1.5 Understanding external infulences on business

Question 1

Pressure groups:

Answer 1

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

Question 2

Stakeholders:

Answer 2

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

Question 3

E-commerce:

Answer 3

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

Question 4

Social media:

Answer 4

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

Question 5

Digital communication

Answer 5

messages or conversations conducted via email, text or
social media.

Question 6

Payment systems

Answer 6

ways of paying electronically such as PayPal.

Question 7

Consumer law:

Answer 7

acts of parliament that are intended to protect customers from misleading or dangerous practices by companies.

Question 8

Consumer rights:

Answer 8

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

Question 9

Legislation:

Answer 9

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

Question 10

Red tape:

Answer 10

the term given to laws that (some people say) tie the hands of business people, making it hard to act entrepreneurially.

Question 11

Recession:

Answer 11

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

Question 12

Consumer spending:

Answer 12

the total spent by all shoppers throughout the country.

Question 13

Exports:

Answer 13

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

Question 14

Consumer incomes:

Answer 14

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

Question 15

Inflation:

Answer 15

the rate of increase in the average price level.

Question 15

Economic climate:

Answer 15

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 16

Exchange rate:

Answer 16

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

Question 17

Interest rate:

Answer 17

the annual cost of a loan to the borrower.

Question 18

Taxation:

Answer 18

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

Question 18

Unemployment:

Answer 18

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

Question 19

Economic climate:

Answer 19

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.