Influences On Business Flashcards
Air Pollution
The presence or introduction of harmful substances into the air causing disease, allergies or damage to humans, animals, plants or the built environment.
Consumer Law
Laws designed to ensure that businesses make products that are safe and of good quality, and that they deal with customers honestly and fairly.
Consumer Spending
The money spent by households on goods and services to satisfy their needs and wants.
Contracts Of Employment
A legal document that sets out the terms and conditions of the job for the employer and the employee.
Disposal Of Waste
The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.
E-commerce
Process of buying and selling products using the internet
Employment Law
Rulings that relate to the rights and responsibilities of people who work for a business; they affect the recruitment and selection process and how the business deals with its workers.
Equality Act (2010)
Protects people from discrimination in the workplace and in wider society. It sets out the different ways in which it is unlawful to treat someone.
Ethical Objectives
A business’ goals that relate to fair business practice or moral guidelines and make a positive contribution to the business’ reputation.
Ethics
The moral principles that guide how a business operates.
Exchange Rates
The price of one currency based on another or the cost of buying one currency from another, for example £1 = $1.21.
Export
Good/service sold to a customer in another country.
Global Warming
The steady increase in the earth’s temperature due to emissions and the buildup of greenhouse gases, resulting in climate changes.
Globalisation
The trend for large businesses to operate on a worldwide scale; money, goods and services can be transferred across national borders.
Health and Safety at Work Act (1974)
Sets out the duties and responsibilities of both employers and employees for health and safety in the workplace.
Import
Good/service bought from a supplier from another country.
Interest Rates
The rate charged for borrowing money over a period of time, or the reward for saving money.
Level of employment
The percentage of the population of working age that are employed.
M-Commerce
Business transactions are carried out electronically by mobile phone.
National minimum wage/living wage
The lowest hourly rate that can legally be paid by an employer to an employee.
Noise Pollution
A type and level of noise that is excessive and disturbing to people or animals.
Recycling
The conversion of waste into reusable material.
Risk
The possibility that the return on investment will be lower than expected
Sustainability
The process of operating without damaging the environment or depleting natural resources.
Traffic Congestion
The effects of overuse of transport networks, for example slower speeds, traffic queues and longer journey times.
Waste
The unwanted material left over from the production process
Zero-hour contract
A contract of employment where the employer is not obliged to provide any minimum hours of work; the employee is not obliged to accept any work that is offered.
Digital Communication
The transmission of information electronically between computing devices.
Social Responsibility
An approach to managing businesses in which the interests of all groups in society are taken into account when making decisions.
External Costs
When business activities result in harmful effects on other people not directly involved in production.
Economic Climate
The state of key factors within a country such as the level of goods and services produced and the number of jobs available.
Multinational Company (MNC)
A company which produces goods and services in more than one country.
Inward Investment
When governments, businesses and individuals invest capital into another country.
Markets
Exist where there are buyers and sellers.
Trade in a particular type pf product
The potential customers for a product
Competition
When more than one business is attempting to attract the same customers.
Uncertainty
Occurs when there is a lack of information about a situation. This means the outcome is difficult to predict.
What does business can’t discriminate mean
Can’t differentiate people based on religion,gender,race,age,sexual orientation or disabilities
Conditions for products
Product must be fit for it’s purpose
Product should match description
Product should be satisfactory quanlity
How can business’ communicate with their stakeholders
Social Media Website Email Mobile Apps Live Chat Video Calls
What does a weak pound mean for importers and exporters
Exporting will be cheaper
Importing will be more expensive
What does strong pound mean for importers and exporters
Exporting will become more expensive
Importing will become cheaper
What can business’ do to reduce risks
Planning- Have a business plan and a backup plan
Researching- Market Research and competition
Uncertainties faced by business’
The health of the economy and the actions of competitors
What is a competitive market
Where a large number of producers are selling to a large number of consumers
Unemployment
When people are able to work but can’t find a job
Benefits of unemployment to a business
A benefit is that they can pay lower wages for unemployed people because they are desperate. They can also fill jobs without difficulty.
If prices rise at a faster rate than income…
People will have to spend a greater amount on needs so they’ll have less to spend on wants
If prices rise at a slower rate than income…
People will be spending less on their needs and have more money to spend on wants
