Influences On A Business

Question 1

E-commerce definition

Answer 1

Buying and selling online

Question 2

How can firms communicate with stakeholders

Answer 2

• Social media
• websites
• email
  -mobile apps
  -live chats
  -video calls

Question 3

Benefits of e commerce

Answer 3

Wider markets
More customers

Question 4

Drawbacks of e commerce

Answer 4

Increased competition

Question 5

What are ethics

Answer 5

Moral principles of right and wrong

Question 6

Benefits of being ethical

Answer 6

Better reputation

Question 7

Drawbacks of being ethical

Answer 7

Higher costs

Question 8

Interest rates definition

Answer 8

The % reward for saving and % for borrowing

Question 9

What happens when there are low interest rates

Answer 9

Increased spending, less reward on saving money. Firms will borrow more.

Question 10

What happens when there are high interest rates

Answer 10

Borrowing money becomes more expensive. Saving increases as the reward for saving is higher. This reduces demand for products

Question 11

What is globalisation

Answer 11

The process by which businesses and countries around the world become more interconnected.

Question 12

Benefits of globalisation

Answer 12

Larger market to sell to
Labour is cheaper

Question 13

Drawbacks of globalisation

Answer 13

Higher wages
Profits affected by exchange rates
Bad reputation for cheap labour in poorer countries

Question 14

What is a strong pound good and bad for

Answer 14

Strong pound benefit-importer
Strong pound drawback-exporter

Question 15

Who is a weak pound good for

Answer 15

Weak pound benefit-exporter
Weak pound drawback-importers

Question 16

Spiced

Answer 16

Strong
Pound
Imports
Cheap
Exports
Dearer

Question 17

Wpidec

Answer 17

Weak
Pound
Imports
Dearer
Exports
Cheaper

Question 18

Why would a business relocate abroad

Answer 18

Labour is cheaper

Question 19

What are external factors (e.g.)

Answer 19

Economy, legislation and technology are external factors affect a firm

Question 20

During a recession what are workers worried about

Answer 20

Job secuirty

Question 21

What is an MNC

Answer 21

Multi national cooperation

Question 22

What does globalisation mean

Answer 22

There is an opportunity to sell to new markets but also increased competition.

Question 23

What does consumer law state

Answer 23

Consumer law states a product should be fit for purpose, have satisfactory quality and match the trade description

Question 24

What is a risk assessment

Answer 24

Used by firms to identify and manage possible danger

Question 25

What is market share

Answer 25

% of sales/total of the market

Question 26

What is the economic growth measurement

Answer 26

GDP(gross domestic product)

Question 27

What is information and communications technology

Answer 27

The computing and communications systems that a business might use to exchange information with stakeholders

Question 28

M commerce

Answer 28

The buying and selling through wireless, handheld devices such as smartphones

Question 29

What is demand

Answer 29

The amount of a product that customers wish to purchase at the current price during a period of time

Question 30

What is digital communication

Answer 30

The transmission of information electronically between computing devices

Question 31

What are three example of digital communication

Answer 31

Email and texts Web chat Apps

Question 32

What are the benefits of e-commerce

Answer 32

Accessing more markets-so small business can sell to the business so customers can order from anywhere which acts as a low cost way of targeting wider markets. Business growth-much internal or organic business growth through e-commerce as e-commerce sales are growing rapidly than sales in shops. Lower costs and potentially higher revenue-e-commerce reduces cost as it does not need a physical store, as airlines also sell tickets online direct to customers which reduces the commission they have to pay to travel agents.

Question 33

What is organic growth

Answer 33

Growth from within the business

Question 34

What is ethics

Answer 34

Refers to whether a business decision is thought to be morally right or wrong;an ethical decision is made on the basis of what is judged to be morally correct

Question 35

What is social responsibility

Answer 35

An approach to managing a business in which the interests of all groups in society are considered when making decisions

Question 36

What are ethical objectives

Answer 36

These are targets set up by the business to help it ensure that it’s decisions are morally correct;for example treating it’s staff fairly

Question 37

What are the two decisions a business would pick between

Answer 37

Maximises profits-pay the lowest wages and cheapest materials so profit will increase Morally right-choosing to Pay employees well or using more expensive resources that do not harm the environment

Question 38

What is a zero hour contract

Answer 38

This type of contract allows an employer to hire staff without any guaranteed hours of work.

Question 39

What is purchasing

Answer 39

The process of buying the goods and services needed for production to take place

Question 40

Fair trade definition

Answer 40

Fair trade products are those for which customers pay higher prices and offer better trading terms, such as payments with orders; the aim is to improve the standard of living in poorer countries where the products are produced through ethical trade

Question 41

Traffic congestion

Answer 41

This occurs when there are too many vehicles travelling for the road network, causing queues and delays

Question 42

What is noise pollution

Answer 42

A very high level of sound that causes discomfort to humans and wildlife

Question 43

What is scare resources

Answer 43

Those inputs into the production process that are insufficient to meet needs

Question 44

Global warming definition

Answer 44

The gradual heating of earth’s surface, oceans and atmosphere

Question 45

What is sustainability

Answer 45

Refers to methods of production which can be continued in the long term without damage the environment

Question 46

What is recycling

Answer 46

The Reuse of raw materials used in making products, often many times e.g. include the reuse of glass, paper and metals