Economic Influence in the Business Environment

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What factor influences the amount of funds a business must allocate to marketing?

Market shifts and trends

Level of competition (correct)

Ease of entry into the market

Consumer preferences

In what type of market is the ease of entry typically low?

Monopoly

Perfect competition

Oligopoly (correct)

Monopolistic competition

What does market influence in the business environment refer to?

Ease of entry into the market

Business profitability

Consumer preferences

Supply and demand dynamics (correct)

What should businesses be aware of to remain profitable?

All of the above Signup and view all the answers

Which type of market allows businesses more control over pricing and marketing power?

Low competition market Signup and view all the answers

How does a business minimize waste and satisfy consumer needs?

Remaining informed about consumer preferences Signup and view all the answers

Which aspect influences the allocation of funds in marketing?

Competitive situation Signup and view all the answers

What type of market has higher ease of entry?

Perfect competition market Signup and view all the answers

What drives a business to be aware of market shifts and trends?

Economic forecasts Signup and view all the answers

What is critical for businesses to understand in order to satisfy consumer wants and needs?

Current consumer wants and needs Signup and view all the answers

How has technological influence impacted the business environment in terms of manufacturing processes?

By developing advanced machinery and infrastructure specific to the goods needed Signup and view all the answers

What negative impact has technological influence had on the labor force in the business environment?

Decrease in the labor force and rise in unemployment rates Signup and view all the answers

How does the growth of global trade and exportation influence businesses?

By increasing both the consumer base and choice of customers Signup and view all the answers

What aspect of technological influence contributes to increased efficiency and productivity in manufacturing?

Machines producing goods at faster speeds with high quality Signup and view all the answers

How does competitive situation influence impact businesses in the market?

It refers to competition between businesses for market share Signup and view all the answers

What is one negative consequence of the competitive situation influence on businesses?

Loss of market share or revenue to competitors Signup and view all the answers

How do businesses benefit from healthy competition in the market?

By encouraging innovation and improving products/services Signup and view all the answers

What role does automation play in the competitive situation influence on businesses?

It enhances operational efficiency and helps gain a competitive edge Signup and view all the answers

Which factor contributes to the competitive situation influence leading to innovation within businesses?

Increased pressure from competitors in the market Signup and view all the answers

In what way does competition between businesses impact the variety of choices available to consumers?

It expands consumer choices by encouraging product diversity Signup and view all the answers