Influences On Businesses Flashcards
Economic Climate - Economy
Made up of consumers, businesses and governments making decisions on what to buy, sell and produce.
Economic Climate - Unemployment
When someone is willing and able to work, but cannot find a job.
Economic Climate - Inflation
The average rise in prices over time.
Economic Climate - Employment
The % of people aged 16-64 that are in employment.
Economic Climate - Consumer Spending
Value of goods and services bought by consumers.
Economic Climate - Interest Rate
The cost of borrowing money and reward for saving.
If interest rates increase…
People should save more and borrow less
If interest rates decrease…
People should save less and borrow more
When interest rates increase consumer spending is affected as…
They will spend less as they will have less disposable income, so cut back on items that are expensive.
When interest rates are increased business spending is affected as…
They will spend less as they won’t have as many customers. If they have a lot of borrowed money they may not be able to afford to spend as much.
Legislation - Equality Act
A business must not discriminate against people in the workplace on grounds such as race, sexual orientation, age.
Legislation - Trade Descriptions Act
A business must provide accurate information regarding a product.
Legislation - National Living Wage
Adult workers over 25 years of age must earn this as a minimum.
Legislation - Sale And Supply Of Good’s Act
All products must be of satisfactory quality and fit for purpose.
Legislation - Health And Safety At Work Act
A business must protect its workers and members of the public. A Health and Safety Policy must be written, and training on healthy and safety must be given.
