T1.5 - Understanding external influences on business

Question 1

Who are business stakeholders? x7

Answer 1

-owners
-employees
-suppliers
-local community
-customers
-government
-pressure groups

Question 2

What is a stakeholder?

Answer 2

anyone affected by a business

Question 3

Types of technology used by businesses? x4

Answer 3

-e-commerce
-social media
-digital communication
-payment systems

Question 4

Types of payment systems? x3

Answer 4

-online payment
-card and pin
-contactless

Question 5

Ways firms communicate digitally? x5

Answer 5

-websites
-email
-mobile apps
-live chats
-video calls

Question 6

What does new technology affect? x3

Answer 6

-costs
-sales
-marketing mix

Question 7

principles of employment law? x4

Answer 7

-recruitment
-pay
-discrimination
-health and safety

Question 8

What age is national minimum wage for?

Answer 8

aged 22 and under

Question 9

What age is national living wage for?

Answer 9

aged 23 and over

Question 10

laws about recruitment? x2

Answer 10

-check workers legal right to work
-recruitment procedures must not discriminate

Question 11

What do firms need to do for health and safety?

Answer 11

risk assessment

Question 12

principles of consumer law? x2

Answer 12

-quality
-consumer rights

Question 13

Advantage of unemployment for some firms?

Answer 13

-lower wages in areas of ihgh unempolyment

Question 13

disadvantage of unemployment for some firms? x2

Answer 13

-customers have less disposable income
-workers lose skill when unemployed

Question 13

affects of raising business taxes? x3

Answer 13

-business may become more environmentally friendly
-cutting costs
-relocate business abroad

Question 13

affects of lowering business tax? x1

Answer 13

-businesses from abroad set up in Uk

Question 13

Impact of inflation on a business? x3

Answer 13

-consumer spending
-cost of labour
-global competition

Question 14

Impact of inflation on consumer spending? x2

Answer 14

-consumer spending increases short term
-consumer spending decreases if wages dont go up

Question 15

Impact of inflation on cost of labour? x1

Answer 15

-employees pressure for higher wage

Question 16

Impact of inflation on global competition? x2

Answer 16

-high inflation means exports more expensive
-low inflation means export cheaper

Question 17

What happens when income rises at slow rate than inflation?

Answer 17

-people spend greater proportion of money on everyday essentials

Question 18

Who benefits when income rises at slow rate than inflation?

Answer 18

business selling goods at discounted prices

Question 19

What happens when income rises at faster rate than inflation?

Answer 19

-people spend a smaller proportion of money on everyday essentials

Question 20

Who has a negative impact on income rising at faster rate than inflation?

Answer 20

businesses selling goods at discounted prices

Question 21

What happens when interest rates are low? x2

Answer 21

-firms and consumers borrow more and save less
-demand for product goes up

Question 22

What happens when interest rates are high? x3

Answer 22

-firms and consumers borrow less and save more
-demand for product goes down
-firms may not be able to pay employers

Question 23

What happens if if value of currency drops? x2

Answer 23

-export become less expensive
-import becomes more expensive

Question 24

What happens if if value of currency goes up? x2

Answer 24

-exports become more expensive
-imports become less expensive