Leaving Cert Business - Every Short Question.

This is every business short question asked so far.

Business Short Questions.

1999 - 2010

2010

What is a Indigenous Firm?

Two Benefeits of promoting the development of ‘’Indigenous firms’’ for the economy?

What is Prototype Development?

What  is Test Marketing?

What is a Exchange Rate?

Two impacts on irish Exporters to the UK markst if the euro increases in value relative to the UK pound Sterling?

What is the European Parliament?

What is the European Commission?

What is the European Court of Justice?

What is the court of Auditors?

What is the EU Council of Ministers?

What area a company’s Articles of association?

Name three items of information in the Articles of association?

Draw and Label Break-Even Chart?

What is Insurable Interest?

What is Indemnity?

What is a Quota as a barrier to free trade between countries?

What is a Tariff as a Barrier to free trade between countries?

3 Grounds for fair Dismissal under the Unfair Dismissals act 1977/93?

Name Two Tax Credits?

2009

What is a P45

What is a P60

Draft a memo, Outline two Sales and promotion incentives?

What is Public Libility?

What is Fidelity Guarentee Insurence?

What is Desk Research, One Example?

What is Field Research, One Example?

What is Community Development ?

What are two benefeits of Community Development?

What is the Secondary Sector?

What are two current trends in the Secondary Sector?

What is Enterprise?

What is Management?

What does consideration mean?

What are two other elements of a legally binding contract?

What is Job Production? One example           

What is Batch Production? One example

What is the role of the Council of Ministers in EU decision making?

Name two other EU decision making institutions?

2008

What is Intrapreneurship?

Two Examples of Intrapreneurship?

What is a offer in the law of contract?

What is Invitation to treat in a contract?

What is Working Capital and Equity Capital?

What is a Open Economy?

What is a Open Economy’s possible impact on Irelands Economic development?

Draft a Typical Adgenda for the AGM of a Private Limitied Company?

What is Strategic Planning?

What is Tactical Planning?

What is a suitable source of finance to purchase a delivery van in a new business? Give 2 Reasons why?

What are two benefits of community insentives in the development of a local community?

What are 2 Functions of Fás?

What are 2 Functions  of the County Enterprise Board?

List 5 Grounds under witch employment discrimination is outlawed in Ireland?

2007

What is Arbitration?

What is a Agenda?

What is Assurance?

What is Acquisition?

What is Appraisal?

What does SWOT stand for?

What is SWOTs use in business?

What is a EU directive?

Draw and Label a Matrix Structure for a Manufacturing Organisation?

What is Consideration in legal terms?

What is a trading bloc?

What are two examples of a trading bloc?

What is Self-Actualisation in Maslows hierarchy of needs?

Name two other needs maslow identified?

Identify two parties in business and describe a competitive relationship between them?

Draw and label a break even chart?

Name a state-owned enterprise in the production catagory?

Explain two reasons for state involment in this catagory?

2006

What is entrepreneurship?

Outline two functions of the Director of Consumer Affairs?

Define Management?

Draw and label a matrix structiure for a orginisation having two project teams?

What is Privatisation?

What effect does Privatisation have on the Irish Economy?

Draft a memo.

Calculate Debt.Equity Ratio for two years?

Define Ethical Business Practice?

Define Short-Term finance?

Outline Two short-time finance available for an established manifacturing business?

Explain invisable exports?

Calulate Balance of trade and balance of payments?

2005

Explain the legal term ‘capacity to contract’?

Give two examples of situations where a individual or legal entity does not have capacity to contract?

What is Risk management?

Risk management requires managers to do what?

List four activities that are similar when managing a household and managing a business.

Draw and label a suitable organisational structure diagram for a manufacturing orginsation.

Outline three problems of e-mail in business.

What is limited liability?

What is Utmost good faith in insurence?

What is Indemnity in insurence?

How to calculate Acid Test Ratio for two years?

What is Job Production?

What is Batch Production?

What is Mass Production?

Draw a bar chart.

2004

What is Arbitration?

What is Conciliation?

What is Intrapreneur?

What is Taxation Credit?

Draft a memo.

What is Terms of Reference?

Why is a Debt/Equity Ratio?

