INFLUENCES ON BUSINESS

Question 1

what is the National minimum wage?

Answer 1

minimum wage for workers aged between 22 and school-leaving age

Question 2

what is the National living wage?

Answer 2

minimum wage for workers aged 23+

Question 3

what is stated by the Equality act 2010?

Answer 3

all employees under the same job must be paid the same

Question 4

what happens if a business is caught discriminating?

Answer 4

pay compensation

Question 5

how can discrimination in businesses be prevented?

Answer 5

staff training and policies

Question 6

what is stated by the Heath and safety at work act of 1974?

Answer 6

all employees and employers take responsibility for health and safety

Question 7

how can dangers in work places be prevented?

Answer 7

risk assessments, first aiders, health and safety training, safety equipements, accident guideline

Question 8

what are the advantages of a safe workplace?

Answer 8

less workers taking time off work
encourage people to apply for a job

Question 9

what are the disadvantages of providing a safe workplace?

Answer 9

expensive
can be prosectuted, fined, closed
compensation
bad publicity

Question 10

what does the Consumer rights act 2015 state?

Answer 10

quality of goods and services to be sold

Question 11

what are the criterias for quality in the Consumer rights act 2015?

Answer 11

1. product to be fit for purpose
2. product should match description
3. product should be of satisfactory quality

Question 12

what happens if the quality of a product or service don’t meet the legal requirements?

Answer 12

can be returned
money back
replacements
repair

Question 13

how does the Consumer rights act 2015 affect businesses?

Answer 13

costs of refund
inconvenience
end up in court
harm reputation -> reduced sales

Question 14

how has technology affected how businesses work?

Answer 14

makes processes faster
reduced costs long term - less staff needed
hire new staff to use technology

Question 15

what is e-commerce?

Answer 15

using the internet to buy/sell

Question 16

what are the effects of
e-commerce?

Answer 16

reach wider markets
have to adapt to e-commerce
communicate with stakeholders - social media (advertise), websites (FAQs), emails, live chats
help keep up with trends

Question 17

what are ethics?

Answer 17

moral principles of right and wrong e.g UK companies exploiting workers in other countries because its ‘normal’ there OR buying from a country because its cheaper -> fair trade

Question 18

how can UK businesses treat their workers ethically?

Answer 18

rewards
keep staff personal details private
comforable work place
honesty
using non-toxic materials
no animal testing

Question 19

what are the drawbacks to ethical working?

Answer 19

expensive - high labour costs, fair trade (ethically sourced materials)
lower sales -> products become more expensive - more money goes into making it

Question 20

what are the benefits of ethical working?

Answer 20

good brand image
gain customers -> more profit
positive effect on shareholders
motivated workers -> higher productivity

Question 21

what impact do businesses have on the environent?

Answer 21

produce waste
traffic congestion
noise/air/water pollution
resource depletion -> businesses use non-renewable resources
global warming -> release CO2

Question 22

how can businesses reduce their eniveronmental impacts?

Answer 22

reduce the amount of packaging
recycle unwanted goods/delivery boxes
dispose of hazardous waste
care share -> less traffic
more efficient/ quieter machinery -> less pollution
use renewable resources

Question 23

what does ‘being sustainable’ mean?

Answer 23

working in a way that doesn’t damage the Earth for the future generations

Question 24

example of businesses working sustainably?

Answer 24

M&S - plan A -> designed buildings that wasted less energy, sustainable materials -> carbon neutral

Question 25

what are the advantages of being environmentally friendly?

Answer 25

attract more customers -> increase sales competitive advantage

Question 26

what are the disadvantages to being environmentally friendly?

Answer 26

expensive -> buying new equipment, developing new processes (trialing)

Question 27

what if the affect of unemployment?

Answer 27

the economy as a whole produces less output

Question 28

how can businesses benefit from unemployment?

Answer 28

can pay lower wages - people are desperate for any job fill jobs without problems

Question 29

how are busineseses negatively affected by unemployment?

Answer 29

people have less money to spend on luxuries -. sales fall people lose skills while being unemployed -> retrain them

Question 30

how does income affect businesses?

Answer 30

higher income -> more sales lower income -> less sales - people focus on buying necessities

Question 31

what is interest?

Answer 31

money added to loans and savings (pay back more than borrowed/saving money makes you earn interest)

Question 32

what affects the rate of interest?

Answer 32

how good the economy is

Question 33

do people spend more with low or high interest rates?

Answer 33

low - they 'waste' less money when paying back from a loan (cheaper to borrow money) so more money to spend -> demand goes up BUT consumers save less

Question 34

what is a market?

Answer 34

PLACE where goods are traded PRODUCT type trading PEOPLE potenitial to buy

Question 35

what is a competitive market?

Answer 35

where lots of producers sell to the same consumers - usually over price or quality

Question 36

what are the disadvantages from being in a competitive market?

Answer 36

expenisive - prove that their product is better, developing new products to fill gaps in the market competition is usually over selling price - some firms make less money -> less money available to improve better products

Question 37

what is globalisation?

Answer 37

the process of businesses around the world become more connected -> larger market to trade with

Question 38

how do UK businesses stand out in a global market (lots of competition)?

Answer 38

invest lots of money into design reputation for high quality products keep lower prices than overseas competitors

Question 39

why is globalisation good for UK businesses?

Answer 39

large market to sell to -> increased sales + profit -> cheaper supplies easier to set up factories in other countries (where labour is cheaper)

Question 40

why is globalisation bad for UK businesses?

Answer 40

more expensive than other countries -> less sales exchange rates bad publicity -> cheaper labour from other countries (exploiting)

Question 41

what is an exchange rate?

Answer 41

the price at which a currency is converted to another

Question 42

what affects exchange rates?

Answer 42

the economy e.g. 2016 - UK left European union -> value of pound dropped

Question 43

is a strong pound better for importers or exporters?

Answer 43

importers - get more pounds from less money in their currency (and visa versa)

Question 44

why do people set up businesses?

Answer 44

earn money/become rich non-financial objectives - be own boss, hobby, leave current job it's a challenge they enjoy benefit others e.g. charity

Question 45

what are the risks of starting a business?

Answer 45

uncertainty of the health of the economy and actions of competitors starting a business - takes lots of money usually their own

Question 46

how can businesses reduce the risks?

Answer 46

planning research