Question

State four external factors that may adversely affect the efficient operations of a business enterprise.

Answer 1

1. Political instability
2. Corruption in the country
3. Lengthy licensing procedures
4. Insecurity in the country
5. High cost of finance
6. High taxation rates
7. Inadequate factor inputs
8. Poor weather conditions/climate
9. Unstable exchange rates
10. Poor technology.
11. Poor infrastructure
12. Low population
13. Unfavourable lawa/government policy
14. Stiff/unhealthy competition