Influences On Businesses

Question 1

What is ecommerce

Answer 1

Buying and selling of products and services using devices connected to an electronic

Question 2

Advantages of ecommerce

Answer 2

-attract customers across the globe
-sell at any time of the day
-recieve payments immediately
-reduced overhead costs compared to running a physical shop

Question 3

Disadvantages of ecommerce

Answer 3

-Many competitors from across the globe
-employees may need new skills
-a need to maintain and update technologies, may be expensive

Question 4

Why do businesses use social media

Answer 4

-interact with customers
-communicate with stakeholders
-sales and marketing

Question 5

Information and communications technology (ICT)

Answer 5

the computing ans communications systems that a business might use to exchange information with stakeholders

Question 6

Intranets

Answer 6

Communication networks which can only be accessed by an organisation’s employees

Question 7

Extranets

Answer 7

Similar to intranets but can also be accessed by other organisations such as suppliers

Question 8

Software robots

Answer 8

Advanced computer programs that can operate a range of administrative activities previously carried out by employees

Question 9

Cloud computing

Answer 9

General term for the delivery of specialist computing services, such as the storagr of very large amounts of data provided by businesses using the internet

Question 10

M-commerce (mobile commerce)

Answer 10

The buying and selling of products through wireless handheld devices such as smartphones

Question 11

Digital communication

Answer 11

The transmission of information electronically between computing devices

Question 12

Webchat

Answer 12

A simple means of communicating in real time using only web browsers such as google

Question 13

Apps (or applications)

Answer 13

Pieces of software designed for a specific purpose and for use on smartphones and tablets

Question 14

Social media

Answer 14

Methods of online communication such as websites and applications. Thry share information and help develop social and professional contacts

Question 15

Ethics

Answer 15

Refers to whether a business decision is thought to be morally right or wrong. An ethical decision is mode on the basis of what is judged to be morally right

Question 16

Profit

Answer 16

Measures the difference between the values of a business’s revenue and its total costs

Question 17

Fair trade products

Answer 17

Products which customers pay higher prices and offer better trading terms. The aim is to improve the living standards of people in poorer countries where the products are produced

Question 18

Social responsibility

Answer 18

An approach to managing businesses in which the interests of all groups in society are taken into account when making decisions

Question 19

The environment

Answer 19

The natural world in which we live. It is the landscape and its natural features

Question 20

External costs

Answer 20

External costs of production arise when a business’s activities result in harmful effects onnother people not directly involved in production

Question 21

Non renewable resources

Answer 21

Only a limited amount of the resource exists

Question 22

Global warming

Answer 22

Rhe gradual heating of Earth’s surface, oceans and atmosphere

Question 23

Pressure group

Answer 23

A group of people with a common interest who influence the public opinion and decisions by businesses and governments

Question 24

Markets

Answer 24

Exists where there are buyers and sellers

Question 25

Competition

Answer 25

Exists when more than one business is attempting to attract the same customers

Question 26

Monopoly

Answer 26

Exists when a business does not face any competition in a particular market

Question 27

Market share

Answer 27

The percentage of sales in a particular market recorded by a business

Question 28

Uncertainty

Answer 28

Occurs where there is a lack of information about a situation. This means the outcomr or consequences are very difficult to predict

Question 29

Risk

Answer 29

The possibility of something going wrong

Question 30

Diversification

Answer 30

Occurs when a business starts selling new products in new markets

Question 31

Recession

Answer 31

Occurs when the value of an wconomy’s output of goods and services falls for six moths or longer.