Business Studies Term 1 test

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What type of environment is often considered the internal environment of a business?

Micro environment (correct)

Mega environment

Macro environment

Market environment

Which component in the micro environment provides a clear and concise statement of what the business aims to become in the future?

Goals and Objectives

Market

Mission

Vision (correct)

What does the Mission component of the micro environment outline for a business?

Long-term direction

External factors impacting success

Specific steps for achieving goals

Primary activities and market purpose (correct)

Which element of the micro environment are broad primary outcomes the business aims to achieve?

Goals and Objectives Signup and view all the answers

In the micro environment, what serves as actionable steps that define how goals will be achieved?

Goals and Objectives Signup and view all the answers

Which environment segment includes factors under the direct control of the company?

Micro environment Signup and view all the answers

What sector involves the transformation of raw materials into finished or semi-finished products?

Secondary Sector Signup and view all the answers

Which sector includes activities like retail, wholesaling, and transport services?

Tertiary Sector Signup and view all the answers

What function do public sector entities typically serve?

Provide essential services under government control Signup and view all the answers

What is a common characteristic of businesses in the informal sector?

Lack of formal registration and small-scale operations Signup and view all the answers

Which auxiliary service helps in bridging the possession and risk gaps?

Financing and Insurance Signup and view all the answers

Which sector facilitates the movement of goods and information?

Tertiary Sector Signup and view all the answers

What are the key elements of the physical/natural environment discussed in the text?

Landscape, site, and buildings; local weather and climate changes; resources availability and sustainability Signup and view all the answers

Which element of the market environment encompasses motivation, perception, learning, beliefs, and attitudes?

Psychological factors Signup and view all the answers

In the macro-environment, businesses must adapt to broader societal forces such as __________.

Economic conditions, social trends, technological innovations, legislative frameworks Signup and view all the answers

What role do intermediaries play in the market environment?

Adding value by making the product available at the right place and time Signup and view all the answers

What is pivotal for businesses to effectively respond to opportunities and threats?

Adapting to external market conditions and leveraging control over the micro environment Signup and view all the answers

What influences customer purchasing decisions by encompassing family roles, social status, and reference groups?

Social factors Signup and view all the answers

What do suppliers provide in the market environment?

Raw materials, finance, and labor Signup and view all the answers

Which societal forces are part of the macro environment that businesses need to adapt to?

Economic conditions, social trends, technological innovations, legislative frameworks Signup and view all the answers

Why is management's control over the micro environment pivotal for businesses?

To tailor internal processes towards strategic objectives Signup and view all the answers

Which element of the market environment provides security and protection according to Maslow's Hierarchy of Needs?

Biological and Physiological Needs Signup and view all the answers

What sector is involved with the extraction of minerals and geological materials from the earth?

Primary Sector Signup and view all the answers

Technologies like Electronic Point of Sale systems primarily enhance which aspect of business?

Inventory Management Signup and view all the answers

How do economic expansions and recessions directly affect business operations?

By shaping consumer behavior and investment levels Signup and view all the answers

What is one key area influenced by the social and cultural environment affecting market demands?

Product offerings Signup and view all the answers

In the market environment, which factor is external to the business and beyond direct management control?

Competitors' actions Signup and view all the answers

What is a primary focus of the macro environment on business operations?

Shaping the operational context Signup and view all the answers

What factor can disrupt or create business opportunities but require quick adaptation from businesses?

Technological advancements Signup and view all the answers

Which sector involves ocean and freshwater fishing?

Primary Sector Signup and view all the answers

What can significantly influence consumer behavior and supplier relations within the micro environment?

Strategic partnerships Signup and view all the answers

Why are factors like inflation and unemployment mentioned as part of economic factors in the text?

To show how they affect consumer spending and business costs Signup and view all the answers

What does a positive organizational culture foster in a business?

Motivation and productivity Signup and view all the answers

Which of the following is NOT a physical resource in a business?

Information and technology Signup and view all the answers

What does the management and leadership function 'Controlling' entail?

Monitoring processes and outputs Signup and view all the answers

Which function in a business is responsible for managing daily administrative tasks?

