Business Environment&Synoptic Flashcards
(22 cards)
What is Law?
The enforceable body of rules that govern any society
What are the two aspects of social control?
Formal control mechanisms&informal control mechanisms
What is a formal control mechanism?
Law; it provides a structure for dealing with and resolving disputes that may arise as well as providing some deterrent
What are informal control mechanisms?
These include ethical and moral guidance. These are the ‘norms’ or behavioural expectations that society has developed over time through culture
How does the English legal system distinguish different types of law
- common law and equity
- statute law
- private law and public law
- criminal law and civil law
What is common law?
The body of legal rules common to the whole county which is embodied in judicial decisions
What is equity?
A term which applies to a specific set of legal principles which were developed to supplement the common law. It is based on fair dealings between the parties
What are macro-economics?
Taxation, interest rates, employment levels, inflation and economic growth
What are micro-economics?
Factors immediately surrounding businesses including supply and demand and the factors that affect these
What are the principles of taxation
Equity
Certainty
Convenience
Economy
Fairness
Transparency
What are the equitable remedies?
Specific performance
Injunction
Rescission
What are the four features of a contract?
Offer
Acceptance
Consideration
Intention to create legal relations
What are the two types of breach of contract?
Repudiatory
Anticipatory
What are the four ways to discharge a contract?
Agreement
Frustration
Performance
Breach
What is consideration?
The element of value in an agreement, and in English law, must be supplied by both parties in order to form a binding contract
(Legal; possible; be sufficient but need not be adequate)
What is risk?
The chance of an event occurring that causes loss or damage to a business
What is uncertainty?
Occurs where a business cannot measure or foresee an event of situation occurring
What are the three rates of tax?
Progressive
Proportional
Regressive
What are the types of tax?
Direct
Indirect
Revenue
Capital
What is fiscal policy?
The use of government spending and tax policies to influence the level of aggregate demand in an economy
What is aggregate demand?
The total planned or desired consumption demand in the economy for consumer goods and services and also for capital goods, no matter whether the buyers are households, firms or governments
What is monetary policy?
The use of money supply, interest rates, exchange rates and credit control to influence demand in an economy
