people in a business true or false

Stakeholders

• Groups of individuals involved in, or impacted by, business operations.
• Interdependence among stakeholders, where decisions by one can influence others.
• Key stakeholder categories include: entrepreneurs, investors, suppliers, service providers, employees, consumers, government, managers, and producers.

Stakeholder Examples

• Entrepreneurs: Innovators who identify market opportunities and assume risks.
• Investors: Provide capital through ownership, loans, or grants to enable business operations.
• Managers: Responsible for day-to-day business management and resource allocation.
• Employers: Oversee employee management and welfare.
• Employees: Workforce executing the business tasks.
• Consumers: End-users of the business's products or services.
• Interest Groups: Advocate for specific business or social interests.
• Producers: Individuals or businesses that create goods or services.
• Suppliers: Provide raw materials needed for production.
• Service Providers: Deliver necessary services to the business.
• Government: Regulates business activities and may provide support through grants.

Entrepreneurs

• Spot market opportunities and take risks to establish new businesses for profit.
• Key characteristics include innovation, risk-taking, initiative, self-confidence, and market gap identification.
• Face two principal risks:
  • Financial failure risk, involving the loss of invested capital if the business fails.
  • Personal failure risk, concerning potential reputational damage attributed to business failure.

Investors

• Infuse capital into business ventures with the expectation of financial returns.
• Distinction between entrepreneurs and investors: Entrepreneurs develop ideas while investors primarily provide funding.
• Security-seeking investors mitigate losses through asset-backed guarantees (e.g., collateral for loans).
• Types of investors include banks (loans), government bodies (grants), and shareholders (dividends).

Managers

• Tasked with the operation of the business on a daily basis.
• Management entails collaborating with individuals and utilizing resources (financial and physical) to meet business goals.
• Senior managers are often identified as Chief Executive Officers (CEOs) or Managing Directors (MDs).
• Example: Tim Cook serves as CEO of Apple.
• Essential characteristics for effective managers include innovation, motivation, delegation skills, leadership qualities, resilience, customer focus, flexibility, and a clear perception of reality.