Legal Aspects of a Business
What is a contract?
A contract is a legally binding agreement between two or more parties
Identify the types of production that takes place for EACH of the following activities.
Sugar cane harvesting
Development of townhouses
The provision of online banking services
Primary
Secondary- Manufacturing
Tertiary
Identify TWO direct taxes.
Income tax
Corporation tax
Capital gains tax
Capital transfer tax
Differentiate between 'market' and 'marketing'.
Market anywhere buyers and sellers of a product meet
Marketing is the activities carried out by a business to identify, anticipate and meet customer requirements
Differentiate between short term and long term capital
Short term capital- assets held for less than a year
Long term capital- assets held for over a year
Name THREE elements of a simple contract?
Offer
Acceptance
Consideration
Legality
Capacity
Differentiate between production and productivity.
Production is the creation of a good whilst productivity is producing efficiently
Differentiate between ‘progressive’ and ‘regressive’ taxes.
Progressive tax-A tax that takes a larger percentage of income from high-income groups than from low-income groups.
Regressive tax—A tax that takes a larger percentage of income from low-income groups than from high-income groups
Identify the traditional elements of the marketing mix.
Place
Price
Promotion
Product
Differentiate between commercial bank and the central bank.
Central banks offer products and services to the country's government and other commercial banks. Commercial banks offer banking products and services to individuals and businesses.
State TWO ways in which contracts can be terminated/discharged.
Performance
Death
Agreement
Frustration
State THREE reasons why skilled people migrate.
Answers may vary...
Outline THREE measures that could be taken by regional governments to influence their citizens to protect the natural environment.
Zoning laws
Recycling
Green technology
proper waste disposal
Reforestation
Proper Disposal of Waste
State FOUR reasons for marketing research.
understand customers
identify clients
understand the competition
forecast possible future changes
explore opportunities for business growth
Identify FOUR services that commercial banks offers to their customers.
Accepting deposits
Savings
Offering loans
Making payments
Investments
Explain TWO circumstances under which a contract might be rendered invalid.
Answers may vary...
Outline TWO effects of migration on the home country.
Brain drain
Cultural diversity
Discrimination
Loss of young people
Describe ONE economic impact, on a country, of an improvement in the health care.
One significant economic impact of an improvement in healthcare within a country is the potential for increased productivity among the workforce. When people have better access to healthcare services, preventive care, and timely treatment for illnesses, they are more likely to maintain good health and remain active in the workforce.
Outline THREE factors which influence consumer behaviour.
Income
Brand loyalty
Price
Product quality
Taste
Tradition
Spending patterns
Identify and describe TWO non bank financial institutions.
Credit Union
Building societies
Insurance companies
Micro-lending agencies
Distinguish between a ‘simple contract’ and a ‘specialty contract’ and give ONE example of EACH type of contract
A simple contract can be made orally, in writing or by the implications deemed from the actions of the parties. A specialty contract must be signed by the parties sealed, for example with a company seal and finally it must be delivered
Differentiate between 'backward linkages and 'forward linkages' giving examples of both
A linkage industry is one that is connected to another industry because it provides supplies for it or it is a market for its finished product.
A forward linkage occurs when the output of one industry becomes the input to another industry. Example Coffee farmers supply coffee beans to Nescafe Co
A backward linkage occurs when one industry creates a demand for the products of another industry.
Example Symee's Cafe will sell Nescafe coffee to patrons
Discuss ONE economic impact, on a country, of an improvement in the transportation.
One significant economic impact of an improvement in transportation within a country is the potential for increased trade and economic activity.
Improved transportation infrastructure, such as better roads, railways, ports, and airports, facilitates the movement of goods and people more efficiently and at lower costs. This increased efficiency can lead to several economic benefits:
Explain TWO ways in which businesses could use social media to promote sales.
Social Media Adertising
Influencer marketing
Engagement & Community Building- consistently posting, replying to messages and posts
User generated content- photo or video contests, hashtag challenges, product review, testimonials
What is a mutual fund?
A professionally managed investment fund that pools money from many investors to purchase a wide range of different stocks and shares on their behalf in return for management fees