A Level Business Studies: Legislation Exam Questions
Explain the general purpose of legislation from the point of view of a business (4 marks) The purpose of legislation from the point of view of the business helps protect businesses with weaker bargaining power, and also ensures competition is fair, employees are treated fairly, that due attention is paid to the environment, that consumers are considered and that health and safety regulations are met. Legislation essentially instructs how a business environment is ran – in an orderly fashion. Explain two advantages to a business of legislation related to competition (6 marks) One advantage to a business of legislation related to competition is anti-competitive agreements. Law is put in place to prevent, restrict or distort competition. This prevents the agreement of the fixture of selling prices, agreements that limit production, investment, development and agreements that apply different conditions to similar businesses. In this case, legislation is beneficial as it allows for an even