Administration Function Signup and view all the answers

What are tangible assets in a business called?

Physical Resources Signup and view all the answers

What does the 'Marketing Function' in a business do?

Identifies customer needs and markets the product accordingly Signup and view all the answers

Which of the following is NOT an activity of management as outlined through the POLC framework?

Implementing Signup and view all the answers

Which function in a business is responsible for managing the financial health of the company?

Financial Function Signup and view all the answers

What does the organizational culture in a business NOT affect?

Government policy making Signup and view all the answers

What is NOT a part of the market environment that directly affects a company?

Legal frameworks Signup and view all the answers

Which environmental factor can impose restrictions on business operations?

Environmental regulations Signup and view all the answers

What happens when imports exceed exports in a balance of payments?

It weakens the national currency Signup and view all the answers

Which stage in business cycle stages dictates market conditions and consumer spending behaviors?

All stages Signup and view all the answers

What is the role of redistribution of income in economic challenges?

It boosts consumer spending among lower-income groups Signup and view all the answers

Which micro environment characteristic includes the human, financial, and physical resources of a business?

Resources available to the business Signup and view all the answers

What do cultural influences include in the social, cultural, and demographic environment?

Cultural influences include customs and religion Signup and view all the answers

What impact do advancements like robotics and automated systems have on production and operations?

They reduce labor needs and increase efficiency Signup and view all the answers

What does a stable political environment foster for businesses?

A stable political environment fosters business growth Signup and view all the answers

What events outside national borders can affect local markets through disruptions in supply chains?

Political unrest or natural disasters in other countries Signup and view all the answers

What does understanding the interrelationship of micro, market, and macro environments help businesses with?

Understanding the interrelationship helps businesses navigate and strategize effectively Signup and view all the answers

What aspect of the business environment includes factors within the company that can be adjusted through management decisions?

Micro environment Signup and view all the answers

Which statement serves as the guiding star for all strategic planning in a business?

Vision statement Signup and view all the answers

What component of the micro environment outlines the fundamental objectives and reason for a business's existence?

Mission Signup and view all the answers

In the micro environment, what are specific, actionable steps that define how broad goals will be achieved?

Objectives Signup and view all the answers

What are broad primary outcomes that businesses aim to achieve in the micro environment?

Goals Signup and view all the answers

What environment segment includes societal forces that businesses need to adapt to?

Macro environment Signup and view all the answers

How can advancements in technology impact production and operations?

By enhancing operational efficiency and reducing labor needs Signup and view all the answers

In what way does a negative balance of payments impact the national currency?

It weakens the national currency Signup and view all the answers

How does income distribution impact the market size for luxury goods?

It decreases the market size Signup and view all the answers

What role do environmental factors related to pollution regulations play in businesses?

They impose restrictions on business operations Signup and view all the answers

How does political stability influence business growth?

It fosters business growth Signup and view all the answers

What impact does high unemployment and health issues like HIV/Aids have on productivity and economic output?

They reduce productivity and impact economic output Signup and view all the answers

How does the balance of payments influence import costs?

It increases import costs Signup and view all the answers

What role do cultural influences play in consumer behavior?

They significantly influence consumer behavior Signup and view all the answers

How do demographic shifts impact market dynamics?

They significantly influence market dynamics Signup and view all the answers

What effect do the business cycle stages have on consumer spending behaviors?

They dictate consumer spending behaviors Signup and view all the answers

Which sector ensures the distribution and sale of finished products and the delivery of services to consumers?

Tertiary Sector Signup and view all the answers

Which auxiliary service ensures products meet certain standards and are appropriately grouped?

Sorting and Grading Signup and view all the answers

Which branch of private sector focuses on services and advocacy without profit motives?

Non-profit organizations Signup and view all the answers

Which business sector facilitates the provision of occupational and industrial training, education and development?

Tertiary Sector Signup and view all the answers

Which sector is responsible for marketing raw materials and extracting them?

Primary Sector Signup and view all the answers

Which sector experiences limited growth potential due to its unofficial status and lack of access to formal credit?

