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Business Environment SWOT PEST Essentials
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Business Environment SWOT PEST Essentials
Business Environment SWOT PEST Essentials
Study
1
Question
What is the external environment in business knowledge?
Answer
Set of uncontrollable factors affecting decisions
2
Question
Name a key characteristic of the business environment?
Answer
Dynamic and unpredictable
3
Question
List the six environmental forces mentioned.
Answer
Sociocultural, Political, Technological, Legal and Regulatory, Competitive, Economic
4
Question
What does 'uncontrollable forces in external environment' refer to?
Answer
Forces beyond business control affecting operations
5
Question
Which environment includes social and cultural forces?
Answer
Sociocultural environment
6
Question
What institutional factors are part of the political environment?
Answer
Government policies and attitude toward business
7
Question
How is technology described in the environmental context?
Answer
Advancement cannot be stopped; adapt to changes
8
Question
What does the legal environment involve?
Answer
Laws, regulations, and legal requirements
9
Question
In which environment would strikes affect business operations?
Answer
Political environment (labor context)
10
Question
What does 'competition' as an external force imply?
Answer
Know competitors and design strategies
11
Question
What does the economic environment encompass?
Answer
Growth, interest rates, exchange rates, inflation, unemployment
12
Question
What does PEST stand for in analysis?
Answer
Political, Economic, Social, Technological
13
Question
Who first tested SWOT analysis?
Answer
Albert Humphrey
14
Question
What are the four SWOT components?
Answer
Strengths, Weaknesses, Opportunities, Threats
15
Question
Which SWOT element refers to internal advantages?
Answer
Strengths
16
Question
Which SWOT element refers to internal weaknesses?
Answer
Weaknesses
17
Question
What does 'Opportunities' mean in SWOT?
Answer
External factors to exploit
18
Question
What does 'Threats' mean in SWOT?
Answer
External factors causing problems
19
Question
When is SWOT most effective?
Answer
During the planning stage
20
Question
What does PEST analysis help identify besides opportunities?
Answer
Red flags and significant threats
21
Question
Which business form has unlimited liability?
Answer
Sole Proprietorship
22
Question
Which form of ownership is usually adopted by small businesses?
Answer
Sole Proprietorship
23
Question
What is a major disadvantage of a sole proprietorship?
Answer
Unlimited liability
24
Question
Which advantage relates to privacy in sole proprietorship?
Answer
Secrecy of intentions
25
Question
Who controls a sole proprietorship?
Answer
Single proprietor
26
Question
What is the key tax treatment of sole proprietorship income?
Answer
Personal income taxation
27
Question
What limits the life of a sole proprietorship?
Answer
Owner's capacity to operate
28
Question
What constitutes a partnership?
Answer
Two or more owners sharing profits
29
Question
What is a benefit of partnerships in terms of skills?
Answer
Pooling of knowledge and skills
30
Question
How do partnerships benefit from capital?
Answer
More sources of capital