Unit 6
Answer Guidelines
- Define Community Development. 10 marks
- Regenerating a local area
- Encouraging enterprise at a local level
- Government establish community development organisations to aid community development 2. Analyse how local communities and local businesses can benefit from each other’s presence in an area. Use an example in each case to illustrate your answer. 20 marks
- Provide products and services
Local business set up and improve facilities in the area and creates a sense of
pride, locals will enjoy living there and will remain there. This keeps the
community alive. Local people will not have to travel to avail of basic goods and services.
- Encourage entrepreneurship
People
in the community see their friends and neighbours set up businesses and this
gives them the motivation and courage to set up a business too.
How communities can help business:
- Shop local
Local people will shop in the convienient business and this will increase sales and profits for the business.
- Provide loyal staff
If
business locates in an area this will create jobs for people in the area. These staff will live close by and will be loyal to the business.3. Community Development
organisations, incorporating local community initiatives, are set up to
help local business enterprises. Describe the services offered by 1
community development organisation you know. 20 marks
Community Development:
- Regenerating a local area
- Encouraging enterprise at a local level
- Government establish community development
organisations to aid community development
Examples:
- Dublin City Enterprise Board
- Limerick City Enterprise Board
- Donegal County Enterprise Board
Services:
- Provide grants
- Provide training
- Provide a mentor
- Provide assistance
Get expansions p411 of book
4.Evaluate the services
provided by 'County and City Enterprise Boards' (CEBs) 20 marks
-
County and City Entereprise Boards
- Dublin City Enterprise Board
- Limerick City Enterprise Board
- Donegal County Enterprise Board
- Provide grants
Examples:
Services:
Expand
In my opinion grants are important as this investor provides the small business with financal requirements needed to start a business.
- Provide training
Expand
In my opinion training is important to provide the entrerpreneur with the skills required to run a small business.
- Provide a mentor
Expand
In my opinion have somebody to help and give advice who is experienced is important because they have been in the same situation and would have learned from their past.
- Provide assistance
Expand
In my opinion assistance is important so the business is run ethically and legally and is protected
Get expansions p411 of book
5.Name 3 Community Development
organisations and describe the services offered by one of them. 20
marks
6.'As Global Warming becomes a
reality for the world, there is an increasing concern for the protection
of the environment'. Illustrate how businesses in Ireland today could
become more environmentally responsible. 20 marks
A business must make sure to minimise any harmful effects it may have on the
environment. It has a social responsibility to do the right thing.
·
Use renewable sources of energy
book p420 ' climate change'
·
Use effective waste management
Business must be aware of the environment around them and will minimise
waste by reducing, reusing and recycling.
Reduces waste by taking measures such as photocopying on both sides, sending
emails rather than memos etc
Reuses items such as paper clips, uses ceramic mugs rather than paper.
Recycles any waste it can, including, glass, paper, cardboard and so on
Cadbury Ireland developed an environmental strategy called ' Cadbury's
purple goes green', it reduced packaging on selection boxes by over 30%
- Reduce pollution
book p421 'pollution'
- Engage in sustainable development
Environmental business protect and preserve the environment. They are
interested in sustainable development so that future generations can live and
prosper.
Velvet Toilet Tissue plant 3 new trees to replace every tree they use.7. Illustrate the
characteristics of an environmentally conscious business. 20 marks
A business must make sure to minimise any harmful effects it may have on the
environment. It has a social responsibility to do the right thing.
- Sensitive
Aware of the environment around them and will minimise waste by reducing,
reusing and recycling.
Reduces waste by taking measures such as photocopying on both sides, sending
emails rather than memos etc
Reuses items such as paper clips, uses ceramic mugs rather than paper.
Recycles any waste it can, including, glass, paper, cardboard and so on
Cadbury Ireland developed an environmental strategy called ' Cadbury's
purple goes green', it reduced packaging on selection boxes by over 30%
- Innovative
Comes up with new ideas that will reduce any harmful impact on environment.
They are willing to learn new ways by attending waste workshops.Cadbury Ireland have introduced a new 100% sustainably sourced cardboard box
to replace its traditional tin. The box is 45% lighter and saves 200 tonnes of
steel.
