Business Chapter 1: People in Business
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Questions and Answers

What defines a competitive relationship in business?

  • Both parties share resources equally.
  • Both parties collaborate to achieve common goals.
  • The relationship is based on mutual trust and cooperation.
  • Only one party gains commercial advantage from the relationship. (correct)

Which of the following best describes interest groups?

  • Entities that provide services without any shared goals.
  • Companies that compete against each other for market shares.
  • Groups that aim to influence government policies on behalf of stakeholders. (correct)
  • Organizations that focus solely on commercial profit.

What is a key characteristic of a co-operative relationship in business?

  • Both parties aim to achieve mutual benefits. (correct)
  • The relationship is strictly transactional with no shared interests.
  • Both parties engage in fierce competition.
  • Benefits are only for the dominating party.

What is a common need for businesses in their relationship with the government?

<p>To ensure compliance with laws and regulations. (A)</p> Signup and view all the answers

Which method is considered a non-legislative way to resolve conflicts?

<p>Mediation by a third party. (A)</p> Signup and view all the answers

What is the primary role of entrepreneurs in business?

<p>To identify market gaps and initiate business ideas (C)</p> Signup and view all the answers

What do investors primarily seek from their investments?

<p>To gain a return on their capital (C)</p> Signup and view all the answers

What is a key responsibility of managers in a business?

<p>Run the business and achieve its goals (C)</p> Signup and view all the answers

Which of the following best describes suppliers?

<p>Businesses that provide raw materials to other businesses (C)</p> Signup and view all the answers

Which of the following is a primary need of employees in a business?

<p>To receive payment and benefits for their work (A)</p> Signup and view all the answers

What do consumers primarily do in the context of business?

<p>Purchase goods and services from businesses (D)</p> Signup and view all the answers

How do service providers contribute to businesses?

<p>By offering required services to businesses (A)</p> Signup and view all the answers

What is a major role of the government concerning businesses?

<p>To run the country and create policies affecting businesses (A)</p> Signup and view all the answers

What term describes a relationship that can change over time as the business grows?

<p>Dynamic Relationship (A)</p> Signup and view all the answers

Which of the following is an example of a trade association?

<p>IBEC (D)</p> Signup and view all the answers

What is a potential impact on employees during a trade dispute?

<p>Financial hardship (B)</p> Signup and view all the answers

What does a cooperative relationship in business aim to achieve?

<p>Mutual benefit for both parties (A)</p> Signup and view all the answers

Which of the following represents a stakeholder's concern in a competitive relationship?

<p>Low price (C)</p> Signup and view all the answers

What does 'frustration' refer to in the context of contract termination?

<p>Unforeseen events making contract completion impossible (A)</p> Signup and view all the answers

In stakeholder theory, how does low quality of goods affect customers?

<p>Disloyalty and brand switching (C)</p> Signup and view all the answers

Which of the following is a potential impact of government regulations on stakeholders?

<p>Obligation to pay taxes and follow laws (D)</p> Signup and view all the answers

What is an outcome of bad publicity for investors?

<p>Potential decline in profit (D)</p> Signup and view all the answers

Which statement best describes the role of a cooperative relationship between an investor and an entrepreneur?

<p>Investors and entrepreneurs exchange open and honest information. (C)</p> Signup and view all the answers

What is a consequence of poor after-sales service in a competitive relationship?

<p>Reduced future ordering by purchasing managers (C)</p> Signup and view all the answers

What might happen to government income if businesses close down?

<p>Reduction in overall tax revenue (B)</p> Signup and view all the answers

Which interest group represents trade unions and assists in negotiations?

<p>ICTU (C)</p> Signup and view all the answers

What is a common challenge suppliers face in a competitive environment?

<p>Cash flow problems (B)</p> Signup and view all the answers

How does an entrepreneurial profit usage differ from an investor's expectation in a competitive context?

<p>Entrepreneur seeks to expand the business; investors seek a quick return. (B)</p> Signup and view all the answers

What is a motivation for suppliers in a cooperative relationship?

<p>To ensure timely payment for good quality products (D)</p> Signup and view all the answers

Flashcards

Entrepreneur

A person who starts a business, taking risks to turn an idea into a business.

Investor

Someone who provides money for a business, expecting a return on investment.

