People in a Business short answers

Questions and Answers

What role do stakeholders play in a business?

Stakeholders are groups that are involved in and affected by the operations of a business, and their decisions can influence each other.

Identify two types of risks that entrepreneurs face.

Entrepreneurs face financial failure risk and personal failure risk.

How do investors differ from entrepreneurs in a business context?

Investors provide the capital to start a business, while entrepreneurs develop and implement the business idea.

What characteristics are important for effective managers?

Effective managers should be innovative, motivating, good delegators, and excellent leaders. Signup and view all the answers

List three examples of stakeholders in a business.

Entrepreneurs, employees, and suppliers are examples of stakeholders. Signup and view all the answers

What is the primary function of management within a business?

The primary function of management is to supervise day-to-day operations and ensure that the business achieves its goals. Signup and view all the answers

What is one way investors can reduce their risk when financing a business?

Investors can seek security for their investment, such as securing loans against business assets. Signup and view all the answers

Describe the nature of the relationship between stakeholders.

Stakeholders depend on each other, as decisions made by one can impact the others. Signup and view all the answers

Why is spotting a gap in the market significant for entrepreneurs?

Spotting a gap in the market allows entrepreneurs to create opportunities for new products or services. Signup and view all the answers

Who is typically the overall manager of a large business?

The overall manager of a large business is typically known as the CEO or managing director. Signup and view all the answers

Study Notes

Stakeholders Overview

Stakeholders consist of diverse groups impacted by a business's operations.
Interdependence exists among stakeholders; decisions made by one can influence others.

Types of Stakeholders

Entrepreneurs: Identify business opportunities and assume the risk of starting new ventures for profit.
Investors: Provide essential capital with the expectation of returns; types include banks, government bodies, and shareholders.
Managers: Oversee daily business activities and lead teams to achieve organizational goals.
Employees: Work within the business to support operations and contribute to its success.
Consumers: Purchase and utilize products or services offered by the business.
Suppliers: Provide the necessary goods and services that businesses need for operations.
Service Providers: Offer specialized services that assist businesses in functioning effectively.
Government: Regulates business practices and can grant funding or incentives.
Producers: Create goods or services that businesses sell to customers.
Interest Groups: Advocate for specific issues that may impact the business environment.

Entrepreneurs

Key roles include recognizing market gaps and championing innovation.
Characteristics include risk-taking, self-initiative, confidence, and creativity.
Face potential financial risks from lost investments and personal risks from reputational damage.

Investors

Aim to earn returns on their capital investment in businesses.
Unlike entrepreneurs, they do not develop business ideas but provide necessary funding.
Some seek security for their investments through collateral, which can mitigate their risks.

Managers

Responsible for the everyday functioning of a business, involving resource management and team leadership.
Titles for top managers in large organizations include CEO (Chief Executive Officer) and MD (Managing Director).
Effective managers typically possess traits such as innovative thinking, leadership skills, and strong work ethics.

Description

Explore the various groups involved in and affected by business operations in this quiz. From entrepreneurs to government entities, each stakeholder plays a crucial role and can influence decision-making. Test your knowledge on their interdependencies and impacts.