Flashcards on Business Fundamentals and Environment
Business Fundamentals and Environment: Forms of Ownership Guide
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Business Risks
36 cards
Card 1
Question: What is bootlegging in the context of business risks?
Answer: Unlawfully manufacturing or selling fake goods for sale, such as illegal copied DVDs sold on street corners.
Card 2
Question: Give an example of how criminals commit bootlegging related to movies.
Answer: Criminals record movies with handheld devices during a live cinema screening to produce illegal copies.
Card 3
Question: How does bootlegging affect a business's profits?
Answer: Businesses lose out on profit due to the sale and distribution of fake or imitated products.
Card 4
Question: What are two financial consequences for businesses dealing with bootlegging?
Answer: Decline in sales from fake distribution and increased expenses if legal actions are taken.
Card 5
Question: Why might businesses change their pricing because of bootlegging?
Answer: They may implement price adjustment strategies to minimise the impact of reduced sales from counterfeit products.
Card 6
Question: What is a strike (labour dispute)?
Answer: A collective refusal of employees to work aimed at forcing the employer to accept their demands over workplace issues.
Card 7
Question: Name three forms a strike can take.
Answer: Go slow, lockout, and sympathy strike.
Card 8
Question: What obligation does a trade union have when planning a strike?
Answer: The trade union must give notice to the employer when planning a strike.
Card 9
Question: How can strikes affect a business's ability to meet obligations?
Answer: Strikes can make a business unable to meet contractual obligations and may lead to losing contracts.
Card 10
Question: Why can the cost of making up working hours after a strike be problematic for businesses?
Answer: Because the cost of making up all the lost working hours is too high.