Form 1 Business Studies online lessons on business and its environment
Explain the Ways in which external environment can negatively impact on a business
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Explanation/Answer Text:
-Use of absolete technology which may lead to high cost products leading to low market
-Reduction of population which leads to reduced demand for goods and services.
-Political instability which may lead to frequent stoppage or closure of business.
-Change in laws which may make business become illegal and a firm may stop operating.
-Failure to respond to customers tastes which reduces demand for its products.
-Failure to adapt to changes in natural environment can lead to closure
-Poor relations with suppliers leading to unfavourable terms and high cost.
-Reduction of population which leads to reduced demand for goods and services.
-Political instability which may lead to frequent stoppage or closure of business.
-Change in laws which may make business become illegal and a firm may stop operating.
-Failure to respond to customers tastes which reduces demand for its products.
-Failure to adapt to changes in natural environment can lead to closure
-Poor relations with suppliers leading to unfavourable terms and high cost.
Questions/Lessons List
1. Explain the different types of business activities. ( free lesson)
2. What are the reasons for the existence of businesses ( free lesson)
4. Explain external business environment giving examples ( free lesson)
5. Outline the negative effects of the internal business environment to the business. ( free lesson)
7. Explain the Ways in which external environment can negatively impact on a business ( free lesson)
