Lesson 3.7.4

3.7.4 Analysing external environment: political and legal change Quiz: AQA Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 3.7.4, Analysing external environment: political and legal change: 20 multiple choice questions for the AQA Business (7132), Unit 7: Analysing the strategic position of a business, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. What is the primary aim of UK competition law?

    • Setting minimum wages
    • Promoting fair competition
    • Controlling interest rates
    • Increasing import tariffs

  2. Which regulatory body oversees the water industry in England and Wales?

    • Ofcom
    • FCA
    • Ofgem
    • Ofwat

  3. Which legislation sets a legal minimum hourly pay rate for UK workers?

    • Competition Act
    • National Minimum Wage
    • Equality Act
    • Health and Safety Act

  4. Which type of government policy specifically aims to encourage business start-ups?

    • Regional policy
    • Fiscal policy
    • Monetary policy
    • Enterprise policy

  5. How does government investment in transport infrastructure primarily help businesses?

    • Limits market competition
    • Raises interest rates
    • Reduces transport costs
    • Increases corporation tax

  6. What is the immediate impact of a higher National Minimum Wage on a low-margin retailer?

    • Higher profit margins
    • Decreased tax rates
    • Lower selling prices
    • Increased labour costs

  7. A business has 30 staff. The minimum wage rises by 0.50 pounds an hour, and each person works 37.5 hours a week for 52 weeks. What is the extra annual wage cost?

    • 975 pounds
    • 29,250 pounds
    • 15,600 pounds
    • 1,500 pounds

  8. What is the main short-term financial effect of stricter environmental legislation on manufacturers?

    • Lower unit costs
    • Increased profit margins
    • Reduced compliance costs
    • Higher capital expenditure

  9. Which UK organisation investigates and approves large corporate mergers?

    • Health and Safety Executive
    • Bank of England
    • Competition and Markets Authority
    • Financial Conduct Authority

  10. A 10% tariff is imposed on imports worth 2 million pounds a year. What is the extra annual cost to importers before any price changes?

    • 20,000 pounds
    • 2,000,000 pounds
    • 200,000 pounds
    • 2,200,000 pounds

  11. Which factor represents a political influence on business strategic decisions?

    • Government tax policy
    • Technological innovation
    • Demographic shifts
    • Consumer income levels

  12. How does high political uncertainty usually affect business capital investment?

    • Guarantees higher profits
    • Lowers interest rates
    • Delays major projects
    • Increases capital spending

  13. Which legal regulation directly limits the maximum weekly working hours for UK employees?

    • Competition Act
    • Equality Act
    • Working Time Regulations
    • Consumer Rights Act

  14. What is the most likely strategic response of a utility firm to a government price cap?

    • Expanding profit margins
    • Increasing selling prices
    • Cutting operational costs
    • Raising executive pay

  15. Which legal measure directly prevents dominant firms from colluding to fix prices?

    • Lowering interest rates
    • Banning cartels
    • Introducing tariffs
    • Increasing minimum wage

  16. What is the primary purpose of government subsidies awarded to renewable energy firms?

    • Encourage green investment
    • Increase tax revenue
    • Restrict international trade
    • Enforce legal compliance

  17. What is a primary benefit to businesses when a government deregulates a market sector?

    • Greater trade protection
    • Lower compliance costs
    • Higher tariff barriers
    • Increased corporation tax

  18. Which government measure is an example of a protectionist trade barrier?

    • Subsidised loan
    • Market deregulation
    • Import tariff
    • Tax allowance

  19. What is a key advantage for exporters when tariffs are eliminated between nations?

    • Lower export prices
    • Quota restrictions
    • Higher compliance costs
    • Increased import duties

  20. Which political factor is most likely to reduce risk for a firm investing overseas?

    • Frequent law changes
    • Government stability
    • High import tariffs
    • High inflation rates

All AQA Business quizzes