AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Students should be able to assess the impact of legislation on businesses,…
Full specification wording
Legislation: Students should be able to assess the impact of legislation on businesses, for example cost, training needs, recruitment and the consequences of failure to follow legislation for the business.
Legislation affects every business.
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 4 of 11
- 3 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Legislation affects every business. For example, a new health and safety law may require guards on machines, raising equipment costs. Staff need training to use new procedures, so training budgets rise. The business may recruit a health and safety officer, increasing recruitment and salary costs. If it fails to comply, it could face fines, compensation claims, damaged reputation and lost sales. Assessment means weighing these effects and judging which are most significant for the business.
What earns the marks
- Legislation can raise business costs, for example new equipment, safety measures, insurance or legal advice.
- Training needs may increase because staff must learn new procedures, understand their rights and follow compliance rules.
- Recruitment may be affected if specialist roles such as compliance officers or health and safety managers are needed.
- Failure to follow legislation can lead to fines, compensation claims, legal action, damaged reputation and lost customers.
Common mistakes and how to put them right
Listing impacts without assessing them.
Put it right: Is to weigh each impact and state which matters most and why.
Ignoring recruitment and focusing only on cost.
Put it right: Is to cover all named areas: cost, training, recruitment and consequences of failure.
Treating all legislation as having the same effect on every business.
Put it right: Is to consider size, industry and resources.
Exam tips
- Use a specific law or regulation to make your assessment concrete.
- Develop each point with a consequence, for example higher costs reduce profit or higher prices lose customers.
- Reach a clear judgement about the overall impact on the business.
Try the lesson
The start of the Legislation: Students should be able to assess the impact of legislation on businesses, for example cost, training needs, recruitment and the consequences of failure to follow legislation for the business. lesson, made from checked teaching notes for this specification point.
Have a go first
Which of the following is a likely impact on a business of new legislation about how staff must be treated?
Listen
Legislation affects every business. For example, a new health and safety law may require guards on machines, raising equipment costs. Staff need training to use new procedures, so training budgets rise. The business may recruit a health and safety officer, increasing recruitment and salary costs. If it fails to comply, it could face fines, compensation claims, damaged reputation and lost sales. Assessment means weighing these effects and judging which are most significant for the business. A strong answer earns marks for these points. Legislation can raise business costs, for example new equipment, safety measures, insurance or legal advice. Training needs may increase because staff must learn new procedures, understand their rights and follow compliance rules. Recruitment may be affected if specialist roles such as compliance officers or health and safety managers are needed. Failure to follow legislation can lead to fines, compensation claims, legal action, damaged reputation and lost customers. A common slip: Listing impacts without assessing them. Instead, is to weigh each impact and state which matters most and why. Exam tip: Use a specific law or regulation to make your assessment concrete.
See it
Key words
Say what each word means before you turn the card.
Compliance costs
Try answering aloud or in your head before turning the card.
Staff training
Try answering aloud or in your head before turning the card.
Consequences of failure
Try answering aloud or in your head before turning the card.
See every definition
- Compliance costs
- Legislation can raise business costs, for example new equipment, safety measures, insurance or legal advice.
- Staff training
- Training needs may increase because staff must learn new procedures, understand their rights and follow compliance rules.
- Consequences of failure
- Failure to follow legislation can lead to fines, compensation claims, legal action, damaged reputation and lost customers.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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