Ch 1. People in Business

Question 0

Commercial business

Answer 0

Provide goods and services to make a profit for the owners

Question 1

A business

Answer 1

• Any organisation set up to provide goods and services

- Can be commercial or non-commercial

Question 2

Non-commercial businesses

Answer 2

• Not for profit

- Exist to meet needs other than making a profit

Question 3

Stakeholders

Answer 3

• Different groups of people who are directly affected by how a business is run
• Include
  • Entrepreneurs
  • Investors
  • Employees
  • Managers
  • Producers
  • Customers
  • Suppliers
  • Government

Question 4

Entrepreneurs

Answer 4

People who take the initiative to turn an idea into a business

Question 5

Investors

Answer 5

People who provide a business with the finance it needs

Question 6

Where does investors finance come from

Answer 6

• Owners capital
• Loan capital
• Grants

Question 7

Owners’ capital / Equity capital

Answer 7

• Money invested by people or companies

- In return they become part owners of the business and are entitled to a share in future profits

Question 8

Loan capital

Answer 8

• Finance from banks or other lenders

- Has to be repaid within a certain period of time

Question 9

Grants

Answer 9

• A gift of money that does not have to be repaid as long as certain conditions are met, such as a certain number of new jobs
• Provided by State agencies

Question 10

Relationship between Entrepreneurs and Investors

Answer 10

• Need each other
• Entrepreneur needs Investor to provide finance to start and grow a business
• Investor needs Entrepreneur to establish a successful business that will generate a profit

Question 11

Employers

Answer 11

Recruit staff to work for them

Question 12

Employers rights

Answer 12

• Recruiting employees when needed
• Directing employees to perform the work required
• Dismissing employees fairly (Unfair Dismissals Act 1977 to 2007

Question 13

Employers responsibilities

Answer 13

• Providing written contract of employment
• Paying agreed wages
• Provide safe working conditions
• Complying with employment laws

Question 14

Employees

Answer 14

Recruited by businesses to assist in the business in return for a wage

Question 15

Employees rights

Answer 15

• Receiving a written contract of employment
• Being paid agreed wage
• Work in a safe and healthy workplace
• Freedom to join a trade union

Question 16

Employees responsibilities

Answer 16

• Following reasonable and legal
  instructions
• Doing a fair days work for a fair days pay
• Being honest and loyal in their work

Question 17

Managers

Answer 17

People responsible for running the business and achieving it’s goals

Question 18

Managers skills

Answer 18

• Leadership
• Motivation
• Communication

Question 19

Managers activities

Answer 19

• Planning
• Organising
• Controlling

Question 20

Producers

Answer 20

Businesses that make products to sell to customers

Question 21

Suppliers

Answer 21

Businesses that supply the raw materials needed by the producer

Question 22

Service providers

Answer 22

Businesses that supply the services needed by a business

Question 23

Customers

Answer 23

People who purchase goods from a business for their own use or for resale to others

Question 24

Consumers

Answer 24

Customers who buy goods and services purely for their own use, not for resale

Question 25

Society

Answer 25

- Both the local community where business is located and the wider society - Bore nationally and globally

Question 26

Government

Answer 26

- Local and national authorities that set the rules and regulations by which a business must operate

Question 27

What the government wants businesses to do

Answer 27

- Provide jobs - Pay taxes - Obey the law

Question 28

Interest groups

Answer 28

Organisations representing stakeholders who share a common interest or goal

Question 29

Lobbying

Answer 29

- Deliberate effort by interest groups to influence decision-makers by promoting a particular point of view - Requesting meetings - Generating media coverage

Question 30

IBEC

Answer 30

- Irish Business and Employers Confederation | - Main organisation representing large and medium sized businesses in Ireland

Question 31

Small Firms Association

Answer 31

Speaks for and advises small businesses

Question 32

ISME

Answer 32

- Irish Small & Medium Enterprises | - Speaks for and advises small and medium sized enterprises

Question 33

Chambers of Commerce

Answer 33

Protect and promote business located in their area

Question 34

Trade associations

Answer 34

Business interest groups that represent businesses involved in similar types of activities

Question 35

Trade unions

Answer 35

Organisations that represent the interests of employees in a business on issues concerning pay or conditions of employment

Question 36

ICTU

Answer 36

- Irish Congress of Trade Unions | - Represent interests of all trade unions and their members nationally

Question 37

National Consumer Agency

Answer 37

- State agency | - Ensures consumers are aware of their rights and that legislation protecting consumers is obeyed

Question 38

Consumers Association of Ireland

Answer 38

Represents and lobbies on behalf of consumer interests

Question 39

Competitive approach

Answer 39

- Win/Lose relationship - Assumes only one party can win - Stakeholders must compete to gain a commercial advantage over the other

Question 40

Benefit of competitive approach

Answer 40

Suitable for dealing with rival firms

Question 41

Disadvantage of competitive approach

Answer 41

- Unsuitable when dealing with stakeholders | - Damages reputation

Question 42

Co-operate approach

Answer 42

- Win/Win realtionship | - Parties win

Question 43

Conflict

Answer 43

- When the interests of stakeholders are in disagreement | - One party wants to achieve something which is in conflict with what another party wants

Question 44

4 Non legislative ways to resolve conflict

Answer 44

- Talk - Negotiate - Seek help from a 3rd party - Arbitration

Question 45

Negotiating

Answer 45

- Getting all sides in a dispute or conflict to explain their position - Understand their differences - Then bargain to arrive at a resolution that is acceptable to both sides

Question 46

Arbitration

Answer 46

- Getting a 3rd party to listen to all sides | - Recommend a solution

Question 47

Legislative ways to resolve conflict

Answer 47

- Use a State conflict resolution agency | - Use the law