What is the National Living Wage?

The National Living Wage is the legal minimum hourly pay for workers aged 21 and over. The rate was £12.71 an hour from April 2026.

How does a rise in the National Living Wage affect a business such as a care home?

A care home employs many low-paid staff, so its wage costs rise sharply. The home may have to raise its fees or accept lower profit.

What are the possible benefits to a business of paying well above the legal minimum wage?

Better-paid staff tend to be more motivated and less likely to leave. Lower staff turnover cuts recruitment and training costs.

What is the purpose of the Equality Act 2010?

The Equality Act 2010 makes it illegal to discriminate against people because of protected characteristics. Protected characteristics include age, disability, race, religion, sex and sexual orientation.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Influences on Business

Employment, health and safety and consumer law

3 things to know
Both papers

Overview

The National Minimum Wage and National Living Wage, the Equality Act 2010 in recruitment and pay, the Health and Safety at Work Act 1974, trade descriptions and the Consumer Rights Act 2015.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Numbers

What does trade descriptions law require of a business?

Key term

Why does the government pass laws that affect businesses?

Key term

What is the National Minimum Wage?

Questions from this subtopic

Each one with the model answer underneath.

1
Why does the government pass laws that affect businesses?
Model answer
Laws protect employees, customers and the public from unfair or unsafe treatment. Laws also make sure businesses compete fairly.
2
What is the National Minimum Wage?
Model answer
The National Minimum Wage is the lowest hourly pay an employer can legally give a worker. The rate depends on the worker's age and whether they are an apprentice.
3
What is the National Living Wage?
Model answer
The National Living Wage is the legal minimum hourly pay for workers aged 21 and over. The rate was £12.71 an hour from April 2026.
4
How does a rise in the National Living Wage affect a business such as a care home?
Model answer
A care home employs many low-paid staff, so its wage costs rise sharply. The home may have to raise its fees or accept lower profit.
5
What are the possible benefits to a business of paying well above the legal minimum wage?
Model answer
Better-paid staff tend to be more motivated and less likely to leave. Lower staff turnover cuts recruitment and training costs.
6
What is the purpose of the Equality Act 2010?
Model answer
The Equality Act 2010 makes it illegal to discriminate against people because of protected characteristics. Protected characteristics include age, disability, race, religion, sex and sexual orientation.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

franchiseefranchisorshareholder

Blank Blitz consolidates the facts

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AThe business pays more interest on the money it owes.

BHigher interest charges raise costs and reduce profit.

CThe business will pay £1,000 more interest each year.

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Wage means pay based on the number of hours worked.

TrueFalse

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