S2 - Influences on business Flashcards
What is the national minimum wage ?
For workers aged 24 and under but of school leaving age, depends on their age and the job.
What is the national living wage ?
Slightly more than the national minimum wage, for works 25 and over.
What are the negatives of the national minimum and living wages for a business ?
If they pay below these they’re breaking the law, and could be given large fines, get bad publicity and consumers might stop using the business for ethical reasons. Companies argue these increase costs lead to increased prices and a potential fall in income and sales.
What are the positives of the national minimum and living wages for a business ?
They can lead to better motivated staff, and increased productivity.
What law dictates businesses can’t discriminate ?
The Equality Act 2010.
What does the Equality Act 2010 say about discrimination ?
Recruitment procedures can’t discriminate against people because of their: religion, gender, race, sexual orientation or disabilities. Also all employees must be paid the same if they do the same job.
What can happen if a company is accused of discrimination ?
They’ll have to pay a compensation, and if an employee in the company is accused of it the company can also be held responsible. So companies need to take steps to prevent discrimination such as staff training and writing company policies about equal rights.
What does the health and safety act of 1974 mean ?
It requires employers and employees to take responsibility for health and safety, firms needing to carry out risk assessments, and need to take steps to reduce risks.
What are the negatives of following health and safety laws for a business ?
Can be expensive - paying for safety courses, if not followed they can be prosecuted, fined and closed down, and also have to pay compensation to those injured and may receive bad publicity.
What three criteria does the consumer rights act 2015 say all goods and services should meet ?
The product should be fit for its purpose, should match its description and should be of satisfactory quality.
What happens to business if consumer laws are broken ?
Have to refund the customer or repair/replace the item, could even end in court if the customer isn’t happy with the businesses response, it can also harm reputation - reduction in sales.
What positive impacts has technology had on businesses ?
Make processes faster - computers can do jobs more quickly than before, people can communicate more easily, and can lead to reduced costs in the long run - fewer man hours needed to carry out tasks.
What negative impacts has technology had on businesses ?
Adapting to new tech can be expensive, businesses may have to buy equipment or train staff to use new computer systems.
What is e-commerce ?
Using the internet to buy or sell products.
How has the use of e-commerce affected businesses ?
Firms now have websites to buy products, firms can reach wider markets and firms have had to build websites, employ IT specialists and develop systems to distribute items.
