Political and Legal Changes in Business

Flashcards covering key concepts related to political and legal changes and competition law based on the provided lecture notes.

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.