Chapter 1- People In Business Flashcards
What is a commercial business?
Provides goods and services to make a profit for the owners.
- What is business?
Any organisation set up to provide goods and services.
What is an non-commercial business?
Exist to meet some needs other than making a profit eg. Charities.
- Who are the stakeholders in business?
The different groups of people who are directly affected by how a business is run.
Who are entrepreneurs?
People who have an idea and takes a risk in setting up a business to make a profit.
Who are investors?
The people who provide the business with the finance it needs eg. Owners capital, loan capital and grants.
Who are employers?
Who are employees?
Employers recruit staff to work for them.
Employees are recruited by businesses to assist in the business in return for a wage.
Who are managers?
The people responsible for running the business and achieving its goals.
Who are producers?
Who are suppliers?
Producers are the businesses that make products to sell to customers. Suppliers are the businesses that supply the raw materials needed by the producer.
Who are consumers?
Who are customers?
Consumers are a type of customer who buy goods and services purely for their own use, not for resale.
Customers are people who purchase goods from a business for their own use or for resale to others.
What is society?
Both the local community where the business is located and to wider society, both nationally and globally.
What is the government?
Local and national authorities that set the rules and regulations by which businesses must operate.
- What are interest groups?
Organisations representing people (or stakeholders) who share a common interest or goal. Also known as pressure groups they try to influence the behaviour and decisions of others by engaging in lobbying, negotiation, boycotts or legal actions.
What is lobbying?
A deliberate effort by interest groups to influence decision-makers by promoting a particular point of view.
What is the IBEC (Irish Business and Employers Confederation)?
The main organisation representing large and medium sized businesses in Ireland.
What is the small firms association?
Speaks for and advices small businesses.
What are trade associations?
Business interest groups that represent businesses involved in similar types of activities eg. SIMI the society of the Irish motor industry represents garages and car dealers.
What are trade unions?
Organisations that represent the interests of employees in a business on issues concerning pay it conditions of employment eg. SIPTU, ASTI, TUI
What is the National Consumer Agency?
A state agency set up to ensure consumers are aware of their rights and that legislation protecting consumers is obeyed.
What is the Consumers Association Of Ireland?
Represents and lobbies on behalf of consumer interests.
- What relationships exist between the different stakeholders in business?
Entrepreneurs/Owners:
Need- profit, finance and support, skilled workers, minimal risk.
Offers- goods and services, employment and wages, taxes, share of profits, interest on loans.
Investors:
Need- profit on investment, possible share of ownership.
Offers- finance.
Employers:
Need- honestly, reliability, motivation and hard work.
Offers- pay and conditions, training, promotional opportunities.
Employees:
Need- good pay and conditions, secure employment, opportunities to develop.
Offers- skills and qualifications, hard work and motivation, honestly and reliability.
