WorksheetsExternal Business Environment Quiz
Total questions: 20
Worksheet time: 10mins
What does the "Technological Environment" in the external business environment refer to?
The influence of global trade policies on businesses
The impact of technological advancements on business operations
The cultural practices affecting business decisions
The legal framework governing business activities
What does the competitive environment focus on?
The rivalry between organisations in the market
The government policies affecting organisations
The internal structure of the organisation
The cultural values of the organisation
What does microeconomics study?
The behaviour of individuals and firms in the market and their choices affecting prices, quantities, and resource allocation.
The overall performance of the economy, including GDP and inflation.
The study of government policies and their impact on the economy.
The production and distribution of goods on a global scale.
What does the law of supply state?
The price at which supply equals demand in the market.
The quantity of a good or service that a producer is willing and able to supply at a given price in a given time period.
An item in low supply has low demand, which decreases its price.
The price at which demand exceeds supply in the market.
What is equilibrium price?
The price at which supply exceeds demand in the market.
The price at which demand exceeds supply in the market.
The price at which supply equals the quantity demanded in the market.
The price at which producers stop supplying goods.
Amelia owns a bakery and notices that her expenses for flour and sugar have increased. Which of the following could be a factor causing a change in supply for her bakery?
Increase in consumer demand
Changes in production costs
Seasonal preferences for butter
Marketing campaigns for butter
Which of the following leads to higher profit?
Higher selling price and higher production costs
Lower selling price and higher production costs
Higher selling price and lower production costs
Lower selling price and lower production costs
What are the two main policies through which the government influences the economy?
Fiscal policy and trade policy
Monetary policy and fiscal policy
Trade policy and foreign policy
Monetary policy and environmental policy
Through what mechanisms does the government influence the economy?
Budget and regulations
Trade agreements and foreign policy
Environmental laws and social programs
Tax exemptions and subsidies
What is the target inflation rate for the Bank of England?
8.7%
3.2%
2%
5%
When is expansionary fiscal policy usually used?
During a recession to increase demand for products and services
During a booming economy to slow down growth
During periods of high inflation to stabilize prices
During times of trade surplus to balance imports and exports
Which principle of an effective tax system ensures individuals know how much tax they should pay and how the money is spent?
Transparency
Certainty
Economy
Fair and Equitable
Grace buys a pack of cigarettes and pays an excise duty on tobacco. What type of tax system does this represent?
Income tax
National insurance contributions (NICs)
Excise duties on tobacco and alcohol
Property tax
Which of the following is an example of an indirect tax?
Capital gains tax
Income tax
Value Added Tax (VAT)
Corporation tax
Which of the following best describes a progressive tax system?
Tax rates decrease as income increases
Only businesses are taxed
Everyone pays the same amount of tax regardless of income
Tax rates increase as income increases
Which of the following best describes the law of demand?
The quantity supplied always equals the quantity demanded.
Producers set prices based on consumer preferences.
As the price of a good increases, the quantity demanded increases.
As the price of a good increases, the quantity demanded decreases.
What is an example of a direct tax?
Excise duty
Sales tax
Income tax
Value Added Tax (VAT)
Which of the following is a characteristic of a competitive market?
There are no substitutes for the product
Prices are fixed by the government
Only one seller controls the market
Many buyers and sellers with similar products
Amelia is analysing her company's business environment. Which of the following is an example of a factor in the external business environment that she should consider?
Technological advancements
Employee motivation
Company hierarchy
Internal communication channels
What does the law of demand state?
The quantity supplied always equals the quantity demanded
Producers set prices based on consumer preferences
As the price of a good increases, the quantity demanded decreases
As the price of a good increases, the quantity demanded increases
