(Done) Influences on business Flashcards
1
Q
Define national minimum wage
A
- The minimum amount employers are required to pay employees of school leaving age but below 22
2
Q
Define national living wage
A
- The minimum amount employers are required to pay employees 23 and over
3
Q
What is required by the health and safety at work act
A
- Firms need to carry out risk assessments to identify possible dangers
- Firms need to take reasonable steps to reduce the risks
- All personnel must receive health and safety training and safety equipment must be supplied
4
Q
Advantages of following legislational acts
A
- Avoid consequences
- Attract customers
- Increase productivity
5
Q
Disadvantages of following legislational acts
A
- Expensive
6
Q
What is covered by the Equality Act
A
- Recruitment processes, salaries and other things must not discriminate against people depending on their:
- Race
- Age
- Sexual orientation
- Religion
- Disabilities
7
Q
How does consumer law affect busines
A
- Could create problems if consumer law is not followed, even if accidental or by one out of thousands of employees
7
Q
What conditions does the consumer rights act set for products
A
- The product should be fit for its purpose - Should do the job it is designed and advertised for
- The product should match its description - The size or quantity of the product or any materials it is made from
- The product should be of satisfactory quality - Should be well made, not fall apart after a couple of uses as well as not causing any additional issues for the customer
8
Q
How has technology changed the way businesses operate
A
- Making processes faster - Computers can complete tasks faster and allow for easier communication
- Reduced costs - Fewer man-hours spent on tasks
- Increased costs - Buy new equipment, train or hire new staff with required skillsets
9
Q
Define E-commerce
A
- Using the internet to buy or sell products
10
Q
Effects of E-commerce
A
- Firms now tend to have websites to sell products on
- Firms can reach a larger market
- Firms have to adapt to accommodate E-commerce e.g. buying the website and employing someone to maintain the website
11
Q
How can firms communicate digitally with stakeholders
A
- Social media
- Websites
- Mobile apps
- Live chats
- Video calls
12
Q
Define ethics
A
- The moral principles of right and wrong
13
Q
Explain the international ethical issues
A
- In some countries it is not illegal to make employees work very long hours and pay them very little, this causes companies to set up factories in these countries to reduce labour costs
14
Q
What measures are put in place to solve international ethical issues
A
- Businesses can write codes of conduct preventing employees abroad from being able to work too many consecutive work hours a week as well as paying a fair wage
- Checks should be carried out to ensure these things are being followed
15
Q
What ethical practises are businesses in the UK required to do
A
- Rewards staff fairly
- Keep personal information private
- Provide a comfortable working environment
16
Q
Benefits of a business acting ethially
A
- Good publicity
- Avoid consequences
- Competitive advantage
- Increased motivation and productivity
17
Q
Drawbacks of a business acting ethically
A
- ## Increased costs
18
Q
How can businesses reduce their effect on the environment
A
- Reduce the amount of waste - Reducing the amount of packaging and recycling things such as delivery boxes or unwanted goods
- Dispose of waste carefully
- Reduce traffic - Cycle to work and car share schemes
- Reduce air and noise pollution - Buy more efficient and quieter machinery and use insulation
19
Q
Effects of business activity on the environment
A
- Resource depletion
- Global warming
20
Q
Benefits of being environmentally friendly
A
- Competitive advantage
21
Q
Drawbacks of being environmentally friendly
A
- Increased costs
22
Q
Effects of high unemployment on businesses
A
- May be able to pay lower wages if lots of people are desperate for a job
- Easy to fill low skill positions as there are more candidates
- Government may provide grants to businesses in areas of high unemployment
- On average people have less money to spend so sales decrease
23
Q
Effects of the rate of change of the price of good and income
A
- The proportion of their salary people spend on needs will increase
- Demand for wants changes
- Business selling wants will have different profits
- Businesses selling discount items will have different profits
24
Effects of low interest rates on business
- When interest rates are low, it is cheaper to borrow money and less effective to save money
- When rates are low, firms and consumers borrow more and save less
- Consumers have more money to spend so demand for goods and services goes up
- Firms that borrow money to finance their spending will have smaller interest repayments, so they have more money to spend on the rest of the business
25
Effects of high interest rates on business
- When interest rates are high, borrowing money becomes more expensive and saving becomes more rewarding
- Firms and consumers have less money to spend due to higher interest payments and higher saving rewards
- Reduces the demand for products due to a decrease in disposable income so sales and profit decrease
- May cause redundancies due to the lack of capital available to pay employees, increasing unemployment
26
What are the three definitions for a market
- A place where good are traded between customers and suppliers
- Trade in a particular type of product
- The potential customers of a product
27
Effects of competition on business
- Pricing of products
- Development of new products
- Promotion of new or existing products
28
Reasons why a business may not have much competition
- The product is new
- The market for the product is small
- It is difficult to enter the market
29
Define globalisation
- The process by which businesses around the world become more connected
30
Advantages of globalisation
- More potential buyers
- More potential suppliers
- Cheaper labour
31
Disadvantages of globalisation
- UK industries may struggle to compete against companies selling cheaper products due to different labour laws
- Dependant on exchange rates
32
Effect of strong pound on business
- Exporting to other countries becomes more expensive
- Importing from other countries becomes cheaper
33
Effect of weak pound on business
- Exporting to other countries becomes cheaper
- Importing from other countries becomes more expensive
34
How can businesses reduce the risks of running a business
- Creating a business plan
- Performing market research
