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Practice · 1.3 PESTEL Factors and the Business Environment
24 questions in 4 stimulus sets. Answer a set, check it, read the explanations — then move to the next set.
Riverside second shop
Mina is deciding whether to open a second Bean & Brew in Riverside, a town 20 miles away. Facts she gathered: (1) Riverside offers a $4,000 grant to new small businesses. (2) Median household income is 18% below the state average and unemployment is 7%. (3) The population is growing 3% a year, mostly people aged 18–30. (4) A delivery app already serves Riverside. (5) The best available storefront is in a zone that has flooded twice in ten years. (6) Riverside requires a separate $600 food-service license.
1. Fact (1), the $4,000 grant, is best classified as which PESTEL factor, and how does it affect the attractiveness of the Riverside market?
2. Which fact represents the greatest economic risk to a $4.00-latte café in Riverside?
3. Fact (5), the flood history, is best classified as
4. Which fact is most clearly a social factor that increases the market's attractiveness for Bean & Brew?
5. Fact (4), the delivery app, is a technological factor. Which statement best describes its effect on Mina's decision?
6. Based on EK 1.3.C.2, Mina is most likely to open in Riverside if