Businesses should not lie to consumers or sell products that do serious harm to consumers. Suppliers - Stick to the agreed contract and pay suppliers in a timely fashion.Ĭustomers - Provide quality products at a fair price. Thus, any changes in the economy will have a significant impact on business development.Įmployees - Ensure work-life balance as well as the physical and emotional well-being of the employees. The success of businesses results in a healthier economy, whereas a strong economy allows businesses to grow faster. Types of business laws - StudySmarter Economic influence on business and examplesīusinesses and the economy have a mutual relationship. copyrights of music, books, films, and software.įigure 2. Intellectual property law - These are laws that protect creative work within the business world, e.g. Generally, these are grouped into three categories:Ĭonsumer laws - These are laws that ensure businesses will provide consumers with quality goods and services.Įmployment laws - These are laws that protect employee rights and regulate the relationship between employees and consumers. Some examples of business-related legislation include: This refers to new legislation that affects consumers', employees', and businesses' rights. Political influence on business and examples

To sustain profitable growth, companies need to constantly monitor environmental changes to adapt and minimise their negative consequences.

Business External Factors - StudySmarterĮxternal factors can have both positive and negative impacts on business operations. Use the acronym PESTEC to memorise this better!įigure 1.

Lifestyle and Technological Environment.

Business Considerations from Globalisation.

Risks and Rewards of Running a Business.

Evaluating Business Success Based on Objectives.

Information and Communication Technology in Business.

Effects of Interest Rates on Businesses.

Improving Employer - Employee Relations.

Political factors affecting business