6. Influences On Business Flashcards
What is ethics
The moral principles that govern a person or business behaviour
What are examples of unethical business activity
Child labour
Paying low wages
Providing unsafe working conditions
Discriminating against workers
What is the impact of having ethical business practices
Higher cost of production
Reduced profits
Increase reputation
Change in sales
What is sustainable production
Making goods without depleting natural resources
What are examples of sustainable production
Solar and wind energy
Recycling waste to make products
Saving water
Properly disposing of waste
What are 3 types of pollution
Air pollution
Noise pollution
Pollution of sea and rivers
What is the economic climate
The state of the economy a business operates in
What is income
The money people receive from work and assets
How does income affect business sales
Periods of high income allow people to spend more as they have more disposable income
What is the gross domestic product (GDP)
The measure of the amount of goods and services in the country
What is economic growth
When the GDP in a country is rising
What is a recession 
A period of when the GDP is falling
What is the impact of recession on business activity
Incomes decrease so businesses will cut production which could cause businesses to lay off workers
What is the impact of increases in income 
Overall sales, revenue and profit will increase
The GDP will rise
Businesses will have finance to produce high-quality products
What’s the impact of decreases in income
Businesses who produce lower priced items may have increased sales
Overall, sales revenue and profit will decrease
Employment levels will change because businesses may not need excess workers or have the finance to maintain salaries