Chapter 1 - Introduction to People in Business [Definitions]

Question	Answer
Business	Any organisation set up to provide goods and services.
Commercial Business	Provides goods and services to make a profit for the owner.
Non-commercial Business [Social Enterprises / Not-for-profit Businesses]	Exist to meet some needs other than making a profit.
Stakeholders	The different groups of people who are directly affected by how a business is run.
Entrepreneurs	The people who take the initiative to turn an idea into a business.
Investors	The people who provide a business with the finance it needs.
Owners' Capital [Equity Capital]	Money invested by people or companies. (In return, they become part owners of the business and are entitled to a share in future profits.)
Grant	A gift of money that does not have to be repaid as long as certain conditions are met.
Employers	Recruit staff to work for them.
Employees	Are recruited by businesses to assist in the business in return for a wage.
Managers	The people responsible for running the business and achieving its goals.
Producers	The businesses that make products to sell to customers.
Suppliers	The businesses that supply the raw materials needed by the producer.
Service Providers	Businesses that supply the services needed by a business.
Customers	People who purchase goods from a business for their own use or for the resale to others.
Consumers	A type of customer who buys goods and services purely for their own use.
Society	Refers to both the local community where the business is located and to wider society, both nationally and globally.
Government	Refers to both the local and national authorities that set the rules and regulations by which businesses must operate.
Interest Groups [Pressure Groups]	Organisations representing stakeholders who share a common interest or goal.
Lobbying	A deliberate effort by interest groups to influence decision-makers by promoting a particular point of view.
Business Interest Groups	Represent the interests of businesses.
IBEC	The main organisation representing large- and medium- sized businesses in Ireland.
The Small Firms Association	Speaks for and advises small businesses.
ISME	Speaks for and advises small- and medium- sized enterprises.
Chambers of Commerce	Aim to protect and promote businesses located in their area.
Trade Associations	Business interest groups that represent businesses involved in similar types of activities.
Trade Unions	Organisations that represent the interests of employees in a business on issues concerning pay or conditions of employment.
ICTU	Represents the interests of all trade unions and their members nationally.
The National Consumer Agency	A state agency set up to ensure consumers are aware of their rights and that legislation protecting consumers in obeyed.
The Consumers Association of Ireland	Represents and lobbies on behalf of consumer interests.
The Competitive Approach [to stakeholder relationships]	Views the relationships between different stakeholders as being a win/lose one. It assumes that only one party can win and therefore stakeholders must compete to gain a commercial advantage over the other.
The Co-operative Approach [to stakeholder relationships] [AKA the Partnership Approach]	Views the relationship between different stakeholder groups as potential win/win situations for all sides.
Conflict	Occurs when the interests of different people in business are in disagreement. This results in one party wanting to achieve something which is in conflict with what another party wants.
Negotiating	Means getting all sides in a dispute or conflict to explain their position, understand their differences, and then bargain to arrive at a resolution that is acceptable to both sides.
Arbitration	Means getting a third party to listen to all sides and then to recommend a solution.

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Chapter 1 - Introduction to People in Business [Definitions]

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