Podcast
Questions and Answers
A business decides to sponsor a local youth sports team. Which of the following is the MOST likely reason for this action?
A business decides to sponsor a local youth sports team. Which of the following is the MOST likely reason for this action?
- To directly increase short-term sales revenue through advertising on team jerseys.
- To fulfill a legal obligation to contribute a certain percentage of profits to community initiatives.
- To acquire a controlling interest in the local sports team and influence its management.
- To build a positive image and reputation within the community, potentially mitigating negative impacts on the business if an adverse event occurs. (correct)
A business is MOST likely to heavily invest in a community when there is an immediate threat of a negative consequence affecting their operations.
A business is MOST likely to heavily invest in a community when there is an immediate threat of a negative consequence affecting their operations.
False (B)
Name three positive effects a business can have on its local community.
Name three positive effects a business can have on its local community.
Financial donations, investment of employee time/skills, and employment opportunities.
According to the 80:20 rule, approximately 80% of a business's sales typically come from only ______% of its customers.
According to the 80:20 rule, approximately 80% of a business's sales typically come from only ______% of its customers.
Match the business action with its potential impact on the local community:
Match the business action with its potential impact on the local community:
Which stakeholder group is primarily concerned with job security and career development?
Which stakeholder group is primarily concerned with job security and career development?
Owners and managers always have distinct roles in all types of businesses.
Owners and managers always have distinct roles in all types of businesses.
What does ROI stand for, and why is it important to business owners?
What does ROI stand for, and why is it important to business owners?
A(n) ________ is an organization that represents the interests of employees.
A(n) ________ is an organization that represents the interests of employees.
Match the stakeholder with their primary interest in a business:
Match the stakeholder with their primary interest in a business:
Which of the following is NOT a typical motivation for employees regarding a business's success?
Which of the following is NOT a typical motivation for employees regarding a business's success?
The general community has a direct financial interest in the success of a business.
The general community has a direct financial interest in the success of a business.
A business is performing poorly. Explain how this situation could potentially affect managers differently than owners.
A business is performing poorly. Explain how this situation could potentially affect managers differently than owners.
Flashcards
Positive Community Effects
Positive Community Effects
Financial contributions, sponsorships to local clubs, and employee volunteer work in community projects.
Negative Community Effects From Business
Negative Community Effects From Business
Land clearing, pollution, and job losses.
Investing in Community Relations
Investing in Community Relations
Enhances reputation, builds a positive image, and ensures customer loyalty during crises.
Customer Interests
Customer Interests
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80/20 Rule in Sales
80/20 Rule in Sales
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Stakeholder
Stakeholder
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Owners
Owners
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Return on Investment (ROI)
Return on Investment (ROI)
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Managers
Managers
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Owners vs. Managers
Owners vs. Managers
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Employees
Employees
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Union
Union
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Suppliers
Suppliers
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Study Notes
- A stakeholder is an individual or group with a vested interest in a business's actions.
- Examples of stakeholders include competitors, employees, owners, managers, the general community, and suppliers.
Owners
- Owners are interested in a business's success from a financial and personal reputation standpoint.
- Owner interests vary based on the type of business.
- Owners are commonly concerned with their return on investment (ROI).
- ROI is the financial gain from a business compared to the invested sum.
- Owners are likely to be deeply invested in the business.
Managers
- Managers are interested in a business's success for job security, financial reasons, and personal reputation.
- Managers are likely to be deeply invested in the business.
- Owners invest money and own the business, while managers run the business daily.
- Owners and managers can be the same person in business types like sole proprietorships.
- Public listed companies usually have separate owners and managers.
- Managers are employed by the business, making job security a key concern.
Employees
- Employees are interested in a business's success for job security, financial reasons, career development, and personal reputation.
- Employees are likely to be deeply invested in the business.
- Employee motivations and interests in the business can vary.
- Employees may focus on job security or career advancement.
- Employees may express their interest in the business through requests like pay raises.
- A union represents employee interests and has a vested interest in the business's operation.
- Unions can provide a channel for employees to voice concerns, such as safety issues.
Suppliers
- Suppliers are interested in a business's success from a financial and associated reputation position.
- Suppliers are likely to be strongly invested in the business.
General Community
- The general community is interested in a business's success from an indirect effect position.
- The general community is likely to be less heavily invested unless a bad consequence occurs.
- Positive community effects include financial donations, sponsorships, and employee involvement in local projects.
- Employment is a positive effect.
- Negative effects include land clearance, pollution, environmental damage, and unemployment.
- Businesses invest in positive community relations to build a good image and reputation.
- A good image can help mitigate reputational damage if something negative occurs.
Customers
- Customers are interested in a business's success from a consumption position.
- Customers desire high-quality, well-priced goods and services that meet their needs.
- Customers can have different levels of investment and loyalty.
- The 80:20 effect means 80% of sales come from 20% of customers.
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Description
Explore the roles and interests of owners and managers as key business stakeholders. Understand their motivations, from financial returns to job security and reputation. Learn how their involvement shapes a business's operations and success.
