1.Under the PESTEL General Environment framework, external economic factors that are important to a firms strategy include inflation and levels of employment of a country or region.

A.True B.False

2.SevenCloud Inc., a soft drink company, provided service to fair amount of customers for a whole year until a new company called Sparkle Inc. came up. Sparkle provided flavored water as a new product in the beverage market. Customers were eager to try out this new product and purchased it because they believed that it a better substitute for aerated beverages. SevenCloud was afraid that if the trend continued, it would soon run the risk of going out of business. In this scenario, which of the following did Sparkles flavored water represent?

A.Opportunity. B.Weakness. C.Substitute. D.Merger

3. Foodoid Inc., a fast food hamburger restaurant, enters into an agreement with SimplyBake Inc., a bakery chain, to procure fresh croissants, garlic loafs, and desserts. In the context Porter's Six Forces model, SimplyBake assumes the role of a(n) _____. Group of answer choices

A.competitor. B.buyer. C.new entrant. D.complementor