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1 - What is business? (Common business objectives (There are three key…

- - - - CSR is the commitment of a business to behave ethically towards their workforce, the community and society at large.
- - - - Private limited companies
      - Public limited companies
    - - Sole traders
      - Partnerships
- - - - Factors include the stage of the economic cycle, interest rates, inflation and exchange rates.
    - - Changes in interest rates can have an impact in both the demand for goods and services and its cost. This may be positive for some and negative for others.
      - Rising rates generally result in lower demand, as consumers are likely to have less disposable income.
      - Discount retailers might benefit as consumers switch from traditional grocery stores such as Tesco to ones such as Lidl.
      - A business with high levels of borrowing will be faced by higher costs when interest rates rise.
    - - The characteristics of a particular market, maybe including its size, growth rate, barriers to entry, seasonal factors and the amount and intensity of competition.
      - A market with high market growth and a low intensity of competitiveness is likely to present greater opportunities for high demand than the opposite.
      - A market with high barriers to entry will protect operators in this market from new entrants.
    - - Demand will be affected by the level of incomes. As the economy has picked up and income has risen, demand has increased.
      - Not all business will be affected to the same extent - demand for necessities will be less affected by changes in income than demand for luxuries.
    - - Almost all businesses are competitive. The strategies adopted by competitor firms will have an impact on a business.
      - It's important that a business tries to differentiate its own products or services in order to encourage consumers to purchase its products or services.
      - Not only impacting demand, competition can impact costs. In a competitive environment, firms are likely to compete on price - this is likely to lead to pressure on costs.
    - - Factors such as a growing but ageing population and a high level of immigration contributing to the growth affect the level of demand and the nature of goods and services purchased.
      - Because of these factors, workers are facing the prospect of working longer before they receive the state pension.
    - - Because of social media, any misdemeanour of people in less developed countries is quickly brought to light. This can have an impact on reputation, the sales and the costs of a business.
      - Businesses in the UK are required to spend large amounts on measures to ensure that water, air and the surrounding countryside are kept free of pollution.