Unit 1 People in Business

Question 1

Entrepreneur

Answer 1

A person who spots a gap in the market & comes up with an idea that they can turn into a business

Question 2

Investor

Answer 2

The people or organisations that provide the entrepreneur with capital needed to establish and operate the business e.g dragons den

Question 3

Employer

Answer 3

Recruits staff to enable the organisation to carry out its business. They are responsible for providing safe working conditions for employees and paying the agreed wage/salary

Question 4

Employee

Answer 4

Recruited by there employed to work in the business in return for a salary/wage. Employees have the skills and qualifications needed to operate the business successfully

Question 5

Producer

Answer 5

takes raw materials and transforms the, during the manufacturing process into finished goods

Question 6

Consumer

Answer 6

People who buy goods and services for their personal use

Question 7

Manager

Answer 7

Responsible for the day to day running of the business and ensures that the firm achieves its a goals

Question 8

Supplier

Answer 8

Firms that provide raw materials to the business

Question 9

Service Provider

Answer 9

Provides services needed by the business to operate successfully e.g AIB Bank

Question 10

Local Community

Answer 10

Consists of individuals, households and organisations that are located close to the business

Question 11

Government

Answer 11

The body of the people that govern the country. It imposes taxes on businesses e.g corporation tax

Question 12

What is a stakeholder ?

Answer 12

Stakeholders are individuals & organisations that are affected by the actions , objectives and policies of a business

Question 13

What is an interest group ?

Answer 13

Is a group of people who meet and campaign for a common goal.

Question 14

Define Boycotting

Answer 14

Consumers refuse to buy goods or services from the firm to show their dissatisfaction with the business. E.g because its has exploited workers

Question 15

Define Lobbying

Answer 15

Trying to persuade decision-markers to support laws or rules that give an advantage to your industry or organisation

Question 16

Name the types of interest groups

Answer 16

Trade Association
Trade Union
Business Interest Groups

Question 17

Give examples of interest groups

Answer 17

IBEC - Irish Business and Employers Confederation

IMNO - Irish Nurses and Midwives Organisation

IFA - Irish Farmer Association

Question 18

What is a trade union

Answer 18

They represent the views and interests of employees in particular industries. They aim to protect and improve their members’ pay and working conditions

Question 19

What are the relationships between stakeholders ?

Answer 19

Cooperative Relationship
Competitive Relationship
Dependent Relationship
Dynamic Relationship

Question 20

What is a Cooperative Relationship ?

Answer 20

Where both parties are working towards shared goals and for mutual benefit
E.g Employer & Employee

Question 21

What is a Competitive Relationship ?

Answer 21

Involves two or more rival parties. They both want to be successful but this is impossible. There is only one winner in a competitive relationship. Win-Lose relationship
E.g Producer & Consumer

Question 22

What is a dependent relationship

Answer 22

Involves two or more parties that cant achieve their own success. The success of one party depends on the actions of the other party. If one fails so does the other.
E.g Producer & Consumer

Question 23

What is a dynamic relationship

Answer 23

This is a relationship that is likely to change over time
E.g Entrepreneur & Investor

Question 24

What is a rival business

Answer 24

they may co-operate temporarily for mutual benefit, for instance by organising an event (e.g food festival) together to showcase their products to a wide consumer base