Informal Sector Signup and view all the answers

What constitutes the organisational culture of a business?

Collective behaviour, norms, ethical standards, and work dynamics Signup and view all the answers

Which resource is essential for funding business operations and expansions?

Financial Resources Signup and view all the answers

What is the primary role of the Leading function in management?

Directing and motivating staff Signup and view all the answers

What is the primary role of the Financial Function in a business?

Managing the financial health of the company Signup and view all the answers

What is the outcome of a positive organisational culture in a business?

Motivation and productivity Signup and view all the answers

What is the primary role of the primary sector in the economy?

To extract and harvest natural resources Signup and view all the answers

What can technological advancements like automation and online shopping platforms do?

Drastically alter operational efficiencies and market reach Signup and view all the answers

What is the impact of economic expansions and recessions on business operations?

They directly influence consumer spending and investment levels Signup and view all the answers

Which environmental factor can impose restrictions on business operations?

Legal environment Signup and view all the answers

What is the role of the micro environment in business operations?

To influence market conditions and respond to macro environmental factors Signup and view all the answers

What do demographic shifts in the social and cultural environment influence?

Market demands and product offerings Signup and view all the answers

What does the macro environment shape for businesses?

The operational context Signup and view all the answers

What is the indirect effect of the macro environment on businesses?

It shapes the operational context for businesses Signup and view all the answers

What is the role of government policies in the macro environment?

To influence business operations and market conditions Signup and view all the answers

Which of the following is NOT a part of Maslow's Hierarchy of Needs?

Spiritual Needs Signup and view all the answers

Which of the following is NOT a microenvironment element?

Economic conditions Signup and view all the answers

Which of the following is NOT a societal force in the macro environment?

Suppliers Signup and view all the answers

What is the primary role of intermediaries in the market environment?

Delivering the product to the end consumer Signup and view all the answers

Which of the following is NOT a physical resource in a business?

Suppliers Signup and view all the answers

What influences customer purchasing decisions by encompassing family roles, social status, and reference groups?

Social factors Signup and view all the answers

Which of the following is NOT an element of the physical/natural environment?

Intermediaries Signup and view all the answers

Which of the following is NOT a primary function in a business?

Legal function Signup and view all the answers

Which element of the market environment encompasses motivation, perception, learning, beliefs, and attitudes?

Psychological factors Signup and view all the answers

Which sector is involved with the extraction of minerals and geological materials from the earth?

Primary sector Signup and view all the answers

What is the primary purpose of the vision statement in a business?

To provide a clear and concise statement of the business's aspirations Signup and view all the answers

What are objectives in a business?

Specific, actionable steps that define how goals will be achieved Signup and view all the answers

Which element of the micro environment outlines the business's primary activities and market purpose?

Mission Signup and view all the answers

What is the role of the micro environment in a business?

To impact the business's ability to serve its customers Signup and view all the answers

What is the relationship between goals and objectives in a business?

Goals are broad primary outcomes, and objectives are specific, actionable steps Signup and view all the answers

Which component of the micro environment serves as a guiding star for all strategic planning?

Vision Signup and view all the answers

How do strategies within the micro environment influence consumer behavior and supplier relations?

By indirectly impacting consumer behavior through pricing and customer service Signup and view all the answers

What can necessitate adaptive strategies within the micro environment to maintain market position?

Changes in consumer preferences and actions by competitors Signup and view all the answers

How do economic factors like inflation and unemployment affect businesses?

By increasing consumer spending and costs associated with business operations Signup and view all the answers

What does the macro environment include that the business management typically does NOT have direct control over?

Legal and political factors Signup and view all the answers

How can demographic shifts influence the demands in a market environment?

By requiring adjustments in product offerings and marketing strategies Signup and view all the answers

What is one of the advancements in technology that can alter operational efficiencies and market reach significantly?

Automation and online shopping platforms Signup and view all the answers

How do business cycle stages directly influence business operations?

By affecting consumer spending and investment levels Signup and view all the answers

Why do technological advancements like EPOS systems provide valuable data for marketing and stock management?

