Technological And Environmental Influences On Business

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Technological And Environmental Influences On Business - Quiz

Exam revisionBusiness studies


Questions and Answers
  • 1. 

    If a printing firm purchased a new automatic printing press, it is most likely that:

    • A.

      Some jobs would be lost in the firm

    • B.

      No workers would need to be retrained

    • C.

      Production costs per job completed would be higher

    • D.

      Human error would lead to more waste products.

    Correct Answer
    A. Some jobs would be lost in the firm
    Explanation
    When a printing firm purchases a new automatic printing press, it is likely that some jobs would be lost in the firm. This is because the new automatic press can perform tasks that were previously done by workers, leading to a decrease in the need for manual labor. As a result, the firm may need to lay off some employees.

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  • 2. 

    Which of the following is NOT an example of information technology?

    • A.

      A firm buys new computers with access to the internet.

    • B.

      A supermarket equips all of its checkout staff with computerised tills to aid stock control.

    • C.

      Computers are used in a market research agency to analyse and present results.

    • D.

      A garage uses machines to spray cars rather than manual methods.

    Correct Answer
    D. A garage uses machines to spray cars rather than manual methods.
    Explanation
    The correct answer is "A garage uses machines to spray cars rather than manual methods." This is not an example of information technology because it does not involve the use of computers or technology to process, store, or transmit information. Instead, it is a technological advancement in the form of machines replacing manual labor for a specific task.

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  • 3. 

    Which of these products was first introduced to the market in the last 25 years?

    • A.

      Cars

    • B.

      Mobile phones

    • C.

      Passenger aircraft

    • D.

      Televisions

    Correct Answer
    B. Mobile phones
    Explanation
    Mobile phones were first introduced to the market in the last 25 years. The other options, such as cars, passenger aircraft, and televisions, have been around for much longer than that. Cars have been in existence for over a century, passenger aircraft have been around since the early 20th century, and televisions have been commercially available since the mid-20th century. Therefore, mobile phones are the most recent addition to the market among these options.

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  • 4. 

    Which of the following is the most likely result for a firm that decides not to introduce new technology in its factory?

    • A.

      Resistance to change from the workforce

    • B.

      Products that become more difficult to sell to consumers

    • C.

      High output per worker

    • D.

      High staff retraining costs

    Correct Answer
    B. Products that become more difficult to sell to consumers
    Explanation
    If a firm decides not to introduce new technology in its factory, it is likely that the products it produces will become more difficult to sell to consumers. This is because new technology often leads to increased efficiency, improved quality, and lower costs, which can give a competitive advantage in the market. Without adopting new technology, the firm may struggle to keep up with competitors who are able to offer better products at lower prices. As a result, consumers may prefer to purchase from these competitors, making it harder for the firm to sell its products.

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  • 5. 

    The managers of a firm decide not to purchase new technology machinery. The firm remains very successful. The best reason for this might be that:

    • A.

      Other similar firms have all purchased the latest equipment

    • B.

      The firm could not afford the latest equipment

    • C.

      It makes a specialist, hand-built product

    • D.

      It is involved in mass producing a standardised good in huge quantities.

    Correct Answer
    C. It makes a specialist, hand-built product
    Explanation
    The firm's decision not to purchase new technology machinery may be because it specializes in producing hand-built products. This suggests that the firm's success is not dependent on having the latest equipment, but rather on its unique and specialized manufacturing process. The firm may have built a reputation for high-quality, artisanal products that cannot be replicated by other firms using new technology. Therefore, the firm's success can be attributed to its niche market and the value placed on its hand-built products.

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  • 6. 

    The best example of an environmental constraint on a business is:

    • A.

      Laws that prevent the dumping of waste at sea

    • B.

      Workers who refuse to accept new machines

    • C.

      New government controls on where a business can locate

    • D.

      Consumers continue to buy petrol from an oil company with a bad record on oil tanker disasters.

    Correct Answer
    A. Laws that prevent the dumping of waste at sea
    Explanation
    Environmental constraints refer to limitations or restrictions imposed by the natural environment or regulatory bodies that affect business operations. Out of the given options, "laws that prevent the dumping of waste at sea" is the best example of an environmental constraint on a business. These laws are put in place to protect the marine ecosystem and prevent pollution caused by waste disposal at sea. Therefore, businesses are required to find alternative methods for waste management, which may increase costs or require them to invest in more environmentally friendly practices.

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  • 7. 

    A number of consumers agree to organise a boycott (refusal to buy goods) of a company’s products. The company uses very old equipment that pollutes the air. The consumers would be called a:

    • A.

      Trade union

    • B.

      Limited company

    • C.

      Pressure group

    • D.

      Partnership.

    Correct Answer
    C. Pressure group
    Explanation
    A pressure group is an organized group of people who come together to influence or change public opinion and government policies on a particular issue. In this case, the consumers agreeing to boycott the company's products due to its use of old equipment that pollutes the air would be considered a pressure group. They are using their collective power to put pressure on the company to change its practices and reduce pollution.

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  • 8. 

    A pressure group is trying to stop a firm from dumping waste. Which of the following is most likely to lead to pressure group success?

    • A.

      There is huge publicity about the problem in all national newspapers.

    • B.

      Only a small number of people join the pressure group.

    • C.

      The firm spends huge amounts of money on advertising how much it cares for the environment.

    • D.

      The government decides not to change the law on dumping waste.

