Free Printable Section 6: External Influences on Business

Worksheets

Section 6: External Influences on Business

Total questions: 20

Worksheet time: 10mins

Name

Class

Date

1. What is the business cycle?

A. The flow of income into a business

B. The ups and downs of the economy

C. The process of starting a new business

D. The cycle of hiring and firing employees

2. Which of the following is a feature of the growth phase of the economic cycle?

A. Falling GDP and rising unemployment

B. Increasing interest rates and high inflation

C. High consumer confidence and increased business investment

D. Decreasing levels of government spending and budget deficits

3. Which of the following is a common characteristic of the slump phase of the business cycle?

A. High unemployment rates

B. High levels of economic growth

C. Increase in consumer spending

D. Expansion of business activity

4. Which of the following is a direct tax?

A. Value Added Tax (VAT)

B. Corporation Tax

C. National Insurance contributions

D. Import duties

5. Which of the following is not an environmental concern for businesses?

A. Climate change

B. Pollution

C. Deforestation

D. Competition

6. Which of the following is an ethical concern for businesses?

A. Reducing costs

B. Maximizing profits

C. Treating employees fairly

D. Increasing market share

7. What is one advantage of globalisation?

A. Increased competition

B. Higher prices for consumers

C. Greater cultural diversity

D. Fewer employment opportunities

8. What is a multinational corporation?

A. A business that operates in multiple industries

B. A business that operates in multiple countries

C. A business that is owned by multiple shareholders

D. A business that is publicly traded

9. What is an exchange rate?

A. The price of goods and services in a foreign country

B. The amount of money a business earns in a year

C. The value of one currency in relation to another

D. The cost of borrowing money

10.

10. What is inflation?

A. A rise in the general price level of goods and services

B. A decline in the general price level of goods and services

C. A rise in the level of unemployment

D. A decline in the level of economic growth

11.

11. Which of the following is NOT one of the four main economic objectives of a government?

A. Sustainable growth

B. Full employment

C. Price inflation

D. Stable balance of payments

12.

12. Which of the following is not a factor that affects economic growth?

A. Availability of labor

B. Natural resources

C. International trade

D. Declining rates of borrowing

13.

13. True or False - Low interest rates can encourage businesses to invest and borrow more money for growth

True

False

14.

14. True or False - Low interest rates encourage consumers to save money and cut spending.

True

False

15.

15. Which of the following is an example of a tariff?

A tax on imports

A tax on exports

A limit on the quantity of imports

A limit on the quantity of exports

16.

6. Which of the following is an environmental concern that businesses need to address?

a) Inflation

b) Unemployment

c) Waste disposal

d) Taxation

17.

17. Which of the following is an example of an ethical concern that a business might face?

a) Exchange rates

b) Government regulation

c) Labour productivity

d) Working conditions

18.

18. What are some of the advantages of globalisation for businesses?

a) Increased competition

b) Reduced market opportunities

c) Access to cheaper labour

d) Higher transportation costs

19.

19. What is a multinational corporation (MNC)?

a) A business that operates in only one country

b) A business that operates in multiple countries

c) A government-owned business

d) A non-profit organization

20.

20. Which of the following is an example of an external factor that can affect exchange rates?

a) A change in government policies

b) A change in customer tastes

c) A change in management style

d) A change in production techniques

100 %

Section 6: External Influences on Business

Total questions: 20

Worksheet time: 10mins

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