By improving inventory management and customer transactions Signup and view all the answers

How do government policies influence business operations and market conditions?

By shaping business practices and compliance requirements Signup and view all the answers

What are the external factors that are beyond the direct control of business management according to the text?

Technological trends Signup and view all the answers

What is the primary role of the secondary sector?

Transforming raw materials into finished or semi-finished products Signup and view all the answers

What is a characteristic of informal sector businesses?

They operate outside the official regulatory framework Signup and view all the answers

What is the function of the public sector?

To provide essential services like healthcare, education, and infrastructure Signup and view all the answers

What is the role of auxiliary services?

To bridge various gaps in the production and consumption process Signup and view all the answers

What is a characteristic of formal sector businesses?

They are officially registered businesses that comply with governmental regulations Signup and view all the answers

What is the role of the tertiary sector?

To deliver services to consumers and businesses, and distribute and sell finished products Signup and view all the answers

What is the primary role of the Human Resource Function in a business?

To recruit, train, and maintain a qualified and motivated workforce Signup and view all the answers

Which of the following is an example of a Physical Resource in a business?

Buildings and machinery Signup and view all the answers

What is the outcome of a positive Organisational Culture in a business?

Motivation and productivity Signup and view all the answers

Which of the following is NOT a part of the Micro Environment?

Market Environment Signup and view all the answers

What is the primary role of the Planning function in management?

To determine the future path of the company Signup and view all the answers

Which of the following is an example of a Financial Resource in a business?

Owned and borrowed capital Signup and view all the answers

What is the purpose of the Controlling function in management?

To monitor processes and outputs to ensure alignment with goals Signup and view all the answers

Which of the following is a characteristic of a positive Organisational Culture?

Motivation and productivity Signup and view all the answers

What is the primary role of the Public Relations Function in a business?

To manage the public image and community relations of the business Signup and view all the answers

Which of the following is an example of a business function in the Micro Environment?

General Management Signup and view all the answers

What is a key consideration for businesses operating in a country with a negative balance of payments?

Weakened national currency Signup and view all the answers

What is a primary impact of demographic shifts on businesses?

Changes in market dynamics and consumer needs Signup and view all the answers

What is a key role of the macro environment?

Shaping business operations and compliance requirements Signup and view all the answers

What is a key aspect of the micro environment?

Management's strategies and decisions Signup and view all the answers

What can be a result of adopting new technologies like robotics and automated systems?

Reduced labor needs but increased efficiency Signup and view all the answers

What is a key challenge posed by the international environment?

Events outside national borders disrupting supply chains Signup and view all the answers

What is a key aspect of the institutional environment?

Official procedures like company registration and tax registration Signup and view all the answers

What can be a result of high unemployment and health issues like HIV/AIDS?

Reduced workforce productivity and economic output Signup and view all the answers

What is a key role of cultural influences in the social, cultural, and demographic environment?

Influencing consumer behavior and product preferences Signup and view all the answers

What is a key benefit of a stable political environment?

Business growth and economic stability Signup and view all the answers

What factors influence customers' purchasing decisions in the market environment?

Cultural, social, personal, and psychological factors Signup and view all the answers

Which components of Maslow's Hierarchy of Needs correspond to finding a sense of belonging and self-esteem?

Belongingness and Love, and Esteem Needs Signup and view all the answers

Which societal forces do businesses need to adapt to in the macro environment?

Economic conditions, social trends, technological innovations, and legislative frameworks Signup and view all the answers

How can businesses respond effectively to opportunities and threats in the market environment?

By continuously monitoring the environment and adapting to external market conditions Signup and view all the answers

Which factors need to be considered when planning for disruptions caused by natural disasters in a business?

Landscape, site, and buildings Signup and view all the answers

What is the primary role of intermediaries in the market environment?

To deliver the product to the end consumer and add value by making it available at the right place and time Signup and view all the answers

Which sector is responsible for marketing raw materials and extracting them?

The primary sector Signup and view all the answers

What is the impact of economic expansions and recessions on business operations?

They directly affect business operations through market conditions and consumer spending behaviors Signup and view all the answers

What do customers form in the market environment?

