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Chapter 3 Impact Of Social And legal Environment On Business Flashcards

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1
Q

What must successful businesses keep up to date with?

A

Social and demographic change

Businesses must respond to these changes to remain relevant to customer needs.

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2
Q

What is a key impact of social and demographic factors on businesses?

A

Changes in consumer needs and wants

As populations change in age or ethnic origin, businesses must adapt.

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3
Q

What social factor has changed the dynamics of societies?

A

Social media addiction

This factor influences how people interact and communicate.

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4
Q

How do social factors affect business organizations?

A

They influence changes in consumer behavior and workforce dynamics

Businesses must adapt to these changes and government policies.

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5
Q

What must businesses understand to cater to different cultures?

A

The dynamics of different cultures

For example, preferences for tea or coffee vary by region.

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6
Q

What do social values determine in a society?

A

Boundaries of permissible and prohibited behaviors

Businesses must align with these social values to succeed.

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7
Q

How do consumer attitudes and lifestyles change?

A

Due to education, globalization, urbanization, social media, and technology

These changes impact preferences in fashion, home decor, and food.

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8
Q

Fill in the blank: Businesses must align their policies, products, and marketing pitch with the _______ of society.

A

Norms

This alignment is crucial for successful stakeholder relationships.

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9
Q

What is a significant demographic factor that affects business?

A

Age distribution and workforce availability

Companies must consider education and training for different age groups.

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10
Q

True or False: Businesses can ignore social and demographic changes without consequences.

A

False

Ignoring these changes can lead to offering irrelevant products and services.

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11
Q

What is an example of a demographic change affecting business?

A

An ageing population requiring different products and services

Companies may need to adapt their offerings to meet these needs.

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12
Q

What is demography?

A

The study of key statistics about the segments of a society, such as age, gender, race and ethnicity, and location

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13
Q

How does demography help businesses?

A

It helps define the markets for their products and services and determines the size and composition of the workforce

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14
Q

What age group comprises over 40% of the world population?

A

People born after 1996

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15
Q

What age group comprises over 60% of the world population?

A

People born after 1980

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16
Q

What impact does age have on consumer behavior?

A

Varying nature of needs and preferences, influence on domestic decision making

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17
Q

How does gender affect business decisions?

A

It impacts product development, marketing strategies, hiring policies, and selection of business locations

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18
Q

True or False: Marketing of baby products should be directed exclusively to men.

A

False

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19
Q

What factors should companies analyze regarding gender?

A

Gender-wise spending patterns

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20
Q

What is wealth distribution?

A

The segmentation or identification of people based on their cultural distinctiveness

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21
Q

What should companies recognize about different ethnic groups?

A

The way different ethnic groups behave or react

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22
Q

How does education impact business strategy?

A

The level of education in a society directly impacts the strategy of a business

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23
Q

What does a good supply of educated and skilled workforce help companies achieve?

A

Acquire good talent

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24
Q

What are some negative effects of an unfavorable law and order situation?

A

High insurance/security costs, loss of profits due to stolen goods, more spending on effective security measures, discouragement of foreign investment, reduced tourism

