People in Business

Question 1

Business definition

Answer 1

Is any organisation set up to provide goods and services to customers

Question 2

Commercial businesses

Answer 2

Profit
Main objective is profit
Eg. Tesco

Question 3

Non-commercial businesses

Answer 3

Main objective is service
Eg. Bothár

Question 4

Stakeholders

Answer 4

The different groups of people who are directly effected by how a business is ran

Question 5

Entrepreneur

Answer 5

Is a person who spots the opportunity and takes the personal and financial risk to set up a business with the objective of making a profit

Question 6

Investors

Answer 6

Are the people who provide capital a business needs

Question 7

Employer

Answer 7

Is a person who recruits staff to assist in the production of goods and services

Question 8

Employer rights and responsibilities

Answer 8

Rights
Fair dismissal of employees
Employ suitable staff
Responsibilities
Provide a safe workplace
Pay a fair wage

Question 9

Employee

Answer 9

Is recruited by businesses to work in the business in return for a wage

Question 10

Employee rights and responsibilities

Answer 10

Rights
Fair wage
Safe workplace
Responsibilities
Attend work and be on time
Do their jobs to the best of their ability

Question 11

Manager

Answer 11

Is responsible for the day to day running of the business and achieving its goals
Plans, organises, and controls

Question 12

Producer

Answer 12

Usually manufacturers products to sell to customers. They use raw materials bought from suppliers to create a finished product for sale

Question 13

Suppliers

Answer 13

Sell finished goods or partly finished goods to a business

Question 14

Service providers

Answer 14

Offers important services thst businesses need to run their operations.
Electricity, water, broadband

Question 15

Consumer

Answer 15

Is a person who buys goods or services sold by a business for their personal use

Question 16

Government

Answer 16

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

Question 17

Interest groups

Answer 17

Is a group which represents a group/stakeholders with a common objective seeks to influence decisions and policy makers affecting members, through various actions such as negotiating, lobbying, information campaigns, public protests, boycotting and possibly legal action

Question 18

IBEC

Answer 18

Irish Business owners and Employers Confederation

Question 19

ICTU

Answer 19

Irish Congress of Trade Unions

Question 20

Role of IBEC

Answer 20

Union for business owners and employers
Represents employers on industrial relations matters
Negotiates with ICTU and government on wage agreements

Question 21

role of ICTU

Answer 21

• Represents almost all trade unions in Ireland.
• Negotiates national agreements with government and employers.
• Promotes the principles of trade unionism through campaigns and policy development.
• Provides information, advice and training to unions and their members.

Question 22

Co-operative relationship

Answer 22

A co-operative relationship exists where both parties work together to achieve a common goal or objective.
It is a win-win relationship/ a scenario of mutual benefit, where both sides gain and are better off afterwards than they were before.

Question 23

Competitive relationship

Answer 23

A competitive relationship between two parties refers to both parties pursuing a mutually exclusive goal in an effort to achieve particular objectives at the expense of the other. It is known as a win-lose relationship.

Question 24

Example of Competitive relationship

Answer 24

Producers could offer lower prices or better products
For example, Ryanair compete against Aer Lingus by offering cheaper flights than Aer Lingus can on routes. If a customer chooses Ryanair because they are cheaper, they benefit while Aer Lingus loses out.

Question 25

Example of Co-operative relationship

Answer 25

A co-operative relationship between producers in the same line of business could exist to encourage consumption of the good.
E.g.Two rival car manufacturers share the cost of developing an in-car IT system.

Question 26

Benefits to stakeholders of competitive relationships

Answer 26

Increase the Quality
Increase Range of Products
Better Customer Service
Decrease in Prices

Question 27

Dynamic Relationship

Answer 27

This means that the relationship between stakeholders in business is constantly changing. Sometimes it is competitive and sometimes it is co-operative.

Question 28

Dependent Relationship

Answer 28

This means that the parties need each other to be successful and achieve their goals. They rely on the other party to provide them with what they need so they can be a success.

Question 29

Conflict

Answer 29

occurs when the interests of different people in business are in disagreement. This results in one party wanting to achieve something (e.g. increased wages) which is in conflict with what another party wants (e.g. reduced cost)

Question 30

Contract

Answer 30

A Contract is a formal agreement between two or more people that is enforceable by law.

