1.5 Understanding external influence

Question 1

stakeholder

Answer 1

anyone who has an interest in the activities of a business

Question 2

shareholders

Answer 2

investors who are part-owners of the company

Question 3

private limited company

Answer 3

an incorporated business that is owned by shareholders who invest in the business for a share of profits

Question 4

public limited company

Answer 4

an incorporated business that can sell shares to the public

Question 5

stock exchange

Answer 5

a place where shares in PLCs can be bought and sold

Question 6

types of stakeholders

Answer 6

shareholders
customers
employees
managers
suppliers
government
local community
pressure groups

Question 7

profit

Answer 7

the amount of revenue left over once costs have been deducted

Question 8

payment terms

Answer 8

the period of time that a business has to pay its suppliers

Question 9

ethics

Answer 9

standards that guide the behavior of person or business

Question 10

types of technology used by businesses

Answer 10

social media
payment platforms
digital communication
e-commerce

Question 11

sales

Answer 11

number of products or services that a business sells

Question 12

legislation

Answer 12

laws that a country must comply with

Question 13

consumer law

Answer 13

relates to the quality of products offered by businesses and the rights of consumers relating to them

Question 14

reasonable care

Answer 14

offering a service that is suitable for customers

Question 15

employment law

Answer 15

the way which employees are hired and treated by businesses and the responsibilities that they have towards staff

Question 16

induction

Answer 16

period of time after an employee starts a job when they must be shown how to work safely and within employer’s expectations

Question 17

minimum wage

Answer 17

lowest legal rate of pay for employees

Question 18

discrimination

Answer 18

when someone is treated differently to someone else because of a characteristic

Question 19

protected characteristic

Answer 19

characteristics that cannot be used in the recruitment process to reject a candidate

Question 20

redundancy

Answer 20

no longer being in employment because no more work is available

Question 21

levy

Answer 21

a tax on a particular product or service

Question 22

economic climate

Answer 22

the performance of the economy

Question 23

economy

Answer 23

the process or system by which goods and services are produced, sold, and bought in a country or region

Question 24

unemployment

Answer 24

people who able to work but are not currently in work

Question 25

globalisation

Answer 25

when businesses operate on an international scale and gain international influence

Question 26

consumer income

Answer 26

amount of money that people are paid

Question 27

inflation

Answer 27

increase of prices over time

Question 28

interest

Answer 28

amount of money that a bank charges for borrowing money

Question 29

tax

Answer 29

proportion of an individual’s income or business profits that must be paid to the government

Question 30

exchange rate

Answer 30

measure of the value of one currency in another currency

Question 31

imports

Answer 31

the flow of goods and services into a country from another country

Question 32

exports

Answer 32

the flow of goods and services out of a country from another country