Answers
BUSINESS BTEC UNIT 1 TASK 5 PASS 6 MERIT 3
- Institution
- CIE
BUSINESS BTEC UNIT 1
[Show more]
2 reviews
By: gemholland • 5 year ago
By: channelkabli • 8 year ago
Content preview
Unit 1 – Business EnvironmentTask 4 – Impact of Political, Legal and Social Factors on Business
Pass 6 – Merit 3
Introduction:
In this assignment I will be looking at how; political; legal and social factors can impact a business
and its stakeholders in two different countries.
Political
This factor looks at how the government regulations and legal issues affect a company’s ability to be
profitable and successful. Issues that must be considered include things like; Tax Guidelines;
Copyright and Property Law Enforcement; Political Stability; Trade Regulations; Social and
Environmental Policy; Employment Laws and Safety Regulations.
Social
The Social factor analyses the demographic and cultural aspects of a business’s market. These
factors are important as they help the businesses examine consumer needs and determine what
entices them to make purchases.
Legal
Legal factors include things like – health and safety, equal opportunities, advertising standards,
consumer rights laws, product labelling and product safety. Companies need to know what is and
what is not legal in order to successfully trade. If a business trades globally this becomes a very tricky
area to get right as each country has its own set rules and regulations.
POLITICAL UK CHINA
Corporation Tax The company McDonald’s will have to For the McDonald’s branches within
pay corporation tax at a rate of 18% of the China economy the corporation tax
their profits for establishments within that has to be paid is 25% of their
the UK. This money would be spent on profits. This money is then used to help
a wide variety of things within the increase the infrastructure of the
government, things like; benefits, country.
Education, Security, infrastructure etc.
Trade When trading within the UK there are When trading for businesses within
Regulations many rules that have to be followed; China and its government different
this includes things like the tax on rules and regulations apply. This means
profits made through exporting for that the McDonald’s organisation will
businesses within the UK. This means be affected differently when operating
that if the McDonald’s company was in China. The tax percentage that is
to make any deals on an international taken off the top when trading
level, whatever money they make will internationally for China is set at 9.4%.
have a percentage taken off the top This money has meant that the
and given to the UK government to infrastructure of china has been
pay for things like; Benefits; Schooling; developed and improved constantly
Hospitals etc. making the country take advantage of
The Export Tariff for the UK is set every and any profit that can be made.
currently at 4.77%.
Jordan Beadle
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jordanbeadle. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.11. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52928 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now