Topic 6-Influences On Businesses

Question 1

What is ethics?

Answer 1

Ethics is about what is morally right and wrong to do.

Question 2

What do some ethical issues include?

Answer 2

• Treatment of suppliers.

- Sourcing of materials.

Question 3

What things are viewed as bad ethics from a business to do with the treatment of suppliers?

Answer 3

• Late payment of bills.

- Forcing prices down.

Question 4

How can the late payment of bills be classed as unethical?

Answer 4

It may mean that smaller businesses face severe cash flow problems.

Question 5

Why do some businesses not behave ethically?

Answer 5

It is often cheaper not to and if they know their products or services will still sell they may not change what they are doing.

Question 6

What are some problems with being ethical?

Answer 6

• Increases costs.

- Lowers profit margins.

Question 7

What is a benefit of being ethical?

Answer 7

Good image.

Question 8

Will customers pay more for a business that is ethical usually?

Answer 8

Yes.

Question 9

Give an example of an ethical business…

Answer 9

Lush.

Question 10

What are three ways that businesses make use of the environment?

Answer 10

• Pleasure.
• To dump waste.
• Resources.

Question 11

What does sustainable production mean?

Answer 11

Making goods and producing services without depleting natural resources.

Question 12

Give two ways a business can be sustainable…

Answer 12

By using renewable resources and reducing waste.

Question 13

What is the ‘economic climate’

Answer 13

The economic climate refers to the state of the economy a business operates in.

Question 14

What is meant by an economy?

Answer 14

An entire network of producers,distributors and consumers of goods and services in a community.

Question 15

What is GDP?

Answer 15

A measure of how much a country produces each year.

Question 16

What does GDP influence?

Answer 16

The level of employment and income.

Question 17

What does GDP stand for?

Answer 17

Gross domestic product.

Question 18

What are the effects of rising GDP?

Answer 18

• Income rises.
• Unemployment falls.
• Customers spending rises.

Question 19

What are the effects of a falling GDP?

Answer 19

• Income falls.
• Unemployment rises.
• Customer spending decreases.

Question 20

How does a falling GDP affect income?

Answer 20

It decreases it.

Question 21

How does a fall in a country’s GDP affect customer spending?

Answer 21

They have less money to spend and so spend less.

Question 22

How does a ride in GDP affect unemployment?

Answer 22

It falls.

Question 23

What is the level of income?

Answer 23

The average income of people in a country.

Question 24

What is disposable income?

Answer 24

The amount of money an individual has available to spend after taxes have been deducted.

Question 25

Are all businesses affected in the sane way by changes in income?

Answer 25

No.

Question 26

What does the level of employment mean?

Answer 26

The number of people who are in work in a country.

Question 27

What does the level of unemployment mean?

Answer 27

The number of people who are out of work in a country.

Question 28

How can a recession affect the human resource department of a business?

Answer 28

-They will seek to improve productivity.

Question 29

How can a recession affect the production department of a business?

Answer 29

They may need to reduce production costs per unit.

Question 30

Why might a business need to reduce production costs per unit?

Answer 30

In order to sell at lower prices.

Question 31

How can a recession affect the finance department?

Answer 31

They will look to reduce costs.