External influences on business issues

Question 1

Explain the business impacton the environment

Answer 1

social responsibility:it is when a business decision benefit not only Stakeholder

Question 2

Explain why business want to be environment-friendly

Answer 2

(i)Sense of social responsibility:man’s activities are contributed to global warming and pollution
(ii)Using scale non-renewable resource will have higher price
(iii)Consumer are now socially aware-willing to buy only environmental friendly products

Question 3

Explain why business do not want to be environmental friendly

Answer 3

(i)Expensive to reduce and recycle waste
(ii)Increase price to compensate for expensive environment
(iii)Less competitive-lose sales

Question 4

Explain externalities

Answer 4

(i)Private cost:cost paid by the the business for an activity
Private benefits:gains for the business resulting from an activity
(ii)External cost:cost paid for by the rest of the society as a result of the business’s activity
External benefits:gain enjoyed by the rest of society as a result of a business activity

Question 5

Explain the formula

Answer 5

Social benefits=Private benefit + External benefits

Question 6

Explain sustainable development

Answer 6

It is development that does not put at risk the living standard of future generations

Question 7

How to achieve sustainable development?

Answer 7

(i)Use sustainable energy
(ii)3Rs-Reduce,reuse and recycle
(iii)Use fewer resources

Question 8

Explain environmental pressure

Answer 8

Pressure group are organisations/group of people who change business decision
-The government can also pass law that can restrict business decision

Question 9

Explain pollution permits

Answer 9

They are license
to pollute up to a certain limit

Question 10

Explain ethical decisions

Answer 10

-It is based on moral code
-mean ‘doing the right thing’