An explanation of key business term

- Profit: any money made after sales/costs.

- Niche market: a small exclusive market where people buy and sell rare items such as art paintings.

- Shareholder(s): anyone that owns part/all of a company.

- Mass market: a large market where the majority of people trade in items such as bread and milk.

Demonstrate an understanding of the way in which stakeholders influence

- Government: can influence a business in many ways such rate of Tax, Minimum Wage, and Environmental Emissions. Any one of these can dramatically increase a company’s profit if lowered.

- Employees: they can start a strike, increase your profits (depends on how you treat them), they can be your company’s ambassadors to the world.

- Shareholders: they can inject cash into a business, if they’re a majority holder in a company they can control its direction and give commands to employees.

- Communities: can affect a company for the best or worst, if they don’t like a company they can start a protest and get it removed, or support it and make it a member of the community. They are also the hands that feed the company.

- Creditors/Banks: if a loan is not repaid back the courts will force the company to sell assets such as property to cover the loan and interest.

Describe the interaction between the different business sectors in the UK economy,

- Agriculture/Farming: this sector provides the retail sector with dairy, fish, wheat, meat etc.

- Transportation/Warehousing: services the retail sector by transporting goods from supplier to retailer to consumer. It also stores goods overnight ready for deliveries and convenience.

- Retail: sector provides a fast paced market place for manufactures to offload millions of items per year to the mass market; this is also a motivation for innovation as more sales equal more money.

- Utilities: provides the private and public sector with natural humans need such as gas, water and electricity. Without it humans could not function properly.