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Business
Spec 1.5 (Understanding External Influences on Business)
Question | Answer |
---|---|
Name the 8 different stakeholders in a business | 1. Employees 2. Government 3. Customers 4. Suppliers 5. Managers 6. Local community 7. Pressure groups 8. Owners |
What is an example of an employee/shareholder conflict? | Shareholders may prioritise profit maximisation, while employees may prioritise fair treatment and high wages |
What is an example of a conflict between customers and the local community? | Customers may prioritise low prices, while the local community may prioritise environmental sustainability which raises costs and prices |
What are the 3 main areas of legislation that impact a business? | 1. Consumer protection 2. Employee protection 3. Health and safety legislation |
What is the disadvantage of following business legislation? | Results in increased business expenditure, which may reduce profitability |
What does legislation do for businesses? | Ensures that no business can gain an unfair advantage |
What are the 3 benefits of following employee legislation? | - Businesses can avoid attracting unwanted media attention - Less likely to be subject to legal action - New employees are likely to be attracted |
What 3 challenges does inflation cause for a business? | 1. Increased business costs 2. Higher repayment on loans 3. Consumers change spending habits |