Ch.1- People in business Flashcards
Equity Finance
when an investor gives the entrepreneur capital in return for a share in the business
Dividend
when the investor receives an annual share of the profits
Intrapreneurs
Employees in the business that show entrepreneurial slkills
Market research
Gathering info about the consumers’ likes and dislikes
Service provider
a business that offers a range of helpful supports to an entrepreneur. operates in the tertiary sector (e.g accountant)
Invitation to treat
Is an indication that a person is willing to receive offers and/or negotiate a contract
Counter offer
When a person makes a new offer that is changed (diff. terms) in response to the original offer
Co-operative relationship
When all stakeholders in a business come together and work for the same goal. Often called a win-win situation as both parties benefit fit from working with each other
Competitive relationship
When one stakeholder/party in a business wants to become more successful than the other. Often called a win-lose situation as one party will always come out on top. E.g Taytos and Walkers.
Dependent relationship
When both parties in a business need each other in order to succeed. They cannot do this on their own. E.g Consumers and producers
Dynamic relationship
The relationship between the stakeholders in a business is always changing. Sometimes it may be competitive, other times cooperative.
What are the 8 essential elements in a contract?
- Offer
- Acceptance
- Consideration
- Intention to contract (must mean it)
- Capacity to contract (legally able)
- Consent to contract
- Legality of form
- Legality to contract (Must be legitimate)
Interest group
An org/group of people who come together and campaign for a common goal by pressuring those who make decisions
Performance
Contract comes to an end when both parties carry out exactly what they agreed to do
Agreement
Contract comes to an end when both parties agree to finish the current contract they are in, sometimes for a new one
