Title: External Forces
Course: Demo 1

Q: External forces that affect businesses include:
- employees
- the company mission
- government regulations
A: government regulations

Q: Consider the following text: “In 2008, credit markets froze up and banks stopped making loans. Lawmakers tried to get money flowing again by passing a $700 billion Wall Street bailout, yet businesses and individuals were still denied access to needed credit. Without money or credit, consumer confidence in the economy dropped and consumers cut back their spending.”

Which of the following are examples of an external ECONOMIC factor that influenced businesses in 2008?
- Credit markets froze up.
- Lawmakers passed a $700 billion Wall Street bailout.
- Consumer confidence and spending dropped.
A: Credit markets froze up.; Lawmakers passed a $700 billion Wall Street bailout.; Consumer confidence and spending dropped.

Q: Consider the following text: “In 2008, credit markets froze up and banks stopped making loans. Lawmakers tried to get money flowing again by passing a $700 billion Wall Street bailout, yet businesses and individuals were still denied access to needed credit. Without money or credit, consumer confidence in the economy dropped and consumers cut back their spending.”

Which of the following is an example of an external GOVERNMENT factor that influenced businesses in 2008?
- Credit markets froze up.
- Consumer confidence and spending dropped.
- Lawmakers passed a $700 billion Wall Street bailout.
A: Lawmakers passed a $700 billion Wall Street bailout.

Q: Consider the following text: “In 2008, credit markets froze up and banks stopped making loans. Lawmakers tried to get money flowing again by passing a $700 billion Wall Street bailout, yet businesses and individuals were still denied access to needed credit. Without money or credit, consumer confidence in the economy dropped and consumers cut back their spending.”

Which of the following is an example of an external CONSUMER TREND that influenced businesses in 2008?
- credit markets froze up
- lawmakers passed a $700 billion Wall Street bailout
- consumer confidence and spending dropped
A: consumer confidence and spending dropped

Q: Petite Palate was a gourmet baby food company founded in 2006 that failed during the Great Recession of 2008. The company sold its high quality, frozen baby food on Amazon Grocery and in more than 100 stores. Prior to the recession, the company was growing quickly. Once the recession began, which of the following EXTERNAL FACTORS likely had a significant impact on Petite Palate’s business?
- Consumers had less disposable income to spend on high-cost products.
- Banks and other investors were making less capital or funding available.
- It was difficult to convince consumers to trust online retailers such as Amazon to deliver frozen foods.
A: Consumers had less disposable income to spend on high-cost products.; Banks and other investors were making less capital or funding available.

Q: Varvitsiotis Architecture was a commercial architecture company founded in 1996 and was impacted by the recession in 2008. When the recession began, the company had six employees, $500,000 in annual revenue, five projects under way, and plans to reinvest profits to fund significant growth. Once the recession began, which of the following EXTERNAL FACTORS were likely to have a significant impact on Varvitsiotis Architecture’s business?
- Business customers had less revenue to spend on new construction projects.
- Government stimulus dollars were allocated to public works projects, rather than commercial construction.
- Managers did not create a business strategy that included both private and public projects.
A: Business customers had less revenue to spend on new construction projects.; Government stimulus dollars were allocated to public works projects, rather than commercial construction.