Cambridge International A Level · Business (9609)

External influences on business activity (A Level): Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on External influences on business activity (A Level).

10 questions24 marksFree, no account

Question 1

1 mark

Which of the following is an example of a demographic change that could influence the recruitment strategy of a local retail business?

Question 2

1 mark

A government implements a contractionary fiscal policy by increasing the rate of corporation tax. What is the most likely economic impact on a firm's ability to fund internal growth?

Question 3

1 mark

A government implements a contractionary fiscal policy by reducing public spending and increasing direct taxes.

What is the most likely impact on a manufacturer of luxury goods?

Question 4

1 mark

Which of the following is most likely to be a macroeconomic objective of a national government?

Question 5

1 mark

A large food processing firm decides to publish a social audit. Which of the following would typically be included in this report to address social and demographic influences?

Question 6

2 marks

Identify two examples of social and demographic changes that can act as external influences on business activity.

Write your answer out first, then check it against the worked solution.

Question 7

4 marks

Explain how a pressure group focused on animal welfare might influence the operational decisions of a global cosmetics company.

Write your answer out first, then check it against the worked solution.

Question 8

5 marks

Explain how a government's decision to pursue privatisation of a state-owned postal service affects the competitive environment and operational focus of newly entering private courier firms.

Write your answer out first, then check it against the worked solution.

Question 9

3 marks

A large multinational energy company is considering a transition from fossil fuels to renewable energy sources.

Identify two physical environmental issues that could influence this business's behavior and explain how they might affect its long-term operations.

Write your answer out first, then check it against the worked solution.

Question 10

5 marks

A manufacturing company is experiencing a decline in profit margins due to several External influences on business activity. The government has recently announced a significant increase in the national minimum wage and the implementation of stricter environmental carbon taxes.

a) Analyse how the increase in the national minimum wage might impact the company's operational efficiency.
b) Discuss two possible strategic responses the company could adopt to mitigate the impact of the new environmental taxes.

Write your answer out first, then check it against the worked solution.

* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.

You've seen the model answer. Now get yours marked.

This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.

Get My Answers Marked Back to the notes

Want more questions like these? Get a fresh set on this topic, marked as you go.