Other External Influences On Business

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| By Katecambel

Katecambel

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Quizzes Created: 6 | Total Attempts: 4,453

Questions: 5 | Attempts: 227 | Updated: Mar 21, 2023

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Other External Influences On Business - Quiz

A few questions about the fifth chapter from the IGCSE Business Studies book: Other External Influences on Business

Questions and Answers

1.

What is an advantage of technological change?
- A.
  
  Workers will require training
- B.
  
  New products encourage consumers to buy
- C.
  
  Expensive to buy and introduce with no certainty it will succeed
- D.
  
  Customers still prefer personal contact
Correct Answer
B. New products encourage consumers to buy

Explanation
One advantage of technological change is that it encourages consumers to buy new products. This is because technological advancements often lead to the development of innovative and improved products that can attract consumers' attention and interest. When consumers see the benefits and features of these new products, they are more likely to make a purchase, which can drive sales and contribute to business growth.

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2.

What is a constraint?
- A.
  
  The underlying movement or direction of data over time
- B.
  
  Payment for work, usually paid weekly
- C.
  
  Something that limits or controls its actions or decisions on a business
- D.
  
  The cost of producing one item
Correct Answer
C. Something that limits or controls its actions or decisions on a business

Explanation
A constraint refers to something that limits or controls the actions or decisions of a business. It can be any factor that restricts the company's operations, such as financial limitations, resource availability, or regulatory requirements. Constraints play a crucial role in shaping business strategies and determining the course of action for achieving goals. They help in identifying potential obstacles and finding ways to overcome them, ultimately influencing the overall success and effectiveness of the business.

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3.

Define cost-benefit analysis
- A.
  
  The financial gains made by a business as a result of a business decision
- B.
  
  The provision of a product or a service to satisfy consumer wants and needs
- C.
  
  The income to a business during a period of time from the sale of goods or services
- D.
  
  The valuation by a government agency of all external and private costs and benefits resulting from a business decision
Correct Answer
D. The valuation by a government agency of all external and private costs and benefits resulting from a business decision

Explanation
Cost-benefit analysis refers to the process of evaluating and comparing the costs and benefits associated with a particular business decision. It involves assessing both the monetary and non-monetary factors, such as external and private costs and benefits, to determine the overall value and feasibility of the decision. This analysis is often conducted by a government agency to ensure a comprehensive evaluation of all the potential impacts and outcomes of the decision.

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4.

What is a pressure group?
- A.
  
  Policies, strategies or measures taken to promote a good image for a company and/or its products
- B.
  
  People selected at random as a source of information for market research
- C.
  
  Formed by people who share a common interest and who will take action to try to change government policy or business decisions
- D.
  
  A specific group of customers or potential customers
Correct Answer
C. Formed by people who share a common interest and who will take action to try to change government policy or business decisions

Explanation
A pressure group is formed by people who share a common interest and who will take action to try to change government policy or business decisions. Pressure groups are typically formed to advocate for specific causes or issues, and they use various strategies and tactics to influence decision-makers and bring about change. These groups often engage in activities such as lobbying, public campaigns, and grassroots organizing to exert pressure on policymakers and businesses to address their concerns and adopt their desired policies.

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5.

Why might a firm not respond to pressure group activity?
- A.
  
  Well organized and funded
- B.
  
  The cost to the business of changing its methods is more than the possible cost of poor image and lost sales
- C.
  
  They have public support and in the media
- D.
  
  Consumer boycotts cause reduced sales
Correct Answer
B. The cost to the business of changing its methods is more than the possible cost of poor image and lost sales

Explanation
A firm may choose not to respond to pressure group activity if the cost of changing its methods outweighs the potential cost of having a poor image and lost sales. This suggests that the firm believes that the financial impact of making changes is greater than any negative consequences that may arise from not addressing the concerns raised by pressure groups. In other words, the firm prioritizes its financial stability over potential reputational damage and decreased sales.

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Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Apr 24, 2010

Quiz Created by
Katecambel

Other External Influences On Business

What is an advantage of technological change?

What is a constraint?

Define cost-benefit analysis

What is a pressure group?

Why might a firm not respond to pressure group activity?