understanding external influences on the business

Question 1

what is a stakeholder

Answer 1

any person, group of people or other organisation that has an interest in the activities of a business.

Question 2

what is a manager, are they internal or external stakeholders

Answer 2

internal, staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required.

Question 3

who are employees, are they internal or external stakeholders

Answer 3

internal, staff who carry out the day-to-day work of the business

Question 4

who are suppliers to a business, are they internal or external stakeholders

Answer 4

external, provide raw materials, products or services to a business

Question 5

who are the local community to a business, are they internal or external stakeholders

Answer 5

external, people, organisations and businesses that live or are located in the area around the business

Question 6

who are pressure groups, are they internal or external stakeholders

Answer 6

external, groups of people who share a common interest that is related to the business

Question 7

who are the government to a business, are they internal or external stakeholders

Answer 7

external, the business will make tax payments to both local and central government

Question 8

what do managers want from their interest in the business

Answer 8

a good salary and opportunities for further career progression

Question 9

what do shareholders and owners want from their interest in the business

Answer 9

to ensure the business is successful and are interested in how much profit the business can make

Question 10

what do employees want from their interest in the business

Answer 10

good levels of pay, job satisfaction and job security, and may also be interested in career progression

Question 11

what do customers want from their interest in the business

Answer 11

good quality and a range of products at reasonable prices

Question 12

what do suppliers want from their interest in the business

Answer 12

to receive payments on time, and regular orders

Question 13

what do the local community want from their interest in the business

Answer 13

may be looking for work, which local businesses can provide

Question 14

what do pressure groups want from their interest in the business

Answer 14

increase knowledge of their cause

Question 15

what do the government want from their interest in the business

Answer 15

businesses to create more jobs in order to raise more money from taxes and save money on benefit payments

Question 16

what is the consumers right act 2015

Answer 16

deals with transactions between a seller and a buyer, and is designed to protect consumers from unfair and dishonest business practices

Question 17

what does the consumers right act cover

Answer 17

the product or service, returns, repairs and replacement delivery

Question 18

under the consumers right act what must the goods be

Answer 18

described accurately, fit for purpose, satisfactory quality

Question 19

under the consumers right act what must a service be

Answer 19

service provider must use reasonable care and skill in delivering the service, must be provided in a reasonable time and price

Question 20

what is the consumer protection act 1987

Answer 20

designed to ensure that products are safe

Question 21

what is the employment law

Answer 21

refers to any piece of government legislation designed to protect employees from exploitation

Question 22

what are the four areas of employment legislation that form the basis of employee rights in the workplace

Answer 22

Recruitment, pay, discrimination and health and safety

Question 23

what is the equality act 2010

Answer 23

requires employers to treat people fairly and not discriminate

Question 24

what is the national minimum wage act 1998

Answer 24

all businesses must pay their staff a minimum hourly rate

Question 25

what is the health and safety act 1974

Answer 25

outlines the responsibilities that both employers and employees have in keeping the working environment safe

Question 26

what is the economic climate

Answer 26

The general level of wealth, consumption and activity within a particular area or region.

Question 27

in what ways does the economic climate affect a business

Answer 27

unemployment, changing levels of consumer income, changes in interest rates, inflation, government taxation including national insurance contributions (NICs) and value added tax (VAT), changes in exchange rates

Question 28

what is the impact of unemployment

Answer 28

an economy is not making full use of the workers that are available so the economy will not grow as quickly as it could, households have less income, therefore business have less sales

Question 29

what do savers do when there is an increase in interest rates

Answer 29

receive more interest on their savings. This will encourage them to spend less so that they can save more.

Question 30

what do savers do when there is a decrease in interest rates

Answer 30

receive less interest on their savings. This will discourage them from saving, so they may spend their money instead.

Question 31

what do borrowers do when there is an increase in interest rates

Answer 31

have to pay more back for money that is borrowed. This will discourage them from borrowing.

Question 32

what do borrowers do when there is a decrease in interest rates

Answer 32

have to pay less back for money that is borrowed. This will encourage them to borrow more money to spend.

Question 33

what is income tax

Answer 33

charged on income, such as wages that have been earned

Question 34

what is corporation tax

Answer 34

a charge on a company’s profits

Question 35

what are national insurance contributions (NICs)

Answer 35

charges to cover healthcare, state pensions and employment-related benefits

Question 36

what is value-added tax (VAT)

Answer 36

a charge on sales of goods and services based on the value of the item sold

Question 37

what is council tax

Answer 37

charge on property by local councils based on the property’s value and the number of people in a household