Influences on business
What's covered
Key facts
Brand loyalty reduces the impact of competition — loyal customers stay with the brand even when rivals offer alternatives.
A consumer has 30 days to reject faulty goods for a full refund under the Consumer Rights Act 2015 — the short-term right to reject.
A formal code of conduct sets out the values and standards staff must follow — internal ethical framework, often signed at induction.
A benefit of globalisation for UK consumers is a wider choice of goods at lower prices — more suppliers competing for the same customer.
Breaking employment law can lead to fines or claims at an employment tribunal — financial and reputational consequences.
Automation may reduce the number of low-skilled jobs in a business — repetitive tasks are often automatable.
The Bank of England sets the official interest rate to influence the wider economy — Bank Rate.
Borderless trade describes goods crossing borders without checks — the Single Market's customs-free movement model.
A business buying a registered patent gains exclusive use of that invention — bought patents can be licensed or kept.
A small independent café struggles against a chain like Costa because chains use economies of scale to lower unit costs and prices.
Sample questions
A taste of the 109 questions in this topic — answers marked. Sign up to practise the full set with spaced repetition.
What does USP stand for in marketing?
- •undercut supplier pricing
- •unified sales platform
- ✓unique selling point
- •universal supply price
Which 2015 Act protects UK shoppers' rights when goods are faulty?
- •Competition and Markets Act
- ✓Consumer Rights Act
- •Sale of Goods Act
- •Trade Descriptions Act
Which is an example of ethical sourcing by a business?
- •Buying the cheapest goods regardless of origin
- •Choosing suppliers based purely on speed alone
- •Ignoring working conditions in factories abroad
- ✓Paying fair wages to overseas suppliers
Which is a tariff?
- •A limit on the number of imports
- •A subsidy paid to local farmers
- ✓A tax on imported goods
- •An export grant from government
Which area of law covers fair pay, working hours and dismissal?
- •Competition law
- •Consumer law
- ✓Employment law
- •Health-and-safety law
Which is a benefit of using social media for a business?
- ✓Cheap promotion to a large audience
- •Full protection from any negative reviews
- •Guarantees of immediate increased profits
- •Removal of need for any customer service
Try it for four weeks. Free.
One school. Unlimited classes. No card limit. No teacher limit. If your students aren't practising daily by the end of the trial, you owe us nothing.