Employer

A person or business that offers jobs.

Employee

A person who works for a company.

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Manager

Person who runs a business and ensures goals are met.

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Producer

A business that creates and sells products.

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Supplier

Business that provides raw materials to a company.

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Consumer

A person who buys goods or services.

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Competitive Relationship

A business relationship where one party gains advantage over the other, meaning only one party wins.

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Cooperative Relationship

A business relationship where both parties benefit, meaning both parties win.

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Interest Groups

Organizations representing people with shared goals or interests, often trying to influence decisions.

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Resolving Conflicts

Methods for addressing disagreements between parties, categorized based on engagement.

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Stakeholder Needs

Essential requirements of various participants in a business relationship.

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Trade Association

Groups representing similar businesses, working together to achieve common goals.

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Dynamic Relationship

A relationship that changes and evolves over time.

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Stakeholder Relationship

Mutual interaction between a business and those with an interest in its success.

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How does a trade dispute impact stakeholders?

A trade dispute can negatively impact stakeholders, leading to job losses, price increases, and lower product quality.

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How can a contract be terminated?

Contracts can be terminated due to frustration, breach, or by mutual agreement.

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What is frustration in contract law?

An unforeseen event makes it impossible to fulfill the contract.

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Investor-Entrepreneur Relationship

The interplay between individuals who invest capital and those who create and run a business. This relationship can be either cooperative or competitive, depending on objectives and expectations.

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Cooperative Relationship in Business

A relationship where both parties work together with mutual understanding and benefit. Trust, honesty, and open communication are crucial to a successful cooperative relationship.

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Competitive Relationship in Business

A relationship where parties aim for individual advantage, often leading to rivalry. Each party strives to gain a better position, potentially at the expense of the other.

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Impact of a Contract Termination

When parties agree to end a contract, it can have various consequences for stakeholders – including investors, the government, suppliers, and consumers.

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Investor's Interest in a Contract Termination

An investor's concern during a contract termination includes potential financial losses, reduced share prices, and negative publicity.

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Government's Interest in a Contract Termination

The government's concern includes potential tax revenue losses, increased social welfare payments, and potential business closure.

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Supplier's Interest in a Contract Termination

A supplier's concern during a contract termination often involves potential financial hardship, including extended credit terms or cash flow problems.

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Consumer's Interest in a Contract Termination

Consumers may face challenges like reduced product availability or potential quality issues.

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Study Notes

Chapter 1 - People in Business

  • Entrepreneurs: Initiate businesses, taking financial and personal risks. Their needs are profit, and they offer employment.
  • Investors: Provide finance for businesses. Their needs are returns.
  • Suppliers: Provide raw materials. Their needs are timely payment; they offer quality materials.
  • Service Providers: Supply services (e.g., electricity, insurance). Their need is loyal clients; they offer products and services.
  • Employers/Employees: Employees work for businesses. Rights include minimum wage and loyalty; responsibilities include honesty.
  • Managers: Manage the business to achieve goals. Responsibilities include leadership, motivation, and communication.
  • Consumers: Purchase goods, needing quality products and offering loyalty.
  • Producers: Create products to sell. Needs are loyal customers; products must be of high quality.
  • Government: Controls the country and its policies, affecting businesses. Needs include taxes, and it offers grants to businesses.
  • Society: The local community where businesses operate. Needs are job creation and socially responsible behavior.

Business Relationships

  • Competitive: Win-lose relationship; one party benefits, another loses. Example: rival firms competing for market share.
  • Co-operative: Win-win relationship; both parties benefit. Example: stakeholders working together for mutual benefit.
  • Dynamic: Changes over time; roles of stakeholders adapt as businesses grow.

Interest Groups

  • Organized groups representing shared interests, lobbying, participating in negotiations, and employing boycotts to affect decisions. Examples include: IBEC, SFA, ISME, CCPC.
  • Trade Associations: Groups representing businesses in similar industries, such as the Society of the Irish Motor Industry

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Chapter 1 – People in Business PDF

Description

Explore the various roles individuals play in the business ecosystem with this quiz focused on Chapter 1. Learn about the responsibilities and needs of entrepreneurs, investors, suppliers, service providers, employers, consumers, and government entities. Test your knowledge on their contributions to the business landscape.

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