Business 1.5 - Growth and evolutions

Question 1

fluctuation in the level of business activity over time (booms, recessions, slumps, recovery and growth)

Answer 1

business cycle

Question 2

moral principles that are/should be considered in business decision making

Answer 2

business ethics

Question 3

removal of government rules and regulations that constrain an industry to enhance efficiency and encourage more competition within the industry

Answer 3

deregulation

Question 4

measures change in GDP of a country over time: occurs if there is an increase in GDP for two consecutive quarters

Answer 4

economic growth

Question 5

ecological influences that have a direct impact on the operations of an organization

Answer 5

environmental factors

Question 6

moral values and judgements that society believes businesses ought to consider

Answer 6

ethics

Question 7

value of a country’s currency in terms of other currencies

Answer 7

exchange rate

Question 8

measures taken by a government to safeguard it’s industries from overseas competitors

Answer 8

protectionist measures

Question 9

influences on business related to people in society, their lifestyles and their beliefs

Answer 9

social factors

Question 10

analytical framework used to examine the opportunities and threats of the external environment

Answer 10

STEEPLE analysis

Question 11

number of people in workforce who are willing and able to work but cannot find employment

Answer 11

unemployment

Question 12

increase in exchange rate

Answer 12

rise in import prices (and production prices)
decrease in export prices (being sold for less, so more competitiveness)

Question 13

depreciating

Answer 13

the value of a country’s money dropping (when compared against another country)

Question 14

apprieciating

Answer 14

the value of a country’s money increasing (when compared against another country)

Question 15

decrease in exchange rate

Answer 15

decrease in import prices (and production prices)
increase in export prices (harder to compete)

Question 16

tariffs (customs duties)

Answer 16

taxes on imported products, raising the price for domestic firms a price advantage

Question 17

quotas

Answer 17

quantitative limits on the volume or value of imports

Question 18

subsidies

Answer 18

payments made by a government to domestic businesses as a form of financial aid (reduces cost of production)

Question 19

embargoes

Answer 19

physical bans on international trade with a certain country, usually due to strategic reasons, severe health and safety concerns, or political conflicts

Question 20

framework of the STEEPLE factors that are beyong the control of any individual organization

Answer 20

external environment

Question 21

use of taxation government expenditure

Answer 21

fiscal policy

Question 22

general prices level in an economy continuously rises

Answer 22

inflation

Question 23

measure of the price of money in terms of the amount charged for borrowed funds or how much is offered on money

Answer 23

interest rate

Question 24

use of interest rate policy to affect the money supply and exchange rates in order to influence business activity

Answer 24

monetary policy

Question 25

influences from the role that governments play in business operations

Answer 25

political factors