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Business > Topic 1.5 Understanding external influences on business > Flashcards

Topic 1.5 Understanding external influences on business Flashcards

1
Q

What is a stakeholder?

A

anyone who is affected by a business

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2
Q

Who is the most important stakeholder?

A

the owner

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3
Q

What is e-commerce?

A

using the internet to buy or sell products

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4
Q

What is an advantage of e-commerce?

A

firms can reach wider markets compared to just having traditional shops

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5
Q

How can e-commerce be convenient to customers?

A

they can buy products from all over the world, at any time of the day and they don’t have to spend time queueing

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6
Q

Why have firms had to adapt?

A

the changing world, they had to build websites, hire IT specialists and develop systems to distribute products

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7
Q

What are all the ways a business can communicate with their stakeholders via the internet?

A
  • websites
  • email
  • mobile apps
  • live chats
  • video calls
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8
Q

What is a pro of using social media?

A

easy to share info, free advertisement and can quickly get in contact with their employees or customers

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9
Q

What are all the different digital payment methods?

A

online payments, chip and PIN, contactless payments

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10
Q

What is a pro of using digital payment methods?

A

they are quick and easy meaning it will encourage customers to shop more with the firm, it also means the firm can serve more customers

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11
Q

How has technology changed the way businesses operate?

A
  • firms must adapt to changes in tech
  • use to carry out processes
  • adapting to tech is pricey
  • affect a businesses marketing mix
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12
Q

What is the law about the minimum employers have to pay their staff?

A

workers aged 22 and under but of school leaving age have to be paid by the National Minimum Wage

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13
Q

What is the law about being payed when over the age of 23?

A

have to be paid by the National Living Wage, slightly more than minimum

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14
Q

What does NMW and NLW mean for firms?

A

they cannot underpay their staff

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15
Q

What is the result of a firm not paying their staff enough?

A

they can be fined, as well as bad publicity

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16
Q

What is a pro of NMW and NLW?

A

better motivated staff and increased productivity

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17
Q

What is a con of NMW and NLW?

A

it increases the firms costs

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18
Q

What is the discrimination law about?

A

people cannot be overturned purely for their race, age, sexual orientation, religion or disabilities

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19
Q

Besides recruitment, what is the other main equal opportunities issue?

A

all employees must be paid the same if they do the same job

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20
Q

What is the result of a firm discriminating against someone?

A

the company could be held responsible

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21
Q

What is the purpose of health and safety legislation?

A

helps to make sure that risks to people at work are properly controlled

22
Q

What is a pro of a cleaner working environement?

A

less accidents and hopefully increased productivity

23
Q

What is a con of the health and safety legislation?

A

it can be expensive

24
Q

What is the result if a firm does not follow the health and safety regulations?

A

prosecuted or fined

25
Q

What is the consumer rights act 2015?

A

it covers how goods and services can be sold

26
Q

What are the three criteria a product should meet before distribution?

A
  • product should be fit for purpose
  • product should match description
  • product should be satisfactory quality
27
Q

What will happen to a business if they break the consumer law?

A

they are faced with the cost and inconvenience of having to refund the customer, repair or replace

28
Q

What is the worst possible result if a customer is not happy with their product?

A

the firm could be sent to court

29
Q

What do all firms need to do, legislation-wise?

A
  • keep up to date
  • make changes when necessary to the business
  • rewrite any terms and conditions
  • retrain their staff
30
Q

What are the effects of unemployment on a business?

A
  • economy as a whole produces less output
  • firms can pay lower wages
  • people have less disposable income
  • people lose skills and may need retraining = more money
31
Q

Who has to pay tax?

A

consumers and businesses

32
Q

What can be taxed?

A
  • money you earn
  • on profits
  • premises they own
33
Q

What is the result of a firm’s income tax falls?

A

more disposable income

34
Q

What is the result of a business income tax rising?

A

less disposable income

35
Q

What is inflation?

A

the increase of goods and services over time

36
Q

What are the three different effects inflation has on a bussiness?

A
  • consumer spending
  • cost of labour
  • global competition
37
Q

What is the result of inflation being high?

A

business growth is low

38
Q

What tends to happen to peoples wages the longer they work somewhere?

A

it increases

39
Q

What happens if income rises at a slower rate than inflation?

A
  • more money will be spent on things that are needed
  • less money to spend on aa business
  • businesses who provide luxuries will suffer
  • stores who sell with discounts will benefit
40
Q

What happens if income rises at a faster rate than inflation?

A
  • people will spend less on things they need
  • businesses who provide luxuries will benefit
  • stores providing discount may see a decrease in sales
41
Q

What happens when you borrow money?

A

you usually have to pay it back with interest

42
Q

What does interest mean?

A

you have to pay back more than you borrowed

43
Q

What happens if you save money?

A

you earn interest

44
Q

What is the result of low interest rates?

A
  • increased spending
  • firms can borrow more
  • consumers have more money to spend
45
Q

What is the result of high interest rates?

A
  • decreased spending
  • borrowing becomes more expensive
  • people will save more to take advantage of higher returns
  • reduces the demand for product
46
Q

What must a firm do if it is transporting elsewhere?

A

they have to pay for the product in the currency of the country

47
Q

What is an exchange rate?

A

price at which one currency can be traded for another

48
Q

What are exchange rates effected by?

A

economy of the country, and by the global economy = they change over time

49
Q

What happens if the value of the pound decreases?

A

you’ll be able to buy fewer dollars for the same price as before

50
Q

What does cheaper pounds mean for exporters?

A

exports become less expensive abroad = more sales

51
Q

Why is a strong pound bad for exporters?

A

importing is more expensive and exporters get it cheaper

Business (10 decks)

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