People In Business Flashcards
Entrepreneur
Person who spots a gap in the market and the initiative to set up a business to make a profit.
Takes a financial and personal risk
Investor
Person who gives capital to entrepreneur to set up and run their business in exchange for a return on investment
Debt capital investor
Lends money and expects to be paid back with interest
Equity finance
Gives capital in return for a share (part ownership) in the business
Employer
person who hires others to work for them.
Gives rewards to employees such as pay, bonus and commission
Employee
Person who works for employer in return for a wage.
Carry out essential tasks.
Intrapreneur
Employees within a business thinking of ideas to make the business more successful
Producer
Business that makes finished products to sell. Take raw materials,manufacture them into a finished product
Consumer
Person who buys a good or services
Provided the entrepreneur with a market for their product thus a profit
Stakeholder
Person who is affected by how a business is run
Manager
Person who runs the business and makes sure it achieves its objectives. Uses resources of business (people,money,equipment) in best possible way to make business successful.
Manager should lead and motivate employees and communicate effectively
Example- chief executive officer of Ryanair: Michael O Leary
Service provider
Business that offers range of helpful supports to entrepreneur
Example: a solicitor: provides entrepreneur with legal advice if they are sued and will defend them in court
Interest group
Organisation of people who come together and campaign for a common goal by pressuring decision makers.
By joining forces they have more power,money and talents so are more likely to be listened to.
Example: Greenpeace-environmental interest group
Cooperative relationship
Parties in business have same objective and work together. This achieves better results
Competitive
One party in the business wants to be more successful. They fight and become rivals
Dependent
When parties need each other. They rely on other party
Eg: consumers and producers
Dynamic
Relationship is constantly changing
Contract
Legally binding agreement
Elements of a contract
- Offer 5. Capacity to contract
- Acceptance 6. Consent to contract
- Consideration 7. Legality of form
- Intention to contract 8. Legality of purpose
- Offer
When person asks to enter deal with them.
Eg: you offer to buy groceries in a shop by placing them at till
Invitation to treat
Indication seller would like to receive offers for its products.
Eg: advertisement,price tag,goods on shelves
- Acceptance
Other person agrees to all terms. Accept by speaking,writing or by conduct
- Consideration
Payment given to other party as part of agreement.
- Intention to contract
Both parties me a it to be a legally binding contract.
- Capacity to contract
Means person has the legal right to make legally binding contract.
Under 18s and mentally incapacitated people cannot make contracts
- Capacity to consent
Both parties must give real,voluntary and genuine permission to enter contract.
- Legality of form
Means certain contracts must be drawn up in certain way to be legal contracts.
- Legality of purpose
Contracts can only be for legal transactions.
