1.5 business

Contactless payment

Technology that allows customers to pay with their card quickly and easily without using a PIN number, for payments up to £30. Can reduce queue sizes and gives customer convenience

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Consumer Rights Act 2015

States that all good sold must be of (i) satisfactory quality, (ii) fit for purpose and (iii) described accurately. If not customers are entitles to one of the 3 R’s; refund, repair, placement.

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Consumer Protection Act 1987

States that faulty goods and the damage caused by them are the responsibility of the producer, and consumers can claim compensation for damages and injury caused by faulty products.

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Community

A stakeholder group. Community members will want little disruption to their everyday lives from a business, and possibly some benefits 

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Deflation

The general reduction in prices within an economy

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E-commerce

Business conducted over the internet. E-commerce has meant that even small businesses can operate on a global scale.

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Equality Act

Prevents any form of discrimination in the workplace from employees or from management towards employees in terms of the access to job opportunities and training.

 

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Employees

A stakeholder group who often seek job security, good working conditions and better wages.

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Exchange rate

The value of one currency expressed in another. For example £1 can be worth $1.40. To change GBP into another currency (multiply) to change from another currency into GBP (divide)

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Expansion

When the economy starts growing again after a period of recession or decline

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Inflation

Where general prices within an economy increase. It happens naturally over time, but when inflation is over 2% the economy may be growing too fast

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Interest rate

The amount added to borrowings (charge) or the amount added to savings (reward). High rates will encourage people to save and spend less, whereas low rates will encourage people to spend money in the economy

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Health and Safety at Work Act

This Act protects workers from dangerous situations at work. It also sets out the requirements of employers to provide training, and personal protective equipment (PPE) for all staff who need it.

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Gross Domestic Product (GDP)

This is used to measure the health of the economy, expressed as a percentage. Growth at 2% is the government target. GDP actually represented the total amount of goods and services sold in the economy in a period of time (year)

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Government

A stakeholder group, they want jobs and employment as this will increase living standards and reduce the amount of money spend on welfare

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Legislation

Any laws or Acts, these will have been passed in parliament and signed by the Queen.

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Managers

A stakeholder group responsible for running a business on behalf of the owner(s) who want job security and promotion

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Minimum Wage legislation

Law setting out the minimum amounts that employees and apprentices can be paid in the UK, according to their age

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M-commerce

Business done using mobile technology – Apps and other platforms are good examples of m-commerce. (Ebay, Amazon)

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Owner

A stakeholder who wants to achieve profit maximisation

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PayPal

A method used to make secure online payments. Paypal will also step in over any issues between the buyer and seller using their resolution centre.

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Pressure group

A group of people with similar interests. Often have a voice to protect or enhance rights for other groups. 

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Recession

When the economy slows down and people spend less in the market. At this time it is likely that consumer confidence reduces.

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Social media

Computer-based technologies that facilitate the creation and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks.

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Shareholder

A stakeholder, who owns shares in the business and seeks a return for this investment in the form of increased value of the share and dividend payments (profit sharing)

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Stakeholder

Any person or group with an interest in the business or its activities; community, government, employees etc.

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Stakeholder conflict

As stakeholders all have different priorities it is likely that these will come into conflict. For example employees want higher wages but business owners was higher profits. Both cannot happen at the same time

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Suppliers

A stakeholder group; suppliers want a good relationship with purchaser and a fair price for their products.

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Taxation

Taxation levels are decided by the government. Both individuals and businesses will pay tax. Higher levels of taxation can also be used to reduce spending in an economy, as people feels poorer in real terms

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Web conferencing

Visual sharing from a computer, laptop or tablet.

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