1.5 Understanding external influences on the business

Question 1

Pressure groups

Answer 1

Pressure groups: organisations formed to put forward a particular viewpoint, such as
promoting organic farming.

Question 2

Staleholders

Answer 2

Stakeholders: all those groups with an interest in the success or failure of a business.

Question 3

E-commerce

Answer 3

E-commerce selling online rather than in aphysical one-to-one transaction. An important
part of e-commerce is m commerce, meaning commerce using apps/smartphones rather
than websites/PCs.

Question 4

Social media

Answer 4

Social media: interactive channels of
communication, via words, photos or videos,
such as blogs, Facebook and Instagram.

Question 5

Digital communication

Answer 5

Digital communication: messages or conversations conducted via email, text or
social media.

Question 6

Payment systems

Answer 6

Payment systems: ways of paying electronically such as PayPal.

Question 7

Consumer rights

Answer 7

Consumer rights: laws that empower the consumer to demand certain minimum
standards from every business supplier.

Question 8

Legislation

Answer 8

Legislation: laws passed by acts of parliament; breaking these laws may result in a fine or even
a prison sentence.

Question 9

Red tape

Answer 9

Red tape: the term given to laws that (somepeople say) tie the hands of business people,
making it hard to act

Question 10

Consumer spending

Answer 10

Consumer spending: the total spent by all
shoppers throughout the country.

Question 11

Exports

Answer 11

Exports: goods produced in one country but sold
overseas, for example a British-made Mini sold
in France.

Question 12

Recession

Answer 12

Recession: a downturn in sales and output
throughout the economy, often leading to rising
unemployment.

Question 13

Consumer incomes

Answer 13

Consumer incomes: the amount households have available to spend after income taxes have
been deducted.

Question 14

Economic climate

Answer 14

Economic climate: like the weather, the economy
can run cold or hot; the economic climate is a
measurement of the current economic outlook,
which might be promising or worrying.

Question 15

Exchange rate

Answer 15

Exchange rate: the value of one currency measured by how much it will buy of other
currencies.

Question 16

Inflation

Answer 16

Inflation: the rate of increase in the average price level.

Question 17

Interest rate

Answer 17

Interest rate: the annual cost of a loan to the borrower.

Question 18

Taxation

Answer 18

Taxation: charges placed by government on goods, imported goods and the incomes of
individuals and companies.

Question 19

Unemployment

Answer 19

Unemployment: when someone of working age wants a job but cannot get one.