Stakeholders

Question 1

Entrepreneur

Answer 1

A person who spots a gap in the market, comes up with an idea, and turns it into a business. They take personal and financial risk

Question 2

Investor

Answer 2

Provide entrepreneur with capital

1. Loan Capital
   - Entrepreneur takes a loan from a lender such as a bank. The money borrowed must be repaid with interest
2. Grant
   - Given to a business by state agencies. Does not have to be repaid, as long a certain conditions are met
3. Equity Capital
   - Money invested by individuals or other businesses. Investors are part-owners of the firm, and are entitled to a share of profits, known as dividends.

Question 3

Employer

Answer 3

Recruits staff, provides safe working conditions, obeys laws of employement, and pays agreed wages/salary

Question 4

Employee

Answer 4

Is recruited by the employer to work in return for a wage/salary. They have the necessary skills and qualifications to operate the business

Question 5

Producer

Answer 5

Takes raw materials and transforms them into finished preoducts

Question 6

Consumer

Answer 6

People who buy goods and services for personal use. They want quality and reliable products, and can offer loyalty

Question 7

Manager

Answer 7

Responsible for the day to day running of a business. Ensures the firm achieves its goals. Uses leading and communication skills.

Question 8

Supplier

Answer 8

Provides raw materials to the business

Question 9

Service Provider

Answer 9

Provides services needed by the business. E.g. Banks or insurance firms

Question 10

Government

Answer 10

Imposes taxes on the business. These taxes are put towards infrastructure, and the running of the country

Question 11

Local Community

Answer 11

Individuals, households and organisations that are affected by the business

Question 12

How many stakeholders are there?

Answer 12

11

Question 13

Define Stakeholder

Answer 13

Individuals and organisations that are affected by the actions, objectives, and policies of a business