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Business > Chapter 1- People In Business > Flashcards

Chapter 1- People In Business Flashcards

1
Q

What’s a Stakeholder?

A

People who are affected by how a business is run

ex-Entrepreneur,Investor,Employer,Employee

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2
Q

Define Entrepreneur

A
  • Spots an opportunity (gap/niche in the market)
  • Uses initiative
  • Sets up a business
  • To make money (Profit)
  • Take Risks (Financial and Personal)
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3
Q

Define Investor

A
  • Provides Money (capital) to the entrepreneur
  • Capital is used to set up and run a business
  • Investor wants a ‘return’ on their investment
  • They want a share of the profit (called a dividend) when they provide Equity Capital
  • They want their investment back plus Interest when they provide Debt Capital
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4
Q

Define Employer

A
  • Hires the workers
  • Entrepreneur becomes employer when they can’t do all the work themselves
  • Pay the employees
  • Wages, commission, BIK (Google)
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5
Q

Define Employee

A
  • Works for employer in return for a wage
  • Performs essential tasks
  • Employer can’t do all the tasks themselves (or can’t do them)
  • Employees provide ideas for employers
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6
Q

Define INTRAPRENEURS

A

-Employees who provide ideas

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7
Q

Define Manager

A

-Run the business
-Help the business / entrepreneur achieve its objectives
-Manage and use resources efficiently (people, money, equipment)
-Be able to lead and motivate
Communicate well with all stakeholders

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8
Q

Producer

A
  • Makes finished products to sell to consumers
  • Take raw materials and manufacture a finished good
  • Secondary Sector
  • Use factors of Production
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9
Q

What are the factors of production

A

Land
Labor
Capital
Enterprise

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10
Q

Consumer

A
  • Buys goods and services for their own personal use
  • Provide the entrepreneur with feedback (market research)

Consumer depends on producers to make products they need/want and producers need consumers to make profits

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11
Q

Service Provider

A
  • Operate in the Tertiary sector
  • Expert services to help entrepreneurs
  • Accountants, Solicitors, Couriers, Banks
  • Allows the entrepreneur operate the business more effectively
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12
Q

Interest Groups

A

-An organization who comes together and campaign for a common goal by pressuring decision makers.
-By joining forces they have more money and talented people
-They are more likely to be listened to
EXAMPLE-Greenpeace

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13
Q

Types of Business Relationships

A

Co-Operative
Competitive
Dependent
Dynamic

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14
Q

Co-operative

A

-Same Objective
-Work together
-Help each other to achieve the same goal
-Win/Win
EXAMPLE
Employees co-operate with employers and take voluntary pay cuts

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15
Q

Competitive

A

-One party wants to be more successful
-Win/Lose
-Rivals
EXAMPLE
Ryanair V Aer Lingus
Employers V Employees. Employers want max profit and employees want max wage

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16
Q

Dependant

A

-Need each other to be successful
-Cannot achieve goals on their own
-Rely on each other
EXAMPLE-Consumers and Producers

17
Q

Dynamic

A

-Constantly changing
-Sometimes competitive and sometimes co-operative
EXAMPLE
Restaurants in a town compete all year for business but come together to organize a town festival that will benefit both

18
Q

what is a contract

A

-Legally binding agreement that is enforceable by law

19
Q

What are the factors/essentials to completing a contract

A
  • Offer
  • Acceptance
  • Consideration
  • Intention to contract
  • Capacity to contract
  • Consent to contract
  • Legality of form
  • Legality of purpose
20
Q

Offer

A
  • Offer is made when one person asks another to enter into a deal
  • All terms must be clearly set out
  • No Conditions
  • Offer must be communicated by speaking, writing or conduct
  • Offer can be terminated before the other party accepts
  • Price tag is not an offer its an Invitation to Treat
21
Q

Acceptance

A
  • Agree precisely to all the terms
  • No Conditions
  • Speaking, writing or conduct
  • Once an offer is accepted the terms cannot be changed. If you accept an offer but ask to change the terms this is called a Counter Offer
22
Q

Consideration

A
  • Is the payment that one person gives
  • It must be real and valuable
  • Cannot be for free
  • Generally it is money
23
Q

Intention to contract

A
  • Mean it to be a legally binding contract
  • Fully understand that you will end up in court if you break the agreement
  • Agreements between businesses are ALWAYS intended to be legally binding
  • Agreements between family members are not
24
Q

Capacity to contract

A
  • Has the legal right and ability to make a legally binding contract
  • The following are exceptions
  • Under 18
  • Mentally incapacitated
  • Drunk / drugs /insane
  • Diplomatic immunity
  • Company Directors acting beyond their legal powers (Ultra Vires)
25
Q

Consent to Contract

A
  • Voluntary and genuine permission
  • Not against their will
  • No mistakes or lies
26
Q

Legality of form

A

-Certain contracts MUST be drawn up on certain legal documents / forms
-If these forms arent correct it is not a legal document
Example- when buying a house the agreement must be in writing

27
Q

Legality of purpose

A

-The contract can only be for legal transactions

No agreement that involves breaking the law is a contract

28
Q

Termination of contract

A

Performance ,Frustration ,Agreement ,Breach of contract

29
Q

Remedies for Breach of contract

A

Damages, Specific Performance, Rescind the contract

30
Q

Termination of contract-Performance

A

Both sides carry out their side of the agreement

31
Q

Termination of contract-Frustration

A

Some unforeseeable event occurs not under the control of either party. Makes it impossible to carry out the contract. EG Death or bankruptcy.

32
Q

Termination of contract-Agreement

A

Both parties agree voluntarily to end the agreement, usually you can end a contract of employment with a month’s notice. Mutual agreement.

33
Q

Termination of contract-,Breach of contract

A

Either side fails to carry out the agreement exactly as agreed. A condition is fundamental to the contract. A warranty is not. If you break a warranty this is not breach of contract

34
Q

Remedies for Breach of contract-Damages

A

Financial compensation, Receive extra for inconvenience.

35
Q

Remedies for Breach of contract-Specific Performance

A

Judge can order the person who broke the contract to carry it out exactly as agreed.

36
Q

Remedies for Breach of contract-Rescind the contract

A

Judge returns both parties to same situation they were in before the contract. Maybe appropriate if contract was frustrated.

37
Q

what is a counter offer

A

If you accept an offer but ask to change the terms this is called a Counter Offer

Business (17 decks)

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