The Impact of Political, Legal, and Social Factors on a Business

1164 Words5 Pages
In this task, I will be describing how political, legal and social factors are impacting upon the selected business activities. The two businesses which I have chosen are, Oxfam and also Tesco. Political factors for Tesco Taxation Large business such as Tesco is largely affected by the government taxes, such as income taxes and business rates. Tesco is a large business which means that a lot of corporation tax taken away from their profits. Corporation Tax is a tax on the taxable profits of limited companies and other organisations. Tesco is a large company in the UK, so they will have to pay corporation tax regardless were their profit is coming from. Tax has an impact on Tesco as a whole; tax will be taken of Tesco’s profit which will result in less dividence for shareholders. Invest can be put off as their main and objective is to receive the largest amount of dividence possible. Direct support With business like Tesco, the government provides direct support concerning specific business activities. The government is able to give direct support on many ways such as, grants, subsides and loans. For example in 2010 the government supported Tesco’s plan on going green. Tesco approached the government in to support the businesses quest to go green, because it was a reasonable approach and was beneficial to the environment, after consideration the government supported Tesco by giving them grants. Legal factors for Tesco Consumer protection laws Consumer protection laws are laws which businesses like Tesco must follow, consumer benefit from these laws. These laws prevent Tesco from giving consumers wrong information about a product or services, The Trades Descriptions Act insists that goods and services must be described correctly. Another form act is The Weights and Measures . The Weights and Measures Act ensures that consumers get the accurate weight or

More about The Impact of Political, Legal, and Social Factors on a Business

Open Document