Political, social and ethical factors chap17

Question 1

What is privatisation?

Answer 1

privatisation is the act of passing ownership of a business from the public sector to the private sector by selling shares in the business.

Question 2

What is classed as a ‘monopoly’?

Answer 2

a business that controls more than 25% of the market share.

Question 3

What is the aim of labour markets?

Answer 3

the aim is to increase the amount of people entering the labour market and improve the skills they have.

Question 4

What is meant by the term ‘collusion’?

Answer 4

this is where businesses may operate restrictive practices together through a secret agreement, this is illegal.

Question 5

What political factors could affect the marketing of a business?

Answer 5

• government policy could effect the price

- legislations could effect the nature of the product and promotion

Question 6

What political factors could affect the financial function of a business?

Answer 6

• during a recession businesses may struggle

Question 7

What social factors could affect the marketing of a business?

Answer 7

• age

- income

Question 8

What social factors could affect the financial function of a business?

Answer 8

• social habits such as eating out more

Question 9

What social factors could affect the operations of a business?

Answer 9

• changing attitudes to work

- expectations such as shorter working hours and increased holidays