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Responding to external factors · Part 1 of 5
3 exam-style questions with model answers, plus 5 quick multi-choice questions — every question on this part of the standard, grouped by the 1 page of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Explain what is meant by an external factor, and give one example of an external factor affecting a New Zealand business.
Using specific examples, explain ONE positive and ONE negative impact on a business of an external factor of your choice.
A large New Zealand food manufacturer faces rising costs from a new environmental compliance requirement. It can pass the cost on in its prices, or absorb it and reduce its margin.
Referring to sales volume and long-term viability, justify, with TWO reasons, which response would be more appropriate.