Business section 6

Question 1

3 examples of ethical/unethical practice of workers?

Answer 1

paying fair wages
health and safety
work-life balance

Question 2

2 examples of ethical/unethical practice of suppliers?

Answer 2

paying on time
unfair penalties and fines

Question 3

3 examples of ethical/unethical practice of customers?

Answer 3

charging fair prices
Deal with problems quickly
Prompt deliveries

Question 4

3 benefits of being ethical to workers?

Answer 4

easier to recruit good quality employees

Employee retention

Motivation

Question 5

2 benefits of being ethical to suppliers?

Answer 5

might get lower prices if a good relationship is developed

Good brand image - bad treatment of suppliers can be reported in the news

Question 6

2 benefits of being ethical towards customers?

Answer 6

customer satisfaction
Good brand image

Question 7

Drawback of being ethical?

Answer 7

everything will cost more

Question 8

3 ways that businesses can use sustainable production methods?

Answer 8

renewable energy e.g. wind and solar

Switching off lights

Fuel efficient deliveries

Question 9

2 benefits of using sustainable production methods?

Answer 9

Improved brand image

government support as they tend to set higher taxes on “unsustainable” activities

Question 10

drawback of using sustainable production methods?

Answer 10

High short terms costs e.g. solar panels

Question 11

Globalisation?

Answer 11

the increased movement of goods, services, labour and capital around the world as countries become more dependent on each other

Question 12

2 reasons why globalisation has occurred?

Answer 12

improvements in technology and communication

improvements in transport

Question 13

3 benefits of globalisation for UK businesses?

Answer 13

Lower costs e.g. cheap labour, land etc

Demand - greater number of customers worldwide

Expertise - access to skilled workers in industries around the world

Question 14

3 drawbacks of globalisation to UK businesses?

Answer 14

Communication

Cost of transport

Brand image - damaged due to foreign cheap labour, making uk workers redundant

Question 15

What has to be done in the marketing department if a business wants to start manufacturing and selling a new product?

Answer 15

needs to consider:
product
price
place
promotion

Question 16

What needs to be done in the HR department of a business wants to start manufacturing and selling a new product?

Answer 16

Recruit new workers

Train workers

Question 17

What needs to be done in the operations department if a business wants to start manufacturing and selling a new product?

Answer 17

choosing best provision method e.g. job,batch or flow

Procurement - find suppliers for the parts

Question 18

What needs to be done in the finance department if a business wants to start manufacturing and selling a new product?

Answer 18

Find sources of finance to make the product e.g. retained profit, loans etc

Creating cash flow forecast to predict and plan for possible cash problems

Question 19

What are primary businesses?

Answer 19

businesses that take raw materials from the earth
e.g. a gold mine
a cotton farm
a tree farm

Question 20

What are secondary businesses?

Answer 20

businesses that make/manufacture products
e.g. a burger manufacturer
a t shirt factory
a jewellery manufacturer

Question 21

What is a tertiary business?

Answer 21

a business that sells products/offers a service
e.g. tesco
mcdonald’s
Next

Question 22

3 benefits of ethical considerations on a business?

Answer 22

Good reputation

Attract top employees who are motivated to work for an ethical business

Avoid negative publicity

Question 23

3 drawbacks of ethical considerations on a business?

Answer 23

Can increase costs

Difficult to maintain ethical standards

Takes time to write and review ethical policies

Question 24

4 reasons for changing business location?

Answer 24

Lower labour costs

Demand is higher in certain areas of internationally so would be cheaper to move

To access better skilled and higher quality workers

Availability of raw materials

Question 25

3 ways we judge quality?

Answer 25

Reliability
Durability
Value for money

Question 26

3 consequences of quality issues?

Answer 26

Loss of customers
Bad reputation
Cost of refunds/replacements

Question 27

3 benefits of greater quality for a business?

Answer 27

Customer satisfaction
Repeat purchase
Customer recommendation

Question 28

3 benefits of consumer law?

Answer 28

Improved reputation

No costs for replacements

Avoid high fines

Question 29

3 drawbacks of consumer law?

Answer 29

Higher quality materials may be needed

Additional production processes may be needed

Training for workers to ensure they are able to procure quality products

Question 30

3 main features of economic recession?

Answer 30

Jobs are lost
Average income falls
businesses profits fall

Question 31

how businesses might be affected during a recession?

Answer 31

Businesses that sell basic needs might not suffer as consumers need to keep buying these things. businesses that operate at the cheaper end of the market also might not suffer but businesses that sell large expensive luxury items are likely to suffer from a fall in demand

Question 32

how could a recession affect human resources?

Answer 32

Might need to freeze wages, stop bonuses, make redundancies

Question 33

how could a recession affect marketing?

Answer 33

Might need to reduce prices and use special offers

Question 34

How would a recession affect operations department?

Answer 34

look for cheaper supplies or replace workers with technology E.G. self-service tills

Question 35

how would a rising income affect middle-class businesses?

Answer 35

Due to customers salaries rising they might be able to afford higher quality products therefore will upgrade and no longer shop at this business

Question 36

What are the three things that a business will be affected by due to a changing income?

Answer 36

how much the income changes

The type of products the business sells e.g. expensive

How are the businesses respond to the changing income