    Correct Answer
    A. There is huge publicity about the problem in all national newspapers.
    Explanation
    A pressure group's success is most likely to be achieved when there is huge publicity about the problem in all national newspapers. This is because widespread media coverage raises public awareness about the issue, putting pressure on the firm to address the problem. It also increases the visibility and influence of the pressure group, attracting more support and potentially mobilizing a larger movement against the firm's actions. The attention drawn by national newspapers can also prompt the government to take action, as public pressure increases the likelihood of stricter regulations or enforcement measures being implemented.

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  • 9. 

    A business might decide to become more ‘environmentally friendly’ when:

    • A.

      It saves so much money by dumping waste and polluting the air

    • B.

      It is expensive to purchase more modern and ‘cleaner’ machines

    • C.

      Bad publicity makes many consumers stop buying the firm’s products

    • D.

      The government refuses to change the law to make these actions unlawful.

    Correct Answer
    C. Bad publicity makes many consumers stop buying the firm’s products
    Explanation
    When a business receives bad publicity and consumers stop buying its products, it can be a significant motivator for the business to become more environmentally friendly. This is because consumers are becoming increasingly conscious of the environmental impact of businesses and are more likely to support companies that prioritize sustainability. By adopting environmentally friendly practices, the business can regain the trust and loyalty of consumers, ensuring its long-term success. This explanation aligns with the growing trend of consumer demand for environmentally responsible businesses.

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  • 10. 

    The government of one country has very few laws about protecting the environment from business activity. One of the reasons for this might be that:

    • A.

      The government is very concerned about the environment

    • B.

      Businesses will always protect the environment even if they do not have to

    • C.

      Business activity never harms the environment

    • D.

      Business activity is so important to the economy of the country and firms could easily relocate.

    Correct Answer
    D. Business activity is so important to the economy of the country and firms could easily relocate.
    Explanation
    The correct answer is that business activity is so important to the economy of the country and firms could easily relocate. This suggests that the government may have few laws about protecting the environment because they prioritize economic growth and are afraid that imposing strict environmental regulations could drive businesses away to other countries with more lenient regulations.

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  • 11. 

    A business plans to build a new privately owned city airport. One of the social (external) costs of this would be:

    • A.

      The construction costs of the airport

    • B.

      The costs of running and maintaining the airport once it was built

    • C.

      The noise from approaching aircraft to the airport

    • D.

      The cost to the airlines of using the airport.

    Correct Answer
    C. The noise from approaching aircraft to the airport
    Explanation
    The noise from approaching aircraft to the airport is considered a social (external) cost because it affects the surrounding community. The noise can disrupt the peace and quiet of the area, causing annoyance and potential health issues for residents. It can also decrease property values and negatively impact the quality of life for those living nearby. Therefore, it is a cost that is imposed on society as a whole, rather than just the business or the airport itself.

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  • 12. 

    The government is building a new toll motorway around the main city. One of the main social (external) benefits of this would be:

    • A.

      The cost to each motorist of using the motorway

    • B.

      The profits made by the motorway construction firm

    • C.

      Increased traffic and car use a result of the motorway

    • D.

      Less time wasted in traffic jams and fewer accidents.

    Correct Answer
    D. Less time wasted in traffic jams and fewer accidents.
    Explanation
    The correct answer is less time wasted in traffic jams and fewer accidents. Building a new toll motorway around the main city would alleviate traffic congestion, reducing the time wasted by motorists stuck in traffic jams. Additionally, the new motorway would provide a safer and more efficient route for vehicles, leading to a decrease in accidents. These social benefits would improve the overall transportation experience and contribute to a more convenient and secure road network.

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  • 13. 

    Cost-benefit analysis might be used by a government before deciding to build a new railway system. Cost-benefit analysis would try to find out:

    • A.

      The total social costs and benefits of the new system and which was greater

    • B.

      Whether the new system would make a profit or not

    • C.

      Whether the railway system would actually work

    • D.

      Just the social costs resulting from the building of the new system.

    Correct Answer
    A. The total social costs and benefits of the new system and which was greater
    Explanation
    Cost-benefit analysis is a method used to evaluate the total social costs and benefits of a project or investment. In the context of building a new railway system, this analysis would assess the overall costs and benefits associated with the project. It aims to determine whether the benefits outweigh the costs or vice versa. By comparing the total social costs and benefits, the government can make an informed decision on whether to proceed with the construction of the railway system.

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  • 14. 

    The result of the cost-benefit analysis into a new airport showed that social costs were greater than social benefits. The government will probably:

    • A.

      Agree to the new airport being built

    • B.

      Not allow the airport to be built

    • C.

      Allow an even bigger airport to be built than was first planned

    • D.

      Suggest that the airport is built closer to the city centre.

    Correct Answer
    B. Not allow the airport to be built
    Explanation
    Based on the information provided, the result of the cost-benefit analysis indicates that the social costs of building a new airport outweigh the social benefits. Therefore, it can be inferred that the government will not allow the airport to be built.

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  • 15. 

    Technological and environmental factors that influence business activity are called:

    • A.

      Factors of production

    • B.

      Economies of scale

    • C.

      Constraints

    • D.

      Government economic objectives.

    Correct Answer
    C. Constraints
    Explanation
    Technological and environmental factors that influence business activity can be seen as limitations or restrictions that businesses need to consider and adapt to. These constraints can include technological limitations, such as the availability of certain resources or the need to invest in new technologies, as well as environmental constraints, such as regulations and policies related to sustainability and conservation. These factors can significantly impact the way businesses operate and make decisions, ultimately shaping their activities and strategies.

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  • Current Version
  • Mar 16, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 20, 2010
    Quiz Created by
    Sachou10
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