The core of the market environment Signup and view all the answers

What is the primary role of the leading function in management?

To direct and coordinate all activities of the organization Signup and view all the answers

What sector involves the management, cultivation, and harvesting of forests for wood and wood products?

Primary Sector Signup and view all the answers

What technology significantly enhances inventory management and customer transactions for businesses?

EPOS Systems Signup and view all the answers

How do changes in population age, education levels, and cultural trends impact businesses?

By disrupting market demands Signup and view all the answers

Which external factor directly influences the cost of imported goods and overall economic stability?

Balance of Payments Signup and view all the answers

What sector includes activities like ocean and freshwater fishing with a focus on the extraction of aquatic species?

Primary Sector Signup and view all the answers

What type of technological innovation can drastically alter operational efficiencies and market reach for businesses?

Digital Marketing Tools Signup and view all the answers

Which macro environmental factor can disrupt or create business opportunities, necessitating quick adaptation?

Technological Environment Signup and view all the answers

Why are businesses unable to have direct control over the market environment?

Because of the influence of competitors Signup and view all the answers

Which factor affects consumer spending and business costs through its impact on inflation, unemployment, and taxes?

Business Cycle Stages Signup and view all the answers

What is defined as the sector directly involved with the extraction and harvesting of natural resources?

Primary Sector Signup and view all the answers

What impact can a stable political environment have on businesses?

Foster business growth Signup and view all the answers

How can cultural influences affect consumer behavior?

Shape preferences and buying decisions Signup and view all the answers

What role does income distribution play in affecting the market size for different products?

Increases competition for luxury goods Signup and view all the answers

How do technological advancements like EPOS systems enhance business operations?

Improve customer service and inventory management Signup and view all the answers

What can disruptions in supply chains caused by global events result in?

Market uncertainty and shifting consumer behaviors Signup and view all the answers

How does a negative balance in the Balance of Payments impact the national currency?

Weakens the currency value Signup and view all the answers

What is the primary influence of demographic shifts on market dynamics?

Changes in consumer needs Signup and view all the answers

What is the potential impact of high unemployment and health issues on a country's workforce?

Reducing overall productivity Signup and view all the answers

How do environmental regulations related to pollution impact businesses?

Improve sustainability practices Signup and view all the answers

Why must businesses consider the quality of infrastructure like roads and transport facilities?

For easier business continuity Signup and view all the answers

What is the primary function of the secondary sector?

Transforming raw materials into finished or semi-finished products Signup and view all the answers

Which of the following is a characteristic of the informal sector?

Lack of access to formal credit Signup and view all the answers

What is the primary role of the tertiary sector?

Distribution and sale of finished products and delivery of services Signup and view all the answers

Which auxiliary service closes the spatial gap between production and consumption locations?

Transport Signup and view all the answers

What is a characteristic of the formal sector?

Registration with tax authorities Signup and view all the answers

Which sector includes state-owned enterprises and government service providers?

Public Sector Signup and view all the answers

What is the primary role of suppliers in the market environment?

To provide essential inputs needed for production Signup and view all the answers

What is the primary purpose of understanding the market environment?

To identify opportunities and threats Signup and view all the answers

What is a key characteristic of the micro environment?

It is under the direct control of the business Signup and view all the answers

What is a key factor that influences customer purchasing decisions?

All of the above Signup and view all the answers

What is a key role of intermediaries in the market environment?

To add value by making the product available at the right place and time Signup and view all the answers

What is a key element of the physical/natural environment?

All of the above Signup and view all the answers

What is a key implication of understanding the business environment?

Effective response to opportunities and threats Signup and view all the answers

What is a key aspect of the macro environment?

All of the above Signup and view all the answers

What is a key role of management in the micro environment?

All of the above Signup and view all the answers

Which of the following best describes how a business's vision differs from its mission?

A vision statement is a concise and aspirational concept of what a business aims to become in the future, while a mission statement outlines primary activities and the market purpose. Signup and view all the answers

How do goals and objectives work together in the strategic planning process?

