TMA2

Question 1

What are the external factors?

Answer 1

The external factors are:
-Political
-Economic
-Socio_Cultural
-Technology
-Enviromental
-Competitive

Question 2

What is the Political Factor?

Answer 2

It is an action taken by the government

Question 3

What is the Economic Factor?

Answer 3

It is the current state of the economy

Question 4

What is the Socio-Cultural Factor?

Answer 4

It is the cultural trends and buying habits on the market, and the population trends

Question 5

What is the Technology factor?

Answer 5

It is the latest Technological developments

Question 6

What is the Environmental Factor?

Answer 6

It is the actions and laws that promote the upkeep of the environment

Question 7

What is the Competitive Factor?

Answer 7

It is the actions taken by competitors that force a firm to react

Question 8

What are the Internal Factors?

Answer 8

The Internal Factors are:
-Finance
-Human Resources (HR)
-Current Technology (CT)

Question 9

What is a stakeholder?

Answer 9

A stakeholder is at person or organisation who has taken an interest in the business and wants to see the business succeed

Question 10

What are External Stakeholders?

Answer 10

They are stakeholders that are outside of the firm

Question 11

What are internal stakeholders?

Answer 11

They are stakeholders which are inside of the firm

Question 12

What is a stakeholders interest?

Answer 12

It is what the stakeholder WANTS from the business

Question 13

What is a stakeholders influence?

Answer 13

It is an ACTION or DECISION that the stakeholder can take that will affect the business

Question 14

How does Conflict arise?

Answer 14

Conflict arises when stakeholders want different things

Question 15

What is an example of a conflict?

Answer 15

The employees want high wages whereas the owner wants to maximise the profits and keep the wages as low as possible

Question 16

Who are the External Stakeholders?

Answer 16

-Suppliers
-Donors
-Customers
-Local Community
-Pressure Group
-Government
-Bank

Question 17

Who are the internal stakeholders?

Answer 17

-Managers
-Owners
-Employees
-Shareholders

Question 18

What is an owners interest and Influence?

Answer 18

An owner wants to maximise profits, and they can do this by hiring and firing staff

Question 19

What is a managers interest and influence?

Answer 19

A manager wants status and responsibility and they can achieve this by appraising staff

Question 20

What is an Employees interest and influence?

Answer 20

An employee wants good wages, and they can get this by demanding wages from the firm

Question 21

What is a Shareholders interest and influence?

Answer 21

A shareholder wants high dividends and they can get this by voting at an AGM

Question 22

What is a Governments interest and influence?

Answer 22

A government wants a successful firm to provide jobs, and they can get this by providing a grant for the firm

Question 23

What is a Local Communities interest and influence?

Answer 23

A local community wants jobs and wealth for the community, and they can influence a business by creating demand for the businesses product

Question 24

What is Suppliers interest and influence?

Answer 24

A supplier wants repeat purchases, and they can influence a business by extending the credit period

Question 25

What is a Customers interest and influence?

Answer 25

A customer wants high quality products for the lowest possible prices, and they can influence a business by changing to another competitor.

Question 26

What is a Banks interest and influence?

Answer 26

A bank wants a firm to take out loans, and they can influence a business by charging an interest rate

Question 27

What are the traits of a business with poor ethics?

Answer 27

-Test animals -Overwork underage’s (Child Labour) -Drive down prices paid to farmers and producers -Advertise irresponsibly -Overuse packaging -Pollute the environment

Question 28

What are the traits of an ethical business?

Answer 28

-Help others -Fair treatment of employees -Fair treatment of animals -Behave according to the law -Protect the environment

Question 29

Why do we care if businesses are ethical?

Answer 29

Because: -It is morally correct -We need to look after the environment and animals -Need to prevent unfair treatment and labour of employees

Question 30

What is a partnership agreement?

Answer 30

It is a legal document which sets out the terms of a partnership

Question 31

Who are partnerships common amongst?

Answer 31

Professional occupations such as: -Accountants -Doctors -Lawyers -Dentists

Question 32

What could a partnership agreement set out?

Answer 32

It could set out: -What each persons responsibilities are -How much money each person should put into the business -The salary each person gets -How the profits (or losses) will be split -What should happen if a partner leaves, dies, or retires

Question 33

Where are ethical trading symbols included?

Answer 33

In product labelling or advertising

Question 34

Why do organisations want to show that they are ethical?

Answer 34

Because: Better image —> More customers —> More profits

Question 35

What businesses are ethical?

Answer 35

-The Body Shop -H&M -M&S -Lush -Boots -McDonalds

Question 36

What are dividends?

Answer 36

A dividend is a distribution of profits by a corporation to its shareholders.

Question 37

What is the problem with understocking?

Answer 37

Can lead to stock of popular items running out during a sudden surge in demands

Question 38

What is the problem with overstocking?

Answer 38

The money tied up in inventory could be invested elsewhere