Chpt 1 (people in business & contract law) Flashcards
stakeholder
people that are affected by business
e.g investors, consumers, employees
commercial business
a profit making business
non-commercial
non profit making business
entrepreneur
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
investor
people who provide capital for a business. they expect a return on their money
e.g shareholders (recieve dividends)
banks (recieve interest)
manager
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)
producer
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
supplier
provides raw materials needed for producers. compete for contacts by offering incentives
service providers
people of organisations that provide support services to the public or businesses.
e.g financial institution, insurance company, solicitors
employer
a person or organisation who hires people to work in return for a wage.
responsibilities: safe working environments and pay a fair wage
employee
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
government
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.
co-operative relationship
where parties work together to achieve a common goal. this is a win/win relationship
competitive relationship
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
dependent relationship
when the stakeholders need each other to achieve their goals.
dynamic relationship
a relationship between stakeholders that’s always changing, sometimes competitive or cooperative
relationship between entrepreneurs and investors (comp & co)
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.
relationship between employer and employee (co & comp)
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.
producers and consumers relationship (co and comp)
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
producer and producer relationships (business in the same business) (co&comp)
co; two producers jointly campaigning on an issue that impacts their businesses.
comp; competition on prices, quality and sales labour (consumers benefit)
producer and interest group relationship (co&comp)
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
producer and government relationship (co&comp)
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
supplier and purchasing manager relationship (co&comp)
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
interest group
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.
