Chpt 1 (people in business & contract law)

Question 1

stakeholder

Answer 1

people that are affected by business
e.g investors, consumers, employees

Question 2

commercial business

Answer 2

a profit making business

Question 3

non-commercial

Answer 3

non profit making business

Question 4

entrepreneur

Answer 4

a person who spots a gap in the market, takes a personal and a financial risk and take the initiative to set up a business
e.g bill gates

Question 5

investor

Answer 5

people who provide capital for a business. they expect a return on their money
e.g shareholders (recieve dividends)
banks (recieve interest)

Question 6

manager

Answer 6

job is to run a business and make sure it achieves its aims. using equipment people and money to ensure its success. they must lead communicate and motivate
e.g michael o leary (ryanair)

Question 7

producer

Answer 7

turns raw materials into finished products. this is a secondary sector of industry. they try to make a profit by keeping costs low and prices competitive

Question 8

supplier

Answer 8

provides raw materials needed for producers. compete for contacts by offering incentives

Question 9

service providers

Answer 9

people of organisations that provide support services to the public or businesses.
e.g financial institution, insurance company, solicitors

Question 10

employer

Answer 10

a person or organisation who hires people to work in return for a wage.
responsibilities: safe working environments and pay a fair wage

Question 11

employee

Answer 11

people that are recruited by the employer to run the business in return for a wage.
rights: minimum wage, safe working environments
responsibilities: respecting rules, punctuality, working hard

Question 12

government

Answer 12

changes in the governments laws or taxes can affect how a business runs and how the profit is earned.
they use revenue collected from taxes to help run the country.

Question 13

co-operative relationship

Answer 13

where parties work together to achieve a common goal. this is a win/win relationship

Question 14

competitive relationship

Answer 14

where one party wants to be more successful than the other. the stakeholders compete to achieve their own goal at the expense of the other. this is a win/lose relationship

Question 15

dependent relationship

Answer 15

when the stakeholders need each other to achieve their goals.

Question 16

dynamic relationship

Answer 16

a relationship between stakeholders that’s always changing, sometimes competitive or cooperative

Question 17

relationship between entrepreneurs and investors (comp & co)

Answer 17

co: entrepreneur gives open and honest information to the investor. the investor gives finances at a reasonable rate to the entrepreneur.
comp: entrepreneur reinvests profits rather than giving dividends to investor.

Question 18

relationship between employer and employee (co & comp)

Answer 18

co: employees receive a fair wage and they work to the best of their ability.
comp: if the employer gives the employee poor working environment. employee health and wellbeing is at risk.

Question 19

producers and consumers relationship (co and comp)

Answer 19

co; producer provides high quality goods at a fair price. less consumer refunds, repairs or replacements, increased loyalty.
comp: produces provides poor after sales services

Question 20

producer and producer relationships (business in the same business) (co&comp)

Answer 20

co; two producers jointly campaigning on an issue that impacts their businesses.
comp; competition on prices, quality and sales labour (consumers benefit)

Question 21

producer and interest group relationship (co&comp)

Answer 21

co; producers agree with interest group and implements the changes recommended.
comp; increased costs as a result of activities of interest group (more environmental) or cause bad publicity for a business

Question 22

producer and government relationship (co&comp)

Answer 22

co; producer comply with all relative legislation reducing risk of any fines or punishment.
comp; producer fails to pay taxes or not in a timely manner results in fines or legal action

Question 23

supplier and purchasing manager relationship (co&comp)

Answer 23

co; supplier provides good quality raw materials and purchasing manager pays on time and offer a fair price.
comp; purchasing fails to pay for goods on credit creating bad debt for the supplier

Question 24

interest group

Answer 24

an organisation of people who come together and campaign for a common goal. seek to influence decisions and affecting its members through various actions including lobbying, negotiation, campaigns, protests, boycotting and legal action.

Question 25

lobbying

Answer 25

deliberate effort to influence the decision making process by promoting a particular point of view with government or MEPs. they may or may not succeed in their objectives.

Question 26

Irish Congress of Trade (ICTU) Interest group

Answer 26

represents most of Irelands trade unions which strives to improve the interests of working people. negotiates national agreements with government and employers. assists with the resolution of disputes.

Question 27

Irish Farmers Association (FIA) interest group

Answer 27

Irelands largest farming representative organisation. represent Irish farms home and in Europe by campaigning for improved conditions and incomes for farm families.

Question 28

Irish Business and Employers Confederation (IBEC) interest group

Answer 28

represents employers on industrial relations matters (relationships between employers and ees) negotiates with the government on wage agreements. advises members of new EU legislation