Goals provide an overview of the company's long-term plans, while objectives describe specific actionable steps to achieve those plans. Signup and view all the answers

Which of the following is NOT an accurate statement about a mission statement?

It provides a general overview of the business's long-term goals. Signup and view all the answers

Which of the following best describes the relationship between a company's microenvironment and its external pressures?

The microenvironment consists of internal factors within the company that impact its ability to serve customers. Signup and view all the answers

Suppose a company has the following vision: 'To be a global leader in delivering sustainable energy solutions.' Which of the following mission statements would not be compatible with the given vision?

Our mission is to manufacture and supply traditional fossil fuels, expanding our production capabilities to dominate the global market. Signup and view all the answers

Which element of the micro environment includes specific, actionable steps that define how broad goals will be achieved?

Objectives Signup and view all the answers

Which element of the market environment is primarily influenced by cultural trends and demographic shifts?

Customers Signup and view all the answers

Which of the following is NOT a core activity of management as outlined in the POLC framework?

Liaising Signup and view all the answers

Which organizational culture aspect is most directly linked to enhancing employee motivation and productivity?

Collective behaviors Signup and view all the answers

Which resource is best characterized as having both tangible and intangible components, and directly impacts business success?

Human resources Signup and view all the answers

Which function involves strategic and operational planning that determines the company's future path?

Planning function Signup and view all the answers

Which external factor affects business competitiveness through technological advances and data handling?

Information and technological resources Signup and view all the answers

Which sector includes activities like retail, wholesaling, and transport services?

Tertiary sector Signup and view all the answers

Which business function is responsible for managing the financial health of the company, ensuring adequate funding and financial planning?

Financial function Signup and view all the answers

Which environment segment includes factors that businesses need to adapt to, but are typically beyond their direct control?

Macro environment Signup and view all the answers

Which function identifies customer needs and markets the product accordingly, taking into account factors such as pricing, distribution, and promotion?

Marketing function Signup and view all the answers

What serves as the guiding star for all strategic planning in a business?

Vision Signup and view all the answers

Which fundamental statement outlines a business's primary activities and market purpose?

Mission Signup and view all the answers

In strategic planning, what provides long-term direction by outlining broad primary outcomes?

Goals Signup and view all the answers

Which of the following are specific actionable steps that define how business goals will be achieved?

Objectives Signup and view all the answers

What are broad primary outcomes that businesses aim to achieve for long-term direction?

Goals Signup and view all the answers

Which statement serves as the reason for a business's existence and its fundamental objectives?

Mission Signup and view all the answers

Which auxiliary service addresses the time gap by holding products until they are needed?

Storage Signup and view all the answers

Which sector of the economy focuses on the production of machines or vehicles and extends from simple transformations to more complex manufacturing?

Secondary sector Signup and view all the answers

Which private sector entities are typically funded by taxpayers and operate to serve the public interest?

State-owned enterprises Signup and view all the answers

Which organizational culture aspect is most directly linked to enhancing employee motivation and productivity by addressing their esteem needs?

Empowerment and delegation Signup and view all the answers

How does the macro environment influence a business's ability to control its micro environment?

By imposing restrictions on operational decisions Signup and view all the answers

Which component of the market environment encompasses those factors that can disrupt business operations, such as changes in consumer preferences and technological advancements?

Market environment Signup and view all the answers

What is the primary role of the General Management function in a business?

To oversee and synchronize all other business functions to ensure achievement of the company's objectives. Signup and view all the answers

Which of the following is NOT a characteristic of Organizational Culture?

Market trends Signup and view all the answers

What is the primary role of the Public Relations Function in a business?

To manage the public image and community relations of the business. Signup and view all the answers

Which of the following is a characteristic of the Micro Environment?

Internal factors and processes Signup and view all the answers

What is the primary role of the Financial Function in a business?

To manage the financial health of the company, ensuring adequate funding and financial planning. Signup and view all the answers

Which of the following is NOT a type of Organisational Resource?

Market Environment Signup and view all the answers

What is the primary role of the Production Function in a business?

