Business and the external environment Flashcards
when was the UK competition act
1998
what does the UK competition act set out
the laws on competition and what constitutes unfair business practices
who prevents companies from breaking these laws
the Competition and Markets authority
what does competition law mean
Businesses cant conspire to fix prices. They cant conspire to limit production they cant divide up the market to avoid competition
what is a dominant position
when market share is >50%
what cant dominant businesses do
demand exclusivity. They cant demand that retailers buy a second product to get the one they actually want (tying). Businesses cant use predator pricing.
how does the law protect the community and the environment
industries that release waste into the water or land are regulated by the environment agency. Industries while release pollution into the air is regulated by local authorities
when did the landfill tax come in and for what purpose
- It was intended to reduce the amount of waste being dumped into landfill sites
What does the Climate Change Act require
that UK PLCs report their greenhouse gas emissions in their annual reports. The idea is that due to the fact that these have to be public, companies will try and reduce them
When was the Trade Descriptions Act introduced and what does it do.
- ensures that businesses don’t mislead consumers with false descriptions on the packaging or advertising material
which three acts set out the rights of customers
sales of goods act (1979), sale and supply of goods act (1994), Sale and supply of goods to consumers regulations (2002)
When was the consumer protection act and what does it outline
- It says that new consumer goods must be safe and meet specific regulations
when was the data protection act
- It prevents the misuse of data.
what can happen to businesses who do not pay their workers above the minimum wage
they can be fined up to £20,000 or jailed
when was the equality act and what it outlines
- it protected employees from discrimination. it provided protection from both direct and indirect discrimination
what is the current minimum wage
£8.91 23 and over, £8.36 21 to 22, £6.56 18 to 20, £4.62 under 18, £4.30 apprenticeship
name some natural monopolies
railways and water
how does the government encourage enterprise
allowing borrowing with low-interest rates e.g Angel CoFund, small businesses don’t have to pay business rates, Great Business website has been launched to advise people on running a business, they encourage young enterprise
which organisation regulates the water industry
Ofwat, they regulate how much businesses can charge for water
how does the government incentivise environmentally friendly practices
renewable heat incentive - the government pays businesses who use renewable energy for heating. The Waste and Resources Action Programme works with businesses to keep resources in use for as long as possible
what things ban trade with other countries
trade embargoes
what is the framework for the external environment
PESTLE or PEST-C
what determines the cost of borrowing
interest rates
what is an oligopoly
where a small number of large firms dominate the market and charge similar prices
