Unit 1 Flashcards
(136 cards)
What is a stakeholder?
Someone who is impacted by the running of the business.
What is an investor?
Provides money to start/expand a business in return for a % of the profits.
What is an entrepreneur?
A person who spots a gap in the market, comes up with an idea & takes a financial or non-financial risk to set up a profitable business.
What is a supplier?
Supplies the business with raw materials or finished goods for resale.
What is an employer?
Hires staff, ensures workplace is safe, & pays employees a fair and agreed wage.
What is a manager?
Responsible for the day-to-day running of the business & ensures the firm achieves its goals. Managers use skills such as leading and communicating to manage employees.
What is an employee?
Recruited by employer to work in return for a wage/salary. They possess the skills & qualifications needed to operate the business successfully.
What is the role of the government in business?
A body that governs the country. It imposes taxes on businesses, e.g., Corporation tax.
What is a community in relation to business?
Consists of individuals, households & organisations that are located close to a business.
What is a service provider?
A business that provides services for other businesses to run successfully, e.g., banks & transport firms.
What is a co-operative relationship?
Stakeholders work together towards a common goal, the goal is of mutual benefit, a win-win scenario.
Example of a co-operative relationship between an entrepreneur and investor?
Entrepreneur comes up with a new product & an investor will invest. The investor now owns shares & will now get a % of the profits.
Win-Win scenario
Example of a co-operative relationship between an employer and employee?
An employer and an employee may sign a productivity agreement: wages increase if work targets are met.
Win-Win scenario
Example of a co-operative relationship between a producer and a consumer?
The producer could conduct market research to find out the consumer’s likes/dislikes. Therefore consumers receive products that satisfy their needs & helps to increase profits for the producer.
What is a competitive relationship?
A competitive relationship exists when two or more businesses in the same market rival each other to attract customers and increase sales.
A win-lose scenario.
Example of a competitive relationship between an employer and employee?
Employer cuts wages by 5% due to increasing costs.
Win-Lose scenario
Example of a competitive relationship between a consumer and producer?
Producer makes poor quality goods…Consumer when goes onto buy from competitor = Loss of profits.
Win-Lose scenario
What is a dynamic relationship?
The relationship between stakeholders in business is constantly changing.
What is a dependent relationship?
The success of one stakeholder depends on the other.
Eg, government and entrepreneur: Government provides grants to start a business.
What is a commercial business?
Provides goods and services with the intent to make a profit.
Examples: Supervalu, H&M, and Bershka
What is a non-commercial business?
Provides a service that puts people before profit.
Examples: St Vincent de Paul & Trocaire
How are consumers impacted in a business?
Quality and cost.
How are employees impacted in a business?
- Wages
- Work conditions
- Job security
What is an interest group?
An organisation that represents the common viewpoints, goals, & objectives of a particular group of stakeholders.