TOPIC 2 REVISION

What is Income Tax? 

• ·  Income tax is paid on incomes received by individuals and some types of businesses. Including Savings.
• ·      Income Tax is a tax on spending that is paid by individuals and businesses in the UK.

What is VAT?

• VAT is tax paid on incomes received by individuals and some types of businesses. Including Savings.
• ·  VAT is a tax on spending that is paid by individuals and businesses in the UK. It is added on to the price of most goods and services at rates of between 5% and 20%.

What is meant by the term ‘interest rates’? 

• The rise and fall of share prices within a business. 
• The worth of the pound when exchanging to another currency.
• Price of borrowing money expressed in interest rate.

What is meant by the term ‘economic climate’? 

• The economic climate looks at the supply and demand of goods in the country. 
• The economic climate describes the state of key factors within a country, such as the level of goods and services produced and the number of jobs available. 
• The economic climate is the availability of raw materials to a business.

Which of the following is a source of renewable energy

• Gas
• Coal
• Solar
• Electricity

What is meant by the term ‘environmental responsibility’? 

• Environmental responsibility means participation in research projects. 
• Environmental responsibility refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment.

what is a finite resource

• Resources which can be re used.
• Resources which are limited by the amount that exists.

Describe what is meant by the phrase ‘external costs of production’

• External costs of production arise when a business’s activities result in harmful effects on other people who are not directly involved in production. 
• costs inside the business that are in result of production and amount of products made. 

What is meant by the term ‘the environment’? 

• The environment outside of the business.
• The Natural World in which we live.

Identify the advantages a business might receive from the use of ethical policies

• Dedicates and motivates employees
• Higher profit turnover
• increase in customer loyalty 
• all of the above