2 Influences On Business

Question 1

Shareholder

Answer 1

A shareholder is a person or organisation that owns part of a company. Each shareholder owns a share’ of the business.

Question 2

E-commerce

Answer 2

E-commerce (or electronic commerce) is the act of buying or selling a product using an electronic system such as the internet.

Question 3

Software robots

Answer 3

Software robots are advanced computer programs that can operate a range of administrative activities previously carried out by employees.

Question 4

Cloud computing

Answer 4

Cloud computing is 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 5

Ethics

Answer 5

Ethics 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 6

Profit

Answer 6

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

Question 7

Sustainability

Answer 7

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

Question 8

Multinational company (MNC)

Answer 8

Companies that operate in a number of countires

Question 9

Tariff

Answer 9

a tax on imported goods and services

Question 10

Trading blocs

Answer 10

A trading bloc is a group of countries that work together to provide special deals for trading. This promotes trade between specific countries within the bloc.

Question 11

The marketing mix

Answer 11

refers to product, price, place and promotion

Question 12

Product

Answer 12

styles, fashion trends, sizing, cultural beliefs (eg colours that are considered lucky in one country may be associated with danger in another), dietary requirements (eg some places may require halal or kosher foods) and infrastructure (eg right- or left-hand-drive cars and different types of electrical plug)

Question 13

Price

Answer 13

may be affected by tariffs and trading blocs, income levels and disposable income, tax, exchange rates and level of demand

Question 14

Place

Answer 14

access to the internet in certain countries, purchasing preferences in some countries (e-commerce may not yet be popular) and distribution links in certain countries

Question 15

Promotion

Answer 15

cultural and social differences, language and translations

Question 16

Legislation

Answer 16

is a set of rules that governs the way society operates. It is another term for laws

Question 17

National minimum wage

Answer 17

is an hourly rate of pay which is set by the government. All employees above a certain age must receive at least this rate of pay.

Question 18

Discriminatiom

Answer 18

is treating one person differently from another without having good reasons to do so.

Question 19

Part-time employee

Answer 19

works for a proportion of the working week - for example, three days each week, rather than five.

Question 20

A Trade union

Answer 20

is a group of workers who act together to improve their pay and working conditions.

Question 21

A contract of employment

Answer 21

is a legal document stating the hours, rates of pay, duties and other conditions under which a person is employed.

Question 22

Motivation

Answer 22

refers to the range of factors which influence the way a person behaves at work.

Question 23

Market

Answer 23

Markets exist where there are buyers and sellers.

Question 24

Competition

Answer 24

Competition exists when more than one business is attempting to attract the same customers.

Question 25

Monopoly

Answer 25

A monopoly exists when a business does not face any competition in a particular market.

Question 26

Market share

Answer 26

Market share is the percentage of sales in a particular market recorded by a business.

Question 27

Uncertainty

Answer 27

An uncertainty occurs where there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict

Question 28

Risk

Answer 28

Risk is the possibility of something going wrong.

Question 29

Business plan

Answer 29

A business plan is a document setting out what a business does and what it hopes to achieve in the future.

Question 30

Diversification

Answer 30

Diversification occurs when a business starts selling new products in new markets.

Question 31

Recession

Answer 31

A recession occurs when the value of an economy’s output of goods and services falls for six months or longer.