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Worksheets1.5 Stakeholders, Technology and the Economy
Total questions: 45
Worksheet time: 23mins
Who are stakeholders?
Owners and shareholders of a business.
Local competitors interested in the activities of a business.
Individual or groups of individuals with a vested interest in the activities of a business.
Individual or groups of individuals who wish a business to failure.
Which two are internal stakeholders of a business?
Owners
Customers
Suppliers
Employees
Who are external stakeholders?
Local community
Managers
Shareholders
Employees
Who might have conflict with the shareholders over increasing the selling prices of products?
Suppliers
Customers
Employees
Government
Who may be in conflict with each other over higher wages?
Government
Employees
Shareholders
Suppliers
A business lowers costs by negotiating a better purchasing agreement. Which two stakeholders may be affected the most?
Pressure groups
Supplier
Shareholders
Employees
What is a pressure group?
An organisation or individuals that benefit from the activities of a business.
An organisation or individuals that suffer from the activities of a business.
An organisation or individuals that campaigns against the behaviour of a business.
An organisation or individuals that get a share of a company's profits.
What is e-commerce?
The buying and selling of goods and services online.
The buying and selling of goods and services in store.
The buying and selling of goods and services from abroad.
The buying and selling of goods and services from local companies.
Which two are benefits of e-commerce for businesses?
Allows businesses to sell from any store in the world.
Allows businesses to trade worldwide so increasing the potential customer base.
Enables only large businesses to compete globally.
Enables businesses to start up anywhere, even a garage!
Which two are disadvantages of e-commerce?
It is a highly competitive environment.
Only customers in the same country can buy online.
High costs due to fixed costs related to shops and stores.
Poor reviews can damage the reputation and sales of the business.
What is remote working?
Working in an office on your own.
Working from home or away from the workplace.
Working using technology.
Working in a team using technology.
What is a benefit of digital communications?
High set up and maintenance costs.
Staff need to be trained on how to use the technology.
Businesses can engage and communicate with customers 24/7.
Information overload.
Which is an example of digital communications?
Newsletters
Memos
Letters
Skype
Which is not example of a social media method?
Company website
Youtube
Which two are benefits of using social media for a business?
Reduces sales levels.
Reduced marketing costs.
Greater customer engagement with opportunities for customer feedback.
Greater costs involved due to high set up costs.
Which two are drawbacks of using social media for businesses?
Greater customer engagement leading to higher sales.
Increased risk from negative feedback, leading to lower sales.
Daily and regular monitoring and updating needed.
Able to use online polls for market research purposes.
Which two are benefits of improved payment systems for businesses?
Quicker cash inflow for businesses as customers can pay immediately.
Opens the business up to fraudulent activity.
Financial transactions can be seen by competitors.
Trends in sales can be identified quickly so product range can be updated improve sales.
Which two are drawbacks of online payment systems?
Businesses will need to monitor payments 24/7.
Greater risk of fraud so need to pay for greater security measures to protect customers.
Easier and quicker way to pay.
Customers need to have internet access
Which 'P' is impacted by businesses becoming more innovative with goods and services to keep up with changes in technology?
Price
Product
Place
Promotion
Which 'P' is impacted because fixed costs are reduced when businesses sell online?
Price
Product
Place
Promotion
Which 'P' is impacted by the use of cookies so that customers can be targeted with specific sales offers?
Price
Product
Place
Promotion
What is 'economic climate'?
The level of imports and exports in a country.
The performance of a country in terms of the level of demand and spending.
The changes in consumer incomes.
The performance of individual companies within a country.
What is meant by 'consumer income'?
The amount of money consumers spend on goods and services.
The amount of money consumers receive as a reward for working.
The amount of money consumers pay to the government.
The amount of money consumers have left to spend after they have paid their taxes and living expenses.
Which two are impacts when economic climate is high?
Falling interest rates
Rising consumer incomes
Weakening pound
Falling unemployment
What is meant by 'unemployment'?
When people can find work easily as there a lots of job vacancies.
When people are paid only the minimum wage.
When people who want to work cannot find a job.
When people who want to change do so easily.
Which two are benefits for a business of high unemployment?
More potential people to hire as more are seeking work.
Demand for inferior or lower priced goods and services increase.
Spending is higher as consumer incomes are rising.
The government receives more taxes and pays out less benefits.
Which two are drawbacks of high unemployment?
Demand for luxury goods and services increase.
People have higher consumer incomes.
Consumers spend less money.
There are not enough jobs for people who are willing to work.
What is meant by 'inflation'?
The changes in the average level of unemployment.
The changes in the average value of the pound.
The changes in the average interest rates.
The changes in the average level of prices in the economy.
What are interest rates?
The percentage changes in average prices.
The percentage reward for savings and the percentage cost of borrowing.
The percentage reward for investing in a business.
The percentage of total sales for a business in a market.
Which source of finance would you not pay interest rates?
Loan
Overdraft
Retained profits
Mortgage
Which two are impacts of a rise in interest rates?
Increased sales due to a fall in consumers' disposable incomes.
Increased cash outflows due to increased fixed costs.
Smaller businesses are less likely to start up or expand.
A rise in economic activity.
What is meant by 'exchange rates'?
The price of buying foreign currency.
The cost of importing goods.
The cost of exporting goods.
The price of goods and services.
What are imports?
Goods and services bought from UK companies
Goods and services sold to UK consumers.
Goods and services bought from foreign companies.
Goods and services sold to foreign consumers.
What are exports?
Goods and services bought from foreign companies.
Goods and services sold to foreign consumers.
Goods and services bought by UK consumers.
Goods and services sold by foreign companies.
How do you convert UK pounds into Euros?
Multiply Euros by exchange rate.
Divide UK pounds by exchange rate
Multiply UK pounds by exchange rate.
Divide Euros by exchange rate.
How do you convert Euros into UK pounds?
Divide Euros by exchange rate
Multiple UK pounds by exchange rate
Multiple Euros by exchange rate
Divide UK pounds by exchange rate
What does SPICED stand for?
Strong Price Imports Cheaper Exports Decline
Strong Pound Imports Cheaper Exports Dearer
Strong Pound Imports Costs Exports Don't
Strong Price imports Cheaper Exports Dearer
Which two are impacts of a strong pound?
Lower profits as sales decline.
Variable costs are lower as imports are cheaper.
Consumers are more likely to buy British-made products.
Exports are more expensive so it is harder for UK to compete and sell abroad.
Which two are impacts of a weakening pound?
Tourism will flourish as prices are cheaper for foreigners.
Easier for UK companies to sell abroad.
Lower variable costs as imports are cheaper.
UK consumers are more likely to buy imported goods and services.
A small firm orders $6,000 worth of materials from a foreign supplier. If the exchange rate is £1 = $1.50, how much in £s will it have to pay for the order? Select one answer.
£6,000
£9,000
£10,000
£4,000
Which is a tax on sales?
Corporation Tax
Value Added Tax (VAT)
income Tax
National insurance Contributions
Which tax is paid by employers and employees to pay for state pensions and other benefits?
Corporation Tax
Value Added Tax (VAT)
Income Tax
National Insurance Contributions
Which is a tax on earnings?
Corporation Tax
Value Added Tax (VAT)
Income Tax
National Insurance Contributions
Which is a tax on profits paid by limited companies (Ltds and Plcs)?
Corporation Tax
Value Added Tax (VAT)
Income Tax
National Insurance Contributions
Which taxes are paid by a sole trader?
Income Tax
Corporation Tax
Business Tax
Value Added Tax (VAT)
