Unit 1 Flashcards
commercial business
provides goods/services with the aim of making a profit
non-commercial business
NFP; puts people and the community ahead of profit
business
organisation that buys and sells goods and services
stakeholders in business
- entrepreneur
- investor
- employer
- employee
- producer
- consumer
- manager
- supplier
- service provider
- government
- local community
interest group
group of people that meet and campaign for a common goal, e.g. through boycotting and lobbying
IBEC
Irish business and employers confederation
ISME
Irish small and medium enterprises association
SIMI
society of the Irish motor industry
Trade union
represents the views and interests of employees in particular industries. aims to protect workers and improve pay and working conditions for members
IFA
Irish farmers association
co-operative relationship
win-win
competitive relationship
win-lose
dependent relationship
need each other for success
dynamic relationship
changes constantly
relationships between stakeholders
- entrepreneur/investor
- consumer/producer
- employer/employee
- producer/producer
- business/government
- business/local community
- business/business
- producer/interest group
contract
a legally binding agreement between two or more parties which is enforceable by law
elements of a valid contract
- agreement
- intention to contract
- capacity to contract
4.consent to contract - consideration
- legality of purpose
- legality of form
agreement
for agreement to exist, there must be a clear, unconditional and complete offer made by one party and accepted by the other party to a contract
invitation to treat
invitation to another person to make an offer
intention to contract
both parties intend to create contract. contract law assumes that all business agreements are intended to be legally binding/ all social agreements are not intended to be legally binding
capacity to contract
everyone has the legal ability to enter into a contract except anyone under 18, and anyone mentally incapacitated
consent to contract
you must enter into a contract voluntarily; invalid if you are under physical pressure or threat, there is a genuine mistake made by either party, either party is dishonest or gives false info
consideration
each party in the contract must give something of value to the other party e.g. money or goods
legality of purpose
legally binding contract must be for legal purpose e.g. cannot have contract to purchase illegal drugs