people in a business true or false

Study Notes

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.

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.

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.

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).

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.