Lesson 3.7.6

3.7.6 Analysing external environment: social and technological change Quiz: AQA Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.7.6, Analysing external environment: social and technological change: 20 multiple choice questions for the AQA Business (7132), Unit 7: Analysing the strategic position of a business, written with Revision Ninja.

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The 20 questions

  1. Which social change is best described as an ageing population?

    • A rise in the proportion of people aged over 65 within the total population of a country
    • A fall in the number of households that buy goods online from businesses in their area
    • A rise in the number of people who move to live and work in another country each year
    • A rise in the number of young people who take part in higher education each year

  2. Which of these is an example of migration as a social change affecting business?

    • A cut in interest rates set by the central bank to stimulate borrowing and investment
    • A reduction in corporation tax rates that is announced in the government's annual budget
    • A rise in the price of metals used by manufacturers that operate across the world market
    • Changes in the size and skills of the available labour force as people move into the country

  3. Which change in consumer lifestyle could create an opportunity for a food producer?

    • A decline in the number of households that buy food from supermarkets each week in the area
    • A fall in the amount of time that consumers spend cooking meals at home each week
    • A move by consumers to buy only from local shops that have no online presence at all
    • A growing preference for healthier and plant-based products among consumers

  4. What is meant by the growth of online businesses as a social and technological change?

    • A shift of buying behaviour towards internet-based retailing, which can reduce the need for physical premises
    • A rise in the number of physical shops in town centres that are open for longer hours each week
    • A requirement that all businesses must trade only through a government-run website
    • A decline in the use of mobile phones and tablets by consumers in the home and at work

  5. What is corporate social responsibility (CSR)?

    • A method of setting the prices of goods so that they are the same across all regions of the country
    • A legal duty for businesses to donate a fixed share of profit each year to registered charities
    • A business taking account of its impact on society and the environment, beyond what the law requires
    • A way of measuring a firm's market share relative to its largest competitor in the industry

  6. Which is a reason for a business to pursue CSR?

    • It can improve reputation and help attract customers and staff who value responsible behaviour
    • It guarantees that the business will never face competition from rivals in its market
    • It allows the business to ignore its obligations to employees and customers in its operations
    • It is always cheaper than any alternative approach, because it reduces costs in every department

  7. Which is an argument against CSR for a business?

    • It means the business has no obligations to any stakeholder in the wider community at all
    • It removes the need for any legal compliance by the business in the areas it covers
    • It always increases profit immediately, so no shareholder has any reason to object to the policy
    • It can raise costs and reduce short-term profit, which some shareholders may oppose

  8. What is the main difference between the stakeholder and shareholder concepts?

    • Shareholder theory considers all groups affected by a business, while stakeholder theory focuses only on the owners
    • Stakeholder theory considers all groups affected by a business, while shareholder theory focuses mainly on the owners' financial interests
    • The two concepts are identical in every respect because every group in the business is an owner
    • Stakeholder theory applies only to public sector organisations, while shareholder theory applies only to charities

  9. In Carroll's CSR pyramid, which responsibility forms the base?

    • Ethical responsibility, which is the duty to act fairly and avoid harm beyond what the law requires
    • Economic responsibility, which is the duty to be profitable and to provide goods and services
    • Philanthropic responsibility, which is the duty to give back to the community through donations and support
    • Legal responsibility, which is the duty to obey laws and regulations set by government and courts

  10. Which is a pressure that encourages businesses to behave in a socially responsible way?

    • A reduction in the number of employees that a business has on its payroll each year
    • Consumer and pressure group campaigns that can damage a firm's brand and sales
    • A fall in the price of raw materials caused by a sharp decline in the level of world demand
    • An increase in the number of competitors that enter a market with similar products each year

  11. A business's online sales are 3 million pounds of total sales of 12 million pounds. What is the online share of sales?

    • 300%
    • 4%
    • 33%
    • 25%

  12. A country has 65 million people and 15% are aged over 65. How many people are over 65?

    • 6.5 million
    • 975,000
    • 9.75 million
    • 15 million

  13. A firm sets its CSR budget at 2% of its profit. If profit is 8 million pounds, what is the budget?

    • 160,000 pounds
    • 16,000 pounds
    • 4,000 pounds
    • 800,000 pounds

  14. Which technological change is most likely to affect a business's marketing function?

    • A rise in the number of manual workers needed for packing goods in a warehouse each year
    • Big data and data mining that allow firms to target customers with personalised offers
    • A fall in the cost of paper used for printing invoices in the firm's accounts department each month
    • A decision to move the firm's registered office to a different town for administrative reasons

  15. Automation is adopted in a factory. Which is the most likely trade-off?

    • Lower capital spending, because machines are always cheaper to buy than to maintain over their useful life
    • Lower unit labour costs and higher output, but significant upfront capital spending and possible job losses
    • Higher labour costs, because machines need more workers to operate them effectively in every shift
    • No cost change at all, because automation has no effect on the labour or capital inputs of a firm

  16. Evaluate the argument that a business should always prioritise shareholder returns over social responsibility.

    • Social responsibility is only relevant to charities, so profit-making firms should ignore it in every decision
    • Shareholder returns are irrelevant to business decisions, so social responsibility should always be the sole focus
    • Social responsibility always reduces costs, so shareholder returns will automatically rise if a firm acts responsibly
    • Shareholder returns matter, but neglecting social and environmental risks can damage reputation and long-term profitability

  17. Which social change would most directly affect the demand for a firm's products in the home market?

    • A change in the rules on corporation tax that applies to companies with large profits
    • A change in the age structure of the population, which alters the size of different customer groups
    • A change in the price of crude oil on world markets, which affects the costs of the firm's distribution
    • A change in the number of registered companies that are listed on the stock exchange each year

  18. Evaluate the effect of rapid technological change on a traditional retailer.

    • It may open new channels such as online sales, but it can also threaten existing stores, so adaptation is critical
    • It has no effect on retail because customers never change their buying habits in response to new technology
    • It forces the retailer to close all stores immediately, because online retail is always the only viable option
    • It guarantees that the retailer will grow quickly because technology always increases customer numbers in shops

  19. What is the most accurate statement about the pressures for socially responsible behaviour?

    • They come only from shareholders, who always demand that firms donate their profits to charity each year
    • They are absent in most markets because consumers do not care about the conduct of the businesses they buy from
    • They apply only to businesses that are wholly owned by the government, not to private sector firms
    • They come from consumers, governments, employees and pressure groups, and can affect reputation and access to markets

  20. Which technological change is most relevant to the operations function of a manufacturer?

    • A rise in the number of television channels that broadcast the firm's advertisements each evening
    • A change in the design of the firm's logo to appeal to younger customers in the market
    • A fall in the price of postage stamps used for mailing invoices to customers each month
    • Robotics that automate assembly tasks and improve consistency of production

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