1.5 Business Stakeholders Flashcards
<p>Who is a business <b>stakeholder</b>?</p>
<p>A business stakeholder is anyone who has an interest in the business</p>
<p>Who are the 5 main stakeholders of a business</p>
<ul><li>Owners</li><li>Suppliers</li><li>Customers</li><li>Local Community</li><li>Employees</li></ul>
<p>What is <b>E-commerce</b>?</p>
<p>E-commerce is businesses selling their products to their customers over the internet</p>
<p>Why has E-commerce made selling products more difficult for business?
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<p>There is an <b>increase of competition</b> online</p>
<p>Why do businesses use social media?</p>
<ul><li>Allows the business to engage with its customers</li><li>Advertising their product</li></ul>
<p>How has technology help a business with sales?</p>
<ul><li>E-commerce, where firms sell their products online direct to customers and deliver it to customers, is rapidly growing</li><ul><li>Businesses can now easily sell their products to customers all over the world without setting up a physical store there</li></ul><li>New technology has also created new payment systems such as Apple pay and contactless payments</li></ul>
<p>What is the <b>Employment law</b>?</p>
<p>Employment law deals with the laws that give standards about how businesses should treat their employees</p>
<p>What is the <b>National Minimum Wage</b>?</p>
<p>This law states the minimum amount that businesses can pay their staff. The amount depends on the age of the worker and the type of work</p>
<p>What are Consumer Laws?</p>
<p>Consumer Laws are laws that are designed to protect customers against unfair treatment by businesses. They include laws involving faulty goods, dishonest advertising and warranties</p>
<p>In which ways do consumer laws protect consumers?</p>
<ul><li>The product must be fit for purpose<ul><li>A product must be able to do what it was sold to do</li></ul></li><li>Businesses must tell the truth about their products and services</li><li>A product must be of satisfactory quality</li></ul>
<p>How do Consumer Laws impact businesses?</p>
<ul><li>Consumer Laws impact businesses due to the potential costs associated with consumer laws and consumer protection</li><li>Consumer laws also impact businesses by forcing a focus on product and service quality</li><li>Businesses may have to introduce new practices or change their operations in response to new legislation</li><li>New Consumer Laws might mean businesses experiences and increase in costs</li></ul>
<p>What is an economic boom?</p>
<p>An economic boom is when the economy is growing significantly and the businesses in it are generally doing well</p>
<p>What is an economic recession?</p>
<p>An economic recession is when economic output falls and because of this, businesses experience a fall in demand for their products</p>
<p>Why can a recession lead to a fall in customer spending?</p>
<ul><li>Unemployment<ul><li>If someone loses their job, they will spend less</li></ul></li><li>Reduced Customer Confidence<ul><li>If people are worried about the future then they are likely to save in case they lose their job. This leads to less spending</li></ul></li><li>Decreased Income<ul><li>People's income may fall during a recession and this leads to less money being spent on goods and services</li></ul></li></ul>
<p>What are <b>interest rates</b>?</p>
<p>Interest rates are the percentagr of a loan that is charged for borrowing</p>
