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External Factors in Business: PESTEC Assessment

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What does the acronym PESTEC stand for in relation to external business factors?

a)

Performance, Economics, Social, Technology, Environment, Competition

b)

Political, Economic, Social, Technological, Environmental, Competitive

c)

Production, Efficiency, Sales, Technology, Environment, Customers

d)

Planning, Evaluation, Strategy, Tactics, Execution, Control

2.

Which of the following is an example of a political external factor?

a)

Changes in consumer fashion preferences

b)

Increased competition from online retailers

c)

New government legislation

d)

Rising unemployment rates

3.

How might inflation affect a business?

a)

By changing consumer fashion preferences

b)

By increasing the cost of raw materials

c)

By making online sales easier

d)

By reducing the need for human workers

4.

Which external factor is most directly related to changes in taste and fashion?

a)

Political

b)

Economic

c)

Social

d)

Technological

5.

Automation in factories is an example of which type of external factor?

a)

Political

b)

Economic

c)

Social

d)

Technological

6.

A growing interest in recycling and being "green" would be classified as which type of external factor?

a)

Social

b)

Technological

c)

Environmental

d)

Competitive

7.

When a rival company lowers its prices, this is an example of which external factor?

a)

Economic

b)

Competitive

c)

Social

d)

Technological

8.

Weather conditions affecting sales or production is an example of which external factor?

a)

Economic

b)

Social

c)

Environmental

d)

Competitive

9.

How might an increase in unemployment rates impact a business?

a)

Customers may have less money to spend

b)

Production costs may increase

c)

Online sales may become more difficult

d)

None of the above

10.

The ability to sell goods online is an example of which external factor?

a)

Political

b)

Economic

c)

Social

d)

Technological

11.

Which statement best describes how external factors can affect a business?

a)

External factors always have a negative impact on business

b)

External factors always have a positive impact on business

c)

External factors can have both positive and negative impacts on business

d)

External factors rarely have any significant impact on business

12.

An increase in spending power among older people would be an example of which external factor?

a)

Political

b)

Economic

c)

Social

d)

Technological

13.

Which of the following would NOT be considered a technological external factor?

a)

Implementing a new online ordering system

b)

Using robots in manufacturing

c)

Changes in consumer preferences

d)

Developing a mobile app for customers

14.

A new tax on certain products would be an example of which external factor?

a)

Political

b)

Economic

c)

Social

d)

Environmental

15.

How might a business respond to negative impacts from external factors?

a)

By ignoring the changes and continuing with existing strategies

b)

By adapting their business model to accommodate the changes

c)

By focusing exclusively on internal factors

d)

By only considering one type of external factor