Business Unit 1 notes

Topics: Contract, Consumer protection, Law Pages: 7 (2276 words) Published: April 22, 2014
Chapter 1 - People in Business
Entrepreneur - a person who spots an opportunity and takes the initiative to set up a business to make a profit. Entrepreneur takes a big risk when setting up a business, both financial and personal risks. eg; Bill Gates set up Microsoft. Investor - is a person who provides capital to the entrepreneur that she needs to set up and run a business, in exchange for return on investment. Dept capital - money returned with interest or Equity finance - return for a share in the business, receives an annual share of profits called a dividend. eg; banks. Employer - is a person who hires others to work for her. Entrepreneurs may become employers if their business growns and they can't do all the work themselves or dont have the necessary skills. eg; Aer Lingus hires pilots to fly planes. Employee - is a person who works for an employer in return of a wage. He carries out tasks needed to make the business a success. eg; pilot in Aer Lingus. Managers - job is to run the business and make sure it achieves its objectives. Managers must use resources in the business in the best possible way. Successful manager must lead and motivate employees and communicate effectively with them and all stakeholders. eg; CEO of Ryanair, Michael O'Leary. Producer - person who makes finished products to sell to consumers. They are manufacturers that take raw material and use a manufacturing process to turn them into finished products. eg; Tayto takes potatoes and turns them into crisps

Consumer - person who buys goods/services from an entrepreneur for his own personal use. Consumer provides entrepreneur with a market for her product and thus a profit. Also provide market research info by telling likes and dislikes in a product. Entrepreneur can use this info to make products consumers like, thus making a bigger profits. Service Provider - business that offers a range of valuable support to an entrepreneur. They do a range of helpful things for the entrepreneur. eg; Eircom provides entrepreneurs with communication services. Interest Groups - organisation of people who come together and campaign for a common goal. They have more power, more money and more talents at their disposal so they are more likely to be listened to by entrepreneurs. They might use tactics such as organissing negative publicity and boycotts of business that they are campaigning against. eg; IBEC.

Relationships between stakeholders
1. Co-operative - parties in the business have the same objective and so they work together and help each other in order to achieve their goals. Working together produces better results than if they worked alone or against eachother. Eg; ee's and er's may work together when a business is going through a rough patch to save the business. 2. Competitive - one party in business wants to be more successful than the other. Only one of them can win so they fight against eachother and become rivals. eg; ee's may compete in a business for promotion. Each will work harder to impress the boss. 3. Dependant - parties in the business need eachother to be successful. Cannot achieve their goals on their own. They depend on the other party to provide what they need. eg; Consumers and Producers 4. Dynamic Relationship - the relationship is constantly changing. Sometimes it is competitive but sometimes co-operative.

Contract Law is a legally binding agreement between two or more people that is enforceable in law. Essential Elements of a Contract
1. Offer - when one person asks another to enter into a deal with her. To be a valid offer, she must set all terms of the deal clearly, competely and without any conditions attached. She must communicate to other person by speaking, writing or by conduct. 2. Acceptance- when the other person agrees percicely to put all the terms of the deal without any conditions. Can accept by speaking, writing or by conduct. 3. Consideration - means the payment that one person gives the other...
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