Understanding External Influences on Business | Edexcel GCSE Business (1BS0)
Understanding External Influences on Business
- 78 questions
- 5 subtopics
- Paper 1
- Paper 1
Understanding External Influences on Business is examined in Paper 1, Investigating small business (Theme 1).
It covers business stakeholders, technology and business, legislation and business, the economy and business and responding to external influences.
Sample questions from Understanding External Influences on Business
Answer each one closed book first, then open the answer.
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Business stakeholders
What do customers and suppliers want from a business?
Show the answer
Customers want good-quality products at fair prices. Suppliers want regular orders and to be paid on time. -
Business stakeholders
How are employees affected by business decisions?
Show the answer
A decision to expand can create jobs and promotions. A decision to cut costs may lead to redundancies or smaller pay rises. -
Technology and business
What is digital communication?
Show the answer
Digital communication is sending information electronically, such as by email, messaging and video calls. Digital communication is fast and cheap. -
Technology and business
How can technology reduce a business's costs?
Show the answer
Online selling avoids the cost of shop premises. Automated systems can cut staff costs and reduce errors. -
Legislation and business
What rights does a consumer have when buying a service?
Show the answer
A service must be carried out with reasonable care and skill. If no time or price was agreed, the work must be done in a reasonable time for a reasonable price. -
Legislation and business
What is the main UK health and safety law for workplaces?
Show the answer
The Health and Safety at Work etc. Act 1974 is the main law. Employers must provide a safe workplace, training and protective equipment. -
The economy and business
How does inflation affect a business?
Show the answer
The costs of materials, energy and wages rise. A business must raise its prices or accept lower profits. -
The economy and business
What happened to employer National Insurance contributions in April 2025, and how did it affect businesses?
Show the answer
The main employer rate rose from 13.8% to 15% in April 2025. The rise increased the cost of employing staff.
The 5 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Business stakeholders | Stakeholders against shareholders, what owners, employees, customers, suppliers, managers, the community, pressure groups and government each want, and why their objectives conflict. | 15 |
| Technology and business | E-commerce, social media, digital communication and modern payment systems, how each affects sales and costs, and how technology has changed every element of the marketing mix. | 15 |
| Legislation and business | Consumer law and the Consumer Rights Act 2015, employment law, the National Living Wage from April 2026, discrimination and health and safety law, and the costs and benefits of compliance. | 16 |
| The economy and business | Unemployment, consumer income, inflation, interest rates, taxation and exchange rates, how each affects a business, and worked percentage and currency calculations. | 16 |
| Responding to external influences | How businesses respond to new technology, changes in the law such as allergen labelling, recessions, interest rate rises, a strong pound and inflation, and why speed matters. | 16 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
Edexcel GCSE Business Active Recall Guide
Every topic, not just this one. 672 questions with their answers.