LO6

Question 1

Define social factors

Answer 1

Social factors are factors relating to the population and their lifestyles

Question 2

Define demographic issues

Answer 2

Issues relating to the size and the structure of the population

Question 3

Define disposable income

Answer 3

Disposable income is a person’s total income minus taxes

Question 4

What factors are demographic issues and disposable income?

Answer 4

Demographic issues and disposable income are ‘social’ factors.

Question 5

List 3 social factors which are externally effecting a business’s enviroment.

Answer 5

1) Attitudes to work

2)social trends

3)cultural beliefs

Question 6

Define automation (Within technological factors externally effecting a business’s enviroment)

Answer 6

Automation is the replacement of human labour with machines.

Question 7

Define technological factors

Answer 7

Advacing technology changing the way we work, pay, learn and shop

Question 8

Define CAD/CAM (In terms of technological factors externally effecting a business’s enviroment).

Answer 8

CAD/CAM stands for a computer aided design/computer aided manufacture.

Question 9

Define e-commerce (in terms of technological factors externally effecting a business’s enviroment).

Answer 9

E-commerce are websites which allow purchases to made online.

Question 10

Define EPOS (In terms of technological factors externally effecting a business’s enviroment).

Answer 10

EPOS means electronic point of sale.

Question 11

List 2 technological factors which externally effect a business’s enviroment.

Answer 11

1)Mobile technology

2)Communication technology

Question 12

List a enviromental factors which externally effects a business’s enviroment.

Answer 12

Enviromental factors are factors which relate to minimising the damage to the planet.

Question 13

Define video conferencing (In terms of technological factors which externally effect a business’s enviroment)

Answer 13

Video conferencing is holding virtual meetings using audio and video screens.

Question 14

List 5 factors of Economic factors which can externally effect a business’s enviroment

Answer 14

1)Interest rates

2)Exchange rates

3)Inflation

4)Unemployment

5)Taxation

Question 15

Define political factor.

Answer 15

Polictical factocts which relate to the goverment policy and practices

Question 16

Define imports (in terms of technological factors externally effecting a business’s enviroment)

Answer 16

Imports are buying goods from abroad.

Question 17

Define exports (economic factors externally effecting a business’s enviroment).

Answer 17

Exports are selling goods to other countries,

Question 18

Define Sterling (in terms of economic factors externally effecting a business’s enviroment)

Answer 18

Sterling is the UK currency - the British Pound

Question 19

Define legal facors which externally effect the business’s enviroment.

Answer 19

Legal factora are the current largislations.

Question 20

What two types of legislation is Business framework?

Answer 20

1) companies act
2)partnership act

Question 21

What key factors are within the Business framework with the companies act? List 3.

Answer 21

1)Governs all types of companies

2)Files accounts annually

3)Limited liability for all shareholders

Question 22

What key factors are within the Business framework with the partnership act? List 2.

Answer 22

1)Governs business partnerships

2)Jointly and severally liable-all partners responsible for business debts.

Question 23

What 2 types of legislation is the Consumer protection - laws that protect customers

Answer 23

1)Consumer rights acts

2)Consumer protection act

Question 24

What is the consumer protection in terms of consumers right act? List 2

Answer 24

1) Right for a refund, repair, or replacement

2)services should be provided with reasonable skill, and reasonable care with reasonable time frame

Question 25

What is the consumer protection in terms of consumer protection act? List 2.

Answer 25

1)Businesses must not manufacture or sell goods which are unsafe 2)Local conuncils have the right to seize unsafe goods and ban them from sale

Question 26

What are the 4 legisations in the employee protection act?

Answer 26

1)equailty act 2)health and safety at work 3)working time directive 4)national minimum wage

Question 27

Define the data protection act.

Answer 27

The data protection act is governing the storage and use of personal data

Question 28

Define the copyright, Design and Patents Act

Answer 28

Protects the interests of the creator of original work

Question 29

Define planning permission

Answer 29

Businesses must obtain planning consent before making significant changes to land or property

Question 30

Name 2 non-legal implications of failing to meet the legal requirements

Answer 30

1) Bad publicity 2)poor employer-employee relations

Question 31

Name 2 legal implications of failing to meet the legal requirements

Answer 31

1) law suits 2)fines

Question 32

Define ethical factor

Answer 32

Issues concerned about what is right, beyond what the law requires

Question 33

Define sustainability

Answer 33

Sustainability is when a business will preserve the planets natural resources for future generations

Question 34

Define corporate social responsibility

Answer 34

A business which behaves in a way to improve welfare of society

Question 35

Give 2 example of corporate social responsibility

Answer 35

1) Giving donations to charity 2)providing humanitarian aid

Question 36

Give 2 example of a business being sustainable

Answer 36

1) Using non-fossil fuels for transport 2)green energy

Question 37

Name 2 positive impact of the business when operating ethically

Answer 37

1) reduced stakeholder conflict 2)better reputation

Question 38

Name 2 negative consequences of a business not behaving ethically

Answer 38

1) damage to reputation 2)loss of customers

Question 39

Define niche market

Answer 39

A small subset of the market that has specific needs that the business taps into

Question 40

What is the effect of high unemployment?

Answer 40

Lower levels of disposible income

Question 41

What type of business will benefit to lower levels of disposible income?

Answer 41

A discount store store (e.g a 50p shop)

Question 42

What type of business will face the disadvantage of lower disposible income and why?

Answer 42

A new car showroom there is a reduced demand for expensive products

Question 43

What is the effect of social trends of eating out?

Answer 43

More meals will be eaten at restaurants

Question 44

What type of business will benefit from more meals being eaten at restaurants and why?

Answer 44

Well-known restraurant chains -> increaisng revenue from more customers

Question 45

What type of business will be at a disadvantage of more meals being eaten a restaurant and why?

Answer 45

A supermarket chain because of falling profits

Question 46

What 2 type of stakeholders will benefit from high interest rates and why?

Answer 46

Lenders->more revenue customers with savings -> more money avaliable to spend

Question 47

What type of stakeholder will be at a disadvantage of high interest rates and why?

Answer 47

customer with a morgage -> they will have less money to spend

Question 48

What types of stakeholders will benefit from an increased in living wage and why?

Answer 48

Employees -> better standard of living

Question 49

What 2 type of stakeholders will be at a disadvantage of increases in living wage?

Answer 49

shareholders -> lower dividends customers -> higher prices

Question 50

What is meant by the term 'market share'

Answer 50

The percentage of aan industry's total sales earned by one business

Question 51

Which one of the following is most likely to be a key operative of a local goverment? 1) collecting taxes 2)making a profit 3)providing a service 4)selling goods

Answer 51

3) providing a service

Question 52

Employees at a convience store will want:

Answer 52

high wages

Question 53

Which one of the following changes in the external environment is not an economic factor? (a) A fall in the value of the pound (b) A reduction in unemployment (c) A rise in inflation (d) An increase in the national minimum wage

Answer 53

d