Business Section 6

Question 1

Demographic issues

What is a demographic issue?

Answer 1

A demographic issue is an issue relating to the size and structure of the population that effects a business.

Question 2

Social factors

Factors relating to the population and our lifestyles.

1. What are the 5 social factors?

Answer 2

1. 5 social factors:

• demographic factors
• Attitudes to work
• Disposable income
• Social trends
• Cultural beliefs

Question 3

Disposable income

What is disposable income?

Answer 3

Disposable income is a persons total income minus taxes.

Question 4

Technological factors

Advancements in technology has changed the way we work, play, learn and shop.

1. What are the 4 main advancements in technology?

Answer 4

1. • Automation e.g production line, CAD/CAM.
   • Purchasing/ sales technology e.g e-commerce websites, EPOS stock control.
   • Mobile technology e.g contactless payment methods, smart phone apps.
   • Communication technology e.g social media, video conferencing.

Question 5

EPOS

What does EPOS mean?

Answer 5

EPOS stands for electronic point of sale.

Question 6

CAD/CAM

What’s the meaning of CAD/CAM?

Answer 6

CAD/CAM - computer aided design / computer aided manufacture.

Question 7

Environmental factors

What are environmental factors?

Answer 7

Environmental factors are factors relating to minimising damage to the planet.

For example energy management, carbon emissions, waste reduction, recycling and pollution.

Question 8

Economic factors

Economic factors are factors which affect the economy.

1. What are the five main economic factors?

Answer 8

1. • Interest rates

• Exchange rates
• Inflation
• Unemployment
• Taxation

Question 9

Economic factors

Interest rates - Interest rates are constantly changing and are set by the Bank of England. Interest rates are the additional payment require to borrow money and the additional benefit of saving money.

Exchange rates - Exchange rates are the value of one currency compared to another currency. It effects imports and exports.

Inflation - Inflation is a general increase in the price of goods and services.

Unemployment - The amount of people available for work who do not have a job.

Taxation - Taxation is the amount of money paid towards the government to allow it to run the country e.g provide schools and hospitals.

Answer 9

Explain what one of the five economic factors mean?

Interest rates, exchange rates, inflation, unemployment, taxation

Question 10

Political factors

Factors relating to government policy and practices.

1. What are the three main political factors?

Answer 10

1. • political instability
     e. g the chances of a government collapse.

• A change of government
  e. g a general election or change in prime minister.
• Government initiatives
  e. g new government policy, grant funding, control measures.

Question 11

Imports and exports

What does imports mean?

What does exports mean?

Answer 11

Imports are when goods are brought from abroad.

Exports are when goods are sold to other countries.

Question 12

Automation

What is automation?

Answer 12

Automation is the replacement of human labour with machines.

Question 13

E-commerce

What is E-commerce?

Answer 13

E-commerce is websites that allow purchases to be made online.

Question 14

Video conferencing

What is video conferencing?

Answer 14

Video conferencing is the holding of virtual meetings using audio and video screens.

Question 15

Companies act

What are the key factors?

Answer 15

Governs all types of companies

Company registration at companies house with registrar of companies

File accounts annually

Limited liability for shareholders

Question 16

Working time directive

What are the key factors?

Answer 16

Protects workers from undue stress and illness by:

• limiting working hours to an average of 48 hours per week.
• giving legal right to break of20 minutes every 6 hours.
• legal right to paid holidays.

Question 17

Health and safety at work act

What are the key factors?

Answer 17

Employees and employers have a duty to keep the workplace safe for themselves and visitors.

E.g risk assessment, emergency procedures, first aid training, guards on machines, protective personal clothing.

Question 18

What is the equality act?

Answer 18

The equality act bans discrimination on all its forms including:

• sexual discrimination.
• racial discrimination.
• disability discrimination.
• age discrimination.

Question 19

What is the National minimum wage act?

Answer 19

The national minimum wage act requires employees ages 25 and over to be paid the national minimum living wage and those under 25 to be paid the national minimum wage at the rate appropriate for their age.

Question 20

Consumer rights act

What’s the key factors?

Answer 20

Consumer rights act includes:

• goods should be of satisfactory quality, as described, fit for purpose.
• services should be provided with reasonable skill, reasonable care, and within a reasonable time frame.
• right to refund, repair or replacement.

Question 21

Consumer protection act

What are the key factors?

Answer 21

Consumer protection act includes:

• business must not sell or manufacture goods that are unsafe.
• local councils have the rights to seize unsafe goods and ban them from sale.

Question 22

Copyright, designs and patents act

What are the key factors?

Answer 22

The copyright, designs and patents act protects the interest of the creator of original work. E.g music, books, films etc.

Original work cannot be used without the owners consent.

The owner retains all rights for use, sale or distribution.

Question 23

Ethical factors

What are ethical factors?

Answer 23

Ethical factors are issues concerned with doing what is right, above and beyond what the law requires.