business 1.5

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the price of goods and also what change constantly
good and commodities
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what is the change in price influenced by
the relationship between supply and demand
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what is supply
the total amount of a specific good or service that is available to consumers
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what is supply for a product
supply for a product is the amount that sellers are willing and able to sell at any given price
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what is demand
Demand is the amount of a product customers are prepared to buy at different prices.
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what is demand for a product
demand for a product is the amount that buyers are willing and able to purchase at any given price
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give an example of supply
a farmer supply wheat to make flour
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give an example of demand
bakers demand flour to make bread
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what happens when demand is high and supply is high
it results in a shortage, so prices rise
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what happens when demand is low, and supply is high
it results in a surplus, and causes prices to fall
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what is a market
a place where buyers and sellers meet to exchange goods and services
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what are commodity markets
markets where raw materials such as oil, steel, wheat, etc. are used in the production of other goods
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what is a goods market
(normal markets), markets for everyday products, such as clothes and food
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what is interest rate
the percentage reward of payment over a period of time that is given to savers on savings or paid by borrowers on loans
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why might a new small business borrow
the entrepreneur(s) may not have capital to start up or of expand a business
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what will a bank typically give to a business
a loan, or allow it have an overdraft
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what will a business pay on top of its repayments for the loan
the interest on the loan or any overdraft
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changes in raw materials and energy costs affect what
it affect the costs of small businesses
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how much it affects them will depend on what
their proportion of total costs, how much costs go up, the ability to pass on costs to customers or to absorb them
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a rise in interest rates will increase what
the costs of borrowing
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this may result in what for businesses
they may struggle to repay loans, and small businesses may be less likely to borrow money to start up or expand
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a fall in interest rates may result in what for businesses
lower costs
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what will lower costs result in for a business
a business will have more money to spend, and cash flow may improve. and businesses may borrow money for start uo or expansion because the interest rates are lower
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what is exchange rate
the price of buying foreign currency
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what does the exchange rate tell people and businesses
it tells them both how much foreign currency they get for every pound, or how many pounds that have to give up to acquire a certain amount of foreign currency
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what are imports
goods and services bought abroad
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what are exports
goods and services sold abroad
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what is the effect on uk exporters of a fall in the value of the pound
good for uk exporters because the price of uk exports fall and therefore sales increase
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what is the effect on uk exporters in a rise in the value of the pound
bad for exporters of goods, prices of exports rises, so sales fall
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what is the effect on uk tourism, when there is a fall in the value of the pound
good for uk tourism, prices are therefore cheaper to foreigners, so tourism increases
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what is the effect on uk tourism, when there is a rise in the value of the pound
bad for uk tourism, as prices are more expensive to foreigners, so tourism falls
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what is the effect on uk businesses in a fall in the value of the pound
good for uk businesses, as imports are more expensive, so people buy more uk goods
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what is the effect on uk business in a rise in the value of the pound
bad for uk businesses, because imports are cheaper, so people buy fewer uk goods
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what is the effect on uk importers in a fall in the value of the pound
bad for uk importers of materials, as imports are more expensive, so costs rise
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what is the effect on uk importers in a rise in the value of the pound
good for uk importers of materials , as imports are cheaper, so costs fall
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what is the business cycle
refers to the fluctuations in the level of economic activity over time
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different businesses are effected by the business cycle in different ways, give examples
a business selling essentials such as food will not be affected as much as a business selling luxuries, cars or holidays
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what is the highest point on a business cycle
the boom
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what is the lowest point on the business cycle
recession
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what is in-between boom and recession
downturn
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what is in-between recession and boom
recovery
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what is a boom
a strong increase in economic activity
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what might the government do in a boom
they may take action and raise interest retest control and spending and price rises
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in a boom what happens to consumer and business confidence
it increases to a high
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what do consumers do in a boom
borrow more and spend more
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what will happen to sales in a boom
the sales will increase
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what will businesses do in a boom
take on more employees
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what will businesses do in a boom
invest and expand
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what is a downturn
when economic activity begins to slow down
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what is a recession
when economic growth is negative (less than period before)
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what might happen in a downturn
banks might cut interest rates to reduce costs and encourage spending
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what will happen to consumer and business confidence in a downturn
they will be at a low
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what will happen to consumer borrowing and spending in a downturn
they will be less/reduced, as people will prefer to save
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what will happen to sales in a downturn
they will fall; so prices may have to be cut
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what may businesses do to employees in a downturn
the may make some employees redundant
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what may businesses do in a downturn
they may cut back on spending and save; and businesses may be more likely to experience cash flow problems
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whats a stakeholder
an individual or group that has an interest or is affected by the activities of the business
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why are the stakeholders important in the business
the stakeholders have an impact and can affect the business, and therefore business diocesans must be taken in consideration of them
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what are the 7 main stakeholders
suppliers, government, local community, competitors, customers, workers, and managers
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what are the managers interests of a business
managers want bonuses, and long term success
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what are the workers interests of a business
want good pay and good working conditions
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what are the customers interests of a business
customers want value for money products
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what are competitors interests of a business
sometimes want cooperation and support
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what are the local community interests of a business
wants local investment, and limited pollution
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what are the suppliers interests of a business
want regular orders
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what are government interests of a business
wants high employment, and competitive markets
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what are stakeholder conflicts
when stakeholders in a business have different, clashing, objectives
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give examples of stakeholder conflicts
local community complains about traffic, this results in bad publicity for the business, which lowers sale, which realists in making workers redundant, etc.
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Other cards in this set

Card 2

Front

what is the change in price influenced by

Back

the relationship between supply and demand

Card 3

Front

what is supply

Back

Preview of the front of card 3

Card 4

Front

what is supply for a product

Back

Preview of the front of card 4

Card 5

Front

what is demand

Back

Preview of the front of card 5
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