Influences on business (unit 2)

Question 1

Legislation

Answer 1

legislation is a set of laws put in place by the government to protect businesses, employees, and customers

Businesses must operate within these laws to ensure the fair and safe treatment of any party involved in a business

if a business does not comply with legislation, legal actions such as fines, restriction, and imprisonment can be actioned

Question 2

What are the 3 types of legislation that a business must follow?

Answer 2

employment law
consumer law
intellectual property laws

Question 3

What is employment law?

Answer 3

refers to any price of government legislation designed to protect employees from exploitation

There are a number of legislations that formed the basis for employee rights

Question 4

3 employment laws

Answer 4

Recruitment- this legislation outlines what employers can and can’t do when recruiting staff and their responsibilities once a job offer has been made

pay - this legislation is designed to ensure that the pay workers receive is above minimum level

working conditions - employees must be provided with safe working conditions and must be protected against unfair discrimination

Question 5

What is consumer law?

Answer 5

refers to any piece of government legislation designed to protect consumers from poor quality products and poor business practices

Question 6

Trade descriptions act 1968

Answer 6

ensures that businesses accurately describe their goods and services

Question 7

Health and safety act 1974

Answer 7

The piece of legislation governing workplace health and safety in the UK. It provides a legal framework designed to protect the well-being of employees, contractors and the general public from risk associated with work activities

The act aims to ensure all workplaces are safe, healthy and secure environments

Question 8

What is intellectual property?

Answer 8

refers to intangible assets or creations owned, created or designed by an individual.

protecting intellectual property is important to ensure that Work is not stolen or copied and that the right people are rewarded for their work

Question 9

What is copyright?

Answer 9

from the moment you create an original piece of work , you become the legal copyright holder

copyright gives the creators of media the right to control how media is used and distributed

Question 10

Is copyright illegal?

Answer 10

copying material subject to copyright without permission is illegal

Question 11

What is a trademark?

Answer 11

a trade mark is the protection of a logo, brand name or phrase

a company can register this with the government to make their company distinctive

Question 12

Disadvantage of trademark

Answer 12

trademarks can be expensive but businesses are willing to invest a lot of money to protect their brand name and logo

Question 13

What are the 4 things legislation can impact on a business?

Answer 13

costs / prices
Marketing and sales
production
human resource act

Question 14

Disadvantages of legislation on costs and profits

Answer 14

Supply training and safety equipment which is expensive

make financial contributions to employee pensions

Question 15

Advantages of legislation on costs and profits

Answer 15

Additional profits can be made through better brand image

employee retention is high

Question 16

advantages of legislation on marketing and sales

Answer 16

less returns
higher sales

Question 17

Disadvantages of legislation on marketing and sales

Answer 17

conforming to all laws can be expensive

Question 18

Advantages of legislation on production

Answer 18

high quality products leads to more sales

employees have higher retention

Question 19

Disadvantages of legislation on production

Answer 19

using high quality materials can be expensive

Question 20

Advantages of legislation on human resource act

Answer 20

happier employees - better productivity

lower level of complaints

Question 21

Disadvantages of legislation of human resource act

Answer 21

can be expensive to ensure that all legal requirements are adhered to

Question 22

Benefits of a business being more ethical

Answer 22

public image increases leading to more sales

could charge a higher price leading to increased profit

Question 23

How can a business being ethical

Answer 23

by being environmentally responsible

Question 24

Drawbacks of being more ethical

Answer 24

Being ethical will often result in a business incurring higher costs. This is because ethically sourced supplies are often more expensive to buy.