What is legislation?
refers to laws and regulations passed by governments that require businesses and individuals to conduct their behaviour in a particular manner
Legislation effects on businesses
consumer protection
employee protection
environmental protection
competition policy
health and safety
What is consumer protection legislation?
aims to ensure that consumers are treated fairly by the companies with which they interact
Consumer protection legislation covers areas including
safety of products
standard and quantity of products
rights of customers if they are unhappy with their purchase
product information that must be given to customers
Consumer protection legislation
meeting the requirements of each of the above laws results in increased business expenditure which may reduce profitability
aims to provide a level playing field for businesses ensuring that mo business can gain an unfair advantage over rivals by taking shortcuts or by making false claims about its products
What is employment protection legislation?
aims to prevent the exploitation of workers
Employee protection legislation covers areas including
pay and working conditions
equality of employment rights for marginalised groups (e.g those with disabilities) to avoid discrimination
the right to belong to a trade union and take industrial action
contracts and termination of employment
Impacts of employee protection legislation on business
changing working practices
compliance costs
high labour costs
potential penalties and rewards
Changing working practices - impacts of employee protection legislation on business
recruitment and selection procedures require regular review to avoid unlawful or discriminative practice
working conditions and workstations may require improvements to be compliant with the law
trade unions may need to be accommodated in discussions
Compliance costs - impacts of employee protection legislation on business
checks on the new employees to determine their right to work must be carried out
frequent training and specialist hr advice may be employed
legal advice or representation may be needed
Higher labour costs - impacts of employee protection legislation on business
businesses must ensure that workers receive the national minimum wage
safety equipment and provision of rest breaks increase costs
checks required on new employees may need trained hr staff to conduct
Potential penalties and rewards
fines may be issued and business reputation damaged if employment laws are broken
businesses that operate legally are likely to retain motivated and productive staff
What is environmental protection legislation?
aims to hold a business responsible for their environmental impact
Environmental protection legislation covers areas including
pollution
destruction of wildlife
traffic congestion
air quality
resource depletion
Environmental protection legislation
businesses that fail to adhere to these laws may be fined or forced to cease commercial activity until they resolve problems they have caused
What is competition legislation?
aims to protect the interests of both consumers and businesses by restricting anti competitive practices
Competition legislation covers areas including
abuse of market power so as to limit monopoly power
anti competitive acquisition activity
cartel activity and collusion
Competitive legislation
where the competition and markets authority judges that a business has acted or may potentially act in an anti competitive manner it may take steps such as preventing a merger or instructing a business to dispose of subsidiaries in order to correct the market
What is health and safety legislation?
requires businesses to operate in a way that protects the physical and mental wellbeing of its employees and contractors as well as its customers
Health and safety legislation covers areas icluding
provision of adequate breaks and rest periods
temperature and noise levels
provision of safety equipment
hygienic safe and sanitary conditions
preventing stress
Health and safety legislation
implementation of procedures and equipment required to maintain healthy and safe business premises and working conditions are likely to incur financial and time costs
staff training and supervision
changes to working hours and rest provisions
arrangement of manuals signage and safety documentation
purchase and maintenance of safety equipment
drawing up and implementing code of practice
serious health and safety breaches can lead to fines or investigation by the health and safety executive and in some cases can lead to prosecution
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Exam Techniques6
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Formulas27
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The Market(1.1.1)31
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Key terms (1.1.1)18
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Market Research(1.1.2)32
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Key terms (1.1.2)25
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Market Positioning(1.1.3)15
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Key terms (1.1.3)6
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Demand(1.2.1)12
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Key terms (1.2.1)7
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Supply(1.2.2)12
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Key terms (1.2.2)3
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Markets(1.2.3)1
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Key terms (1.2.3)4
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Price Elasticity of Demand-PED(1.2.4)16
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Key terms (1.2.4)5
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Income Elasticity of Demand-YED(1.2.5)15
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Key terms (1.2.5)2
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Product or Service Design(1.3.1)18
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Key terms(1.3.1)12
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Branding and Promotion(1.3.2)23
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Key terms(1.3.2)16
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Pricing Strategies(1.3.3)31
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Key terms(1.3.3)8
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Distribution(1.3.4)26
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Key terms(1.3.4)11
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Marketing startegy(1.3.5)31
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Key terms(1.3.5)10
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Approaches to staffing(1.4.1)28
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Key terms(1.4.1)11
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Recruitment selection and training(1.4.2)27
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Key terms(1.4.2)7
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Organisational design(1.4.3)20
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Key terms(1.4.3)9
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Motivation and theory in practice(1.4.4)15
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Key terms(1.4.4)22
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Leadership(1.4.5)20
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Key terms(1.4.5)6
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Role of an entrepreneur(1.5.1)10
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Key terms(1.5.1)4
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Entrepreneurial motives and characteristics(1.5.2)9
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Key terms(1.5.2)7
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Business objectives(1.5.3)10
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Key terms(1.5.3)9
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Forms of business(1.5.4)24
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Key terms(1.5.4)9
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Business choices(1.5.5)5
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Key terms(1.5.5)2
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Entrepreneur to leader(1.5.6)10
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Key terms(1.5.6)1
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Internal finance(2.1.1)15
