailer, Marks & Spencer, to close stores in 10 overseas markets
A business that uses renewable energy, such as solar and wind power, aims to reduce:
Recycling
Global warming
Traffic congestion
Waste disposal
Changes in which of the following external influences is most likely to have led to the development of online businesses such as travel agents?
Technology
Interest rates
Legislation
Exchange rates
What best describes the term economic climate?
Factors inside the business that influence its activities
The measurement of whether the production and consumption of goods is strong or poor in a specific country or region
Government rules and regulations that affect business activity
Buying and selling goods electronically
When the economic climate is strong, businesses that have high demand for their products are going to:
Hire fewer staff and invest more
Hire fewer staff and invest less
Hire more staff and invest more
Hire more staff and invest less
If the pound becomes weaker, a UK importer may experience:
An increase in sales and costs
A decrease in sales and costs
An increase in sales and a decrease in costs
A decrease in sales and an increase in costs
Rising inflation is an example of a change in:
Legislation
Technology
Government taxation
The economic climate
Legislation designed to reduce landfill aims to encourage businesses to:
Decrease their levels of recycling and send more to landfill
Decrease their levels of recycling and send less to landfill
Increase their levels of recycling and send more to landfill
Increase their levels of recycling and send less to landfill
A business that operates in a competitive environment is likely to reduce prices when the economic climate is:
Weak and consumer spending is high
Weak and consumer spending is low
Strong and consumer spending is high
Strong and consumer spending is low
Changes in which external influence has meant that UK businesses have to pay employees the national minimum wage?
Technology
Economic climate
Legislation
Changes in lifestyle
As unemployment levels fall, in order to recruit the best staff, businesses might respond by:
Decreasing wage rates to reduce costs
Decreasing wage rates to reduce profit levels
Increasing wage rates to increase staff retention
Increasing wage rates to lower staff retention
When the economic climate is weak, businesses which are experiencing a fall demand for their products might:
Reduce prices and spend less on product development
Reduce prices and spend more on product development
Increase prices and spend less on product development
Increase prices and spend more on product development
If the pound becomes stronger, a UK exporter may experience:
A decline in sales
An increase in profits
A reduction in costs
An increase in sales
Which two of the following situations is a business most likely to increase its prices?
Interest rates are rising
Employment levels are falling
Interest rates are falling
Unemployment levels are rising
Employment levels are rising
The economic climate can influence business activity. Which two businesses are most likely to experience a decrease in demand as consumer incomes rise?
A budget gym
A designer clothes store
A new car dealership
A discount supermarket
An upmarket restaurant