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25
Fill in the blank: Businesses have to define their target markets around different _______.
[income groups]
26
What should companies adapt according to the literacy level of their market?
Advertising and communication
27
What is the reason for law restrictions in competitive markets?
To charge in a more competitive market and avoid anti-competitive behavior ## Footnote Serious risk of anti-competitive behaviour can lead to unfair business practices.
28
Define monopolies.
Control of an entire market or significant influence in the market ## Footnote Theoretically, it is 100% control of a market by one entity supplying a product or service.
29
What is the purpose of competition law?
To encourage fair competition in markets and avoid anti-competitive practices ## Footnote Failure to comply can lead to legal action.
30
What are organizations required to do regarding personal data?
Comply with regulations on how data is gathered, stored, and kept secure ## Footnote This is to protect individuals from unauthorized access to their personal information.
31
What is the purpose of data protection law?
To protect individuals with regard to their personal data ## Footnote Some countries have strict data protection laws.
32
What are the consequences of failing to comply with health and safety regulations?
Serious consequences for the company, directors, and managers ## Footnote The Board of Directors has ultimate responsibility for health and safety.
33
What does health and safety law aim to provide?
A safe workplace for employees, free from danger, injury, or health risks ## Footnote It also ensures a workplace free from discrimination or bullying.
34
List the different types of laws affecting businesses.
* Ensure fair competition in businesses * Regulate dealings between businesses and suppliers * Protect investors, creditors, and consumers * Protect employees from unfair treatment * Protect people dealing with businesses * Regulate rights and duties to ensure fairness * Impose conditions on certain businesses * Make transactions illegal ## Footnote These laws play a crucial role in business operations.
35
What role does legislation play in business?
Regulates business practices and defines policies, rights, and obligations ## Footnote Legal systems are important to businesses and can change over time.
36
What is the role of government in protecting the public during company mergers?
The government may investigate proposed mergers to determine if they create a monopoly and what conditions should be placed on them. ## Footnote This is to ensure competition is maintained in the market.
37
What is collusion in a business context?
Collusion occurs when two or more business entities secretly agree to act together to limit competition, often leading to a monopoly. ## Footnote In many countries, collusion is considered a criminal offence.
38
What are price controls?
Price controls are regulations imposed by the government on the prices of essential products or services to protect consumers. ## Footnote Examples include monitoring utility companies and setting prices for petrol, fruits, vegetables, and meat.
39
What does employment law provide for employees?
Employment law provides protection against unfair treatment or exploitation by employers. ## Footnote Employers must be aware of the law and consequences of non-compliance.
40
What is redundancy in employment law?
Redundancy occurs when an employee is dismissed due to the position no longer being needed, but it must be unbiased to be considered fair. ## Footnote Employers may need to consider transferring the employee before making them redundant.
41
What constitutes unfair dismissal?
Unfair dismissal occurs when an employee is dismissed for reasons that do not comply with legal standards. ## Footnote Employers must prove the dismissal was justified to avoid legal claims.
42
What is discrimination in the workplace?
Discrimination involves unfair treatment of employees based on physical disability, gender, race, ethnicity, religion, or age. ## Footnote There are laws against such discrimination.
43
What is the minimum wage?
The minimum wage is the lowest hourly pay rate that can legally be paid to employees. ## Footnote It is established by law to protect workers.
44
What are acceptable working conditions under employment law?
Acceptable working conditions include maximum hours of work per week, maximum retirement age, and regulations against child employment. ## Footnote These standards help ensure a safe and fair work environment.
45
What is the primary purpose of consumer protection law?
To protect consumers of goods and services ## Footnote Most countries have legislation aimed at safeguarding consumer rights.
46
What does sale of goods legislation typically specify?
Certain terms in the contract that consumers may rely on ## Footnote This includes terms related to title, description, and quality.
47
What does the term 'title' refer to in the context of sale of goods?
The buyer is entitled to assume that the seller actually owns the goods ## Footnote This means the seller has the legal title to the goods.
48
What assumption can a buyer make regarding the description of goods?
The goods correspond to the seller's description ## Footnote Buyers rely on the accuracy of the seller's descriptions.
49
What does 'quality' mean in the context of consumer protection?
All goods must be of satisfactory quality for their intended purpose ## Footnote If a product fails to meet this standard, the seller must repair, replace, or refund.
50
What is the newest area of legal system that deals with internet transactions?
Cyber laws ## Footnote Cyber laws aim to safeguard individuals' information and confidentiality.
51
What is a significant concern regarding employees in the context of cyber laws?
Employees are considered the most vulnerable segment in cyber security ## Footnote This vulnerability highlights the need for robust cyber security measures.
52
