1.5.5a Business responses to changes in technology, legislation and the economy Quiz: Pearson Edexcel Business, Unit 5

The 20 questions

1. What is a standard business response to rapid technological change?

   • Ignore new systems
   • Cancel marketing
   • Reduce product quality
   • Invest in equipment

2. How must a business respond when the government introduces new employment legislation?

   • Update policies
   • Liquidate assets
   • Reduce prices
   • Ignore the law

3. Which strategy best protects sales during an economic recession?

   • Raise all prices
   • Cut opening hours
   • Stop advertising
   • Offer value ranges

4. What is a typical business response to rising interest rates?

   • Repay debt
   • Increase borrowing
   • Hire more staff
   • Expand facilities

5. What is the main benefit of training staff in new digital skills?

   • Cheaper materials
   • Higher rent costs
   • Lower tax bills
   • Improved productivity

6. How might a business adapt to a fall in consumer income?

   • Develop cheaper lines
   • Launch luxury goods
   • Reduce product variety
   • Increase prices

7. A business responds to a new environmental law by changing its production process. Which element of the marketing mix might be affected?

   • Place only
   • Promotion only
   • Price only
   • Product

8. Why might a business review supplier contracts after a change in legislation?

   • Changed legal obligations
   • Higher marketing budgets
   • Increased office space
   • Lower staff wages

9. Which business change best shows adaptation to new technology?

   • Reducing staff numbers
   • Lowering wage rates
   • Mobile ordering app
   • Increasing tax payments

10. Which response helps a business protect profit during high inflation?

    • Raising product prices
    • Stopping advertising entirely
    • Freezing all wages
    • Halving production output

11. Which action responds directly to a downturn in the economic climate?

    • Staff reduction freeze
    • Executive bonus increase
    • Budget product range
    • Luxury store refit

12. How might a business respond to new consumer legislation on refunds?

    • Abolishing all refunds
    • Ignoring customer complaints
    • Surcharging returned items
    • Updating returns policy

13. What is the aim of sourcing home suppliers after a rise in the pound's value?

    • Increasing import tariffs
    • Maximising foreign debt
    • Boosting export volume
    • Reducing import exposure

14. Which action shows a business responding directly to packaging legislation?

    • Lowering unit prices
    • Opening new stores
    • Adding recycling labels
    • Increasing output speed

15. Why should a business review its response to economic change regularly?

    • Staff leave
    • Managers resign
    • Products expire
    • Conditions shift

16. Which response is most suitable when expecting a demand rise from a new trend?

    • Closing secondary stores
    • Decreasing production capacity
    • Increasing stock levels
    • Rationing customer sales

17. Which response helps manage the rising cost of new technology?

    • Cancelling staff holidays
    • Renting older equipment
    • Surcharging employees
    • Negotiating supplier terms

18. Which response is most likely when a business expects costs to rise after a tax?

    • Expanding office size
    • Seeking efficiency savings
    • Increasing dividend payouts
    • Hiring extra managers

19. Which response shows a business adapting to changing consumer tastes?

    • Moving factory location
    • Launching healthy products
    • Lowering staff numbers
    • Changing company name

20. How might a business respond to a weaker pound raising import costs?

    • Importing more materials
    • Finding domestic suppliers
    • Stopping all marketing
    • Cutting product prices

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