people in business

Question 1

what’s a business?

Answer 1

a business is an organization to provide goods and services to customers

Question 2

who are the skateholders?

Answer 2

a business affect a lot of people, these people are called skateholders

Question 3

who are the main skateholders?

Answer 3

-entrepeneur
-investor
-employer
-employee
-manager
-producer
-consumer
-supplier
-service provider
-interest group

Question 4

who’s an entrepreneur?

Answer 4

an entrepreneur is a person who spots an opportunity and takes the initiative to set up a business to make money.
the entrepreneur takes the financial and personal risk.

eg: bill gates (microsoft)

Question 5

who’s an employer?

Answer 5

an employer is a person who hires others to work for them. the employer reward the employee for work. this can financially with pay, bonuses and commission or non-financial with benefit in kind.

Question 6

who’s an investor?

Answer 6

an investor is a person who gives money (capital) to the entrepreneur to set up and run a business.
he receives back the money with an interest (debt capital).
he can also have a share in the business (part ownership), he will receives the profits called “dividend”.

eg: bank of Ireland

Question 7

who’s employee?

Answer 7

an employee is a person who works for the employer in return for a wage.
they carry out the essential tasks needed to make the business a success

eg: pilots

Question 8

who’s a manager?

Answer 8

a manager is a person who runs and makes sure that the business achieves its gals.
a good manager must be able to motivate the stuff and comunicate efficiently with them.

eg: Michael o’Leary

Question 9

who’s a supplier?

Answer 9

suppliers are the other firms that a business buys from (eg: stock)
suppliers provide the business with the goods and the other things it needs to be succesful.
eg: the bakery supplies the market with bread to sell.

Question 10

who’s a consumer?

Answer 10

consumer is a person who buys goods or services for their own personal use. the consumer provides the entrepreneur with a market where they can sell their products. They also provide market research information about what they like and do not like about a product.

Question 11

who’s a service provider?

Answer 11

a service provider is a business that offers a range of supports to an entrepreneur.
Service providers work in the tertiary sector of the economy

Eg: bank, an post, solicitor

Question 12

who’s an interest group?

Answer 12

an interest group is an organization of people who come tighter and campaign for a common goal.
by joining forces, the group have more power, more money and more talent at their disposal so are more likely to be heard.

Question 13

gives exemples of interest groups

Answer 13

-SIMI society of the irish motor industry, lobbied for a charge to car registration
-IBEC irish business and employers confederation
-ISME irish small and medium employers confederation
-ICTU irish congress of trade union, it represents almost all of trade unions in Ireland
-IFA irish former association
-ICMSA irish creamery suppliers association
-CAI consumer association of Ireland

Question 14

which kind of relationship between the skate holder can exist?

Answer 14

-co- operative
-competitive
-dependent
-dynamic

Question 15

describe a co-operative relationship

Answer 15

to co.operate means to act in a manner which is of mutual benefit to all concerned.
the parties in the business have the same objective and so they work together to achieve their goals.
a co.operative relationship is a “win-win” situation as it produces better result.

Question 16

give exemples of a co-operative relationship

Answer 16

• investor give funding (capital) to entrepreneur who, in turn, keep them informed and rewarded
  -many irish employees agreed to pay cuts in the recession in a bid to lower costs and hence prices, in a bid to survive. the employees in turn continued to have employment and wages.
  -swatch and mercedes-benz formed a strategic alliance to develop the smart car
  -in 2015 Ryanair, tag, Air France-kml, Lufthansa and easy jet joined forces to lobby the EU
  -the body shop promotes the cause of amnesty international.

Question 17

describe a competitive relationship

Answer 17

this means that one party in business wants to be more successful than another.
the parties have conflicting or opposing objectives
it is often called a “win-lose” situation as onlyvone can win.

Question 18

give exemples of competitive relationships

Answer 18

-entrepreneurs wishing to reinvest the profits and pay no divided conflict with investor who wants a return and won’t therefore invest more capital
-produce may compete on the basis of price, quality or by introducing new and improved products
-employers and employees compete when employees want pay increases which the employer refuses in order to keep cost down.
-two employees complete for a promotion
-ryanair and aer ligus compete for a larger share of the market.

Question 19

describe a dependent relationship

Answer 19

this means that the parties in business need each other in order to be succesful.
they cannot achieve their goals on their own.
they rely on the other party to provide them with what they need for sucess.

Question 20

give an example of a dependent relationship

Answer 20

-producers and consumer are dependent on each other
-entrepreneurs and dependent on investor and vice versa.

Question 21

describe a dynamic relationship

Answer 21

this means that the relationship between shareholders in business is constantly changing.
sometimes is a competitive relationship sometimes is a co-operative relationship

Question 22

give an example of a dynamic relationship

Answer 22

-competing business in a town might work tighter once a year to help organize a festival e.g. rose of travel festival
-if employees buy shares in a business, than they become investors as well as employees