Which of the following is NOT an external influence on a business?

Which of the following is NOT an external influence on a business?

• A. Cultural
• B. Economic
• C. Financial
• D. Markets

Answer: (A)

External influences come from outside the business and shape what it can do, often beyond its control. Economic conditions, markets, and the financial environment all come from outside and affect demand, costs, competition, and access to funding. Cultural factors, however, are internal: they refer to the values, beliefs, and norms inside the organisation (and how people within the business interact and behave). Because this question asks for what is not an external influence, cultural is the best answer, since it represents an internal factor rather than something arising from the external environment.

External influences come from outside the business and shape what it can do, often beyond its control. Economic conditions, markets, and the financial environment all come from outside and affect demand, costs, competition, and access to funding. Cultural factors, however, are internal: they refer to the values, beliefs, and norms inside the organisation (and how people within the business interact and behave). Because this question asks for what is not an external influence, cultural is the best answer, since it represents an internal factor rather than something arising from the external environment.