AP2 Revision - 1.5 Topics

Which one of the following best defines the term stakeholder? Select one answer.

• An owner of a private limited company

• Someone with an interest in the success of a business

• Any individual who takes decisions within a business

• An individual who owns shares in a business

Explain one possible conflict that can exist between owners and workers of a business.

Explain one disadvantage to a small business of meeting all employment legislation.

Which one of the following is a definition of an exchange rate?

• The flow of goods and services into a country

• The value of one currency in terms of another currency

• A tax on a particular good or service

• When businesses operate on an international scale

Which two of the following are possible impacts on a small business of lower interest rates?

• Higher fixed costs

• Lower insurance premiums

• Customers more likely to purchase using credit

• Lower costs of borrowing money

• Increased variable costs due to higher loan repayments

Which two of the following are types of technology that could be used by a business? Select two answers.

• Consumer law

• Crowd funding

• Digital communication

• Marketing mix

• Payment systems

Explain one benefit to employees of employment law.

Explain one advantage to a small business of meeting all employment legislation.

Identify a possible conflict between Shareholders and the local community, and explain why this conflict exists.