Mock 2025 Paper 2 Flashcards
What is the sale of goods and supply of services act 1980
offers protection to the consumer when they purchases or hires new goods or services from a business for their own personal use. It states that goods must be of merchantable quality, they must fit their description and that services must be carried out with care.
What is the consumer protection act 2007
The Consumer Protection Act 2007 protects consumers against false or misleading claims about goods, services and prices
Outline 2 advantages of branding to a business
- Distinctive Identity: A strong brand helps create a unique identity for a business, allowing customers to easily recognize it among competitors
2.trustworthiness: a strong brand represents reliability and quality which increases trust and consumer confidence when they are making purchases
Outline 2 factors that could affect the demand for smart watches
- Price:affects demand as higher end models may limit demand to wealthier customers where as more affordable models may increase demand for less wealthy consumers
2.brand loyalty: loyal consumers maybe inclined to purchase smartwatches due to trust and prior experience with the brand for example APPLE
True or false- Hire purchase is a long term source of finance?
False (paid usually 2-5 years)
True or false- medium term sources of finance are repaid within one year
False (typically are repaid within three to four years)
True or false- leasing involves renting an asset?
True (one party agrees to pay a specified rent for the use of a specific asset owned by another party for a fixed term)
Difference between direct and indirect taxes?
Direct Tax: A tax paid on income and gains
Indirect Tax: A tax paid on goods and services
Two reasons why fast fashion should be discouraged?
Child Labor: In some cases, fast fashion relies on child labor, where children are forced to work in hazardous conditions for minimal pay
Excessive waste: clothes are worn a few times and then thrown away which results in many amounts of waste ending up in landfills which leads to environmental pollution
One example of a cultural enterprise
The GAA
One example of social enterprise
Food cloud
One example of financial enterprise
Ryanair
1 advantage of a cashless society for businesses
Faster transactions: cashless payments e.g credit card are faster than cash transactions which leads to faster checkout process and reduced waiting time for consumers
1 disadvantage of a cashless society for businesses
Delayed funds: businesses may experience delayed access to funds due to processing times unlike cash which can be immediately used
Four headings for SWOT analysis
1.strengths
2.weaknesses
3.opportunities
4.threats
Explain one other internal source of ideas for a business
Direct Customer Interactions: Sales and customer service teams often have direct interactions with customers, gathering insights into their needs, preferences which can inspire new products or improvement to existing ones
Outline 2 reasons why a business should prepare a cash flow forecast
Identifies Trends and Patterns: allows businesses to spot trends in cash flow and make adjustments to cash management over time
Prevents Cash Shortages: a business can identify periods of potential cash shortages in advance. This enables the business to take proactive measures to meet financial responsibility’s
A document sent by the seller to the buyer listing all the transactions of that month=
Statement of account
A document sent by the seller to the buyer as a bill for goods supplied=
Invoice
A document sent by the seller to the buyer stating how much has been paid=
Receipt
One positive effect of economic growth on individuals?
Job creation: as the economy grows businesses expand which leads to more job opportunities for individuals which helps to reduce employment rates
One positive effect of economic growth on businesses?
Higher consumer spending: as economy grows individuals have more disposable income to spend which helps businesses to increase the sales and revenue
- positive effect of economic growth on the economy
Higher tax revenue: as business grow and income levels rise the tax revenue for the government increases which can be used to improve healthcare,education,public services
Explain one function of the European Commission
Represents the eu internationally in negotiations and at global organisations like WTO(world trade organisation). It handles negotiations and agreements on behalf of the EU