How do You calculate a debt/equity ratio?

Name and Explain three types of production?

List four institutions of the EU?

What is a Feasibility Study?

Draw and Label a Break Even Chart.

2003

What is the Service Industry?

What is a P45?

What is a P60?

Draw and label a organisational structure.

What is Empowerment?

What does Empowerment do to help a business?

What is Planning?

What is Proactive?

What is a Proposal Form?

What is Performance Appraisal?

What is a Prototype?

Name three Types of Control in business.

What are Grants?

What are Subsides?

What is a Indigenous Firm?

Define Inflation:

Draw a bar chart.

2002

What is arbitration?

Name and Give a example of the three types of industry:

What is Gross Profit?

What  is Gross Pay?

Draft a Span of Control for a orginisation.

What is E.D.I?

How does E.D.I help a business?

What is Enterprise?

What is Empowerment?

What is E-Mail

What is Equity Capital?

New Business Ideas - Business Leaving Cert Notes

New Business Ideas

To start up a business you must get inspiration from somewhere.

There are 2 main sources to draw inspiration:

Internal sources – You get ideas from your own strengths/weaknesses.

External sources – You get ideas from opportunities and threats in the outside market.

Internal Sources of Business Ideas:

·      Skills and Hobbies.

If your good at art you could start a sign painting business.

·      Experiences

Richard Branson set up Virgin Atlantic Airways because he wasn’t happy with the service he got on other airlines.

·      R&D (Research and Development)

A entrepreneur can set up a Research and Development department within their business, They can use creative employees to come up with new ideas.

·      Customer Feedback

If a customer complains you could use this experience to develop new ideas to improve the business.

·      Employee Suggestions (entrepreneurship)

If a business’ employees come up with a new product or service that would improve the business/sell well, this could be a good source for ideas.

External Sources for Business Ideas.

·      Family and Friends.

A entrepreneur could get a idea for a business after hearing his family and friends complain about the lack of a service/product they need.

·      State Agencies.

Government agencies provide ideas about new products and new markets. Eg. Enterprise Ireland provides market research reports about business opportunities around the world.

·      Media.

Entrepreneurs could get a idea from reading something in a magazine/newspaper or hearing it on the radio or tv.

·      Competition.

Businesses can get and idea by copying and adapting successful ideas developed by their rivals.

·      Import Substitution.

Entrepreneurs can get and idea for a business by examining products that are imported to Ireland, then create a Irish made version.

Development Process of a New Product/Service

Idea Generation.

The first step is to generate new ideas – Brainstorming is when a group of creative people is brought together and asked for suggestions for business ideas.

Product/Service Screening.

When the group is finished each idea is examined (possibly with SWOT examination – Strengths, Weaknesses, Opportunities, Threats). This spots the good ideas and gets rid of bad ones fast.

Concept Development.

This involves writing a report on the product/idea. What is its USP – unique selling point.

Feasibility study.

A feasibility study is an investigation into new product ideas and to see how much the product would cost and how much profit it would make.

The business might us a Cash flow forecast or a Breakeven chart.

Prototype Development.

A prototype is the first working model of a new product. The prototype is tested and refined to eliminate any problems, this process is repeated until there is a perfect product.

Test Marketing.

Test marketing is when the business launches the product in small amounts. The business evaluates consumers responses. Their reactions define the price and advertising of a product.

Product Launch.

This is when the full-scale production of the product begins. The company must start a marketing campaign to get the product known.

The EU - Leaving Cert Business Notes

The EU

The European Union (EU) is a trading bloc of 27 countries in Europe.

Trading bloc = a group of countries that agree to trade freely with each other.

The countries in the EU are called member states.

There is free trade between all member states. This is called the single market.

Importance of EU membership for Ireland.

The Single European Market provides Irish businesses with the opportunity to increase their profits as they are allowed to sell their products and services freely to a market of over 480 million people.

The EU has given Ireland grants to improve its infrastructure, eg. Airports, ports, motorways. This helps Irish businesses import and export products quickly and cheaply.

Ireland’s membership of the Single European Market attracts Transnational Companies/ Multi national corporations here, such as Dell and Intel. These companies provide thousands of jobs in Ireland/ They also buy materials from Irish businesses.

