A
Which of the following is an internal stakeholder of a business organisation?
A. Government
B. Employees
C. Suppliers
D. Customers
Answer: B. Employees
Which type of business organisation is owned and managed by a single individual?
A. Partnership
B. Sole Proprietorship
C. Private Limited Company
D. Cooperative Society
Answer: B. Sole Proprietorship
Which external factor includes government policies, taxation, and legislation?
A. Social Factor
B. Political and Legal Factor
C. Technological Factor
D. Competitive Factor
Answer: B. Political and Legal Factor
Which stakeholder is primarily concerned with receiving quality products at a reasonable price?
A. Employees
B. Customers
C. Shareholders
D. Creditors
Answer: B. Customers
Automation and robotics mainly represent which external business environment factor?
A. Environmental Factor
B. Social Factor
C. Technological Factor
D. Political Factor
Answer: C. Technological Factor
Which stakeholder is primarily interested in the timely repayment of loans and interest?
A. Customers
B. Employees
C. Creditors
D. Competitors
Answer: C. Creditors
Which of the following is a macroeconomic factor affecting a business?
A. Supplier increases raw material prices
B. Inflation rate
C. Employee turnover
D. Product quality
Answer: B. Inflation rate
Which of the following is an example of a demographic factor?
A. Interest rate
B. Population ageing
C. Exchange rate
D. Import duty
Answer: B. Population ageing
A business reduces the price of its products after a rival launches a discount campaign. Which external factor is influencing the decision?
A. Social factor
B. Competitive factor
C. Political factor
D. Environmental factor
Answer: B. Competitive factor
Which business objective is most likely to conflict with paying higher dividends?
A. Market expansion through retained earnings
B. Customer satisfaction
C. Product quality improvement
D. Employee welfare
Answer: A. Market expansion through retained earnings
Which of the following is an example of a microeconomic factor?
A. GDP growth
B. Inflation
C. Increase in supplier prices
D. National unemployment rate
Answer: C. Increase in supplier prices
Which stakeholder conflict is most likely to arise in a growing business?
A. Customers wanting lower prices and employees wanting higher wages
B. Government wanting lower taxes and customers wanting higher prices
C. Suppliers wanting lower profits and shareholders wanting lower dividends
D. Competitors wanting higher sales and customers wanting lower quality
Answer: A. Customers wanting lower prices and employees wanting higher wages
Which stakeholder generally has high power but relatively low day-to-day involvement in business operations?
A. Employees
B. Shareholders
C. Customers
D. Suppliers
Answer: B. Shareholders
Which government action would MOST directly increase a firm's operating costs?
A. Reduction in corporate tax
B. Increase in minimum wages
C. Reduction in import duties
D. Decrease in interest rates
Answer: B. Increase in minimum wages
A company replaces plastic packaging with biodegradable materials mainly due to which external factor?
A. Economic factor
B. Environmental and sustainability factor
C. Demographic factor
D. Competitive factor
Answer: B. Environmental and sustainability factor
Which statement regarding stakeholders is INCORRECT?
A. Stakeholders may have conflicting objectives.
B. Employees are internal stakeholders.
C. Every stakeholder has equal influence over business decisions.
D. Governments are external stakeholders.
Answer: C. Every stakeholder has equal influence over business decisions.
Which situation best illustrates the interaction between macroeconomic and competitive factors?
A. A supplier delays delivery of raw materials.
B. High inflation forces firms to compete aggressively on prices.
C. Employees demand flexible working hours.
D. Customers shift to online shopping.
Answer: B. High inflation forces firms to compete aggressively on prices.
Which of the following would MOST likely encourage exports from a country?
A. Appreciation of domestic currency
B. Depreciation of domestic currency
C. Increase in unemployment
D. Increase in corporate tax
Answer: B. Depreciation of domestic currency
Which macroeconomic change is MOST likely to reduce consumers' purchasing power?
A. Fall in unemployment
B. Rise in inflation
C. Increase in exports
D. Reduction in interest rates
Answer: B. Rise in inflation
A company adopts Artificial Intelligence mainly because competitors are rapidly improving their products. Which two factors are involved?
A. Social and Environmental
B. Competitive and Technological
C. Political and Legal
D. Economic and Demographic
Answer: B. Competitive and Technological
Which stakeholder is MOST likely to support reducing short-term profits in favour of long-term market expansion?
A. Creditors
B. Managers
C. Suppliers
D. Customers
Answer: B. Managers
Which of the following correctly matches the factor with its example?
A. Macroeconomic – Supplier increases prices
B. Microeconomic – National inflation rate
C. Technological – Adoption of Artificial Intelligence
D. Political – Consumer lifestyle changes
Answer: C. Technological – Adoption of Artificial Intelligence
Which external factor is LEAST likely to affect a business that operates only within its domestic market?
A. Exchange rate fluctuations
B. Increase in electricity tariffs
C. New labour laws
D. Increase in local property tax
Answer: A. Exchange rate fluctuations
Which stakeholder possesses the greatest legal authority to regulate business activities?
A. Shareholders
B. Government
C. Customers
D. Suppliers
Answer: B. Government
A company faces increased labour costs due to stricter employment laws and simultaneously invests in automation to remain competitive. Which combination of external factors best explains this situation?
A. Political & Technological
B. Social & Demographic
C. Macroeconomic & Environmental
D. Competitive & Demographic
Answer: A. Political & Technological