Question 31

Elements of a legal contract in order

Answer 31

Agreement (Offer and Acceptance)
Consideration
Legality of Form
Consent to Contract
Capacity to Contract
Legality of Purpose
Intention to Contract

Question 32

Agreement (offer + acceptance)

Answer 32

clear, complete and unconditional offer and acceptance of that offer.
For example, Paddy is selling an iPhone. Noah offers €280 for the iPhone. Paddy accepts the offer of €280 without any changes.

Question 33

Invitation to treat

Answer 33

An invitation to treat is not an element of a legal valid contract.
The offer can be accepted or rejected.
Example Price tag on an item
For example, if a bottle of perfume was mislabeled accidentally as €10 instead of €100 a consumer cannot demand to have it for €10.

Question 34

Consideration

Answer 34

Consideration is the items of value that must be exchanged between parties for a contract to be considered valid.
E.g. Giving €3 to a café and getting a coffee back – both the money and drink are consideration as they are of value.

Question 35

Legality of form

Answer 35

Certain contracts must take on a particular format, like be in writing, to be legal. E.g. When buying a house, an oral agreement isn’t sufficient to be valid, it must be in writing.

Question 36

Consent to contract

Answer 36

All parties in a contract must give their real permission and not be threatened or forced to agree to enter a contract.
E.g. If a person is forced to sign a contract at gunpoint it can be ruled invalid by a court if proven

Question 37

Capacity to contract

Answer 37

The legal ability or power to enter in to a legal contract. E.g. adults have capacity but a child that is under 18 doesn’t have the legal power to enter in to a contract to buy a house for example
The following people generally don’t have the capacity to contract: Under the age of 18, persons under the influence of drink or drugs, insane or bankrupt persons.

Question 38

Ultra Vires

Answer 38

If the company acts beyond its legal powers it is said to be acting ‘Ultra Vires’.

Question 39

Legality of purpose

Answer 39

To be valid, a contract must be for legal activities only.
An agreement between two parties for an illegal activity there would be no legal repercussions if one party breached the contract.
E.g if a drug dealer did not exchange the agreed amount of money for a shipment, they could not sue the other party.

Question 40

Intention to contract

Answer 40

There must be an awareness that the agreement is going to be a legally valid contract and not just a social arrangement.

Question 41

termination of a contract

Answer 41

performance
agreement
frustration
breach of contract

Question 42

Performance (termination)

Answer 42

Both parties to the contract carry out their duties as required by the contract.
E.g. A builder is contracted to build a house. The house is completed and the builder is paid, then the contract is ended.

Question 43

agreement (termination)

Answer 43

The parties to the contract may agree to end the contract by mutual consent even if the purpose of the contract has not been achieved.
E.g. A contract of employment may be ended by agreement if it includes a clause stating for example that the contract can be terminated if one month’s notice is given.

Question 44

frustration (termination)

Answer 44

An unforeseen event prevents the contract from being completed/ Something happens which makes it impossible to complete the contract.
E.g. Ban cancel tour due to the death of their lead singer as makes it impossible to complete the contract.

Question 45

breach of contract (termination)

Answer 45

If one of the parties does not perform their side of the contract i.e. they break an important condition/essential element of the contract.
E.g. A builder employed to build a conservatory/sun room but built a room with only one window. The second party can take the builder to court.

Question 46

remedies for breach of contract

Answer 46

financial compensation
rescind the contract
specific performance

Question 47

financial compensation

Answer 47

A judge offers damages in form of money to the injured party. The party in breach may have to pay them the value of the unfulfilled contract, as well as extra costs in such as any earnings lost by the injured party.

Question 48

rescind the contract

Answer 48

A court orders that both parties effectively return to the position they were in before the contract commenced.
This would effectively cancel the contract, restoring both parties to their initial position.

Question 49

specific performance

Answer 49

Specific Performance is a remedy for the breach of a contract.
The party in breach of a contract would be ordered by a court to carry out its agreed contractual obligations.
For example, specific performance may be used as a remedy in a contract for an extension to a property if a builder was to quit working on the extension before it was completed. The homeowner could bring it to court and the builder could be ordered to carry out the work as agreed in the original contract.