To convert raw materials into finished goods efficiently and effectively. Signup and view all the answers

Which of the following is a characteristic of the Macro Environment?

Economic conditions Signup and view all the answers

What is the primary role of the Administration Function in a business?

To handle daily administrative tasks and supports the operation through information management. Signup and view all the answers

Which of the following is a characteristic of the micro environment?

Management functions and resources Signup and view all the answers

What is the primary role of the tertiary sector?

Providing services to facilitate the movement of goods and information Signup and view all the answers

Which environmental factor directly influences consumer spending patterns?

Income distribution Signup and view all the answers

What is the primary role of infrastructure in the macro environment?

To facilitate or hinder business operations Signup and view all the answers

Which of the following is NOT a characteristic of the macro environment?

Management functions Signup and view all the answers

What is the primary role of the institutional environment?

To outline procedures and regulations Signup and view all the answers

Which of the following is an example of an economic challenge?

Unemployment Signup and view all the answers

What is the primary role of the micro environment in shaping business operations?

To directly shape the business's mission and objectives Signup and view all the answers

Which environmental factor affects business operations through its impact on inflation, unemployment, and taxes?

Economic expansions and recessions Signup and view all the answers

What is the primary role of redistribution of income in economic challenges?

To temporarily boost consumer spending among lower-income groups Signup and view all the answers

What is the primary influence of economic factors on business operations?

Affect consumer spending and business costs Signup and view all the answers

What is the primary role of the primary sector in the economy?

To extract and harvest natural resources Signup and view all the answers

How do advancements in technology impact production and operations?

They drastically alter operational efficiencies and market reach Signup and view all the answers

What is the primary influence of the macro environment on businesses?

It shapes the operational context for businesses Signup and view all the answers

What is the primary role of the tertiary sector in the economy?

To facilitate the movement of goods and information Signup and view all the answers

How do government policies influence business operations?

They directly influence business operations and market conditions Signup and view all the answers

What is the primary influence of demographic shifts on business operations?

They influence market demands and necessitate adjustments in product offerings and marketing strategies Signup and view all the answers

What is the primary role of market dynamics in the market environment?

To influence consumer behavior and supplier relations Signup and view all the answers

What is the primary influence of a negative balance in the Balance of Payments on the national currency?

It decreases the value of the national currency Signup and view all the answers

What key element of the natural environment directly affects the physical operations and logistics of a business located in areas prone to natural disasters?

Landscape, site, and buildings Signup and view all the answers

According to Maslow's Hierarchy of Needs, which need provides security and protection?

Safety Needs Signup and view all the answers

Which societal force in the macro environment imposes restrictions on business operations through environmental regulations related to pollution?

Legislative frameworks Signup and view all the answers

What key factor directly influences customer purchasing decisions by encompassing family roles, social status, and reference groups?

Social Factors Signup and view all the answers

Which primary role of intermediaries in the market environment is critical for delivering products to the end consumer?

Making the product available at the right place and time Signup and view all the answers

What technological advancement can significantly alter operational efficiencies and market reach by enhancing Electronic Point of Sale systems?

Online shopping platforms Signup and view all the answers

What societal force in the macro environment directly influences the cost of imported goods and overall economic stability?

Economic conditions Signup and view all the answers

Which advancement in technology can enable businesses to reallocate resources, reduce costs, and improve efficiency through automation?

Automation Signup and view all the answers

What key role does management play in the micro environment to adapt to external market conditions?

Leveraging control over internal processes Signup and view all the answers

Which societal force in the macro environment shapes opportunities and threats for businesses?

Legislative frameworks Signup and view all the answers

Business Studies Term 1 test

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Questions and Answers

What type of environment is often considered the internal environment of a business?

Which component in the micro environment provides a clear and concise statement of what the business aims to become in the future?

What does the Mission component of the micro environment outline for a business?

Which element of the micro environment are broad primary outcomes the business aims to achieve?

In the micro environment, what serves as actionable steps that define how goals will be achieved?

Which environment segment includes factors under the direct control of the company?

What sector involves the transformation of raw materials into finished or semi-finished products?

