1.5. Understanding external influences on business

A business that has a separate legal identity from the owners is said to be:

• Complying with employment law

• Using social media

• Incorporated

• Obsolete

A business that can sell shares to only friends & family is known as a

• A. Public limited company
• B. Private limited company
• C. Sole trader
• D. Partnership

People or groups that have an interest in the way a business behaves & operates are known as

• Shareholders

• Investors

• Stakeholders

• The government

When a customer visits a website, how can their visit be tracked?

• E-Commerce

• M-Commerce

• Payment Systems

• Cookies

All employees over the age of 16 are entitled to be paid at or above

• The average rate

• The same as a more experienced worker

• A minimum wage

• A particular interest rate

This term refers to laws that a business must comply with

• Reasonable care

• Induction training

• Discrimination

• Legislation

This refers to how well an economy is doing in terms of spending & employment, affecting business sales.

• A. Interest rates

• B. Economic climate

• C. Globalisation

• D. Exchange rates

This reflects the general rise in prices which may increase business stock costs:

• Tax

• Inflation

• Interest rates

• Exchange rate

This term refers to the price of one currency against another, affecting import and export prices.

• A. Interest rates

• B. Taxation

• C. Exchange rates

• D. Inflation

Interest rates are the cost of borrowing & the reward for saving. If they are raised it will

• A. Decrease consumer & business interest payments on borrowing
• B. Provide a lower reward for saving
• C. Increase the cost of borrowing & the reward for saving
• D. Increase the cost of borrowing & reduce the reward for saving