Edexcel A Level Business - Advanced Information Paper 3

Edexcel A Level Business - Advanced Information Paper 3 Minimum wage legislation Law designed to ensure that every employee is paid a minimum amount of money Anti-discrimination legislation Law designed to ensure that people are not discriminated against due to their ethnicity, gender or age. Industrial relations Relationships between employees, employers and trade unions. This offers protection for unfair dismissal. Consumer protection Law providing a wide variety of protection to consumers Environmental protection Law providing a variety of protections against unethical use of the environment Competition policy Laws designed to regulate market competition Health and safety Preventing people from being harmed at work of becoming ill, by providing the right precautions and a safe working environment Investment appraisal An evaluation of the attractiveness of an investment proposal, using methods such as average rate of return (ARR), net present value (NPV), or payback period. Investment The act of committing money or capital to a business project with the expectation of obtaining an additional income or profit. Payback period The time it takes for a project to repay its initial investment cost. Average rate of return The total accounting return for a project to see if it meets a target. Or the average amount of profit the project returns per year as a percentage of the initial investment cost. ((Net return / Number of years) / Initial Cost)) x 100 Discounted cash flow / Net present value Calculates the monetary value now, of the projects future cash flows. Using discount factors to show that £100 in 3 years is not worth the same as £100 now. Stakeholder Any individual or group effected by the activities of an organisations. Shareholder Someone who owns a proportion of the company's share capital. Internal stakeholder Someone who has an interest in a business and is involved directly in the day to day running of the business. External stakeholder Someone who has an interest in a business but has no part of the day to day running of the business, yet is still affected by the decisions made Trade liberalization Where governments decide to remove international trade barriers, such as tariffs, quotas and regulations. Protectionism Giving preference to home producers by making it harder and more expensive for overseas companies to export to your country. Tariff A tax imposed on imports into a country. Quota A limit in the number of units or a