Lesson 3.18.1

3.18.1 Environmental factors Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.18.1, Environmental factors: 20 multiple choice questions for the OCR Business (H431), Unit 3: External influences, written with Revision Ninja.

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The 20 questions

  1. What is the practice of meeting current needs without compromising future generations called?

    • Sustainability
    • Greenwashing
    • Conservation
    • Recycling

  2. What term describes exaggerating a business's environmental credentials to deceive stakeholders?

    • Greenwashing
    • Carbon offsetting
    • Sustainable sourcing
    • Eco-auditing

  3. What is a systematic assessment of a firm's environmental impact called?

    • Social review
    • Quality assurance
    • Financial audit
    • Environmental audit

  4. Which stakeholder group is most likely to boycott a business using non-recyclable packaging?

    • Auditors
    • Pressure groups
    • Debenture holders
    • Suppliers

  5. A taxi firm replaces diesel vehicles with electric cars. What environmental issue does this primarily address?

    • Air pollution
    • Noise nuisance
    • Light pollution
    • Resource depletion

  6. A hotel reuses towels to reduce water and detergent usage. What benefit does this offer the hotel?

    • Higher revenue
    • Greater capacity
    • Cost reduction
    • Increased liability

  7. A clothing manufacturer sources organic cotton from renewable farms. What strategy is this?

    • Waste minimisation
    • Sustainable sourcing
    • Carbon offsetting
    • Greenwashing

  8. A factory invests in solar panels to generate electricity. What long-term cost benefit is achieved?

    • Lower corporation tax
    • Reduced VAT
    • Higher wage costs
    • Lower energy bills

  9. A fast-food chain removes single-use plastics due to public demand. What external influence drove this?

    • Technological factor
    • Legal factor
    • Environmental factor
    • Economic factor

  10. A paper mill plants three trees for every tree harvested. What is this practice known as?

    • Greenwashing
    • Energy efficiency
    • Resource replenishment
    • Waste minimisation

  11. An airline pays for tree planting to balance its flight emissions. What is this practice called?

    • Eco-auditing
    • Recycling
    • Carbon offsetting
    • Carbon tax

  12. A supermarket replaces plastic bags with durable canvas bags. What primary goal does this serve?

    • Cost inflation
    • Waste reduction
    • Profit maximisation
    • Market expansion

  13. What is the main conflict between pursuing strict environmental standards and short-term business performance?

    • Reduced productivity
    • Decreased compliance
    • Lower brand equity
    • Higher initial costs

  14. How might strict environmental policies affect a business's competitive advantage in global markets?

    • Eliminates all risk
    • Improves brand reputation
    • Reduces tax liabilities
    • Guarantees low prices

  15. What risk does a firm face if it completely ignores external environmental factors?

    • Reputation damage
    • Increased dividend tax
    • Higher exchange rates
    • Lower interest rates

  16. Why might ethical investors choose not to fund an oil extraction company?

    • High liquidity
    • Low tax rates
    • Strong cash flows
    • High environmental risk

  17. Which metric measures total greenhouse gas emissions caused directly and indirectly by a firm?

    • Carbon footprint
    • Waste yield
    • Ecological tax
    • Energy quota

  18. What is the process of using waste materials to create higher-value products called?

    • Outsourcing
    • Downsizing
    • Upcycling
    • Offshoring

  19. A furniture maker uses timber certified by the Forest Stewardship Council. What does this guarantee?

    • Sustainable forestry
    • Tax exemption
    • Zero carbon emissions
    • Maximum profit margins

  20. Which regulatory instrument can governments use to financially penalise polluting businesses?

    • Green taxes
    • Tariffs
    • Corporation tax
    • Subsidies

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