External environment - including law Flashcards
Name 6 area of law that can affect business
employment law environmental law health and safety law consumer law competition law copyright law.
State 2 ways that employment law affects employees
Minimum wage and maternity leave
State 2 ways that environmental law affects a business
Reduce emissions to minimise pollution
Reduce noise from the premises to reduce noise pollution
State 2 ways health and safety law affects both the employer and employee
Wires should not be left trailing in the workplace as it is a trip hazard
Shelves should not be over stacked as there is risk of falling on someone
State 2 ways consumer law affects a business
Labelling should be clear and accurate on products
Products should be fit for the purpose that they were sold for
State 1 way competition law affects business
A business is not allowed to negotiate with competitors to agree a price to charge the consumer (Price fixing)
What does Copyright law apply to?
Music, books, designs
How might a rise in interest rate affect a business?
High interest means it is more expensive to borrow but savers get better rates.
Demand falls.
Especially for expensive goods like cars and white goods
How might a rise in the exchange rate affect a business
SPICED
Strong Pound Imports Cheap Exports Dear
Which form of technology does a business use to manage its finance?
Spreadsheets because formulae speed up sums
Which form of technology does a business use to store customer records?
Databases because it allows a business to mail merge addresses to personalise letters or emails
Which form of technology does a business use to write a memo?
Word processing as a memo is simply a formal, internal note
How might the internet help a business?
Skype for international meetings to reduce costs
Create websites to promote or sell through to reach more customers
How might weather affect demand?
Depends on CONTEXT - will customers be able to get to the business, will deliveries arrive?
What is sustainability?
The use of resources and suppliers that does not damage the environment
What is meant by business ethics?
The sense of right and wrong, or morals, that a business uses to guide its decisions