The EU CAP (common agricultural policy) and the CFP (common fisheries policy) have given grants to Irish farms, agriculture and fishing to help modernize these industries.

EU Institutions

There are 5 organisations / institutions that you need to know about.

European Commission             European Parliament             Council of the EU

                        European court of Auditors            Court of Justice

You must know what each of these institutions does:

European Commission:

The European Commission is the institution that runs the EU.

It consists of commissioners. Each commissioner is in charge of a different area eg. Transport, Education, health.

The main functions of the European Commission are:

To propose new European laws.

The European commission finds new laws that are needed and then drafts up a new law. Eg. Mimimum wage was a idea from the European Commission and directly affects Ireland like all European Commission laws.

To enforce EU laws.

The European Commission looks over the EU to make sure all member states obey the laws. If a country is not enforcing a European law then that country can be brought to the Court of Justice.

To draft the EU budget.

The Commission is responsible for drafting the EU budget. This means they make the initial decision on how much each country should get from the EU. This also directly affects us as we need the money to develop poor areas and infastructure etc.

European Parliament:

The European Parliament is the institution that is directly elected by the citizens of the EU to represent our interests in discussions with other EU institutions.

There are over 700 Members of the European Parliament (MEP’s) representing people in all the member states.

The main functions of the European Parliament are:

To debate and approve new European laws.

The European Parliament looks over laws the European Commission draws up. The MEP’s discuss and debate the proposed law and suggest changes to make it better.

To supervise the EU.

MEP’s look over what the Council of the European Union is doing. The parliament interviews all the candidates for the European Commission. It then votes on whether to accept the new Commission or not. Parliament also has the power to sack the entire Commission if they are unhappy with it.

To approve the EU budget.

The European Parliament shares the power with the Council of the EU to approve or reject the entire EU budget. So it can influence how the EU spends its money.

Council of the European Union:

The Council of the European Union is the most important decision making body in the EU. The Council of the European Union represents the member states and its meetings are attended by one minister from each member states government.

The main functions of the Council of the EU are:

To pass European laws.

The Council (with the European Parliament) that has the final say on what becomes EU law. This is called co-decision.

To sign off on international agreements between the Eu and other countries or origanisations.

Every year, the council officially signs off agreements that cover areas such as trade with non-EU countries or organisations , Fisheries, science and transport.

To approve the EU budget.

The Council in co-decision  with the European parliament has the power to approve or reject the entire EU budget, this influences how the budget is spent.

To allow member states to work together in areas of security, defence and foreign policy.

Eg. To deal with international crises, the Council of the EU created a Rapid Reaction Force, that consisted of soldiers from each EU army who work together to carry out rescue and peacekeeping missions.

European Court of Auditors:

The European Court of Auditors ensures that the EU budget is managed properly.

Its job consists of checking EU funds, that come from EU taxpayers. The Court of auditors ensures that the tax’s are properly collected and that they are spent legally, economically and for the Intended purpose. The Court of Auditors aim Is to ensure that the taxpayers get maximum value for their money.

The Court of Auditors can audit any country or organisation that received EU funding to ensure the money was not wasted. The Court of Auditors conducts paperwork and on the spot checks.

The Court writes a report on its findings and brings to the attention of the member states and commission if there are any problems.

Court of Justice:

The Court of Justice makes sure that EU laws are applied the same way in all EU countries. The Court is made up of one judge from each EU country.

The functions of the Court of Justice are:

To give advice:

The court of Justice gives advice to member states, to help them understand EU law and how to apply the law in their country.

Ensure counties obey EU law’s:

The Court of Justice makes sure that each country and institution in the EU obeys EU laws and does exactly what EU law requires. It has the power to settle disputes between EU countries, EU institutions, citizens and businesses.

Strike down any EU law that is illegal.

If member states or institutions believe that a particular EU law is illegal, they can ask the Court to abolish it.

The EU operates through common policies to ensure laws and policies are enforced throughout all member states. The most important common policies are the :

Agriculture Policy,

Fisheries Policy,

Competition Policy,

Social Policy

and the various Structural Policies, all of which have a great bearing on the future prosperity of the Irish economy.

