Business - 9225 OxfordAQA

The Economic Climate On Business

Akopọ

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.

Awọn Afojusun

  1. Interest rates:
  2. how fluctuating interest rates can affect businesses that rely on overdrafts and loans for finance
  3. how fluctuating interest rates can affect consumer and business spending.
  4. Level of employment.
  5. Consumer spending.

Àwòrán ọpọlọ

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Akọ̀wé Ẹ̀kọ́

The furniture shop is a useful example because a sofa is exactly the kind of purchase that waits. Nobody's sofa becomes unusable on a fixed date. It is expensive enough to be worth financing, and comfortable enough to live with for another year. So when money is tighter, or borrowing is dearer, or a job feels less certain, the sofa is one of the first things to be postponed.

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Oriire fun ipari ẹkọ lori The Economic Climate On Business. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.

Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.

Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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

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