5 Questions
What is PESTEL and why is it important to conduct PESTEL Analysis?
PESTEL is a tool used to analyse a business environment, focusing on Political, Economical, Socio-Cultural, and Ecological factors. It is important to conduct PESTEL Analysis because it gives a good picture of the external environment of the country the business wishes to operate in and determines the favorability of doing business in a new country.
What are the 2 levels of business environment and how do they affect the industry/business?
The 2 levels of business environment are macro external factors that affect the entire country (all industries) and contextual environment, and micro external factors that affect the industry/business and operational environment.
What is Economics and what is scarcity?
Economics is the study of how people best allocate limited resources to meet unlimited wants. Scarcity refers to limited resources that are unable to meet unlimited wants.
What is the central economic problem and what is opportunity cost?
The central economic problem is scarcity. Opportunity cost refers to the next best alternative forgone when a decision is made.
What are the factors of production and what is PPF?
The factors of production are land (natural resources, land), labor, capital (physical - machinery and tools, human - skills and experience), and entrepreneurship. PPF stands for Production Possibility Frontier, which illustrates the maximum potential output combinations of two goods or services an economy can produce with limited resources.
Test your knowledge of business fundamentals with this quiz on the business environment and PESTEL analysis. Explore the elements that make up the internal and external environment of a business and enhance your understanding of key concepts in business studies.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
