Influences on business

• What is ICT? (Information and Communications Technology)


  • the computing and communications systems that a business might use to exchange information with stakeholders
• What are intranets?


  • communication networks which can only be accesses by an organisation's employees
• What are extranets?


  • similar to intranets, but can also be accessed by other organisations such as suppliers
• What are software robots?

  • advanced computer programs that can operate a range of administrative activities previously carried out by employees
• What is cloud computing?

  • a general term for the delivery of specialist computing services provided by businesses using the internet
• What is M-commerce? (+ an example)

  • buying and selling of products through wireless handheld devices
  • e.g smartphones
• What is digital communication?

  • the transmission of information electronically between computing devices
• What is a webchat? (+ examples)

  • a simple means of communication using only web browsers
  • e.g firefox, internet explorer
• What are applications?


  • pieces of software designed for a specific purpose and for use on smartphones and tablets
• What is social media

  • methods of online communication such as websites and applications
  • They are information and help to develop social and professional contacts
• What is a shareholder?

  • a person/organisation that owns part of a company
• What is ethics?


  • whether a business decision is thought to be morsll right or wrong
• What is an ethical decision?

  • a decision made on the basis of what is judged to be morally right
• What is profit?


  • measures the difference between the values of a business' revenue and total costs
• What are fair trade products?

  • products customers pay higher prices for that offer better trading terms, improving the living standards of people in poorer countries where the products are produced
• What is social responsibility?

  • an approach to managing businesses where the interests of all groups in society are taken into account when making decisions
• What is the environment?

  • the natural world in which we live, containing seas, rivers, forests and mountains
• What are external costs?

  • when a business' activities result in harmful effects on other people not directly involved in production
• What are non-renewable resources?(+ examples)

  • resources that there are only a limited amount of
  • e.g coal and oil
• What is global warming?

  • the gradual heating of the Earth's surface, oceans and atmosphere
• What is a pressure group?

  • a group of people with a common interest that influence public opinion and decisions made by businesses and governments
• What is environmental responsibility?

  • decisions made by businesses, consumers and governments with the intention of protecting the environment
• What is sustainability?


  • the methods of production which can be continues in the long term without damage to the environment.
• What is recycling?


  • the reuse of raw materials used in making products, often for many times
• What is environmental reporting?

  • the publication of a business' environmental performance to the general public
• What is the Economy?

  • Made up of millions of individual consumers, many thousands of businesses and governments.
  • All take decisions on what to buy and produce.
• What is the economic climate?

  • the state of key factors within a country
  • such as the level of goods and services produced and the number of jobs available.
• What are interest rates?


  • The cost of borrowing money or the reward for saving money
  • expressed as a percentage.
• What is an overdraft?

  • A flexible loan which businesses can use, whenever necessary, up to an agreed limit.
• What is consumer spending?

  • The value of goods and services bought by consumers over a time period
  • usually a month or a year.
• What are income elastic products?

  • Those whose sales are sensitive to changes in consumers’ incomes.
• What is globalisation?

  • The trend for markets to become worldwide in scope
• What is a multinational company?

  • A company that produces goods and services in more than one country
• What are exports?

  • Goods and services produced by a business in one country and sold in another
• What are imports?

  • Goods and services purchased from overseas customers in the domestic market
• What is a tariff?

  • A tax on foreign goods imported into a country
• What is growth?

  • When a business sells increased quantities of its products
• What are economies of scale?

  • when the cost of producing a single unit falls as output increases
• What is inwards investment?

  • When governments, businesses and individuals invest capital into another country
  • e.g building new factories or buying companies
• What is a takeover?

  • When one business buys control of another one