WorksheetsNPA Business External Factors
Total questions: 15
Worksheet time: 8mins
Which acronym is commonly used to remember the external factors that affect business success?
PIECES
PESTEC
ASPECT
EXCEPT
What is the likely impact on a business if the national minimum wage increases?
Increased profits
Lower operating costs
Higher wage costs
Decreased employee hours
When the economy is performing well, which of the following is most likely to occur?
High unemployment rates
Low consumer spending
Decreased business growth
High demand for goods and services
How might a business respond to increased interest in healthy lifestyles?
Increase product prices
Reduce nutritional information
Add more artificial ingredients
Reduce sugar content in products
What is a potential business response to new production equipment becoming available?
Increase prices
Reduce prices
Decrease production
Limit technology use
Which factor would most likely lead a business to consider e-commerce?
Bad weather
High interest rates
Political changes
Exchange rates
How might environmental pressures affect a business?
Increased sales
Higher profits
Damaged reputation
Better customer service
What is a typical business response to increased competition?
Raise prices
Reduce advertising
Decrease quality
Improve product quality
When the economy is performing poorly, what typically happens?
Increased consumer spending
High employment rates
High unemployment rates
Rising business growth
What is an appropriate business response to changing trends and fashions?
Ignore market changes
Increase market research
Reduce product variety
Stop advertising
How can increased availability of Wi-Fi and mobile technology benefit a business?
Reduced customer base
Higher operating costs
Limited communication options
Improved customer communication
What happens to a business when tax rates decrease?
More available funds
Reduced profits
Higher expenses
Decreased investment
How might bad weather impact a seasonal business?
Increased foot traffic
Higher profits
Reduced sales
Better delivery times
What is a sustainable response to environmental pressures?
Increase packaging
Reduce recycling
Ignore environmental concerns
Reduce packaging waste
Which external factor directly relates to changes in interest rates and exchange rates?
Social
Political
Economic
Technological
