Influences on Business

Question 1

What is the impact E-commerce has on a business?

Answer 1

E-commerce promotes sales. If more customers are aware of a good/service the more likely they are to buy it.

Question 2

What is the impact of digital communication on a business?

Answer 2

Digital communication helps suppliers and owners communicate when supplies are coming in a if/in case there are any delays/issues.

Question 3

Examples of digital technology /communication

Answer 3

Social media, Mobile phone, Internet.

Question 4

What is ethics?

Answer 4

When businesses have as an aim what is morally right rather than necessarily the most profitable option.

Question 5

Trade off

Answer 5

The sacrifice you make when choosing one option to the alternative. (opportunity cost)

Question 6

What is three ways in which businesses can behave ethically?

Answer 6

1. Pay reasonable
2. Good customer service
3. Problem products that do not harm the environment.

Question 7

One benefit of behaving ethically:

Answer 7

Attracts customers

Question 8

One drawback behaving ethically:

Answer 8

May cost more

Question 9

Four environmental considerations are:

Answer 9

1. Impact on animals
2. Contribution to global warming
3. Impact on wildlife’s habitat
4. Sustainability

Question 10

What does ‘scarce resources’ mean?

Answer 10

Lack of resources. The idea that we cannot have everything we want because there is a limited amount of resources in the world.

Question 11

How might businesses be affected by changes in the rate of interest?

Answer 11

Businesses might have loans to pay off and if interest rates go up they need to pay more.

Question 12

How and why might businesses be affected by changes in the level of employment?

Answer 12

If there is a high level of employment and businesses are trying to recruit, it will be hard to find the right people to employ.

Question 13

What is the definition of globalisation?

Answer 13

The increased integration of trade, finance and communications between countries.

Question 14

What are two drawbacks of globalisation?

Answer 14

1. More competition

2. Exchange rates

Question 15

What are two benefits of globalisation?

Answer 15

1. More customers

2. More contacts

Question 16

Examples of how UK businesses compete internationally:

Answer 16

• By offering better designed, higher quality products at lower prices.
• Globalisation

Question 17

What is an example of employment law?

Answer 17

National minimum wage

or the Equality act

Question 18

One example of a health and safety law

Answer 18

Adequate lighting, heating, ventilation and workspace (and keep them in a clean condition)

Question 19

One example of consumer law:

Answer 19

What should happen when goods are faulty

Question 20

Impacts of legislation (Laws)

Answer 20

Has an impact on employment, competition, and Health and Safety.

Question 21

Benefits of providing a safe working environment

Answer 21

Protects workers from injury and illness, increases productivity and quality. Raises employee morale.

Question 22

Definition of uncertainty

Answer 22

Where a business risks will be increased in a competitive environment, as it does not know the plans of rival firms.

Question 23

What is a situation where a business faces minimal or no competition?

Answer 23

The business may be selling a product that no one wants.

Question 24

Why entrepreneurs embark on running a business?

Answer 24

It’s through starting their own business that they get to freely express their creative ideas and fulfil their dreams.

Question 25

What are some activities that entrepreneurs can undertake to minimise risk?

Answer 25

• Save money
• Develops a solid plan
• Limit loans
• Keep good records
• Perform quality control
  tests.