People in Business - Business Revision Notes

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Contents

People in Business 4

Main Stakeholders in a Business 4

Entrepreneur 4

Investor 4

Employer 4

Employee 4

Producer 4

Consumer 4

Service Provider 4

Interest Groups 5

Relationships between Stakeholders 5

1) Co-operative Relationship 5

2) Competitive Relationship 5

3) Dependent/ Interdependent Relationship 5

4) Dynamic Relationship 5

Contract 5

What are the essential elements of a contract? 5

Termination of a Contract 6

Remedies for Breach of Contract 7

People in Business

  • 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.

Main Stakeholders in a 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.

Employee: someone who works for an employer in return for a wage. They have essential skills needed to run the business which the employer either doesn’t have or won’t do.Example: a...

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