People And Relationships In Business

Question 1

Co-operative relationship

Answer 1

They act in a way that benefits both parties (win-win)

Question 2

Competitive relationship

Answer 2

Stakeholders are rivals or pursue an objective at the others expense (win-lose)

Question 3

Dependent relationship

Answer 3

Stakeholders are reliant on each other to achieve their individual goals

Question 4

Dynamic relationship

Answer 4

Relationship between stakeholders in changeable

Question 5

Co-operative and competitive relationship
1. Investor and entrepreneur

Answer 5

Co-operative
•Entrepreneur shares honest info with the investor ( accurate business plan)
•Investor offers finance for a reasonable share
Competitive
• investor may want immediate or greater returns from profits rather than allowing the owner to keep funds for further expansion

Question 6

2. Rival business
   Co-operative and competitive

Answer 6

Co-operative
Rivals in the marketplace could decide to share market research costs
Competitive
Offering lower prices or a wider product range to consumers or by recruiting highly qualified employees

Question 7

3. Employer and employee
   Co-operative and competitive

Answer 7

Co-operative
An employer may pay for an external training course for the employee
Competitive
To lower costs an employer may reduce wages or even reduce the number of employees

Question 8

4. Producer and consumer
   Co-operative and competitive

Answer 8

Co-operative
The producer provides a quality product at a reasonable price for the product based on its quality and value for money
Competitive
The business wants to sell the product at the highest price possible to generate profits and satisfy investors