Topic 1.5 - Understanding external influences on business

Question 1

4 principles of employment law

Answer 1

1 - recruitment
2 - pay
3 - discrimination
4 - health and safety

Question 2

two principles of consumer law

Answer 2

• ensuring quality
• protection of consumer rights (Good must be described, fit for purpose, satisfactory quality)

Question 3

different types of taxes

Answer 3

• corporation tax (paid by companies)
• business rates (paid by business)
• income tax (paid by individuals including sole traders)
• other taxes: national insurance, MOT etc

Question 4

impact of inflation

Answer 4

affects business costs and the purchasing power of customers

Question 5

how technology can influence business

Answer 5

sales
costs
marketing mix - online selling

Question 6

dividends

Answer 6

proportion of annual profit of a business paid to its shareholders

Question 7

what are the effects of high unemployment

Answer 7

• customers have lower disposable incomes
• businesses may have lower wage costs

Question 8

recession

Answer 8

is a negative economic growth over a period of sixth months