Influences On Business Flashcards

Question

How does traffic congestion affect business?

Answer 1

• Businesses that manufacture will need to move their goods to the outlet where they are to be sold; shop, warehouse, wholesaler etc.

Answer 2

• A new scheme in the City of London is aiming to recycle five million disposable coffee cups • More than 100 retailers and 30 organisations are offering recycling facilities

Answer 3

• According to UK government businesses in this country have a responsibility to: – keep waste to a minimum by doing everything you reasonably can to prevent, reuse, recycle or recover waste (in that order)

Answer 4

• Noise pollution is the disturbing or excessive noise that may harm the activity or balance of human or animal life

Answer 5

• Air pollution occurs when harmful substances are introduced into Earth's atmosphere • It may cause diseases or allergies in human beings; it may also cause harm to other living things such as animals and food crops, and may damage the natural or built environment*

Answer 6

1. Recycling ink cartridges 2. Producing goods with less packaging 3. Using solar energy 4. Switching to energy saving light bulbs 5. Using a smaller font (less paper) 6. Using web based technology – less paper

Answer 7

• Sustainability can be defined as; avoidance of the depletion of natural resources in order to maintain an ecological balance

Answer 8

• Business needs to choose sustainable resources e.g. Palm oil, wood, water etc. • Business has an ethical duty to make sure there are enough natural resources for the future

Answer 9

• Businesses should seek to source ethical products where possible • Ethical sourcing is the process of ensuring the products being sourced are obtained in a responsible and sustainable way, that the workers involved in making them are safe and treated fairly and that environmental and social impacts are taken into consideration during the sourcing process

Answer 10

• do not use suppliers who use child labour • avoid raw materials which have involved animal testing • ensure suppliers pay a fair wage • ensure suppliers offer good working conditions • pay suppliers a reasonable price • insist on suppliers using recycled packaging materials • encourage suppliers to produce goods made of recyclable materials • minimise air miles/buy from local suppliers • do spot checks on suppliers premises/processes

Answer 11

• Climate change may have an impact on businesses, in a nutshell they will have to reduce their carbon emissions; – Businesses will have to be more energy efficient, they can get tax breaks from the government if they have less carbon emissions

Answer 12

• Global warming can be defined as; the increase in Earth's average surface temperature due to rising levels of greenhouse gases

Answer 13

• The general condition of the economy, the way that the resources and the production and consumption of goods in the UK are managed

Answer 14

Interest rates are the cost of borrowing money or the reward for saving money

Answer 15

• This is the cost of borrowing money. • If the bank of England pushes up interest rates consumer and business spending will fall.

Answer 16

• If interest rates rise then the cost of borrowing will rise and this will mean that the costs for a business may increase, this could lead to a fall in profits

Answer 17

• Unemployment- The number of people willing to work but out of work and seeking work

Answer 18

• Unemployment rate - % of the working population out of work

Answer 19

• When a worker receives their wages they will have to pay tax and national insurance • What is left is called their disposable income

Answer 20

• Now they have to pay all their bills, electric, gas, water, food and rent • What is left is called their discretionary income– they can use this for the cinema or a Big Mac..

Answer 21

• It encourages entrepreneurship • Many unemployed people start their own business instead of looking for jobs, they become self-employed

Answer 22

• Inferior goods • Normal goods • Luxury goods

Answer 23

• Inferior goods – As income rises >>>>demand will fall (we don’t buy so many poor quality goods when our income goes up)

Answer 24

• Normal goods – As income rises>>>>demand will rise – As income falls>>>>demand will fall

Answer 25

• Luxury goods – As income rises>>>>demand will rise (we choose to buy holidays, cars and jewellery when we have more money)

Answer 26

• The process by which businesses start operating on an international scale

Answer 27

• A multinational is a business which trades in more than one country, often shortened to MNC

Answer 28

1. Wider markets 2. Economies of scale 3. Labour migration 4. Specialisation 5. Multiplier effect

Answer 29

1. Foreign competition 2. Loss of UK staff 3. Threat to service industries 4. Diseconomies of scale

Answer 30

• An export is a product that the UK sells to overseas markets

Answer 31

• International trade is the exchange of goods and services between different countries

Answer 32

• An import is a product made overseas and brought into the UK

Answer 33

• Other countries make nice products that British people would love to use, try, eat and experience • A business does not have to manufacture anything – it can simply import goods from abroad

Answer 34

• The exchange rate is the price of one currency in exchange for another • You may have “changed” your money up for a holiday abroad, and you will have been charged commission to do so

Answer 35

• What impact will a change in exchange rates have on the cost of supplies? It depends if they were purchased from abroad. If our pound increased against another currency this will make imported supplies cheaper e.g. cheese from France:

Answer 36

• If the pound is strong against other currencies then it becomes more expensive for those countries to buy UK exported goods, this means they will buy less, this means that UK exporter’s profits will go down

Answer 37

• Legislation is the collective term for laws • When we talk about legislation in business we are talking about UK laws

Answer 38

• A business will have to meet all of the consumer, employment and recruitment laws • This may mean additional costs – Training staff – Protection equipment for staff e.g. hairnets or googles – Cost of paying NMW • Higher costs may have an impact on the profit of the business

Answer 39

• Businesses will need to make sure that all their employees are trained and that the training is up-to-date • This will make sure that the business is legally compliant

Answer 40

• Failure to comply with health and safety requirements can have serious consequences – for both businesses and individuals • Consequences can include; include fines and even imprisonment

Answer 41

• The recruitment process involves; advertising, selecting, interviewing and hiring the staff needed for the business

Answer 42

• The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society. • It replaced previous anti-discrimination laws with a single Act, making the law easier to understand and strengthening protection in some situations. It sets out the different ways in which it’s unlawful to treat someone.

Answer 43

• NATIONAL MINIMUM WAGE or NMW is the legal minimum that can be paid to workers in the UK:

Answer 44

• The National Living Wage is higher than the National Minimum Wage - workers get it if they’re over 25.

Answer 45

• In general, health and safety laws apply to all businesses • As an employer, or a self- employed person, they are responsible for health and safety in the business

Answer 46

• All workers have a right to work in places where risks to their health and safety are properly controlled. • Health and safety is about stopping you getting hurt at work or ill through work.