people in business

Question 1

stakeholder

Answer 1

different groups of people who are directly affected by how a business is run
internal eg entrepreneur, manager
external eg customer, supplier

Question 2

stakeholder examples

Answer 2

entrepreneur
shareholders
managers
employees
customers
suppliers
society

Question 3

entrepreneur

Answer 3

someone who sets up a new business

uses their initiative and takes risk in starting a new business with the aim of making a profit

Question 4

investors

Answer 4

people who provide the business with the finance/capital it needs
equity capital - money invested in return for ROI
loan capital - provided by banks, to be repaid with interest over time
grant - gift of money that does not need to be repaid as long as certain conditions are met eg creating certain number of jobs

Question 5

government

Answer 5

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

Question 6

interest groups

Answer 6

organisations representing stakeholders who share a common interest
try to influence behaviour/decisions by boycotting, lobbying, negotiating and legal action
eg IFA irish farmers association

Question 7

lobbying

Answer 7

deliberate effort to influence decision making by promoting a particular point of view

Question 8

co operative relationship

Answer 8

both parties have the same objective and work together for mutual benefit
win win
eg entrepreneurs tell the investors how the business is doing, investors give more capital

Question 9

competitive relationship

Answer 9

one party wants to be more successful than another
rivals
win lose
eg entrepreneurs invest all the profit instead of paying dividends to investors

Question 10

dependent relationship

Answer 10

both parties need each other to be successful

eg consumers and producers

Question 11

dynamic relationship

Answer 11

relationship between stakeholders is constantly changing

eg competing businesses work together for large events, rose of tralee in kerry

Question 12

offer

Answer 12

one person asks another to enter into a deal, if accepted they promise to be bound by the contract
offer must be communicated and conditions set out
can withdraw at any time before acceptance

Question 13

acceptance

Answer 13

all terms of the offer have been agreed to

change any terms = counter offer

Question 14

consideration

Answer 14

payment that one party gives in order for the agreement to be valid
must be real and valuable

Question 15

intention to contract

Answer 15

for a contract to be valid there must be willingness and knowledge on both sides

Question 16

capacity to contract

Answer 16

must have the legal right and ability to enter a contract
cannot be:
-under 18
-under influence of drugs/alcohol
-insane
-diplomat

Question 17

legality of form

Answer 17

must be in writing

eg insurance policy, sale of property

Question 18

legality of purpose

Answer 18

must not break any laws