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WorksheetsUnit 1.5 Understanding External Influences
Total questions: 50
Worksheet time: 25mins
Anyone who has an interest in the activities of a business is known as a?
Shareholder
Stakeholder
Identify the two main objectives of shareholders.
To make improvements in the business
To make money through a share of the business' profits
To recruit highly skilled employees
To make money on the sale of shares
Identify the two objectives which the customers of a business are likely to have.
To spend as much money as possible
To receive the best quality service and/or products available to them
To purchase the best value for money product/s on the market
To buy as many products as possible
Identify the two objectives which employees of a business are likely to have.
To be paid the best possible wage and rewards
To have as many days absent as possible
To have job security
To have friends at work
Which stakeholder is most likely to impact the performance and morale of employees?
Suppliers
Customers
Managers
Government
Which stakeholder is most likely to have the biggest impact on the quantity and quality of the products that a business sell?
Pressure groups
Employees
Managers
Suppliers
Which stakeholder is most likely to object to a business' activity to protect the area where the business is located and the people that live there?
Suppliers
Local community
Shareholders
Managers
This stakeholder typically tries to influence businesses or the government in support of a particular cause.
Local community
Pressure groups
Government
Employees
This stakeholder influences the amount of tax a business pays, and its decisions influence the performance the economy.
Shareholders
Pressure groups
Local community
Government
Which one is not a typical stakeholder of a business?
Shareholders
Limited company
Government
Customers
If a business transaction takes place using electronic devices via the internet, this process is known as?
Social media
E-commerce
Digital communication
Internet payment systems
Identify the examples of social media platforms which businesses can use to communicate with customers from the options below.
Gmail
TikTok
Identify the digital communication tools listed below.
Mobile apps
Letter
Social media
Cash is a digital payment method.
True
False
The positive impacts of e-commerce on sales include?
Automated sales process
Less competition
Businesses can sell 24/7
Businesses can reach a wide audience
How can technology help to decrease business costs?
More employees can work remotely from home, meaning businesses can operate from smaller office spaces and reduce rent/mortgage payments.
It doesn't cost anything to run an online website, so the business saves money a lot of money if they are located online only.
Meetings can take place virtually online which eliminates the cost of travel and accommodation.
Communication is now completed mainly using digital methods which is more efficient and cost effective.
There are three main ways in which technology influences business activity, these are?
Influence on sales
Influence on profit
Influence on costs
Influence on the marketing mix
How can advancements in technology influence a business' marketing mix?
Customers can shop around more easily online, therefore businesses may have to be more competitive on price.
Businesses can choose to use digital methods of promotion such as an email campaign which is often much cheaper than using traditional methods such as a TV advert or billboard.
Technological advancements often present new and efficient ways of manufacturing products which reduces production costs and helps businesses to reduce their selling price.
Customers always prefer to shop online so sales revenue increases.
E-commerce allows a business to operate 24/7.
True
False
Sending a text message is a form of digital communication.
True
False
In relation to business, the two key pieces of legislation which protect consumers and employees are?
Customer law
Consumer law
Employee law
Employment law
Employment law means a business must provide a product that is fit for its intended purpose.
True
False
Which two are key areas of employment law?
Product quality
Recruitment
Health and safety
Selling price
Every employee must be paid the national living wage?
True
False
Which one isn't one of the nine protected characteristics?
Age
Height
Disability
Race
Providing employees with training in how to use suitable equipment falls under which area of employment law?
Recruitment
Health and safety
Pay
Discrimination
Identify the statements which are covered by consumer law.
The retailer is responsible for the safe delivery of goods
The business must not discriminate when selecting candidates.
Products must be of satisfactory quality
Customers have the right to a repair, replacement, or return of faulty goods after 30 days
If a business fails to comply with employment laws, which one is a likely consequence?
The business experiences improved customer loyalty
The business receives a fine or goes to court
The business has a positive reputation
The business attracts more employees
A business will be closed immediately if it fails to meet its legal obligations under the health and safety at work act.
True
False
The minimum wage which a business must pay an employee is based on?
Age
Gender
Race
Religion
If the economy is growing, the economic climate is _______.
Positive
Negative
When unemployment is high, businesses are affected because?
Less potential employees in the market which they can recruit
They will have to pay employees more
More potential employees in the market which they can recruit
People have more money to spend
If inflation increases and wages do not rise at the same rate, what happens to consumer spending power?
Increases
Decreases
Remains the same
What typically happens when consumers have high levels of income?
The number of products purchased goes down
Consumers have more money to spend
The number of products purchased goes up
Consumers have less money to spend
The interest rate set by the Bank of England is known as?
The minimum rate
The charge rate
The bank rate
The base rate
When interest rates are low, people are more likely to ______ their money.
Save
Spend
VAT stands for?
Very Allowable Tax
Value Adjusted Tax
Value Added Tax
Virtual Added Tax
Which type of government tax do individuals pay to cover their state pension?
National insurance
Income tax
Excise duties
Council tax
The measure of the value of one currency in another currency is known as?
Excise duties
Business rates
VAT
Exchange rate
If a business has £300 and the exchange rate is £1 = $1.25, what is the £300 worth in dollars?
$325
$352
$357
$375
If a business doesn't respond to changes in technology, it risks becoming obsolete.
True
False
The growth of online businesses is a result of changes in which external influence?
Economic climate
Legislation
Technology
If the value of the £ increases against other currencies, a UK business which exports good is likely to experience?
An increase in sales
A decrease in sales
An increase in profit
No change
Which one is most likely to lead to a business increasing its selling prices?
Low levels of unemployment
High interest rates
High levels of unemployment
Low levels of employment
As levels of consumer income decrease, which businesses are most likely to experience a decrease in sales as a result?
Discount supermarket
Premium fashion retailer
Premium supermarket
Discount fashion retailer
An increase to the amount of money a business must pay its employees is a result of a change in which external influence?
Legislation
Economic climate
Technology
If interest rates rise, what impact is this likely to have on a business in relation to the amount it borrows?
Borrow less
Borrow more
No change
If interest rates rise, what impact is this likely to have on consumer behaviour?
Save more
Save less
Spend more
Spend less
When levels of unemployment are low, what actions can a business take to attract and recruit the best people in the market?
Increase wages
Decrease wages
Improve employee perks
Invest in marketing
When the economic climate is negative, a business which is experiencing a decline in sales is likely to?
Increase their product range
Invest in product development
Recruit more employees
Reduce selling prices
