Question 1: Define what is meant by 'legislation' in the context of a business.

Answer: Legislation refers to laws and rules created by the government that businesses must follow to operate legally.

Question 2: Give an example of a law that affects how a business can advertise its products.

Answer: The Advertising Standards Authority (ASA) regulations, which ensure advertisements are truthful and not misleading.

Question 3: Explain why health and safety legislation is important for a retail shop.

Answer: It helps protect employees and customers from accidents and ensures the shop provides a safe environment.

Question 4: Describe two ways that legislation can influence a business's day-to-day operations.

Answer: Legislation may require businesses to keep certain records for tax purposes and to ensure products meet safety standards.

Question 5: Identify a piece of legislation that impacts employment practices and briefly explain its effect.

Answer: The Equality Act 2010, which prevents discrimination based on age, gender, race, or disability, promoting fair treatment at work.

Question 6: Discuss what might happen to a business if it ignores legislation related to consumer rights.

Answer: The business could face fines, legal action, damage to its reputation, and loss of customer trust.

Question 7: Sketch a simple flowchart showing the process a business must follow to comply with a new law.

Answer: A correct sketch would include steps such as: understanding the law → planning changes → implementing changes → monitoring compliance.

Question 8: Draw a diagram illustrating the relationship between government legislation, a business, and consumers.

Answer: A diagram should show: Government creates legislation, which influences business practices, and affects consumers' rights and protections.

Question 9: Explain how legislation can influence a business’s decision to expand or reduce its operations.

Answer: Legislation can either encourage expansion by providing incentives or restrict growth if new laws impose costly requirements.

Question 10: Identify one recent change in UK legislation that has impacted small businesses and describe its effect.

Answer: The introduction of the National Minimum Wage increased labour costs for small businesses, affecting their profit margins.

Question 11: What is the purpose of consumer protection laws, and how do they benefit consumers?

Answer: They ensure products are safe, and consumers are treated fairly, which builds trust and encourages purchasing.

Question 12: Sketch a brief poster outline that a business could use to inform customers about their compliance with a new law.

Answer: The sketch should include a clear heading, a short message about compliance, and possibly a symbol like a checkmark or shield to indicate safety or legality.