Unit 2: Influences on Business

Question 1

What is the Equality Act 2010 state?

Answer 1

All employees must be paid the same if they do the same job, not discriminating anyone.

Question 2

What is the Health and Safety Act 1974 state?

Answer 2

The work environment is to be kept safe by businesses

Question 3

What does Consumer Rights Act 2015 state?

Answer 3

Products have to be fulfil its purpose, match their description and be of satisfactory quality

Question 4

What occurs if Laws are not followed by businesses?

Answer 4

• They can be fined, prosecuted or even closed down; This can lead to bad publicity and harm reputation

Question 5

What is E-commerce?

Answer 5

Using the Internet to buy or sell products

Question 6

What are the Positive effects Technology has had on Businesses ?

Answer 6

• Businesses can communicate with stakeholders more and faster than ever
• Introduction of E-Commerce means Businesses can reach wider markets

Question 7

What is a Negative effects Technology has had on Businesses?

Answer 7

• Technology is rapidly changing and adapting to it can be expensive. They may also need to hire staff with the skills to use the technology.

Question 8

What are Ethics?

Answer 8

moral principles of right and wrong

Question 9

Examples of how a Business can be Ethical.

Answer 9

• Treat employees fairly [no long hour and low wages]
• Carry out product development in an ethical way

Question 10

Benefits of being Ethical.

Answer 10

• Enhance Reputation
• Treating staff ethically = more productive workforce

Question 11

Drawback of being ethical

Answer 11

• Ethically sourced materials may be more expensive
• A business can make more money if they made workers ‘work’ more and paid less.

Question 12

What does it mean for a business to be ‘environmentally friendly’?

Answer 12

Not being harmful to the environment

Question 13

Benefits of being Environmentally Friendly

Answer 13

• Enhance reputation; attract more customers
• A ‘green image’ can attract new customers and increase sales

Question 14

Drawbacks of being environmentally friendly.

Answer 14

• Developing new processes and buying new equipment to minimise affect on the environment can be expensive.

Question 15

How can unemployment affect businesses positively ?

Answer 15

• They may be able to pay lower wages if there are lots of people desperate for jobs
• Businesses may be given grants by government to employ; in order to fix unemployment crisis

Question 16

How can unemployment affect businesses negatively?

Answer 16

• Unemployment means lots of people have less money to spend; so sales can fall.

Question 17

What is Globalisation?

Answer 17

the process by which countries the world become more connected due to increased trade

Question 18

Benefits of Globalisation to businesses

Answer 18

• Business has a larger market to sell to
• Reduced cost; Raw materials or labour may be cheaper

Question 19

Drawbacks of Globalisation to businesses

Answer 19

• It is difficult to compete with already established businesses in the new country
• Difference in Currency; profits can be affected
• The benefit from cheap labour costs may receive bad publicity

Question 20

What are exchange rates?

Answer 20

the price at which one currency can trade for another

Question 21

What is an Exporter?

Answer 21

A person that SENDs good to another country

Question 22

What is an Importer?

Answer 22

A Person that BRINGS goods from another country.

Question 23

How is a weak pound good for Exporters and bad for importers?

Answer 23

Good for Exporters: They are paid more to make up for the decrease in pound
Bad for Importers: Have to pay more for the decrease in the pound

Question 24

What are some of the reasons people start a business?

Answer 24

• Financial Objective [ie; becoming rich]
• Leave job/ Follow an interest
• To benefit others [ie; Non-profit Businesses]

Question 25

What are some of the risks in running a business?

Answer 25

• Losing the money you invested
• Economy’s Health; interest rates, exchange rates etc…
• Competitor Strategies; Large companies decreasing their prices of goods even sacrificing profits; not giving new businesses a chance to make profit

Question 26

What are some of the things a Business can do to decrease the risk?

Answer 26

• Create a business plan
• Market research