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WorksheetsOCR Business - Influences on a business
Total questions: 25
Worksheet time: 13mins
A way in which a business can be affected by consumer law is
Having compensation claims because goods are high quality
Losing reputation due to defective goods
Having to sack staff who are always late for work
Profits being reduced by paying higher wages
Who does consumer law protect?
Banks that provide finance
Businesses that provide services
Purchasers of products
Suppliers of raw materials
By law, a smart phone manufacturer must make phones which are:
of high quality
made of recycled materials
reasonably priced
safe
An example of an unethical business activity is when a firm buys products made using _________ labour
No
Adult
Child
Free
Another unethical practice would be a firm not providing its workers with a _____________ working environment. For example Amazon at its fulfillment centres.
Child
Pay
Ethics
Safe
Some businesses are not ethical so they can charge ______ for their products
Less
More
Being ethical can bring benefits to businesses...
Higher costs to pay higher wages to workers and providing a safe working environment
Workers trust their employer, increasing motivation, productivity and retention which reduces costs.
Advantage or disadvantage? - There is a greater chance the business will survive in the long run if it is ethical
Advantage
Disadvantage
Advantage or disadvantage? - A business that is honest in its marketing may find that its sales fall.
Disadvantage
Advantage
When income and employment rise, businesses can expect
Sales to rise
Prices to fall
Profits to fall
Immigration to fall
Unemployment measures
the number of people in work
the number of people looking for work
the number of people who cannot work
the number of people who do not work
Which one of the following is most likely to happen if there is a big rise in unemployment.
Government spending on benefits will decrease
More people will be looking for work
People's living standards will increase
There will be an increase in demand for luxury goods
Describe a disadvantage to a business of being a multinational company
Selling in a number of countries can increase sales revenue
They can be liable for higher taxes to import and export goods into other countries
Describe an advantage to a business of being a multinational company
Selling in a number of countries can increase sales revenue
They can be liable for higher taxes to import and export goods into other countries
Ethical behavior is about...
...doing what is morally right.
...doing the right thing by shareholders.
...recycling wherever possible.
...not breaking the law.
What is the name of the movement that encourages businesses to pay a fair price to suppliers in developing countries?
(a)
The main problem with behaving in an ethical and environmentally friendly way is that...
...it tends to increase business costs.
...it is too 'political'.
...it normally reduces sales.
...it isn't the job of business to worry about these things.
What is a key benefit to business of acting in an ethical and environmentally friendly way?
It can enhance a business' reputation
Lower taxes
It will reduce costs
Increased share price
The economic climate is about...
...what is happening to incomes and employment.
...the conditions affecting next year's harvest
...global warming.
...where a business chooses to locate.
A recession is when...
...GDP has fallen for a period of time.
...a business has to make people redundant.
...when unemployment increases by > 5%
... a business sees a fall in profits.
During a 'boom' unemployment is _______ and consumer spending is ____________
low, high
low, low
high, low
high, high
During a recession demand for luxury items will _________ and demand for basic items will ___________.
fall, rise
fall, fall
rise, fall
rise, rise
Which of the following is NOT a key driver of globalisation?
Improved transportation
Improved technology
Trade liberalisation
Larger trade tariffs
Which two of the following are benefits of globalisation for businesses?
Access to larger markets
Lower cost of production overseas
Lower transportation costs
Less complexity
Choose two reasons why businesses locate operations in another country
...pay less tax.
...access highly skilled labour markets
...enhance their reputation at home.
...improve quality control.
