Business 1.5

As described

Part of the Consumer Rights Act that says the goods bought should match their description.

Boom

A time of fast economic growth (lots of spending and low amounts of unemployment)

Business cycle

Changes in economic activity, such as employment and production

Commodity

a product that is the same no matter who produces it, such as sugar, coal, cotton or coffee.

Consumer income

The amount of money that workers are paid.

Consumer Rights Act 2015

Legislation that helps protect people with their purchases. Items should be as described, fit for purpose intended and of satisfactory quality. Remember SAD FART.

Corporation Tax

What companies have to pay on their profits.

Demand

the desire to own a product/purchase a service and the ability to pay for it

Digital Communications

Electronic communications such as text, email, social media etc

Discrimination

Treating someone differently due to a particular characteristic such as gender, ethnicity or a disability.

Disposable income

The amount of money consumers have to spend after they have paid all their bills

e-commerce

Using the Internet to do business eg www.amazon.com

economy

A system by which goods and services are produced and distributed

Employment law

Legislation relating to the way workers are hired and treated by businesses

Exchange Rates

One currency expressed in terms of another.

Exports

Goods that are sold from one country to another country

Fit for the purpose intended

Part of the Consumer Rights Act that says the goods bought should be suitable for the purpose they were bought and last a reasonable time.

Health and Safety Acts

Legislation relating to how businesses look after the safety of their workers.

Imports

Goods and services that come in from another country.

Income Tax

The tax workers pay on their earnings.

Inferior goods

Products where the demand will decrease as consumer incomes increase eg supermarket basic ranges

Inflation

The increase in prices over time.

Interest Rates

The cost of borrowing money and the reward for saving money.

Luxury goods

Products where the demand for increases as consumer income does eg designer clothes

m Commerce

commerce

Minimum Wage Act

The lowest legal rate of pay for employees depending on their age.

National Insurance (NICs)

Money workers pay to go towards their state pension and other benefits

Payment Systems

Methods by which customers can pay for their purchases eg Faster Payments or Apple Pay

Pressure groups

organisations set up to try to influence what we think about the business and its environment.

Primary Stakeholders

Have a direct stake in the organisation and its success

Recession

period of time where there is reduced economic activity (less purchases, people made redundant)

Satisfactory quality

Part of the Consumer Rights Act that says the goods bought shouldn't be faulty or damaged and should last a reasonable period of time.

Secondary Stakeholders

These are usually external stakeholders, who do not engage in direct with the business

Shareholders

People who own part of a company and have a share of the control and profit.

shortage

A situation in which quantity demanded is greater than quantity supplied

Social Media

Online platforms that allow people to interact with friends and businesses.

SPICED

Strong Pound Imports Cheap Exports Dear

Stakeholders

Anyone who has an interest in the activities of a business eg workers, suppliers

supply

The amount of products/services available

surplus

A situation in which quantity supplied is greater than quantity demanded

Unemployment

Refering to people without a job.

VAT

The tax added to the price of goods and services.

WPIDEC

Weak Pound Imports Dear Exports Cheap