1.5 understanding external influences on businesses

Question 1

what are the objectives of owners

Answer 1

high dividends and high share price

Question 2

what are the objectives of managers

Answer 2

decent wage

good working conditions

Question 3

what are the objectives of suppliers

Answer 3

profitability and growth

Question 4

what are the objectives of local community

Answer 4

noise and pollution
good jobs
minimizing environmental impacts

Question 5

what are the objectives of government

Answer 5

profitability

growth

Question 6

what are the objectives of customers

Answer 6

high quality

low prices

Question 7

what do businesses have to take into consideration from stake holders

Answer 7

consider the interest

Question 8

benefits of e commerce

Answer 8

convenient
cheap
no shops needed
easy to adapt websites
easy ordering

Question 9

what are the ways of digital communication to stakeholders

Answer 9

websites
email
mobile apps
live chats
video calls

Question 10

how is social Media a way of promotion

Answer 10

you can write messages or articles and for other reasons

Question 11

what ways can you pay using tech

Answer 11

online payments
chip and pin
con-tactless

Question 12

how does tech improve sales

Answer 12

online is instant 24/7
payments systems
bigger market

Question 13

how does tech impact costs

Answer 13

lower start up costs
one person can run
no need for premises

Question 14

what else can tech effect

Answer 14

marketing mix

new staff type needed

Question 15

negatives of tech

Answer 15

expensive

hire new people

Question 16

who is the national minimum wage for

Answer 16

24 and under

Question 17

who is the national living wage

Answer 17

25 and above

Question 18

advantages of minimum wages

Answer 18

better motivation

increased productivity

Question 19

disadvantages of minimum wages

Answer 19

firms cost

Question 20

what are the laws about recruitment and when and what is the act

Answer 20

must not discriminate

equality Act 2010

Question 21

what are the laws about discrimination and when was the act set

Answer 21

all employees must be paid the same

equality act 2010

Question 22

what is health and safety in the workplace

Answer 22

risks to people at work are properly controlled

safer means less accidents and more productivity

Question 23

what must business do to make sure the work place is safe

Answer 23

risk assessments

pay for staff to do training

Question 24

what is import tax

Answer 24

charged on goods brought into the country

Question 25

benefits of unemployment

Answer 25

pay lower wages | lots of desperate people

Question 26

disadvantages of unemployment

Answer 26

less disposable income | people lose skills if unemployed

Question 27

what taxes do businesses pay

Answer 27

environmental tax premises corporation tax

Question 28

what happens when income tax falls

Answer 28

more disposable income so increased sales

Question 29

what happens if tax of businesses is increased

Answer 29

reduces amount used to reinvest which makes slow growth

Question 30

what happens when environmental tax increases

Answer 30

force the firm to cut costs or may more overseas where there is less tax

Question 31

what bad thing happens if taxes are rreduced

Answer 31

more competitors move in

Question 32

what does low interest rates mean for consumers

Answer 32

more money to spend so demand goes up

Question 33

what does low interest rates mean for businesses

Answer 33

firms will have more money if they need to pay less interest

Question 34

what does high interest rates mean for businesses

Answer 34

reduces demand so firms often sell less

Question 35

what does high interest rates mean for consumers and businesses

Answer 35

less money available to spend because borrowing is more expensive and saving is better

Question 36

what does low interest mean

Answer 36

cheaper to borrow and less interest for savers

Question 37

what is the consumer rights act and when was it set

Answer 37

covers how goods and services can be sold | 2015

Question 38

what three things must the consumer act follow

Answer 38

the product should be fit for its purpose the product should match its description the product should be of satisfactory quality

Question 39

how does consumer law affect businesses

Answer 39

if it breaks the act it is faced with costs and could end up in court harm there reputation and could reduce sales

Question 40

what must businesses do to obey consumer law

Answer 40

training | keep up to date

Question 41

CONSUMER SPENDING when inflation rises

Answer 41

it goes up in short term and this creates extra revenue | however if wages don't go up at the same rate demand for products falls

Question 42

COST OF LABOUR when inflation rises

Answer 42

employees put pressure to increase wages | this can increase costs and reduce profit

Question 43

GLOBAL COMPETITION when inflation rises

Answer 43

makes uk exports expensive so firms that sell exports may see sales fall

Question 44

what happens when income rises at a slower rate than inflation

Answer 44

spend more money on things they need and less on luxuries so discount store sales go up

Question 45

what happens when income rises at a faster rate than inflation

Answer 45

spending less on things they need and more on luxuries | so luxury sales increase

Question 46

who should be concerned about exchange rates

Answer 46

importers exporters uk producers

Question 47

what does a weak pound mean for uk producers and importers and exporters

Answer 47

good for uk producers because it is more expensive to buy overseas bad for importers because raw material become expensive exports cheaper

Question 48

so what happens to the uk if there is a weak pound

Answer 48

more exports less imports

Question 49

what does a strong pound mean for uk producers and importers and exporters

Answer 49

bad for uk producers because imports are cheaper imports cheaper exports expensive