Business Environment

A force representing external environment is...

• Manager

• Owner

• Customers

• Legal

Which of the following is a want rather than a need?

• Food

• Shelter

• Education

• A branded smartphone

Which of the following belongs to the internal environment of a business?

• Competitors

• Employees

• Customers

• Government

A new law requires all businesses to reduce plastic use. This is an example of:

• Economic environment

• Suppliers

• Technological Environment

• Legal Environment

Which of the following best shows the effect of technology on businesses?

• A rise in interest rates

• A new machine reducing production time

• New tax rules by the government

• A fall in unemployment

An increase in the inflation rate affects businesses by:

• Reducing cost of production

• Increasing cost of goods and services

• Reducing competition

• Lowering interest rates

When Sri Lanka exports more tea to foreign countries, it shows the influence of:

• Internal environment

• Legal environment

• Technological environment

• Global environment

A company’s strong brand name is considered a:

• Opportunity

• Weakness

• Strength

• Threat

2. Owners, employees, and managers belong to the __________ environment of a business.

4. The set of laws, rules, and regulations that control business activities is called the __________ environment.