Chapter 2 - Influences On The Business Flashcards
Give two examples of employment laws
Employees must be under contract, employees are entitled to paid holiday, minimum wage laws, safe workplace, fair and equal recruitment process
What are the consumer laws
- Fit for purpose
- Match product description
- Satisfactory quality
How has technology affected business operations
- E-Commerce
- Digital communication
- Easier payment methods
- Lower costs for production
- Access to a wider range of information
Positives and negatives of ethics in a business
Positives:
- Well treated and valued staff work harder
- Good reputation attracts customers
Negatives:
- Ethical suppliers can be more expensive
- Labour costs may he higher
What is a pressure group
A group that tries to influence the decision of the government or a business
Positives and negatives of being environmentally friendly
Positive: Good “green” image
Negative: Higher expenditure
What is unemployment
When people are able to work yet can’t find a job
What is tax
Money taken from income which goes to the government
What is inflation
Inflation is when the price of products increases. The % increase is the inflation rate
What is interest
Interest is the money payed back on top of the borrowed amount
What are the factors that make up a market
Place, product and people
Why may there be little to no competition for a business
- Product may be new/innovative
- The market may be small
- The market may be difficult to enter
What is globalisation
It is the process in which businesses and countries from around the world become more connected
What are exchange rates
They are the conversion between two nation’s currencies
What does a weak pound mean for importers and exporters
It benefits exporters and is negative for importers
