Unit 7.4 Analysing the external environment: political and legal environment Flashcards
1
Q
What is the financial support available from banks?
A
Enterprise allowance -
Funding for lending -
Enterprise finance guarantee (EFG)
2
Q
How does the government support enterprise?
A
- Reducing the number of regulations
- BIS is working with HMRC to offer support to new and small businesses
- Supporting innovation through a £4.6 billion fund
Range of schemes to develop new products and processes - Recruits young business owners to volunteer as enterprise champions
-Works directly with schools and colleges to encourage the use of schemes
3
Q
What is regulation?
A
Regulation the enforcement or principles or rules that result from the passing of a law or series of laws.
4
Q
How does regulation affect businesses?
A
- Create free and fair competition
- Regulate high profile industries
- Privatised monopolies to protect consumers
- Self regulation by businesses
5
Q
What impact will regulation have on UK businesses?
A
- Stops them maximising profits by charging higher prices
- Bad publicity if fined or other sanctions
- Take a range of functional and strategic decisions to reduce the impact of any threat
- Provides a stable long term environment to operate
6
Q
What are the implications of international trade?
A
- Revenue and employment
- Competition
- Easier to sell abroad (EU)
- Larger market
- Economies of scale
7
Q
When can an employee be dismissed fairly?
A
- Where a job no longer exists - redundancy
- Gross misconduct
- Failing to carry out duties in a satisfactory manner
- Ending of a contract
8
Q
What are the two environmental laws?
A
- Environmental Protection Act 1991 - minimise pollution
- Environment Act 1995 - control of pollution,
9
Q
What are the three competition laws?
A
- Competition Act 1998
- Enterprise Act 2002
- Enterprise and Regulatory reform Act 2013
