Unit 26 Government objectives (Business Studies)
Presentation
•
Business
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10th - 12th Grade
•
Practice Problem
•
Easy
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9 Slides • 5 Questions
1
Unit 26 Government objectives (Business Studies)
2
Case
VIS provides a range of insurance services including for cars and electrical products. Recently, the company plans to change the organizational structure because there are many customer complaints. Therefore, employees will be trained.
3
Open Ended
How can higher taxation affect the company?
4
Effects
Reduced Demand (lower sales) (k) for insurance (app)
Increased costs (Lower profit) (k) so less money for training (app)
May have to increase prices (k) leading to more customer complaints. (app)
5
CASE
John owns a successful restaurant business. He set up 10 years ago. The business has a chain of 5 restaurants located in the centre of the main city. The business is in country B which has had high levels of economic growth of the past 5 years. John is considering to open a new restaurant with a takeaway service.
6
Question
Consider how the following changes might affect the success of the new business.
7
Open Ended
When the economic cycle in country B moves from boom into recession
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Effects of economic cycle in country Z (boom to recession)
Lower incomes
Unemployment increases
Less demand for restaurants and takeaway food
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Open Ended
When government in country B lowers income tax
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Effects of lowering income tax
Increased disposable income
Increased demand for restaurant
11
Open Ended
When new legal controls so all packaging for takeaways must be able to be recycled
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Effects of using recyclable packaging
Increased costs
Higher prices
Changes in packaging may affect food
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Open Ended
When new legal controls that all menus must contain full information on the ingredients used
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Effects of making all menus have full information on the ingredients used
Increased cost because of reprinting menus
Increased demand if healthy food ingredients listed
Unit 26 Government objectives (Business Studies)
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