Unit 2 Influences On Business

Question 1

Air pollution

Answer 1

Harmful substances and fumes in the air that cause disease, allergies, or damage to humans or other living organisms, or to the environment.

Question 2

Competition

Answer 2

The presence of other businesses in the same market attempting to sell to the same customers

Question 3

Consumer law

Answer 3

Laws that are designed to protect the consumer, by ensuring that products and services offered by businesses are safe, and that they deal with their customers in an honest and fair way.

Question 4

Consumer spending

Answer 4

The amount of money being spent by households on the goods and services they want and need.

Question 5

Contracts of employment

Answer 5

The legal document that states the terms and conditions for both the employer and the
employee when paying someone to do a job.

Question 6

Digital communication

Answer 6

Transmitting information between computing devices.

Question 7

E-Commerce

Answer 7

Transactions that are carried out using the internet. i.e. Amazon

Question 8

Economic Climate

Answer 8

Key factors within a country such as the level of consumer spending, the level of production, the number of people unemployed, rates of inflation and interest.

Question 9

Employment Law

Answer 9

These laws govern what can and can’t be expected of an employee, and how a business
may treat its employees.

Question 10

Equality Act (2010)

Answer 10

This act of parliament is a set of laws that protect individuals from discrimination. It lists the
characteristics that are protected, and that cannot be discriminated against. These are:
Age / Disability / Gender reassignment / Marriage and civil partnership / Pregnancy and
maternity / Race / Religion or belief / Sex / Sexual orientation

Question 11

Ethical Objectives

Answer 11

Aims that relate to abiding by their moral code in order improve reputation. This could
include trying to act fairly, protecting the environment, or contributing to charitable
activities.

Question 12

Ethics

Answer 12

The moral principles that determine how a business wishes to operate.

Question 13

Exchange rates

Answer 13

The price at which one currency can be exchanged for another.
For example, £1:€1.10
To find £250 in Euros, multiply by 1.10
To find €250 in Pounds, divide by 1.10

Question 14

Export

Answer 14

Selling a product to a customer outside of the country that you operate in.

Question 15

External Costs

Answer 15

Negative impacts caused on people, places, or other organisations by a business’ activity.

Question 16

Global Warming

Answer 16

The increase in the average temperature of the earth, leading to negative consequences for
life, caused by the release of carbon dioxide and other greenhouse gases.

Question 17

Globalisation

Answer 17

The increasingly ‘local’ nature of the planet – businesses operate worldwide, with money,
goods, services, and people moving across national borders.

Question 18

Health and Safety at Work Act (1974)

Answer 18

Laws relating to processes and procedures that businesses must follow in order to keep their employees and customers safe.

Question 19

Import

Answer 19

Buying from a company outside your national borders.

Question 20

Interest Rates

Answer 20

“The reward for saving and the cost of borrowing.” Expressed as a percentage, it is the rate
at which either savings or debts grow over time. Borrowing or saving £1,000 at an interest
rate of 5% means that at the end of the year you would either owe £1,050 or have £1,050
in your account.

Question 21

Inward Investment

Answer 21

People and businesses from outside of your national borders investing in your country’s
businesses or land.

Question 22

Level of employment

Answer 22

What percentage of the population who could work, are working. Often a percentage, if the
level of employment is 97%, then it means that 3% are unemployed.

Question 23

Markets

Answer 23

The place where buyers and sellers meet, to exchange money or credit, for goods and
services of a particular type. i.e. the Car market, clothing market, wheat market, or the stock market

Question 24

M-Commerce

Answer 24

Business transactions completed on a mobile device such as smartphone or tablet.

Question 25

Multinational Company (MNC)

Answer 25

A company with offices or divisions in more than one country.

Question 26

National Minimum/Living Wage

Answer 26

The minimum hourly rate for employees in the UK. It tends to increase each year and changes in April. As of April 2019, the rate for 25 year olds was £8.21/hour. The rate is different for different age groups below that

Question 27

Noise Pollution

Answer 27

Noise that causes some level of disturbance, either from vehicles, or business operations. It could include customers arriving or leaving a business.

Question 28

Recylcing

Answer 28

Converting waste into useable material.

Question 29

Risk

Answer 29

The chance that an investment might not deliver a profit.

Question 30

Social responsibility

Answer 30

Businesses needing to act in a way that protects people within society rather than harming them.

Question 31

Sustainability

Answer 31

Businesses operating in a way that does not damage the environment or use up natural resources.

Question 32

Traffic congestion

Answer 32

More vehicles on the roads than they can handle without queues and longer journey times.

Question 33

Uncertainty

Answer 33

This occurs when it is difficult to predict the outcome. In economic terms, uncertainty leads to people saving rather than spending money. The level of investment falls.

Question 34

Waste

Answer 34

Unwanted materials. Businesses may have to pay to dispose of waste.

Question 35

Waste Disposal

Answer 35

The removal and disposal or destruction of unwanted items or materials. Through either landfill, incineration, or recycling.

Question 36

Zero-hour contract

Answer 36

Terms of a job that mean there is no minimum number of hours guaranteed for a worker, per week. Likewise, there is no expectation that a worker has to accept hours that are offered.

Question 37

Acronym for reminding yourself of all of the external factors that affect businesses.

Answer 37

PESTLE-C P – Political issues like a change in government, leading to different types of laws being passed. E – Economic increases or decreases in consumer spending, interest and exchange rates, or borrowing. S – Social changes in the fashions and trends that lead consumers to buy and try different products T – Technological things like Apple Pay have been disruptive they have changed how businesses operate. L – Legal new laws change the rules and businesses have to change to follow them, increasing costs. E – Environmental and Ethical changes in what people want to see your business doing C – Competition what they do will have a big impact on you, their actions will affect your decisions.