People in Business - Business Revision Notes
© irevise.com 2016.
All revision notes have been produced by mockness ltd for irevise.com.
- What is a business? A business is an organisation set up to provide goods or services to potential customers. Businesses can be commercial (provide goods/ services to make a profit e.g. local shops) or non- commercial (exist to meet needs other than making a profit e.g. UNICEF)
- Stakeholders are all the various parties directly affected by the business.
Entrepreneur: an individual who spots a gap in the market and uses their initiative to try and make a profit. They take both personal (reputation) and financial risks such as using their house as collateral for a loan. Example: Gillian Bowler set up Budget Travel offer package holidays to Greece.
Investor: an individual looking for a return on investment. They give an entrepreneur capital to set up and run the business. There are two types of capital: debt capital must be repaid with interest and equity capital is capital given for a share in a business. Example: Ulster bank gave Gillian Bowler a loan to set up her company.
Employer: someone who hires others to work for them. They hire someone as they don’t have certain skills essential for running the business. They award the employee with wages, commission, bonuses etc. Example: Aer Lingus hire pilots to fly their planes.