Topic 1.5

Question 1

What is the objective of a Shareholders and owners?

Answer 1

Shareholders are part owners of a private or public limited company.

Question 2

What is the objective of an employee?

Answer 2

Staff who carry out the day-to-day work of the business.

Question 3

What is the objective of a manager?

Answer 3

Staff who are responsible for implementing the decisions made by the owners and overseeing the work that is required.

Question 4

What is a customer?

Answer 4

People who buy products or services from the business.

Question 5

What is the objective of a supplier?

Answer 5

Other businesses and organisations that provide products or services to the business

Question 6

What is the local community?

Answer 6

People, organisations and businesses that live or are located in the area around the business.

Question 7

What are pressure groups?

Answer 7

Groups of people who share a common interest that is related to the business, eg an environmental pressure group may actively promote a shared interest.

Question 8

What will the business pay to the government?

Answer 8

The business will make tax payments to both local and central government.

Question 9

what is e- commerce?

Answer 9

E-commerce, or electronic commerce, refers to the buying and selling of products and services using devices connected to an electronic
network, such as the internet.

Question 10

how is social media used by a business?

Answer 10

sales and
marketing
interacting with customers
communicating with
stakeholders

Question 11

How do business use digital communication to communicate with customers?

Answer 11

Email – Electronic mail enables written messages to be sent instantly to others, and files can be shared as attachments.
Websites – A page or group of pages containing written and visual information using various media.

Question 12

What are the main principles of employment laws?

Answer 12

recruitment – this legislation outlines what employers can and cannot do when recruiting staff, and what their responsibilities are once a job offer has been made
pay – this legislation covers pay and is designed to ensure that the pay workers receive is above a set minimum level
discrimination – this area of employment law is designed to ensure that employers treat all people fairly
health and safety – legislation around health and safety is designed to keep employees safe while they are at work

Question 13

What economic issues can effect a business?

Answer 13

unemployment, changing levels of consumer income,
inflation, changes in interest rates, government taxation,
changes in exchange rates.