People In Business Flashcards
What is a stakeholder?
An individual or group that has an interest in the success of a business.
What does an entrepreneur do?
Spots a gap, takes personal/financial risk to make a profit.
What is the role of an investor?
Gives capital to fund a business for a return on their investment.
What is an employer?
Hires employees to carry out work, paying them wages.
What is an employee?
Is paid wages to carry out work for their employer.
What does a manager do?
Runs a business or part of it (department) for the entrepreneur.
What is a producer?
Manufactures goods from raw materials, combining the factors of production.
What is a supplier?
Sells a business goods (stock) or partly finished goods (raw materials).
What is a service provider?
Offers a business services such as electricity, internet, legal, banking.
Who is a consumer?
Buys goods/services for their own consumption.
What is the government’s role in business?
Sets rules and laws, gets paid taxes, creates suitable climate for businesses.
What is an interest group?
Lobbies/negotiates on behalf of a group with a common interest.
What is a competitive relationship between stakeholders?
Win-lose: one party benefits at the expense of another.
What is a co-operative relationship between stakeholders?
Win-win: mutual benefit for both parties when working together.
What are the elements of a legally valid contract?
Offer and acceptance must exist; agreement of terms offered, consideration, legality of form, consent to contract, capacity to contract, legality of purpose, intention to contract.
What is consideration in a contract?
Something of value must be exchanged between parties.
What does legality of form refer to in contracts?
Some need to be in a certain format, e.g. house sale must be written.
What is consent to contract?
Party cannot be forced to agree a contract through threats.
What is capacity to contract?
Legal ability to agree; cannot be bankrupt, insane persons, ultra vires.
What is legality of purpose in contracts?
Illegal contracts such as a drug deal are not enforceable by law.
What is intention to contract?
Awareness that the agreement is legal, not just social or domestic.
What are the ways to terminate a legal contract?
Frustration, performance, agreement, breach.
What is frustration in contract termination?
Event occurs (death/bankruptcy) making contract impossible.
What does performance mean in contract termination?
Both sides carry out contractual obligations.
What is agreement in contract termination?
Parties decide to end contract early by mutual consent.
What is breach in contract termination?
Party breaks an essential element (condition).
What is specific performance as a remedy for breach of contract?
Court orders party who broke the contract to fulfil the agreed terms of it.
What is financial compensation as a remedy for breach of contract?
Court orders guilty party to pay damages.
What does rescind contract mean?
Court orders parties to return to initial starting position.
