T2:Influences On Business

Question 1

What is E-Commerce?

Answer 1

Buying and selling of goods and services using the internet.

Question 2

What is M-Commerce?

Answer 2

Mobile commerce – business transactions using mobile devices like smartphones.

Question 3

How has technology influenced marketing?

Answer 3

Social media allows targeted ads based on user interests and behaviours.

Question 4

What is digital communication?

Answer 4

The use of electronic means to transfer information quickly, including video conferencing, emails, etc.

Question 5

What are business ethics?

Answer 5

Principles that guide a business to act in a fair, honest, and socially responsible way.

Question 6

What are environmental considerations for businesses?

Answer 6

Using sustainable materials, reducing waste and pollution, and limiting unnecessary travel.

Question 7

Why might being ethical be expensive?

Answer 7

Reusable materials and ethical practices often have higher costs than cheaper, less sustainable methods.

Question 8

What is sustainability in business?

Answer 8

Avoiding the wasteful use of resources to protect the planet and ensure long-term survival.

Question 9

What are interest rates?

Answer 9

The cost of borrowing money or the reward for saving.

Question 10

What happens when interest rates rise?

Answer 10

Borrowing becomes more expensive, so spending may decrease.

Question 11

What happens when interest rates fall?

Answer 11

Borrowing becomes cheaper, encouraging more spending.

Question 12

What is inflation?

Answer 12

A general rise in prices due to increased demand.

Question 13

What is deflation?

Answer 13

A general fall in prices due to decreased demand.

Question 14

Why is consumer spending important to the economy?

Answer 14

One person’s spending is another person’s income, creating a cycle of economic activity.

Question 15

What is globalisation?

Answer 15

The process of businesses operating and trading on an international scale.

Question 16

What are imports and exports?

Answer 16

Imports are goods bought from abroad; exports are goods sold abroad.

Question 17

What does SPICED mean?

Answer 17

Strong Pound Imports Cheaper, Exports Dearer.

Question 18

What does WPIDEC mean?

Answer 18

Weak Pound Imports Dearer, Exports Cheaper.

Question 19

How has globalisation affected business?

Answer 19

Made it cheaper to relocate, access new markets, and benefit from lower costs.

Question 20

What is the National Minimum/Living Wage?

Answer 20

The minimum legal hourly pay rate for workers, which varies by age.

Question 21

What does the Equality Act (2010) cover?

Answer 21

Protects against discrimination based on age, gender, race, religion, etc.

Question 22

What is the Health and Safety at Work Act (1974)?

Answer 22

Requires employers to ensure a safe working environment.

Question 23

What is the Trade Descriptions Act (1968)?

Answer 23

Prevents businesses from misleading customers about products or services.

Question 24

What is a monopoly?

Answer 24

A market dominated by one seller with 25% or more market share.

Question 25

What is a competitive market?

Answer 25

A market where many businesses compete for the same customers.

Question 26

How can businesses compete?

Answer 26

Through pricing, quality, branding, customer service, delivery, and location.

Question 27

What is a USP (Unique Selling Point)?

Answer 27

A feature that makes a product or service stand out from competitors.

Question 28

What is consumer law?

Answer 28

Laws designed to protect customers by ensuring products/services are fair and safe.

Question 29

What is employment law?

Answer 29

Laws that define the rights and responsibilities of employers and employees.

Question 30

What is interest rate?

Answer 30

The percentage cost of borrowing or reward for saving money.

Question 31

What is a zero-hour contract?

Answer 31

A contract where an employee has no guaranteed hours.

Question 32

What is a multinational company (MNC)?

Answer 32

A business with operations in more than one country.

Question 33

What is sustainability?

Answer 33

Operating in a way that avoids damaging the environment or depleting resources.

Question 34

What is uncertainty in business?

Answer 34

Difficulty in predicting future outcomes, often affecting investment and growth.

Question 35

What is social responsibility?

Answer 35

The idea that businesses should act in a way that benefits society.

Question 36

Give examples of digital tools that help communication in business.

Answer 36

Apps like FaceTime, Skype, and Zoom allow face-to-face meetings without travel.

Question 37

Why is digital communication beneficial?

Answer 37

Saves time and cost, allows global interaction, and reduces environmental impact.

Question 38

What are examples of unethical business practices?

Answer 38

Using child labour, false advertising, exploiting workers, or polluting the environment.

Question 39

What is noise pollution in a business context?

Answer 39

Loud noises from vehicles, factories, or behaviour that causes discomfort.

Question 40

What is air pollution?

Answer 40

Harmful substances released into the air that harm humans and the environment.

Question 41

What are ethical objectives?

Answer 41

Goals set by a business to act morally, such as charitable donations or fair trade.

Question 42

What is waste disposal?

Answer 42

The process of removing or destroying unwanted materials responsibly.

Question 43

What is recycling?

Answer 43

Turning waste into reusable material to reduce landfill and resource use.

Question 44

What does the Bank of England do to control spending?

Answer 44

It raises or lowers interest rates to influence borrowing and spending.

Question 45

What is the relationship between interest rates and inflation?

Answer 45

Higher interest rates reduce spending to control inflation; lower rates stimulate spending.

Question 46

What happens when demand increases too quickly?

Answer 46

Prices rise (inflation), reducing affordability and spending power.

Question 47

What is inward investment?

Answer 47

When foreign businesses or people invest in the UK economy.

Question 48

What is exchange rate?

Answer 48

The value of one currency compared to another (e.g., £1 = €1.10).

Question 49

What is outsourcing?

Answer 49

Getting goods or services from another country to save costs or improve efficiency.

Question 50

How does globalisation help businesses?

Answer 50

Access to new markets, cheaper labour, and international sourcing.

Question 51

Why do businesses need to follow employment law?

Answer 51

To ensure fair treatment of staff and to avoid legal penalties.

Question 52

What are the consequences of breaking the Trade Descriptions Act?

Answer 52

Fines, legal action, and loss of customer trust.

Question 53

How can laws increase costs for businesses?

Answer 53

Compliance may require new training, systems, or processes.

Question 54

What is branding?

Answer 54

Using a name, logo or image to create customer recognition and loyalty.

Question 55

How does delivery impact competitiveness?

Answer 55

Faster or more flexible delivery can attract customers and improve satisfaction.

Question 56

What is customer service?

Answer 56

The support provided before, during, and after a purchase, influencing customer loyalty.

Question 57

What is consumer spending?

Answer 57

The total amount spent by households on goods and services.

Question 58

What is market?

Answer 58

A place or system where buyers and sellers interact to exchange goods/services.

Question 59

What is level of employment?

Answer 59

The percentage of people who are working out of the total able to work.

Question 60

What is risk in business?

Answer 60

The chance that an action will not result in a profit or might fail.

Question 61

What is traffic congestion?

Answer 61

Too many vehicles on the road leading to delays and pollution.

Question 62

What is noise pollution?

Answer 62

Unwanted sound from vehicles or industrial activities causing disturbance.

Question 63

What is waste?

Answer 63

Unwanted or unusable materials resulting from business activity.

Question 64

What is uncertainty?

Answer 64

The difficulty of predicting outcomes due to changing conditions.

Question 65

What is zero-hour contract?

Answer 65

A contract with no guaranteed hours; work is offered as needed.