Marketing Quiz on Sole Trading, PESTLE Analysis, and Economic Systems
Question 1
Advantages of sole trading
You’re the boss
You keep all the profits by yourself
Start-up costs are low
You have maximum privacy.
Establishing and operating your business is simple and easy.
It’s easy to change your legal structure later if circumstances change
You can easily wind up your business.
Disadvantages of sole trading
You have unlimited liability for debts as there’s no legal distinction between private and business assets.
Your capacity to raise capital is limited
All the responsibility for making day-to-day business decisions is yours
Retaining high-calibre employees can be difficult
It can be hard to take holidays
You’re taxed as a single person
The life of the business is limited.
Question 2
What does PESTLE entails and its involvement in business.
PESTLE stands for - Political, Economic, Sociological, Technological, Legal, and Environmental. The term PESTLE has been used regularly in the last decade or so and its true history is difficult to establish.
PESTLE analysis is in effect an audit of an organisation's environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organisation is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes.
To help make decisions and to plan for future events, organizations need to understand the wider ‘meso-economic’ and ‘macro-economic’ environments in which they operate. (The meso-economic environment is the one in which we operate and have limited influence or impact, the macro-environment includes all factors that influence an organisation but are out of its direct control). An organisation on its own cannot affect these factors, nor can these factors directly affect the profitability of an organisation. But by understanding these environments, it is possible to take the advantage to maximise the opportunities and
Advantages of sole trading
You’re the boss
You keep all the profits by yourself
Start-up costs are low
You have maximum privacy.
Establishing and operating your business is simple and easy.
It’s easy to change your legal structure later if circumstances change
You can easily wind up your business.
Disadvantages of sole trading
You have unlimited liability for debts as there’s no legal distinction between private and business assets.
Your capacity to raise capital is limited
All the responsibility for making day-to-day business decisions is yours
Retaining high-calibre employees can be difficult
It can be hard to take holidays
You’re taxed as a single person
The life of the business is limited.
Question 2
What does PESTLE entails and its involvement in business.
PESTLE stands for - Political, Economic, Sociological, Technological, Legal, and Environmental. The term PESTLE has been used regularly in the last decade or so and its true history is difficult to establish.
PESTLE analysis is in effect an audit of an organisation's environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organisation is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes.
To help make decisions and to plan for future events, organizations need to understand the wider ‘meso-economic’ and ‘macro-economic’ environments in which they operate. (The meso-economic environment is the one in which we operate and have limited influence or impact, the macro-environment includes all factors that influence an organisation but are out of its direct control). An organisation on its own cannot affect these factors, nor can these factors directly affect the profitability of an organisation. But by understanding these environments, it is possible to take the advantage to maximise the opportunities and