regulations and policies

What is the primary purpose of regulation undertaken by the government?

To create competitive markets.

Why does the government believe regulation will protect the interests of consumers?

So consumers aren't exploited by businesses.

What are the benefits of effective regulation?

Greater choice and lower prices.

What is a key reason for investment regulation in important areas of the economy?

To create conditions for continued investment in infrastructure.

What are some typical necessity markets where regulation is common?

Water and trains.

What are the four factors of production?

Land, labour, capital, and enterprise.

What is the role of 'enterprise' as a factor of production?

To generate an idea and use skill to bring other factors (land, labour, capital) together for a business venture.

Why does the government look to promote enterprise in the economy?

It creates jobs and leads to economic growth.

Name two reasons why the government helps business enterprise.

To provide employment and generate tax receipts.

How can government help start-up businesses regarding environmental impact?

It can help start-ups become more environmentally friendly.

What role does the CMA (Competition and Markets Authority) play in government policy related to business?

It works towards preventing monopoly power.

For what specific purpose might the government provide grants to businesses?

Relocation, especially to areas with high unemployment.

In which areas can the government provide training to start-up businesses?

Financial (e.g., small business accounts), marketing (e.g., how to target market segments), operations management (e.g., advice on location), and people (e.g., how to recruit a suitable workforce).

What is wage discrimination?

Wage discrimination occurs when a business pays workers different wages for the same job.

What is an example of discrimination mentioned related to workers?

The glass ceiling for female workers is an example of discrimination.

How did labour market reforms impact trade unions?

Labour market reforms led to a reduction in trade union power and influence.

For what age group are businesses required to pay the Minimum wage?

Businesses have to pay the Minimum wage for workers aged 18-21.

For what age group are businesses required to pay the Living wage?

Businesses have to pay the Living wage for workers aged 21-25.

What is a major consequence for the UK after voting to leave the EU in 2016 concerning trade?

The UK still has to abide by a majority of EU laws to carry on trading with EU countries.

What is the primary objective of competition policy?

To improve the competitive nature of markets and alleviate market failure to protect the interests of consumers and society.

How does competition policy prevent market failure and protect consumers?

By preventing monopoly power (>25%), protecting competitive markets, restricting mergers and takeovers, and improving the way in which markets work.

What is the main goal of labour market law?

To protect workers from discrimination and make it easier for businesses to recruit workers.

Name some key Labour Market Laws mentioned in the notes.

Equality Act, Race Relations Act, Sex Discrimination Act, Disability Discrimination Act, Equal Pay Act, and Employment Equality Regulations Act (age).

What is the definition of the 'political environment' in a business context?

It refers to the government actions that impact the strategic and functional decisions made by businesses.

What does legislation primarily involve?

Creating and enhancing laws to protect individuals, businesses, and society as a whole.

How is the 'legal environment' described?

It describes the collection of legislation that impacts the activities of organizations.

What is the role of the Competition Market Authority (CMA)?

It investigates markets (e.g., gas, supermarkets, airlines, car finance) to promote fair competition and protect consumers.

What are the main goals of competition law?

To promote fair competition in markets and stop the abuse of consumers by businesses due to monopoly power.

What is an example of an illegal anticompetitive practice?

Price fixing between businesses.

Under what condition will mergers and takeovers not be allowed by competition law?

If it is deemed that they would significantly reduce competition in the market.

Name three specific actions that firms are not allowed to take under competition law to limit competition.

Agree prices with competitors, limit production to reduce competition, or partition markets or customers between each other.