GCSE Business - Influences on Business Key Words

air pollution

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

competition

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

consumer law

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

consumer spending

the amount of money being spent by consumers on the g&s they want and need

contracts of employment

the legal document that states the t&c for both the employer and employee when paying someone to do a job

digital communication

Transmitting information between computing devices.

e-commerce

Transactions that are carried out using the internet.

economic climate

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.

employment law

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

equality act 2010

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.

ethical objectives

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.

ethics

The moral principles that determine how a business wishes to operate

exchange rates

The price at which one currency can be exchanged for another.

export

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

external costs

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

global warming

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.

globalisation

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

health and safety at work act (!974)

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

import

Buying from a company outside your national borders.

interest rates

The reward for saving and the cost of borrowing.”

inward investment

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

level of employment

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

markets

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

m-commerce

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

multinational corporations (mnc)

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

national living/minimum wage

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.

noise pollution

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

recycling

Converting waste into useable material

risk

The chance that an investment might not deliver a profit

social responsibility

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

sustainability

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

traffic congestion

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

uncertainty

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

waste

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

waste disposal

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

zero hour contract

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.