Chapter 1: People In Business

A person who uses goods for private purposes

it aims to satisfy their needs and wants within a budget

this person seeks personal satisfaction

this person seeks value

What is a consumer?

this person is the promoter of the business

they combine the factors of production into a business unit

entrepreneurs take moderate risk and takes the initiative after spotting a gap in the market

What is an entrepreneur?

1. land

2. labour

3. capitol

4. enterprise

What are the factors of production?

supplies the finance for the project after examining the business plan

expects a return called dividend

shareholders are the investors of a company

What is an investor?

provide labour to employer in return for wage/salary

affected by trade union memberships, tax rates, prsi, usc

they look for a higher standard of living

What is an employee?

they hire employees to produce goods and services in return for a wage/salary

organize all aspects of business and hire specific people for specific tasks

they wish to make a profit

they try to run an efficient business

What is an employer?

% of profits given to shareholders

What is a dividend?

combines resources and transforms raw materials into finished products for the consumer

main objective is a profit.

producers must focus on quality

What is a producer(supplier)?

exists where joint action or effort is required to enable people to work and operate together

so that all parties will be a mutual benefit

both parties work towards a common goal

this is a winner, winner relationship

Define a cooperative relationship

exists when people inside and outside the business have common areas of competition and are competing against each other

they compete on a basis of price + labour

this a winner, loser relationship

one party benefits at the expense of the other

Define a competitive relationship

the deliberate effort to influence the decision - making process by promoting a particular point of view with government or MEP’s or other organizations

interest groups may or may not succeed in achieving their desired objectives

Define lobbying

a representative organization outside of the political system which puts pressure on other bodies to achieve an aim

pressure in the form of demonstrations, bad publicity, petitions and strikes

they lobby various institutions to achieve change

What is an interest group?

all the parties affected by the business and the actions

What is a stakeholder?

Irish farmers association

pro farming policies

What does IFA stand for and what is it?

largest business network

all sectors of the economy

What is a chambers of commerce?