Question 2
- List five factors an individual would consider in his choice of occupation.
- Explain the following business environment terms, stating one example each:
- economic environment;
- political environment;
- technical environment;
- cultural environment;
- religious environment.
Observation
Most candidates who attempted this question performed very well in part (a) of the question while for part (b), they could not explain the terms in relations to business.
The expected responses to the question include:
(a) Factors an individual would consider in his choice of occupation
- Level of education/qualification;
- Salaries and wages;
- Level of hazards in the job;
- Government policies;
- Benefits attached to the job;
- Social prestige/reputation;
- Skill required;
- Family influence;
- Type of occupation/passion/interest.
(b) Explanation of terms in business environment
- Economic environment
This refers to all the external factors and components that have economic impact on businesses.
Examples are rate of inflation, level of employment, income level, recession, economic boom, interest rate, consumption pattern and exchange rate.
- Political environment
This comprises government policies, programmes and projects which determine business practices and investment patterns in an economy. The preferences of the political party in power would affect business operations positively or negatively. Examples of the political environment are labour policies, gender policies and decision on location of businesses/localization policies.
- Technical environment
This is made up of inventions and innovations used in production and the conduct of businesses. When available equipment and practices are obsolete, there would be the need to adjust to changes in technology.
Examples are improved products, higher output, new production methods and better trained labour force.
- Cultural environment
It is a way of life of the people and what they believe in.
Examples are the lifestyles, values, attitudes and opinions which determine production and consumption patterns.
- Religious environment
This refers to the people’s faith and doctrine. It influences what they buy and what could be produced in their locality.
Examples are sale and consumption of alcohol, cigarette, meat and mode of dressing.