On the next page each EU policy is explained in detail:

Common Agricultural policy (CAP):

·      The CAP (common Agricultural policy has improved the standard of living of farmers.

·      The CAP improved the quality of food and the methods of producing it. 

·      To help farmers improve the CAP gives EU farmers grants. This enables the farmer to grow better crops and rear better quality animals. This means the farmer can sell more.

Common Fisheries policy (CFP):

·      The aim of this policy has been to reduce fishing capacity due to the overfishing of certain fish stocks along with an overcapacity in the industry. (makes sure there is enough fish for everyone for years)

·      To prevent over-fishing. The CFP does this by:

1.     Every country is given a quota, the maximum amount of each type of fish it can catch each year.

2.     The CFP sets limits for the size of holes in nets, to stop small fish being caught.

·      To provide a decent standard of living for fishermen.

1.     Prices for fish at the start of each year are fixed.

2.     To improve quality of fish caught, the CFP gives grants to EU fishermen to buy better boats and technology.

EU Social Charter:

The EU Social Charter is the EU’s social policy. It aims to improve working and living conditions for EU citizens.

It give all EU workers the following rights.

·      EU citizens have freedom of movement.

This means they can work in any EU country they want and be treated the same as nationals of that country.

·      EU workers have the right to a fair wage.

This wage must give them and their families a decent standard of living, all EU countries must set a minimum wage.

·      EU workers can work only a maximum of 48 hours per week. They also must be entitled to public holidays with pay, and four weeks paid holiday annually.

EU Competition Policy.

The EU Competition Policy is a set of rules intended to ensure free and fair competition between businesses in the EU.

Its aim is to ensure that EU customers get quality products at a fair price.

It contains a number of rules.

·      Businesses cannot form cartels. A cartel is a secret agreement between big competitors in which they agree to restrict competition. They cannot work together to rip off the consumer, by charging a high price.

Eg. It would be illegal for all the B&B owners to get together before summer and agree to charge €2000 per person per night.

·      Business who are dominating the market (Huge companies) are not allowed abuse their power by increasing prices or trying to stop new competitors from entering the market.

·      State-Owned enterprises cannot hold a monopoly position. They cannot be the only business offering a product.

Eg. RTÉ has competition with TV3.. Bus Éireann and AirCoach.

·      All large mergers/takeovers have to be approved by the European Commission. Permission is denied if the Commission believes that the merger would seriously damage competiton.

Stakeholdes and Relationships between stakeholders.

2. Stakeholders and Relationships.

Stakeholders

Lots of people are affected by how a business is run. These people are called Stakeholders.

·      The main stakeholders in any business are.

Entrepreneur – Person who set up the business.

Investors – The person who gives the money (capital) to set up the business.

Employer – The person who hires others to work for him.

Employee – The person who works for an employer in return for a wage.

Producer- A business that turns raw materials into finished products. (taytos: spuds to crisps)

Consumer- The person who buys stuff from the business.

Service provider-  eg. ESB

Interest Group- A interest group is an organization of people who come together and campaign for a common goal. IBEC – Irish business and employers confederation. IFA – Irish farmers association.

Relationships between Stakeholders

All the different stakeholders in a business have a relationship with each other. There are 4 types of relationships.

Co-operative Relationship

A co-operative relationship means that the parties in business have the same objective  so they work together and help each other to achieve their goals.

This produces better results than if they worked against each other or alone.

Describe a co-operative relationship between a Employee and a Employer:

If a business is going through a bad time, Employers and Employees could work together to save the business as it benefits both the Employer and the Employees.

The employees agree to take a temporary pay cut in exchange for shares in the business. The employer will give the employees shares, the employees will take a temporary pay cut. The business survives. This happened with Aer Lingus.

Describe a co-operative relationship between two producers in the same line of business:

In the 90’s Ford and Mazda had a co-operative relationship. They formed a strategic alliance to develop a new car. The Ford fiesta / Mazda 121 was formed. They shared the costs of developing the car, and because they shared ideas they came up with the best possible car.

Competitive Relationship

A competitive relationship means that one stakeholder/party in business wants to be more successful than another. Only one of them can win and so they become rivals.

