Unit 2 - Influences on Businesses Flashcards
(35 cards)
Describe the minimum amount businesses must pay staff.
Businesses are required to pay staff at least the national minimum wage, which varies by country and is set by law.
Describe the importance of ethical considerations for businesses.
crucial for businesses as they influence reputation, customer loyalty, and compliance with regulations.
Explain how businesses can reduce their environmental impact.
Businesses can reduce their environmental impact by implementing sustainable practices, minimizing waste, and using eco-friendly materials.
Define what it means for a business to be sustainable.
A sustainable business aims to operate in a way that meets present needs without compromising the ability of future generations to meet their own needs.
Discuss the pros and cons of being environmentally friendly for businesses.
Pros include improved public image and potential cost savings, while cons may involve higher initial costs and operational changes.
How does unemployment affect consumer spending?
High unemployment typically leads to decreased consumer spending as individuals have less disposable income.
Describe the relationship between changes in income and business performance.
Changes in income can significantly affect businesses, as higher income levels generally lead to increased consumer spending and demand for products.
Explain how interest rates impact consumer behavior.
Low interest rates encourage borrowing and spending, while high interest rates tend to discourage borrowing and can lead to decreased consumer spending.
What happens to interest rates when inflation increases?
As inflation increases, interest rates typically rise to maintain the purchasing power of money.
Define the term ‘interest’ in the context of loans and savings.
Interest is the cost of borrowing money or the return on savings, usually expressed as a percentage of the principal amount.
How do low interest rates influence business investment?
Low interest rates make borrowing cheaper, encouraging businesses to invest in expansion and new projects.
Explain the importance of workplace safety.
The workplace must be safe to protect employees from hazards and ensure their well-being while performing their jobs.
Define discrimination in the workplace.
Discrimination occurs when businesses treat employees unfairly based on characteristics such as race, gender, or religion.
How does the law affect business operations?
The law sets regulations that businesses must follow, impacting hiring practices, workplace safety, and consumer rights.
What are the conditions set by the Consumer Rights Act?
The Consumer Rights Act establishes that products must be of satisfactory quality, fit for purpose, and as described.
Describe how technology has changed business operations.
Technology has transformed how businesses operate by enabling online transactions, improving communication, and enhancing efficiency.
Explain the role of e-commerce in modern business.
E-commerce allows businesses to buy and sell products online, expanding their market reach and convenience for consumers.
How do firms communicate digitally with stakeholders?
Firms use various digital platforms to communicate with stakeholders, including email, social media, and websites.
What is the significance of consumer law for businesses?
Consumer law protects consumers’ rights and sets standards for businesses, ensuring fair treatment and quality products.
Describe the potential consequences of breaking consumer law.
Breaking consumer law can lead to legal penalties, loss of reputation, and financial consequences for businesses.
What is the purpose of a business plan?
A business plan outlines the goals, strategies, and financial forecasts of a business, serving as a roadmap for success.
Define market segmentation.
Market segmentation is the process of dividing a target market into smaller, more defined categories based on shared characteristics.
What is the role of a marketing mix?
The marketing mix consists of the 4Ps: Product, Price, Place, and Promotion, which are used to market a product effectively.
Explain the concept of brand loyalty.
Brand loyalty refers to consumers’ commitment to repurchase or continue using a brand, often influenced by positive experiences.
