Business Unit 1 notes
Chapter 1 - People in Business
Stakeholders
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
Stakeholders
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