Marketing Quiz on Sole Trading, PESTLE Analysis, and Economic Systems

Good Essays
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

You May Also Find These Documents Helpful

  • Good Essays

    PESTLE analysis, which is sometimes referred as PEST analysis is a concept in marketing principles. Moreover, this concept is used as a tool by companies the world over to track the environment they’re operating in or are planning to launch a new project/product/service etc. PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view of the whole environment from many…

    • 768 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Economics Pestle

    • 1224 Words
    • 5 Pages

    Report for: Ford motor company Title: Economics and the Business World Date: 20th December 2012 2012 Table of content Introduction 1) PESTLE Analysis 2) BP Market Structure 1.0 Introduction I am an economist that has recently joined Ford motor company, and I have been asked to compile a report to investigating the PESTEL factors which ford are or have been faced with and identifying their main area of concern. This report will also provide a detailed look on the market…

    • 1224 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    PESTLE Analysis - Marketing Plan PESTLE analysis is a useful tool for understanding the industry situation as a whole, and is often used in conjunction with a SWOT analysis to assess the situation of an individual business. [pic] PESTLE stands for “Political, Economic, Sociological, Technological, Legal and Environmental” factors. The questions to ask yourself are: ▪ What are the key political factors likely to affect the industry? ▪ What are the important economic factors? ▪ What…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Pestle Analysis

    • 4782 Words
    • 36 Pages

    PESTLE Analysis Strategy Skills Team FME www.free-management-ebooks.com ISBN 978-1-62620-998-5 Copyright Notice © www.free-management-ebooks.com 2013. All Rights Reserved ISBN 978-1-62620-998-5 The material contained within this electronic publication is protected under International and Federal Copyright Laws and treaties, and as such any unauthorized reprint or use of this material is strictly prohibited. You may not copy, forward, or transfer this publication or any part of it…

    • 4782 Words
    • 36 Pages
    Satisfactory Essays
  • Powerful Essays

    Insider Trading Economics

    • 9651 Words
    • 39 Pages

    The Economics of White-Collar Crime: An Economic Analysis of Insider Trading in Canada Introduction In the past decade, white-collar crime such as illegal insider trading, banking fraud, ponzi schemes, corporate embezzlement and political money laundering has reached an all-time high. In North America alone, respected and highly influential individuals such as Martha Stewart, Bernie Madoff, and Conrad Black have been prosecuted for their crimes and companies such as Fannie Mae and AIG were…

    • 9651 Words
    • 39 Pages
    Powerful Essays
  • Powerful Essays

    Pestle Analysis

    • 2473 Words
    • 10 Pages

    PESTLE analysis to explain company's international strategy for I. INTRODUCTION Globalization has made the globe considerably smaller. States lines have turned into practically a divider separating certain regions of a massive unitary community. Businesses are the one that are highly affected by this occurrence. The virtual closeness of states has made trade and commerce an international event. Together with these advances, the key standards of business are similarly…

    • 2473 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Pestle Analysis

    • 1738 Words
    • 7 Pages

    introduction the pestle analysis is a set of tools used to analysis and evaluate various factors which determines and affects the environment of an organization, which should be identified in order to aid company's so they can achieve optimum performance . (c) . pestle analysis' also help in the decision making process a as it gives companies more knowledge about their business . pestle analysis is divided in 6 main categories which are Political, Economic, Social , Technological, Legal, Environmental…

    • 1738 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Pestle Analysis

    • 1782 Words
    • 8 Pages

    PESTLE ANALYSIS What is PESTLE analysis? PESTLE stands for - Political, Economic, Sociological, Technological, Legal, Environmental. The term PESTLE has been used regularly in the last 10 years and its true history is difficult to establish. Various other similar acronyms have been used including ETPS, STEP, PEST, and STEEPLE. The term PESTLE is particularly popular on HR and introductory marketing courses in the UK. PESTLE analysis is in effect an audit of an organisation's environmental influences…

    • 1782 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Pestle Analysis

    • 875 Words
    • 4 Pages

    Compiling and Using a “PESTLE” Analysis 1.1 A PESTLE analysis is a tool that acts as a prompt to the staff and governors involved in the analysis of the developments in the school’s environment that could affect its risk profile. It may help them carry out a more comprehensive analysis. The initials stand for: Political e.g. a new government initiative creates the risk that the school may fail to deliver the policy or be diverted away from local priorities etc. Economic e.g. central or local…

    • 875 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    SCHOOL OF BUSINESS Course Name : International Business Course Code : CSAD 471 Student Name : Francis K. Adu-Boahen Index No : 10135024 Mid-Semester Assignment ANSWER 1 International trade allows a country to specialize in the manufacture and export of products or services that it can produce or services efficiently, and import products that can be produced more efficiently in other countries The various theories have differing prescriptions for government policy on trade. Mercantilism…

    • 1183 Words
    • 5 Pages
    Good Essays