Business GCSE
Economic climate and borrowing costs
What Economic climate and borrowing costs means in Business GCSE, as defined for AQA.
Definition of Economic climate and borrowing costs
Check what you remember
Read the wording for your board, then hide it and explain Economic climate and borrowing costs in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Changes such as a rise in interest rates increase the cost of borrowing for a business with a variable-rate loan, reducing profitability and cash flow.
Topics that use Economic climate and borrowing costs
- Influences on business (AQA GCSE)
Related terms
- Adapting the marketing mix to external pressures
- Application of business concepts to context
- Batch Production
- Buffer stock
- Business ethics
- Business operations
- Cause and effect reasoning in business
- Chain of Command
Using Economic climate and borrowing costs in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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