Understanding the Business Environment

Which of the following best describes the term 'business environment'?

• The internal structure of a business

• The combination of internal and external factors that influence a business

• The financial statements of a business

• The products and services offered by a business

Which of the following is NOT an example of an external factor in the business environment?

• Economic trends

• Company culture

• Legal regulations

• Technological advancements

The acronym PESTLE stands for Political, Economic, Social, Technological, Legal, and _______ factors.

• Environmental

• Ethical

• Educational

• Entrepreneurial

Which of the following is a micro-environmental factor?

• Suppliers

• National economic policy

• Global warming

• Exchange rates

A rise in the Bank of England base interest rate is most likely to:

• Lower borrowing costs for businesses

• Increase borrowing costs for businesses

• Have no effect on businesses

• Reduce inflation automatically

Which legislation primarily protects employees from unfair dismissal in Great Britain?

• Companies Act 2006

• Employment Rights Act 1996

• Data Protection Act 2018

• Health and Safety at Work Act 1974

Which of the following is an example of a technological factor affecting the business environment?

• Minimum wage increase

• Introduction of 5G networks

• Brexit negotiations

• Changes in consumer tastes

A business that is highly influenced by seasonal demand is most affected by which type of environmental factor?

• Political

• Social

• Economic

• Environmental

Which of the following is a direct competitor for a local bakery?

• A nearby supermarket selling fresh bread

• A local gym

• A clothing retailer

• A car dealership

Which of the following is NOT a benefit of a positive business environment?

• Increased employee motivation

• Higher operational costs

• Improved customer satisfaction

• Greater innovation