Topic 2: Influences On Business Flashcards
What are 3 uses of ICT?
- Storing Data
- Designing
- Computerised stock control & distribution systems
- Production technology
- Producing business documents
- Internal/External communication
What is Ethics?
Where businesses make decisions based on what is morally right rather that what is more profitable.
What does ICT stand for?
Information and Communication Technology
What is the economic climate?
The general situation in a country affecting the wellbeing of individuals, firms and the government in areas such as output, prices and employment.
What are the aspects of Economic Climate?
- Interest rate changes
- Levels of employment
- Consumer and Business Spending
- Income and demand
What is globalisation?
The movement of goods, services, people, capital information and technology enabling business to sell their products worldwide (anywhere in the world).
What are the aspects of Globalisation?
- Benefits and Drawbacks of Globalisation
- Exchange rates
- Competing Nationally
- Imports and Exports
What does imports mean?
Goods bought into a country
What does exports mean?
Goods/Services sold from one country to another
What does SPICED stand for?
S - trong
P - ounds
I - mports
C - heap
E - xport
D - ear
What is a competitive environment?
A competitive environment is where as business operates in an area where other business are producing similar goods/services.
What is the Equality ACT of 2010?
The Equality ACT of 2010, legally protects people from discrimination within the workplace and in wider society.
What is the Health and Safety ACT of 1974?
The Health and Safety ACT, ensures that employers are legally required to look after all of their workers (employees) in the workplace.
What are the 3 principles in the Consumer Rights ACT of 2015?
- Goods must be fit for purpose specified
- Goods and Services must be of satisfactory quality
- Goods must fit their description
What are 3 reasons for business failure?
- Poor management
- Poor market research
- Sales being lower than expected
- Start up costs may be too high
- Poor quality and many more reasons
What is the Trade Descriptions ACT of 1968?
The Trade Descriptions ACT, states it is an offence to make a false description about any goods or services supplied.
How can you reduce risks in a business?
You can reduce risks in a business by: Planning, Research, Being cautious, Financing with Care, Taking calculated risks, Keeping costs down, Protecting - for example a company with limited liability will protect investors, Monitoring and Reviewing past actions/ products, etc of the business.
