People in a Business multiple choice

Study Notes

Stakeholders are diverse groups affected by and involved in a business's operations.
The relationship between stakeholders is interdependent; decisions by one can impact others.
Key stakeholder groups include entrepreneurs, investors, suppliers, employees, consumers, managers, and government agencies.

Entrepreneurs identify market opportunities and take risks to establish businesses for profit.
Essential entrepreneur characteristics include innovation, risk-taking, initiative, self-confidence, and market gap recognition.
Entrepreneurs face two primary risks:
- Financial failure risk involves potential loss of personal investment.
- Personal failure risk relates to the reputational damage from business failure.

Investors provide capital to business ventures with the expectation of financial returns.
Unlike entrepreneurs who create business ideas, investors primarily supply the necessary funds for startups.
Many investors seek security for their investments to mitigate loss risks if a business fails, such as through asset-backed loans.
Common investor types include banks (loans), government bodies (grants), and shareholders (dividends).

Managers are responsible for the day-to-day operations of a business.
Their role involves coordinating resources such as finances and equipment to meet the organization's goals effectively.
Senior managers, typically referred to as Chief Executive Officers (CEOs) or Managing Directors (MDs), oversee larger business operations.
Tim Cook serves as the CEO of Apple, exemplifying this role.
Key characteristics of effective managers include innovation, motivation, delegation skills, leadership, resilience, customer focus, flexibility, and the ability to maintain a realistic perception of business.