2.5

Question 1

Impact of Currency Appreciation

Answer 1

-Exporting businesses - sales fall
-Importing businesses - costs fall

Question 2

Impact of Currency Depreciation

Answer 2

-Exporting businesses - sales rise
-Importing businesses - costs rise

Question 3

3 Impacts of Rising Interest Rates

Answer 3

-Increase costs
-Customers less likely to buy on credit
-Exporting overseas could see a fall in demand

Question 4

3 Impacts of Increase in Taxation

Answer 4

-Revenue may fall
-Operating costs will increase
-Import costs rise
-Business spending + investment affected
(relocate, lose workers, not improving)

Question 5

4 Impacts of Recession

Answer 5

-High unemployment
-Low confidence for firms
-Low inflation
-Increase in government spending

Question 6

4 Impacts of Boom

Answer 6

-Decrease in unemployment
-High confidence (risks taken)
-Increasing inflation
-Lower government spending

Question 7

Definition of Economic Uncertainty

Answer 7

When its difficult to forecast the level of supply and demand in an economy

Question 8

3 Reasons why Economic Uncertainty can occur

Answer 8

-Fluctuating exchange rates
-Economic growth uncertainty
-Turbulence in price of commodities (like oil or metals)

Question 9

3 Ways to prepare for Economic Uncertainty

Answer 9

-Building up cash reserves
-Being informed about economic climate
-Take advantage of opportunities

Question 10

Definition of Legislation

Answer 10

The laws and regulations that are passed by government

Question 11

Definition of Consumer Protection

Answer 11

Legislation that aims to ensure customers are treated fairly by the companies they interact with

Question 12

4 Areas Consumer Protection covers

Answer 12

-Safety of products
-Standard and quality of products
-Rights if unhappy with product
-Product information that must be given

Question 13

Definition of Employee Protection

Answer 13

Legislation that aims to prevent the exploitation of workers

Question 14

4 Areas Employee Protection covers

Answer 14

-Pay and working conditions
-Equality of employment rights
-Right to belong to union
-Contracts and termination

Question 15

4 Ways Employee Protection impacts businesses

Answer 15

-Potential penalties and rewards
-Changing working practises
-Higher labour costs
-Compliance costs

Question 16

Definition of Environmental Proctection

Answer 16

Legislation that aims to hold businesses responsible for their environmental impact

Question 17

5 Areas Environmental Protection covers

Answer 17

-Pollution
-Destruction of wildlife
-Traffic congestion
-Air quality
-Resource depletion

Question 18

Definition of Competition Policy

Answer 18

Legislation that aims to protect interests of consumers and businesses by restricting anti-competitive practises

Question 19

3 Areas Competition Policy covers

Answer 19

-Abuse of market power
-Anti-competitive acquisition activity
-Cartel activity and collusion

Question 20

Definition of Health and Safety

Answer 20

Legislation that requires a business to protect the physical and mental wellbeing of workers, contractors and consumers

Question 21

5 Areas Health and Safety covers

Answer 21

-Provision of adequate rest breaks
-Temperature and noise levels
-Provision of safety equipment
-Hygienic, safe, and sanitary conditions
-Preventing stress

Question 22

5 Ways Health and Safety impacts businesses

Answer 22

-Staff training and supervision
-Changes to working hours and breaks
-Arrangement of manuals and safety documentation
-Maintenance of safety equipment
-Implementing a code of practise

Question 23

Definition of Competitive Environment

Answer 23

The degree to which a business is affected by its rivals that operate in the same market