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BM Unit 1, AOS 2: External Environment

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Which of the following is not considered as one of the environments of business?

a)

Internal

b)

Macro

c)

Operating

d)

Operations

2.

Over which environment does the business have the largest degree of control?

a)

Internal

b)

Macro

c)

Operating

d)

Operations

3.

Which of the following is not a factor from the operating environment?

a)

Customers

b)

Suppliers

c)

Employees

d)

Competitors

4.

Which of the following aspects of a business would be affected by legislation and government regulations?

a)

Taxation

b)

The rights of employees

c)

Permits & licences

d)

All of the above

5.

Which of the following best describes the term ‘trend’ with regards to societal attitudes?

a)

The general direction in which people’s attitudes or behaviour in society is developing or changing

b)

A decline in customer awareness of the negative contributions of large businesses to society

c)

The bottom line of a business’s financial statements

d)

The boycotting of a company’s products

6.

Which of the following best describes consumer confidence?

a)

How businesses feel about their future in economic terms

b)

How consumers feel about their future in economic terms

c)

How consumers feel in terms of their body image

d)

How consumers feel in social situations

7.

Which of the following is the most likely outcome when there is a fall in consumer confidence?

a)

A decrease in sales as consumers spend less

b)

An increase in sales as consumers spend more

c)

A decrease in investment as businesses spend more

d)

An increase in investment as businesses spend more

8.

Which of the following is considered a negative consequence of improvements in technology?

a)

Technological advances have created jobs in the industries that provide technological products.

b)

As technology replaces workers, businesses can reduce their labour costs.

c)

As technology replaces workers, many people are left unemployed.

d)

All of the above

9.

Which of the following is not a benefit of a business being socially responsible?

a)

Increased sales

b)

Higher staff morale

c)

Higher staff turnover

d)

Better relationships with stakeholders

10.

Which of the following would be considered a socially responsible practice?

a)

Donating profits to charities and foundations

b)

Outsourcing production to nations where labour is cheaper

c)

Reducing waste in the production process

d)

Recycling materials for reuse in productions

11.

True of False: Customers are more likely to purchase products from a socially responsible business.

a)

True

b)

False

12.

Which of the following would be a consequence of a business failing to act in a socially responsible manner.

a)

Alienating consumers who boycott the business

b)

Increase in staff turnover, as people are less likely to stay at an organisation that doesn’t align with their values and beliefs

c)

A decline in sales and profitability

d)

Increased brand reputations and community involvement

13.

Which of the following best defines the term ‘supply chain’?

a)

A supply chain is the method of transport used to deliver goods from a supplier to the business.

b)

A supply chain is the network of suppliers from which the business purchases resources.

c)

A supply chain is the way in which the business supplies its goods to the customer after production.

d)

A supply chain is the steps that are required to produce the end product of the business.

14.

There are many factors that a business must consider when planning its supply chain and choosing its suppliers. Factors include;

a)

the price and quality of the goods supplied

b)

the distance of the suppliers to the business

c)

the rate that stock is used and whether it is at risk of expiring

d)

whether or not the supplier is ethically and socially responsible.

e)

All of the above

15.

Which of the following describes a role of workers’ unions?

a)

To uphold the rights of workers

b)

To increase productivity within businesses

c)

To ensure every worker is contributing positively to the profitability of the business

d)

All of the above

16.

Which of the following is the main reason why a business needs to recognise and assess changes in consumer tastes?

a)

To consistently satisfy the needs and wants of its customers

b)

To ensure the business stays profitable

c)

To assure the ongoing viability of the business

d)

All of the above

17.

To which of the following business environments do competitors belong?

a)

Internal

b)

Operating

c)

Macro

d)

Micro

18.

Which of these strategies can help a business obtain a competitive advantage?

a)

Offering a cheaper or better quality product than competitors

b)

Catering for more specific customer tastes

c)

Buying out rival competitors

d)

All of the above

19.

(a)   is the practice of moving some of a business’s processes or services to the same or another business located overseas.

20.

(a)   is hiring another business to perform some of the business’s processes or services.