Which sector includes activities like retail, wholesaling, and transport services?

What function do public sector entities typically serve?

What is a common characteristic of businesses in the informal sector?

Which auxiliary service helps in bridging the possession and risk gaps?

Which sector facilitates the movement of goods and information?

What are the key elements of the physical/natural environment discussed in the text?

Which element of the market environment encompasses motivation, perception, learning, beliefs, and attitudes?

In the macro-environment, businesses must adapt to broader societal forces such as __________.

What role do intermediaries play in the market environment?

What is pivotal for businesses to effectively respond to opportunities and threats?

What influences customer purchasing decisions by encompassing family roles, social status, and reference groups?

What do suppliers provide in the market environment?

Which societal forces are part of the macro environment that businesses need to adapt to?

Why is management's control over the micro environment pivotal for businesses?

Which element of the market environment provides security and protection according to Maslow's Hierarchy of Needs?

What sector is involved with the extraction of minerals and geological materials from the earth?

Technologies like Electronic Point of Sale systems primarily enhance which aspect of business?

How do economic expansions and recessions directly affect business operations?

What is one key area influenced by the social and cultural environment affecting market demands?

In the market environment, which factor is external to the business and beyond direct management control?

What is a primary focus of the macro environment on business operations?

What factor can disrupt or create business opportunities but require quick adaptation from businesses?

Which sector involves ocean and freshwater fishing?

What can significantly influence consumer behavior and supplier relations within the micro environment?

Why are factors like inflation and unemployment mentioned as part of economic factors in the text?

What does a positive organizational culture foster in a business?

Which of the following is NOT a physical resource in a business?

What does the management and leadership function 'Controlling' entail?

Which function in a business is responsible for managing daily administrative tasks?

What are tangible assets in a business called?

What does the 'Marketing Function' in a business do?

Which of the following is NOT an activity of management as outlined through the POLC framework?

Which function in a business is responsible for managing the financial health of the company?

What does the organizational culture in a business NOT affect?

What is NOT a part of the market environment that directly affects a company?

Which environmental factor can impose restrictions on business operations?

What happens when imports exceed exports in a balance of payments?

Which stage in business cycle stages dictates market conditions and consumer spending behaviors?

What is the role of redistribution of income in economic challenges?

Which micro environment characteristic includes the human, financial, and physical resources of a business?

What do cultural influences include in the social, cultural, and demographic environment?

What impact do advancements like robotics and automated systems have on production and operations?

What does a stable political environment foster for businesses?

What events outside national borders can affect local markets through disruptions in supply chains?

What does understanding the interrelationship of micro, market, and macro environments help businesses with?

What aspect of the business environment includes factors within the company that can be adjusted through management decisions?

Which statement serves as the guiding star for all strategic planning in a business?

What component of the micro environment outlines the fundamental objectives and reason for a business's existence?

In the micro environment, what are specific, actionable steps that define how broad goals will be achieved?

What are broad primary outcomes that businesses aim to achieve in the micro environment?

What environment segment includes societal forces that businesses need to adapt to?

How can advancements in technology impact production and operations?

In what way does a negative balance of payments impact the national currency?

How does income distribution impact the market size for luxury goods?

What role do environmental factors related to pollution regulations play in businesses?

How does political stability influence business growth?

What impact does high unemployment and health issues like HIV/Aids have on productivity and economic output?

How does the balance of payments influence import costs?

What role do cultural influences play in consumer behavior?

How do demographic shifts impact market dynamics?

What effect do the business cycle stages have on consumer spending behaviors?

Which sector ensures the distribution and sale of finished products and the delivery of services to consumers?

Which auxiliary service ensures products meet certain standards and are appropriately grouped?

Which branch of private sector focuses on services and advocacy without profit motives?

Which business sector facilitates the provision of occupational and industrial training, education and development?

Which sector is responsible for marketing raw materials and extracting them?

Which sector experiences limited growth potential due to its unofficial status and lack of access to formal credit?

What constitutes the organisational culture of a business?

Which resource is essential for funding business operations and expansions?

What is the primary role of the Leading function in management?