Describe a competitive relationship between two employees:

Two employees may compete within a business for a promotion. Each will try to work harder and impress the boss in order to get the promotion.

Describe a competitive relationship between a employee and a employer.

Employees and employers can compete. Employees want a secure job, where as the employer may want to make redundancies (sack people) to save money. Eg. ESB announced that they wanted to close down 3 plants. The employees union said they would not let this happen. They both fought for what they wanted.

Describe a competitive relationship between two producers/business’ in the same line of business:

Ryanair and Aer Lingus are always competing with each other to win over customers. When one announces a cheap fare, the other one brings out a cheaper fare again.

Also when one releases an advertising campaign, the other one brings out a new advertising campaign showing that it is better, cheaper etc. This is called comparative advertising.

Dependent Relationship

A dependent relationship means that the stakeholders/parties in business need each other in order to be successful. They can not achieve their goals on their own and rely on the other party to provide them with what they need so they can be a success.

Describe a dependent relationship between a Consumer and Producer.

Consumers need producers to make the products they want, eg. taytos, cloths, booze etc. Producers depend on consumers to buy the products so that they can make a profit.

Describe a dependent relationship between a Investor and a Entrepreneur.

A Entrepreneur who has a idea depends on a Investor to fund their business idea. The investor depends on Entrepreneurs to come up with new good ideas to make money.

Dynamic Relationship

This means that the relationship between the stakeholders is constantly changing. It is sometimes competitive and it is sometimes co-operative.

Eg. Pepsi and Coke have a strong competitive relationship with each other, Somebody offered to sell Pepsi cokes secret ingredient. Pepsi immediately notified coke of this. This is a example of a Dynamic relationship.

Conflict Resolution - Leaving Cert Business

1. Conflict Resolution:

There are 2 ways of resolving conflict legislative and non-legislative.

Non-Legislative methods of solving consumer conflict:

This means that the consumer and the shop try to solve the conflict without referring to the law or any legal agency.

Negotiation:

Negotiation is a process of bargaining to try and reach a mutually acceptable solution to the conflict.

Consumers association of Ireland:

An interest group for consumers, with the aim that consumers get good quality products and services and good value and that consumers know their rights. Lobbies the Government.

Legislative methods of solving consumer conflicts:

This means that you try to resolve the conflict by referring to the law or a legal agency.

Sale of goods and supply of services act, 1980

When you buy goods you have 4 rights under the act.

1.    Merchantable Quality.

2.    Fit for their purpose.

3.    As described.

4.    Identical to any sample shown.

Redress: RRR – Refund. Replace. Repair.

When you buy services you have 4 rights under the act.

1.    Supplier is qualified

2.    Supplier must provide service with proper care.

3.    All materials are of good quality.

4.    All goods sold as part of service are of merchantable quality.

Redress: RRR- Repair, Replace, Refund

The retailer is always legally responsible for solving the consumer’s complaint.

The retailer cannot put up any signs that give the impression that ha consumer has no legal rights. ‘no refunds’ etc.

Guarantees cannot take away a consumers legal rights against the retailer, they can only give extra protection to the consumer.

Evaluation of the Sale of goods and supply of services act 1980:

The law does a good job protecting consumers as:

It ensures that consumers get their money back if a product of service is not up to legal standards.

Furthermore, consumers cannot be fooled into thinking they must accept a credit note instead of a refund by retailers who put up signs to that effect.

The small claims court.

The small claims court is a court that handles consumer claims easily, quickly and cheaply. Without involving a solicitor. A consumer who cannot sort out a dispute with a business can take the business to the Small claims court.

Up to €2000/ No more.

Fee of €15

If the business contests, both sides are brought together for a meeting by the Small Claims Register to try and solve the dispute.

If the Small Claims Registrar cannot solve the complaint, the case is brought to the District court. Judge listens to evidence and makes judgment.

4 weeks for redress if business is found guilty.

The small claims court is effective because:

·      Consumers get justice easily, quickly and cheaply, without involving a solicitor.

·      Every consumer in Ireland can get justice locally.

·      Small claims online is a excellent service, take a case at anytime