How Political Decisions Can Affect a Business.
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Introduction
Business Level 3 Unit 1 ? P6 P6 ? Political Factors Politicians make important decisions. At nation level the UK is governed by the political party that secures the most members of parliament in a general election. The ruling party is led by prime minister who appoints the cabinet of senior ministers in charge of the key areas of government ? for example, education, health, industry and so on. At international level, Britain is a member of the European Union. This body makes political decisions that increasingly affect what can be done within member states, at local level; councils are the elected representatives of their populations and make decisions about local issues on their behalf. Political Decisions involve making choices that affect large numbers of people and businesses. The choices made by politicians, for example, in creating new laws, will tend to favour some groups at the expenses of others. Sometimes these decisions favour business, for example, in the granting of a subsidy or an exemption from paying taxes (not having to pay them). ...read more.
Middle
Government supports different types of business in different ways. For the private sector, the government tries to create an environmental in which businesses can compete with each other on level terms regardless of size. Where firms appear to be too large or powerful, the court will investigate and take action through the courts against businesses if they are found to be abusing their position. In addition, government provides various incentives such as grants to start up a new enterprise. In the voluntary sector, government covers the losses made by government-owned organisations Government effectively subsidises a number on non-profit making activities such as maintaining roads or ferry services to remote communities, and funds welfare education and health services. In the voluntary sector, government support involves various cash grants such as those provided by the National Lottery Commission for activities that benefit the wider community, and tax relief on premises owned by these organisations. Charity organisations receive similar support. In the public sector, the government covers the losses made by the government owned organisations. ...read more.
Conclusion
The legal factors of my chosen business are a lot of laws that the business must follow to run, if the business does not follow these legal factors they could run the risk of being closed down because they are not following the laws of the business. My chosen businesses are affected by different laws; my chosen businesses are affected by things like company, contracts, employment and competition laws, these are all protection laws that will protect the customers of a business, these will ensure fair and honest trading in a business. Social factors are things like demographic issues for example population growth or decline, this will mean the number of people in a population and whether if they grow and reduce. Changes in structure for example ageing households and families is when people from households grow up and sometimes will have to leave the business and retire meaning the business will have to recruitment new employees. Education, attitudes to work, religion, attitudes to male and female ethics also affect the business because the employees need to be educated, and must be in a attitude to work, they can be any religion and must not be discriminated, the business must also treat male and female ethics equal. ...read more.
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