people in business

Question 1

what is an entrepreneur

Answer 1

spots a gap, takes risks to make a profit

Question 2

what is a investor

Answer 2

gives capital to fund a business for a return on their investment

Question 3

what is a employer

Answer 3

hires employees to carry out work, paying them wages

Question 4

what is a employee

Answer 4

is paid wages to carry out work for their employer

Question 5

what is a manager

Answer 5

runs a business for the entrepreneur

Question 6

what is a producer

Answer 6

manufactures goods from raw materials, combining the factors of production

Question 7

what is a supplier

Answer 7

sells a business goods or raw materials

Question 8

what is a service provider

Answer 8

offers a business services such as electricity, internet, legal , banking

Question 9

what is a consumer

Answer 9

buys goods or services for their own consumption

Question 10

what is the governments role

Answer 10

sets rules and laws, gets paid taxes, creates suitable climates for businesses

Question 11

what is the role of a interest group

Answer 11

lobbies/ negotiates on behalf of a group with common interest

Question 12

what is a competitive relationship

Answer 12

Win-Lose: one party benefits at the expense of another

Question 13

what is a co-operative relationship

Answer 13

Win-Win: mutual benefit for both parties when working together

Question 14

what is a agreement

Answer 14

offer and acceptance must exist: agreement of terms offered

Question 15

what is a consideration

Answer 15

something of value must be exchanged between parties

Question 16

what is legality of form

Answer 16

some contracts need to be in certain format
e.g house sale must be in written format

Question 17

what is consent to contract

Answer 17

party can’t be forced into an agreement through threats

Question 18

what is legality of purpose

Answer 18

legal ability to agree: can’t be bankrupt, insane persons, ultra vires

Question 19

what is intention to contract

Answer 19

awareness that the agreement is legal, not just local or domestic

Question 20

what is frustration

Answer 20

event occurs (e.g death) making contract impossible

Question 21

what is a performance

Answer 21

both side carry out contractual obligations

Question 22

what is agreement

Answer 22

parties decide to end contract early by mutual consent

Question 23

what is a breach of contract

Answer 23

party breaks an essential element (condition)

Question 24

what is specific performance

Answer 24

court orders party who broke the contract to fulfill the agreed terms of it

Question 25

what is financial compensation

Answer 25

court orders guilty party to pay damages

Question 26

what is a rescind contract

Answer 26

court orders parties to return to initial starting position

Question 27

what are the 2 types of relationships that exist between shareholders

Answer 27

competitive and cooperative relationships

Question 28

what is a contract

Answer 28

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

Question 29

what are the elements in of a legal contract

Answer 29

1. agreement
2. consideration
3. legality of form
4. consent to contract
5. capacity to contract
6. legality of purpose
7. intention to contract

Question 30

how can a contract be terminated

Answer 30

1. frustration
2. performance
3. agreement
4. breach

Question 31

what is a condition

Answer 31

this is an essential element of a contract that if broken could lead to a breach of contract

Question 32

what is a warranty

Answer 32

this is a smaller element of the contract that is considered nonessential and would not by itself lead to a breach of contract

Question 33

what are remedies for a breach of contract

Answer 33

1. specific performance
2. financial performance
3. rescind the contract