Unit Two: Influences On Business

Question 1

Factors of the consumer rights act

Answer 1

• the product should fit its purpose
• the product should match its description
• the product should be of satisfactory quality

Question 2

How can firms communicate digitally with stakeholders?

Answer 2

• social media
• websites
• email
• mobile apps
• live chats
• video calls

Question 3

Factors of unemployment?

Answer 3

• some firms can benefit from unemployment as they can pay their staff lower wages if there are many people desperate for jobs
• less employment means people have less money to spend
• unemployed people may lose skills which will make it harder for them to get jobs

Question 4

What does low interest rates lead to?

Answer 4

• increased spending

Question 5

What does high interest rates lead to?

Answer 5

• decreased spending

Question 6

What does ‘market’ mean?

Answer 6

• a place where goods are traded between customers and suppliers
• trade in a particular type of product
• potential customers for a product. For example, 18-25 market

Question 7

Why is a weak pound good for exporters?

Answer 7

• you will be able to buy more of another currency
• British exports become less expensive abroad
• the weak pound makes it ore expensive for foreign firms to sell their products in the uk
  The uk will end up having more exports and fewer imports

Question 8

Why is a strong pound bad for exporters?

Answer 8

• sales and profits will go down
• firms that import raw materials will be able to make products more cheaply