2.5

Question 1

consumer protection

Answer 1

• consumers treated fairly from companies which they buy
  e.g. sale of goods act, goods must be fit for purpose for what they are sold
• creates a level playing field for competition

Question 2

employee protection

Answer 2

protects the rights of employees at work
e.g. national minimum wage
sick pay
uk businesses argue that increased employee protection reduces competitiveness with international rivals

Question 3

environmental protection

Answer 3

laws governing the impact of the business on the environment
- materials and processes that the business uses to make the product
- could lead to increased costs

Question 4

competition policy

Answer 4

prevents growth of monopoly power
- government funded CMA (prevents mergers and takeovers)
- harder to do this potentially harder to grow

Question 5

health and safety legislation (what are consequences)

Answer 5

ensures safety of employees and customers within the workplace
- could be fined alot of money if not followed

Question 6

competitive environment definition

Answer 6

number and strength of competitors in the same market as a business

Question 7

impact of competition

Answer 7

+increased innovation and efficiency
+ wider product range
- have to lower price
-increased promotion cost

Question 8

market definition

Answer 8

a place where buyers and sellers meet to exchange goods and services