2.5 External Influences

Question 1

How is GDP measured

Answer 1

% change

Question 2

The business cycle

Answer 2

Measuring the fluctuations in growth of GDP

Question 3

Why is a recession a problem for businesses

Answer 3

Lower levels of consumer confidence
Lower consumer spending
Lower business revenue

Question 4

Exchange rates

Answer 4

Value of one currency in terms of another

Question 5

Individual tax

Answer 5

Income tax
National Insurance

Question 6

Business taxte

Answer 6

Corporation tax
VAT

Question 7

Legislation

Answer 7

Laws put in place by the government to protect business, firms, and employees

Question 8

What 3 policies make up employee protection?

Answer 8

Equality
Anti-discrimination
Minimum wage law

Question 9

Biggest drawback of legislation

Answer 9

increased costs on business

Question 10

3 factors of consumer protection

Answer 10

Consumer rights
Data protection
Trade descriptions

Question 11

Consumer rights

Answer 11

Refund
Exchange

Question 12

Data protection

Answer 12

Protect private data

Question 13

Trade descriptions

Answer 13

Goods must be as they are advertised

Question 14

How does health and safety affect business

Answer 14

Better reputation but higher costs

Question 15

2 factors of environmental protection legislation

Answer 15

Waste disposal
Emissions

Question 16

What does competition law legislation do?

Answer 16

Ensures competition between business is fair

Question 17

Oligopoly

Answer 17

Where the market is dominated by a few large companies