analysing external change

Question 1

what type of market is the EU

Answer 1

single market

Question 2

benifits of being in the EU

Answer 2

free trade- no tax
freedom of movement inbetween EU countries
product regulations - reduce r&d costs

Question 3

what does the competition act 1998 do

Answer 3

sets out laws on what unfair business practices.

Question 4

role of the CMA (competition and markets authority)

Answer 4

prevents companies form breaking the laws- will fine or prosecute those who do

Question 5

competition law means you cant …

Answer 5

fix prices
limit production so there is a shortage and prices go up

Question 6

a business is dominant if they have …

Answer 6

at least 50% market share

Question 7

what is a monopoly

Answer 7

when a business has complete control over the market, there is no competition and only one company to buy from, customers will have to pay any price for it.

Question 8

how does law protect environment

Answer 8

environment agency regulates waste outputs into land and water, and pollution rates

Question 9

effects on finance

Answer 9

have to account for the cost of complying with the laws, materials and process may be more expensive but have to be done to avoid fines.
laws effect the way the business makes decisions

Question 10

laws can also protect customers and consumers eg

Answer 10

trade description act - no false advertising
data protection act - don’t misuse data

Question 11

egs of labour laws

Answer 11

fair treatment
equality act 2010- protects discrimination for protected characteristics

Question 12

types of discrimination

Answer 12

direct - treating someone less favourably because they have protected characteristics eg paying a woman less that a man for the same job
indirect- everyone is treated the same but it has a it has a bad effect on one specific group- eg cant wear head coverings in the job discriminated against some religions

Question 13

discrimination laws affect…

Answer 13

recruitment - can’t use discriminatory language
must be able to justify why they picket a certain candidate

pay- must be equal for men and women
doing the same job

promotions - everyone must be given the same opportunity to get it, and cant deliberately pick staff who are older to make redundant

Question 14

employment contract

Answer 14

a legally bunding agreement between employer and employee about duties and rights. eg pay, hours

Question 15

tribunals

Answer 15

if employees feel they have been treated unfairly they can make a claim, they may get compensation or their job back

Question 16

why do government policies encourage enterprise

Answer 16

enterprise benefits the economy - increase productivity- creates jobs

Question 17

government policies to increase enterprise

Answer 17

government schemes - borrow money at low interest offer tax incentives
national insurance is reduced

Question 18

infrastructure

Answer 18

uk’s is physical things like transports eg trains and railways across the country.
improvements make businesses more productive, things can move about faster, therefore services and products can work with minimal disruption to production. it also provides jobs.

Question 19

what is WRAP

Answer 19

waste and resources action programme
wants to achieve a circular economy and reduce waste by using things for as long as possible

Question 20

GPD

Answer 20

gross domestic profit is the total market value of goods and services within a period of time
measures economic growth

Question 21

GPD consists of

Answer 21

customer spending+ +business investment +government spending +value of exports - the value of imports

it ignores inflation

Question 22

benifits of economic growth

Answer 22

increase revenue
profitability for a business
economies of scale
if there is sustained growth a business may decide to grow

Question 23

what is rapid growth followed by

Answer 23

recession

Question 24

what is a recession

Answer 24

income starts to go down and demand goes down , business confidence goes down and thins slow down.

Question 25

what is a boom

Answer 25

GDP is high, production reaches a maximum capacity, shortages in stock, prices increase, wages rise

Question 26

what is a slump

Answer 26

GDP is low, businesses close factories and redundancies are made, unemployment is high, bankruptcy is high

Question 27

what is a recovery

Answer 27

production increases, employment increases, people have more money to spend.

Question 28

how much a business is effected by the growth cycle depends on…

Answer 28

income elasticity of demand - is the product elastic or inelastic