What does the Companies Act, 2017 regulate in Pakistan?
Incorporation, management, operations, and winding up of companies ## Footnote The Act protects the interests of shareholders, creditors, and the general public.
53
What consequences do companies face for non-compliance with the Companies Act?
They will be subject to relevant penalties imposed by law ## Footnote Compliance is essential to avoid legal repercussions.
54
What law governs partnership businesses in Pakistan?
Partnership Act, 1932 ## Footnote This Act outlines registration, dissolution, rights, and duties of partners.
55
What advantage do partnership firms have over companies under the Companies Act?
They face fewer strict requirements in doing business ## Footnote This flexibility can facilitate easier operations.
56
What is the purpose of copyrights?
To safeguard original creations from being copied or reproduced ## Footnote This includes writings, art, architecture, and music.
57
What does a patent provide to its owner?
Exclusive rights to features and processes of inventions ## Footnote This includes the right to control how the invention is used.
58
What is a license in the context of business activities?
A permission to carry out certain activities under specific regulations ## Footnote Licenses are often required by government or regulatory bodies.
59
What is the primary purpose of consumer protection law?
To protect consumers of goods and services ## Footnote Most countries have legislation aimed at safeguarding consumer rights.
60
What does sale of goods legislation typically specify?
Certain terms in the contract that consumers may rely on ## Footnote This includes terms related to title, description, and quality.
61
What does the term 'title' refer to in the context of sale of goods?
The buyer is entitled to assume that the seller actually owns the goods ## Footnote This means the seller has the legal title to the goods.
62
What assumption can a buyer make regarding the description of goods?
The goods correspond to the seller's description ## Footnote Buyers rely on the accuracy of the seller's descriptions.
63
What does 'quality' mean in the context of consumer protection?
All goods must be of satisfactory quality for their intended purpose ## Footnote If a product fails to meet this standard, the seller must repair, replace, or refund.
64
What is the newest area of legal system that deals with internet transactions?
Cyber laws ## Footnote Cyber laws aim to safeguard individuals' information and confidentiality.
65
What is a significant concern regarding employees in the context of cyber laws?
Employees are considered the most vulnerable segment in cyber security ## Footnote This vulnerability highlights the need for robust cyber security measures.
66
What does the Companies Act, 2017 regulate in Pakistan?
Incorporation, management, operations, and winding up of companies ## Footnote The Act protects the interests of shareholders, creditors, and the general public.
67
What consequences do companies face for non-compliance with the Companies Act?
They will be subject to relevant penalties imposed by law ## Footnote Compliance is essential to avoid legal repercussions.
68
What law governs partnership businesses in Pakistan?
Partnership Act, 1932 ## Footnote This Act outlines registration, dissolution, rights, and duties of partners.
69
What advantage do partnership firms have over companies under the Companies Act?
They face fewer strict requirements in doing business ## Footnote This flexibility can facilitate easier operations.
70
What is the purpose of copyrights?
To safeguard original creations from being copied or reproduced ## Footnote This includes writings, art, architecture, and music.
71
What does a patent provide to its owner?
Exclusive rights to features and processes of inventions ## Footnote This includes the right to control how the invention is used.
72
What is a license in the context of business activities?
A permission to carry out certain activities under specific regulations ## Footnote Licenses are often required by government or regulatory bodies.
73
What is the primary requirement for economic activity to thrive?
A sensible legal system that encourages growth in the business sector. ## Footnote This includes rules that establish property rights, minimize dispute resolution costs, and provide protections against abuse.
74
What does a business manager analyze to understand the business environment?
Factors such as overall economy environment, financial system, market size, rule of law, and quality of the labor force. ## Footnote These factors are crucial for evaluating the ease of doing business.
75
What is the World Bank Ease of Doing Business Index?
An assessment of business regulations across 190 economies. ## Footnote This annual ranking is often cited as a reliable indicator of the regulatory environment for business operations.
76
How many indicators comprise the Ease of Doing Business Index?
10 Indicators. ## Footnote These indicators include Starting a Business, Getting Credit, Construction Permits, Getting Electricity, Registering Property, Protecting Minority Investors, Resolving Insolvency, Enforcing Contracts, Trading Across Borders, and Paying Taxes.
77
Fill in the blank: The Ease of Doing Business Index ranks economies based on _______.
[10 indicators].
78
What measures have been taken in Pakistan's Companies Act 2017 to improve the ease of doing business?
Simplicity and softer regime for smaller companies, introduction of maximum use of technology, removal of unnecessary requirements. ## Footnote These measures include waiving off certain requirements related to filing annual returns and performing annual audits.
79
True or False: The Ease of Doing Business Index includes the indicator 'Protecting Minority Investors'.
True.
80
What does the Ease of Doing Business Index help assess?
The regulatory environment for business operations. ## Footnote It provides insights into how conducive a country is for doing business.

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