2 Influences On Business

Question 1

Information and communications technology (ICT)

Answer 1

It is the computing and communications systems that a business might use to exchange information with stakeholders

Question 2

Intranets

Answer 2

They are communication networks which can only be accessed by an organisations employees

Question 3

Extranets

Answer 3

Similar to intranets but can also be accessed by other organisations such as suppliers

Question 4

Software robots

Answer 4

Advanced computer programs that can operate a range of administrative activities previously carried out by employees

Question 5

Cloud computing

Answer 5

A general term for the delivery of specialist computing services, such as the storage of very large amounts of data, provided by businesses using the internet

Question 6

E-commerce

Answer 6

An act of buying or selling a product using an electronic system such as the internet

Question 7

M-commerce

Answer 7

Buying and selling of products through wireless handheld devices such as smartphones

Question 8

Digital communication

Answer 8

The transmission of information electronically between computing devices

Question 9

Webchat

Answer 9

A simple means of communicating in real time using only web browsers such as Firefox or internet explorer

Question 10

Apps (or applications)

Answer 10

Pieces of software designed for a specific purpose and for use on smartphones and tablets

Question 11

Social media

Answer 11

Methods of online communications such as websites and applications. They share information and help to develop social and professional contacts

Question 12

Ethical

Answer 12

refers to whether
a business decision is
thought to be morally
right or wrong. An ethical
decision is made on the
basis of what is judged to
be morally right.

Question 13

Profit

Answer 13

measures the
difference between the
values of a business's
revenue sales and its
total costs.

Question 14

Fair trade products

Answer 14

are those for which
customers pay higher
prices and offer better
trading terms, such as
payments with orders.
The aim is to improve the
living standards of people
in poorer countries
where the products are
produced.

Question 15

Social responsibility

Answer 15

is
an approach to managing
businesses in which the
interests of all groups
in society are taken into
account when making
decisions.

Question 16

The environment

Answer 16

is the
natural world in which we
live. It is the landscape
and its natural features
such as the seas, rivers,
forests and mountains.

Question 17

External costs

Answer 17

of
production arise when
a business's activities
result in harmful effects
on other people not
directly involved in
production.

Question 18

None-renewable resources

Answer 18

are those
of which only a limited
amount exists such as
coal and oil.

Question 19

Global warming

Answer 19

is the
gradual heating of Earth’s
surface, oceans and
atmosphere.

Question 20

Pressure group

Answer 20

a group of people with
a common interest
who influence public
opinion and decisions
by businesses and
governments.

Question 21

Environmental responsibility

Answer 21

refers to
the taking of decisions by
businesses, consumers,
governments and
other groups with the
intention of protecting the
environment.

Question 22

Sustainability

Answer 22

refers to
methods of production
which can be continued
in the long term
without damage to the
environment.

Question 23

Recycling

Answer 23

is the reuse
of raw materials used in
making products, often
for many times. Examples
include the reuse of
glass, paper and metals.

Question 24

Environmental reporting

Answer 24

is the
publication of a
business's environmental
performance to the
general public.

Question 25

The economy

Answer 25

is made up of millions of individual consumers, many thousands
of businesses and governments. All take decisions on what to buy and produce.

Question 26

Consumers

Answer 26

Individuals who buys goods and services from businesses.

Question 27

Economic climate

Answer 27

describes the state of key factors within a country such

as the level of goods and services produced and the number of jobs available.

Question 28

Interest rates

Answer 28

refer to
the cost of borrowing
money or the reward for
saving money, expressed
as a percentage.

Question 29

Overdraft

Answer 29

is a flexible
loan which businesses
can use, whenever
necessary, up to an
agreed limit.

Question 30

Consumer spending

Answer 30

refers to the value of
goods and services
bought by consumers
over a time period,
usually a month or a year.

Question 31

Income elastic products

Answer 31

are those
whose sales are sensitive
to changes in consumers
incomes.

Question 32

Globalisation

Answer 32

is the
trend for markets to
become worldwide in
scope.

Question 33

Multinational company (MNC)

Answer 33

produces goods and
services in more than
one country. They are
also called transnational
corporations (TNCs).

Question 34

Import

Answer 34

Goods or services which enter a country.

Question 35

Export

Answer 35

Products and services produced by a country and sold to other countries around the world.

Question 36

International trade

Answer 36

The buying and selling of goods and services between different countries.

Question 37

Service industry

Answer 37

A job which involves payment for a service, eg a hotel receptionist is paid to check-in/check-out people from the hotel.

Question 38

Call centres

Answer 38

A place that is equipped to deal with a large volume of phone calls at the same time.

Question 39

Exchange rate

Answer 39

The value of one currency against another.

Question 40

Profit margin

Answer 40

The difference between sales revenue and total costs expressed as a percentage.

Question 41

Disposable income

Answer 41

Money available for spending and saving once taxes have been deducted

Question 42

distribution centre

Answer 42

A distribution centre stores products in a warehouse or other large building, to be distributed to retailers and wholesalers

Question 43

Halal

Answer 43

Any action or thing which is permitted by Muslim law.

Question 44

Kosher

Answer 44

The word means fit or proper. Foods permitted by and prepared in accordance with Jewish dietary laws.

Question 45

Protectionism

Answer 45

Protectionism is the process of protecting domestic industries by adding tariffs or taxes onto imports.

Question 46

Tariffs

Answer 46

A tax added to the cost of imports.