Chapter 1- People In Business

Question 0

What is a commercial business?

Answer 0

Provides goods and services to make a profit for the owners.

Question 1

1. What is business?

Answer 1

Any organisation set up to provide goods and services.

Question 2

What is an non-commercial business?

Answer 2

Exist to meet some needs other than making a profit eg. Charities.

Question 3

2. Who are the stakeholders in business?

Answer 3

The different groups of people who are directly affected by how a business is run.

Question 4

Who are entrepreneurs?

Answer 4

People who have an idea and takes a risk in setting up a business to make a profit.

Question 5

Who are investors?

Answer 5

The people who provide the business with the finance it needs eg. Owners capital, loan capital and grants.

Question 6

Who are employers?

Who are employees?

Answer 6

Employers recruit staff to work for them.

Employees are recruited by businesses to assist in the business in return for a wage.

Question 7

Who are managers?

Answer 7

The people responsible for running the business and achieving its goals.

Question 8

Who are producers?

Who are suppliers?

Answer 8

Producers are the businesses that make products to sell to customers. Suppliers are the businesses that supply the raw materials needed by the producer.

Question 9

Who are consumers?

Who are customers?

Answer 9

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.

Question 10

What is society?

Answer 10

Both the local community where the business is located and to wider society, both nationally and globally.

Question 11

What is the government?

Answer 11

Local and national authorities that set the rules and regulations by which businesses must operate.

Question 12

3. What are interest groups?

Answer 12

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.

Question 13

What is lobbying?

Answer 13

A deliberate effort by interest groups to influence decision-makers by promoting a particular point of view.

Question 14

What is the IBEC (Irish Business and Employers Confederation)?

Answer 14

The main organisation representing large and medium sized businesses in Ireland.

Question 15

What is the small firms association?

Answer 15

Speaks for and advices small businesses.

Question 16

What are trade associations?

Answer 16

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.

Question 17

What are trade unions?

Answer 17

Organisations that represent the interests of employees in a business on issues concerning pay it conditions of employment eg. SIPTU, ASTI, TUI

Question 18

What is the National Consumer Agency?

Answer 18

A state agency set up to ensure consumers are aware of their rights and that legislation protecting consumers is obeyed.

Question 19

What is the Consumers Association Of Ireland?

Answer 19

Represents and lobbies on behalf of consumer interests.

Question 20

4. What relationships exist between the different stakeholders in business?
   Entrepreneurs/Owners:

Answer 20

Need- profit, finance and support, skilled workers, minimal risk.

Offers- goods and services, employment and wages, taxes, share of profits, interest on loans.

Question 21

Investors:

Answer 21

Need- profit on investment, possible share of ownership.

Offers- finance.

Question 22

Employers:

Answer 22

Need- honestly, reliability, motivation and hard work.

Offers- pay and conditions, training, promotional opportunities.

Question 23

Employees:

Answer 23

Need- good pay and conditions, secure employment, opportunities to develop.

Offers- skills and qualifications, hard work and motivation, honestly and reliability.

Question 24

Producers:

Answer 24

Need- reliable suppliers, loyal customers.

Offers- right quality, right prices.

Question 25

Suppliers:

Answer 25

Need- reliable customers who pay on time, profitable business.

Offers- products and services.

Question 26

Customers:

Answer 26

Need- quality goods and services, fair and affordable prices.

Offers- payment for goods/services, loyalty and repeat business.

Question 27

Society:

Answer 27

Need- local jobs, no damage to local community, wider society or the environment, support and sponsorship.

Offers- favourable public opinion, socially responsible brand image.

Question 28

Government:

Answer 28

Need- tax revenue for government, goods and services for society.

Offers- tax incentives, grants, business advice and support, infrastructure and services.

Question 29

5. What is the difference between co-operate and competitive relationships in business?

Answer 29

Competitive- views the relationships between stakeholders as win/lose.

Co-operative- views the relationships between stakeholders as win/win.

Question 30

6. How can conflict in business be resolved?

Answer 30

Occurs when the interestes of different people in business are in disagreement. Can be resolved non-legislatively or legislatively.

Question 31

What is non-legislative?

Answer 31

To not involve the law.

Question 32

What is negotiation?

Answer 32

Getting all sides in a dispute or conflict to explain their position, understand their differences and then bargain to arrive at a resolution that is acceptable to both sides.

Question 33

What is arbitration?

Answer 33

Getting a third party to listen to all sides and then to recommend a solution.

Question 34

What is legislative?

Answer 34

To involve the law.

Question 35

What are some state conflict resolution agencies?

For conflicts between consumers and businesses:

Answer 35

National consumer agency

Small claims court

Question 36

For conflicts between employers and employees:

Answer 36

Labour relations commissioner
Labour court
Equality authority
Employment appeals tribunal

Question 37

Using the law?

For conflicts between consumers and businesses:

Answer 37

Consumer protection act 2007

Sales of goods and supply of services act 1980.

Question 38

For conflicts between employers and employees:

Answer 38

Industrial relations act 1990
Employment equality act 1998
Unfair dismissals acts 1977 to 2007.