Business topic 6 - Influences on business Flashcards
What is “Inflation”?
A situation where the general price level is rising
What are “Interest Rates”?
The cost of borrowing money or the return for investing money.
What are “Business Ethics”?
All about the moral behaviour of individuals and businesses as they undertake business activities
Name the 2 taxes that come out of your pay.
Income Tax and National Insurance
Define “Exchange Rates” and what “SPICED” stands for?
The value of one country’s currency against another country’s currency.
Strong Pound – Imports Cheaper – Export Dearer
What is the difference between direct and indirect taxes?
Direct tax - paid directly by a person or business to the government from wages or profits.
Indirect tax - charged on producers of goods and services and is paid by the consumer indirectly.
State 2 advantages of selling abroad.
- Wider market - more customers
- Job Creation
State 2 disadvantages of selling abroad.
- Higher transport costs
- Language barriers / cultural differences
State 2 advantages and 2 disadvantages of globalisation.
Advantages -
1. Access to New Markets
2. Benefit from cheaper production locations
Disadvantages -
1. Increased Competition
2. Loss of talented workers
What is the “European Union”?
A political and economic alliance of 27 countries. This is an internal (or single) market which allows free movement of goods, capital, services and people between member states.
What is meant by “Intellectual Property”?
something that you create using your mind - for example, a story, an invention, an artistic work or a symbol.
What are “Trademarks”?
A trademark is the protection of a logo, phrase or business name that a company can register with the government to make their company distinctive.
What do we mean by “consumer law”?
Laws that have been introduced to prevent businesses from treating their customers unfairly.
Name 4 environmental costs that a business should consider
Climate change, pollution, sustainability and waste reduction.
What do we mean by “Employment Laws”?
Laws protecting the rights of employees which must be abided by the employers.
