Unit 2 - Influences on Businesses

Describe the difference between the National Living Wage and the National Minimum Wage.

The National Living Wage is higher and applies to workers aged 23 and over, while the National Minimum Wage applies to workers under 23.

Briefly describe what is entitled to the National Living Wage.

Workers aged 23 and over.

How might a business be affected if it fails to obey the Equality Act 2010?

It may face legal action, fines, and damage to its reputation.

True or false? Businesses are fined if they fail to obey the Equality Act 2010?

True.

State two possible consequences to a business of failing to provide appropriate safety equipment.

1) Legal action. 2) Increased risk of workplace accidents.

State three criteria that goods could be judged on for failing to follow the Health and Safety at Work Act 1974.

1) Safety. 2) Quality. 3) Compliance with regulations.

Explain why breaking consumer law can be very expensive for a business.

It can result in fines, legal fees, and compensation payments.

How does e-commerce affect the market a business can sell to?

It expands the market by allowing businesses to reach customers globally.

Briefly describe how businesses can use social media to communicate with customers.

Businesses can use social media to engage with customers, promote products, and provide customer support.

Other than social media, state three ways a business can communicate digitally with its stakeholders.

1) Email. 2) Websites. 3) Video conferencing.

Describe three ways in which a firm could make sure it is working ethically.

1) Fair treatment of employees. 2) Environmentally friendly practices. 3) Transparent business operations.

Explain why working unethically might reduce profits in long term.

It can damage reputation, lead to legal issues, and result in loss of customer trust.

State two ways in which a business could reduce damage it causes to the local environment.

1) Implementing recycling programs. 2) Reducing emissions.

Explain one way in which a business could reduce its impact on global warming.

Using renewable energy sources.

State two negative impacts that high levels of unemployment can have on a business.

1) Reduced consumer spending. 2) Increased competition for jobs.

Explain two benefits that could occur if people are spending at faster rate than incomes increase.

1) Increased sales revenue. 2) Economic growth.

Explain what happens to consumer spending when interest rates fall.

Consumer spending increases as borrowing becomes cheaper.

Explain how an increase of loans will affect businesses borrowing interest rates.

Interest rates may rise due to increased demand for loans.

Describe three meanings of term 'market'.

1) A place where goods are bought and sold. 2) The demand for a particular product or service. 3) The group of consumers interested in a product or service.

Describe what is meant by term 'competitive market'.

A market where multiple businesses compete for the same customers.

Describe two ways being in competitive market can affect businesses.

1) Pressure to innovate. 2) Need for competitive pricing.

Explain why some businesses might not face much competition.

They may operate in niche markets or have unique products.

What is globalisation?

The process by which businesses operate on an international scale.

Explain two ways UK businesses might benefit from globalisation.

1) Access to larger markets. 2) Opportunities for cost savings through outsourcing.

Explain one way globalisation might have negative effect UK businesses

Increased competition from foreign companies.

What exchange rate?

The value of one currency compared to another.

Explain weak pound benefit companies export goods

A weak pound makes UK goods cheaper for foreign buyers, increasing exports.

Explain strong pound affect import goods

A strong pound makes foreign goods cheaper for UK buyers, increasing imports.

State reasons people start businesses

To pursue a passion, achieve financial independence, or fill a gap in the market.

Give uncertainties faced small businesses

Market fluctuations, competition, and regulatory changes.

Describe things minimise risks failing

Conducting market research, creating a solid business plan, and managing finances effectively.