The Economic Climate On Business
Aperçu
A furniture shop has a good year and a bad year without changing anything at all. Same shop, same stock, same staff, same prices. In the good year customers walk in and buy a sofa on twelve months of credit. In the bad year the credit costs them more, their own jobs feel less secure, and the sofa can wait until next year. The shop did nothing differently. The economy did.
This topic is about the forces no business controls and every business is affected by. In this lesson you will learn what interest rates do to a business with an overdraft or a loan, and what they do to the customers who were going to buy from it. You will learn why a change in the level of employment pushes a business's costs and its revenue in opposite directions, and why the same fall in incomes almost destroys some businesses and barely touches others. The specification is clear that you do not need any economic theory about why interest rates change; what you need is to trace what happens to a particular business when they do.
Objectifs
- Interest rates:
- how fluctuating interest rates can affect businesses that rely on overdrafts and loans for finance
- how fluctuating interest rates can affect consumer and business spending.
- Level of employment.
- Consumer spending.
Carte mentale
Ce theme est schematise pour montrer comment les idees se relient.
Ouvrez la carte mentale dans l'application
Note de cours
Fiche complete disponible sur l'application Green Bridge
Installez l'application Green Bridge CBT sur votre telephone ou votre ordinateur pour acceder a toute la bibliotheque IGCSE : sujets d'examen, baremes, cartes mentales, fiches memo et lecons audio.
Évaluation de la leçon
Félicitations, vous avez terminé la leçon sur The Economic Climate On Business. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.
Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.
Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.
- Which one of the following is most likely to happen if there is a large rise in unemployment? A. Demand for luxury goods will increase B. More people will be looking for work C. Wages will rise quickly D. Consumer spending will increase Answer: B
- Interest rates rise sharply. Which one of the following businesses is likely to be affected most? A. A bakery selling bread for cash B. A bus company charging single fares C. A car dealer whose customers buy on finance D. A newsagent selling newspapers Answer: C
- A business has a loan of 400,000 at a variable rate. The rate rises from 4 per cent to 7 per cent. By how much does its annual interest cost rise? A. 3,000 B. 12,000 C. 16,000 D. 28,000 Answer: B
- Which one of the following is a benefit to a business of a rise in unemployment? A. Consumer spending increases B. It becomes easier and cheaper to recruit staff C. Its customers can borrow more cheaply D. Its interest costs fall Answer: B
- Incomes in a country fall. Which one of the following businesses is most likely to see demand rise? A. A budget supermarket B. A jeweller C. A luxury hotel D. A new car showroom Answer: A
Travaillez ces questions dans l'application
Travaillez ces questions dans l'application
Livres recommandés
Pratiquez des questions blanches
Vous voulez vous entraîner sur des questions blanches sur The Economic Climate On Business ? Téléchargez lapplication Green Bridge CBT pour accéder à des questions blanches et à des évaluations complètes sur ce sujet.
Téléchargez l'application sur Google Play.
Tout ce dont vous avez besoin pour exceller au JAMB, WAEC et NECO.
