business studies 15-20

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  • Created by: ambh0yle
  • Created on: 20-02-14 13:17
what is fiscal policy?
this involves changing the levels of taxation and government spending to adjust the level of demand in the economy.
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what is government spending?
this is the higher levels of spending that will be beneficial to businesses
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Give an example of government spending:
new roads, the construction industry will benefit the most.
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what is it called when taxes are paid by businesses and individuals?
taxation
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what are direct taxes?
these are charged based on income.
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what are indirect taxes?
these are taxes put on spending e.g.VAT.
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if income tax is lowered, what affect does this have on the economy?
there would be more spending in the economy.
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if corporation tax is lowered, how does this affect companies?
they may increase their spending, through investments or hiring people.
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what happens to the price of good when VAT is lowered?
they become cheaper to purchase, therefore more spending in the economy.
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what is the monetary policy?
when the government adjusts the money supply to control demand in the economy.
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what are the 3 techniques the government uses to influence business activity?
protectionism, health and safety and environmental legislation.
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what is economic growth?
an increase in income, output and spending over a period of time.
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what is inflation?
the rise in the general price level of goods.
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what is maintain price stability?
the government wants to keep inflation low.
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what is a market?
this is a place where buyers and sellers meet to exchange goods for money.
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give an example of a market:
supermarket, online shopping, car boot sale
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what are 3 ways a business can sell its products?
telling a customer about products, identify the needs + wants of customers, design products that meet needs.
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what is market segmentation?
this is the division of marketing according to different types of customers in order to develop products that meet peoples needs.
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what is a good example of market segmentation?
Yorkie, targeted at men.
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what is market research?
businesses need this to identify the needs and wants of customers.
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what is the marketing mix?
PRICE, PRODUCT, PLACE, PROMOTION.
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what is product orientation?
when a business focusses on the design and manufacture of a product first and then finds a customer base to sell it to.
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what is market orientation?
when a company focuses on customers needs + wants such as water bottles, fashion trainers etc.
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what is the product life cycle?
development, introduction, growth, maturity, decline, extension.
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inflation initiated by an increase in the costs face by firms is called what?
cost push inflation.
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what is demand push inflation?
inflation initiated by an increase in demand.
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what is visible trade?
this involves goods such as : jack wills, chocolate, cars
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what is invisible trade?
this is services such as tourism, fees for transport and banking services.
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what is the balance of trade?
difference between imports and exports.
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what is free trade?
when a country allows foreign businesses access to its markets and the government does not restrict imports.
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when countries place strict regulations and specifications on imports what is this called?
administrative barriers
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what affect does technology have on businesses?
this can produce in new products, change the way people communicate + order supplies.
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what is economic environment?
the state in the economy will influence the decisions made by businesses.
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what is the ethical environment?
businesses have to make ethical decisions.
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what is an example of an ethical decision?
are they going to test their products on animals? do they buy goods from people they employ child labour?
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what is the protection put in place to minimise the damage done by businesses to the environment?
environmental legislation.
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what is competition law?
this maintains market competition to prevent anti-competitive practises and consumer exploitation.
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what is the act put in place to provide a structure for ensuring the health + safety for all employees in any work place?
health and safety act 1974
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Other cards in this set

Card 2

Front

what is government spending?

Back

this is the higher levels of spending that will be beneficial to businesses

Card 3

Front

Give an example of government spending:

Back

Preview of the front of card 3

Card 4

Front

what is it called when taxes are paid by businesses and individuals?

Back

Preview of the front of card 4

Card 5

Front

what are direct taxes?

Back

Preview of the front of card 5
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