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Free response · 1.3 PESTEL Factors and the Business Environment
Exam-style concept-application task: apply the topic to a new business scenario. Suggested time 12–13 minutes.
FRQ 3 — Concept application (3 points)
Nova Tutors runs in-person math tutoring for high-school students in Lakeside. Its owner, Priya, is considering expanding to Harbor City. She learns: Harbor City's school district just passed a rule requiring all tutors who work with minors to pass a $150 background check and a state exam; 70% of Harbor City households have high-speed internet, compared with 95% in Lakeside; and Harbor City's population of 14–18-year-olds is projected to grow 12% over five years.
(A) Identify the PESTEL factor represented by the school district's new rule. 1 pt
(B) Explain how the internet-access difference could affect the viability of Nova Tutors in Harbor City. 1 pt
(C) Explain how the projected population change affects the attractiveness of the Harbor City market for Nova Tutors. 1 pt