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Key terms(2.1.1)5
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External finance(2.1.2)44
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Key terms(2.1.2)12
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Liability(2.1.3)7
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Key terms(2.1.3)3
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Planning(2.1.4)10
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Key terms(2.1.4)8
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Sales forecasting(2.2.1)16
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Key terms(2.2.1)3
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Sales revenue and costs(2.2.2)14
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Key terms(2.2.2)6
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Break even(2.2.3)7
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Key terms(2.2.3)3
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Budgeting(2.2.4)18
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Key terms (2.2.4)6
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Profit (2.3.1)26
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Key terms (2.3.1)12
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Liquidity(2.3.2)15
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Key terms(2.3.2)15
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Business failure(2.3.3)15
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Key terms (2.3.3)5
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Production and productivity(2.4.1)38
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Key terms(2.4.1)9
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Capacity utilisation(2.4.2)10
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Key terms(2.4.2)5
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Stock control(2.4.3)20
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Key terms(2.4.3)12
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Quality management(2.4.4)16
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Key terms(2.4.4)7
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Economic influences(2.5.1)34
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Key terms(2.5.1)16
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Legislation(2.5.2)21
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Key terms(2.5.2)8
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Competitive environment(2.5.3)4
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Key terms(2.5.3)1
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Corporate objectives (3.1.1)8
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Key terms (3.1.1)4
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Theories of corporate strategy (3.1.2)25
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Key terms (3.1.2)12
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SWOT analysis (3.1.3)4
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Key terms (3.1.3)1
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Impact of external influences (3.1.4)37
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Key terms (3.1.4)6
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Growth (3.2.1)28
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Key terms (3.2.1)10
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Mergers and takeovers (3.2.2)29
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Key terms (3.2.2)4
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Organic growth (3.2.3)15
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Key terms (3.2.3)2
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Reasons for staying small (3.2.4)12
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Key terms (3.2.4)1
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Quantitative sales forecasting (3.3.1)24
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Key terms (3.3.1)7
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Investment appraisal (3.3.2)29
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Key terms (3.3.2)5
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Decision trees (3.3.3)7
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Key terms (3.3.3)3
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Critical path analysis (3.3.4)9
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Key terms (3.3.4)6
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Corporate influences (3.4.1)24
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Key terms (3.4.1)4
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Corporate culture (3.4.2)3
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Key terms (3.4.2)0
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Shareholders vs stakeholders (3.4.3)10
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Key terms (3.4.3)0
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Business ethics (3.4.4)12
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Key terms (3.4.4)0
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Interpretation of financial statements (3.5.1)9
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Key terms (3.5.1)0
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Ratio Analysis (3.5.2)12
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Key terms (3.5.2)0
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Human resources (3.5.3)0
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Key terms (3.5.3)0
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Causes and effects of change (3.6.1)0
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Key terms (3.6.1)0
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Key factors in change (3.6.2)0
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Scenario planning (3.6.3)0
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Key terms (3.6.3)0
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Growing economies (4.1.1)0
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Key terms (4.1.1)0
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International trade and business growth (4.1.2)0
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Key terms (4.1.2)0
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Factors contributing to increased globalisation (4.1.3)0
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Key terms (4.1.3)0
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Protectionism (4.1.4)0
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Key terms (4.1.4)0
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Trading blocs (4.1.5)0
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Key terms (4.1.5)0
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Conditions that prompt trade (4.2.1)0
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Key terms (4.2.1)0
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Assessment of a country as a market (4.2.2)0
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Key terms (4.2.2)0
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Assessment of a country as a production location (4.2.3)0
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Key terms (4.2.3)0
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Reasons for global mergers or joint ventures (4.2.4)0
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Key terms (4.2.4)0
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Global competitiveness (4.2.5)16
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Key terms (4.2.5)0
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Marketing (4.3.1)0
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Key terms (4.3.1)0
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Niche markets (4.3.2)0
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Key terms (4.3.2)0
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Cultural/social factors (4.3.3)1
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Key terms (4.3.3)0
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The impact of MNCs (4.4.1)0
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Key terms (4.4.1)0
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Ethics (4.4.2)0
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Key terms (4.4.2)0
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Controlling MNCs (4.4.3)0
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Key terms (4.4.3)0
