Please enable JavaScript.
Coggle requires JavaScript to display documents.
Environmental influences & constraints on business & accounting…
Environmental influences & constraints on business & accounting
Environmental infuences
Political & legal factors
Law of tort
Contract law
Company law
Tax law
Employment law
Health & safety
Consumer protection
Environmental
Data protection
Common law (UK principles-based) or codified law(EU domain of law)
Case law
Legal precedents
Macroeconomic factors
Demand for product & services
National incomes
Market economy
Free markets
Government (public services)
Control of economic growth
Control of inflation & deflation
Levels of employment
Controlling the balance of payments
going concern
Policy choices
Fiscal policy (taxation policy)
Monetary policy (economy money)
Social & demographic factors
Impact of societal structure & changes on business
income, education, profession
Different customer groups with different demands
Low cost housing or child care
Attitudes, values & lifestyles
Food we eat, animal well-being, environmental issues
tastes & fashions
Able to adapt to survive
Population & groups within it
Workforce, Birth rates, death rates, immigration & emigration (growth or decline)
Disposable income people have
Education & health affects businesses terms
Train/educate employees, negotiate wage, pensions & health cost.
Technological factors
Downsizing
Delayering
Outsourcing
Changes from brick & mortar
Websites as viral & banner to market a business
Accounting software change the way of account to produce information more efficiently
Different type of markets
Financial market
contract, claims, instruments
Equities such as debt, bonds, debentures/ loan-stock
= capital market + money market
Nature & role
Primary markets (new issues)
Secondary markets (second-hand or pre-owed)
Capital market
Long-term assets or contracts
Stock exchanges (share & bonds)
Money market
Short-term contract/ assets & loans
Bills of exchange, trade bills & treasury bills (currency market)
Role of a stock exchange
(Stock) commodities, business capital, money in CE & property = inventory. Stock US = shares
(UK) London stock exchange (LSE) go public
Alternative investment market (AIM) small business
Over the counter market (OTC) by telephone & e-mail
Open-ended investments companies(OEICs)
Individual saving accounts(ISA) free of tax capital gains & dividends
Bull & bear p. 56
Security market efficiency
Efficient market Hypothesis (EMH)
Strong-form efficiency not all held (past & present)
Semi-strong efficiency all pub held
Weak-form efficiency all
insider dealing/trading
Heavily regulated
Decision-usefulness