Knowledge check - External business environment

Which of the following is NOT considered a key factor in the external business environment?

• Economic conditions
• Technological advancements
• Internal employee relations
• Political factors

Which of the following is a social factor that can impact the external business environment?

• Inflation rate
• Demographic changes
• Interest rates
• Exchange rates

What type of factor is competition in the external business environment?

• Political
• Technological
• Social
• Economic

How might changes in government regulations impact a business operating in a particular country?

• Increase competition
• Create new market opportunities
• Result in higher taxes
• Decrease consumer spending

Which of the following is a legal factor that businesses must consider in the external environment?

• Exchange rates
• Employment laws
• Technological developments
• Inflation rates

What impact can global economic issues have on businesses in today's interconnected world?

• Limited effect
• No effect
• Significant effect
• Unpredictable effect

How can technological advancements impact the external business environment?

• Increase competition
• Decrease consumer demand
• Lower production costs
• Reduce innovation

Which of the following is a key factor that contributes to the political environment affecting businesses?

• Technological advancements
• Government stability
• Market demand
• Currency exchange rates

In the context of the external business environment, what does the term 'PESTEL' stand for?

• Political, Economic, Social, Technological, Environmental, Legal
• Profit, Efficiency, Savings, Teamwork, Experience, Loyalty
• Principles, Excellent service, Strong leadership, Timely delivery, Exemplary products, Leadership
• Planning, Evaluating, Strategizing, Testing, Ensuring, Learning

How can understanding and monitoring the external business environment benefit a company?

• Decreasing competition
• Increasing costs
• Identifying opportunities and threats
• Reducing customer base