Gcse Bussines 1.5 Flashcards
What is consumer law?
Makes sure consumers are treated fairly, products sold fairly, and good enough quality .
What is the consumer rights act?
States product must be good quality and fit for purpose (does job it’s designed for)
If it does not have a good quality then they have a right to replace/ repair or refund.( must be well made so it doesn’t cause other problems
- product match its description (illegal to make false description. I includes raw materials and size of product, not false e dieses by someone who didn’t say so
What is a stakeholder?
Anyone who has an interest in the bussines
What are internal stake holders and who are they affected by business activity
Internal stake holders are individuals directly involved in business operations
Include
•workers
• employees
• managers
• directors
What are external stakeholders and how are they effected by business activity
Individuals outside business that are affected by business activities .
Include
• community
• government
• customer
• suppliers
• lenders
What is a trade union?
A group of employees that work together to protect/ improve working conditions. By pushing for higher pay and less work hours
What is employment legislation?
Laws to protect workers rights presented in an employment contract
What is an employment contract
Signed by business and workers to protect each other. Which come with consequences if terms are broken(dismissed from job/pay compensation)
Pay minimum wage, rate increase, increase costS, lead to an increase in product costs. To remain profits levels
What is unfair dismissal?
Employer dismisses employee from job without a legal reason to do so.
What is the equality act of 2010
Employees protected from discrimination
(Being treated differently or unfairly at work) if they do, they pay compensation.
Potentially from their race, age, sex, disability, religion, sexual orientation, pregnancy.
Example: recruitment should not be discriminative.
What is the equality commission?
A public body that investigates allegations for discrimination.
Encourage equal opportunities to employers.
How has technology impacted a bussines?[5fcts]
-affects online sales(e-commerce)
-use of social media(
-communication
-paying for goods
-business operations
What are the benafits and limitations of e-commerce?
Business are less likely to rent shops— less costs to run websites-cheaper option . Wider markets. Convenient for consumers
-although security is limited, aswelll as expertise required to create a website. (IT specialists) Online payments may be difficult
How ca a business use social media?
- easy method to share info: updates, use it as main method of promoting and advertising so they can communicate directly to a customer(deal with feedback, questions can customer complaints)[customer service]
Why do business use online communication?
-quicker
-cheaper
-easier
To communicate with people around the world
What is the electronic point of sale checkout? (EPOS)
Automates stock control.
Register payment. Checks how much stock is left, if there is not enough. It can flag the manager/orders stock required
wat is the reason, Why do work
Places need to be safe in a bussines?
Health, safety legislation to ensure workplaces for employers are safe and prevent risks
- they must provide safe work environment
- they must provide training to perform task(equipment)
-they must provide necessary protective clothing
What are the consequences of good healthy and safety practices?
This will increase profit from less liability and attracting best workers, retain them longer and more productivity
-Sever pe elites for failing employers safety( may damege bussines, less income)
What is the health and safety at Work Act 1974 Suggest?
-duty to keep employees and colleges safe.
-Correct machinery and trainings
-activities don’t harm bussines
What are the differentt stakeholders ideas of success?
Owners: make profit . If shareholders then high dividend and share price
Managers &employees: job security, promotional prospects, decent wage, good working conditions
Suppliers: profitability and growth
Local community: minimising environmental risks, ethical consideration, profit, growth.
Gov: job creation, profit
Customers: customer satisfaction
Pressure groups: minimise environmental impact, ethical consideration.
What give 3 examples of digital communication?
- websites: post blogs. Providing customer service, publish reports to shareholders
-mobile apps: communicate with customers, where stores are and products company sells(special offers)
-video calls: employees that work for the same business in diferente locations don’t have to travel for meetings
How does technology change business operations?(6)
-made business adapt to stay competitive
-replace people to carry tasks out, reduce costs
-train staff to use tech/ hire new staff. Which is expensive
- increase sales. E-commerce reach bigger market
-change pricing strategies/promotion to be more competitive
How has technology made it easier for us to purchase products?
Introduced
-online payments(don’t have to enter card details on every website
-chip and pin: enter unique pin into terminal. Is Safer
-contactless payments: pay holding onto credit/debit card at a terminal
(This encourages customers to shop with firm. Faster payments= more customers)
Why do working environments need to be safe?
- so fewer accidents can happen to employees. Hence increase productivity, from there being less time of work(expensive). Monitored by carrying out risk assessment
-if not followed then they will be prosecuted/fined/close down
How does the national minimum wage affect a business?
-companies can not cut cost by paying employees less. If they do? Then company could get large fines and bad publicity. Ergo reduce customers.
-increase company’s costs— increased prices, and reduced income. This may be too expensive. So a bussines will have to make staff redundant.
-staff more motivated. Means increased productivity
How does unemployment affect a business?
-some business can pay lower wages as unemployed Poeple are desperate.
-government may give grants to firms to provide jobs.
-less disposable income for customers. Cause a lack of demand for products(luxuries ). Sales fall
-business reduce pricing
How does government tax affect a bussines,and a consumer?
-bussines pay tax on profit
[if increased, reduces reinvesting money. Lead to slow growth]
{make staff redundant to cut costs, or relocate abroad to pay less tax}
( if reduces, then opposite applies, but increase competition from abroad )
-consumers pay income tax
.[reduced income tax. Means more disposable income].
{Increase consumer purchases. Will rise from a revenue]
[ if rises, opposite applies}
What 3 factors will be affected by inflation?
consumer spending
cost of labour (poeple push for higher wages)
global competitions
What are the effects or cubism we rights act 2015 on a business?
- if it’s not followed, then there is more costs and inconvenience.
-course cases if customers are not happy(more costs)
-if broken can damage a brands red reputation. So decrease sales
-they are more careful when selling products
-staff are trained properly to sell accurate products, and to understand what consumer rights are
