How can changes in the global economy affect a business?
- By reducing employee turnover
- By increasing government regulations
- By impacting international trade and market opportunities
- By improving internal communication
Which of the following is not a definition of a "market"?
- A geographical area where buyers and sellers come together to trade
- Competition to sell a certain type of product
- A type of customer demographic
- Offering short-term price reductions to entice customers
Which of the following is an example of a cultural influence on business?
- Changes in economic factors
- Shifts in consumer preferences
- Advances in technology
- Government regulations
How do increases in interest rates typically affect business borrowing?
- Increase borrowing costs
- Decrease borrowing costs
- Have no impact on borrowing
- Lead to changes in employee turnover
Which of the following is true?
- ICT has made business processes faster
- Technology is cheap to develop
- M-Commerce stands for "Media Commerce"
- Online stores do not require any staff
A business facing increased competition due to the entry of new firms into its market is influenced by which factor?
- Economic conditions
- Political developments
- Market structure
- Employee morale
A business that adapts its products to cater to the needs of a diverse and multicultural customer base is influenced by which factor?
- Economic conditions
- Social and cultural diversity
- Technological advancements
- Governmental regulations
If customer income rises faster than prices…
- … customers will have more money to spend on things they want
- … customers will have less money to spend on things they want
- … sales of luxury goods will fall
- … people will be unwilling to pay more for goods
A business seeking to expand its operations into new international markets is responding to which influence?
- Social
- Economic
- Technological
- Globalisation
How can a business's pricing strategy be influenced by economic factors?
- By increasing employee morale
- By adjusting prices based on supply and demand
- By expanding into new markets
- By improving internal communication