- Consults
Communicates with all stakeholders before decisions are made that could
effect the environment. They will also prepare Environmental Impact Statement
in order to communicate plans and to ensure there is a plan to minimise harmful
impact.
After numerous complaints from local residents about shopping trolleys
turning up in local areas and rivers, Tesco changed their shopping trolleys
with a locking system that prevents them leaving the shopping centre.
- Protective
Environmental business protect and preserve the environment. They are
interested in sustainable development so that future generations can live and
prosper.
Velvet Toilet Tissue makes plant 3 new trees to replace every tree they use.
8. Evaluate the effect on a
firm's revenue and costs of meeting its social responsibilities. 25
marks
A business has responsibilities to all stakeholders:
- Investors
- Employees
- Customers
- Service Providers
- Suppliers
- Government
- and the general public
The business must act:
- Ethically / morally in dealing with them
- Environmental responsible
in all their business activities.
Revenue
In my opinion incresed sales are important because
In my opinion investment for expansion is important because
Costs
- Higher wages
In my opinion paying the high wages is important because
- Higher price to suppliers
In my opinion engaging in fair trade is important because
9. Discuss the social
responsibilities of business 20 marks
10.'Business is not only about
doing things right, it is also about doing the right things'. Discuss the
social responsibilities that a business has to its various stakeholders. 20
marks
The business must act:
- Ethically / morally in dealing with them
- Environmental responsible
in all their business activities.
A business has responsibilities to all stakeholders:
- Investors
- Employees
- Customers
- Service Providers
- Suppliers
- Government
- and the general public
Investors
They give financial assistance to the business. A business has a responsibility to provide them with accurate financial information and give them a good return on their investment.
Bank –pay back loan with interest, Investors get a good dividend, Government – use grants according to conditions
Employees
They work for the business. A business has a responsibility to provide them with fair wage for the work they do, safe working conditions and not to discriminate them.
Customers.
The people who buy the products and services. A business has a responsibility to provide them with good quality goods at a fair price and a good after sales services.
Service Providers.
A business may require services from another business, such as accounting services, legal services, cleaning services etc. A business has a responsibility to provide them with fair and prompt payment for the service they receive.
Producers / Suppliers
Provide a business with raw materials. A business has a responsibility to use fair trade suppliers. To pay them fairly and on time.
11. Define ethical Business
practice 10 marks
Treating all people they come into contact with fairly, doing the right thing in all situations regardless of profit.
Business should develop a code of ethics
A guide that sets out behaviour in situations. It tells the correct way to behave and the correct thing to do.
Promotes positive choices and sustainability
A business that promotes ethical behaviour will act in a moral way, they will encourage all their stakeholders to do likewise. The advantages to the business of acting in an ethically way will greatly help the business long term survival.
A business that promotes ethical behaviour will act in a moral way, they will encourage all their stakeholders to do likewise. The advantages to the business of acting in an ethically way will greatly help the business long term survival.
12. Explain how ethical
behaviour in business can be encouraged. 10 marks
Pick 3
Statements onle, expansions in book p418 & 419
13. Explain, using an example
where appropriate, the impact that business activity has in the
development of the Irish economy. 20 marks
- Create jobs
Employment
leads to lower unemployment and demands on the government for social welfare.
HMV are reopening their store are creatin over 30 jobs
- Buy materials and services
Business
buy from other business, this leads to the creation of more enterprise and
wealth in the economy
When the staff in businesses take lunch break they needed somewhere to have lunch, as a result 3 cafes are now open in Raheny village.
- Low Inflation
Competition
between business forces business to lower their prices and in turn this leads
to lower inflation.
Aldi and Lidl have forced other supermarket chains to lower their prices to compete
- Creates wealth
Entrepreneurs
spend their profits and employees spend their wages, this spending generates
wealth for an economy. The company pay
taxes on their profits, employees pay tax on their wages and consumers pay tax
on their spending, all generating current income for the government.
Dunnes Stores are a huge source of income to the Irish government, with their high profits, high numbers of staff and loyal customers
14. Contrast Business Alliance
and Franchising as different types of Business Organisations. Use examples
to illustrate your answers. 30 marks
Strategic
Alliance
An
arrangement where two businesses agree to co-operate with each other on a
single project.
Franchise
A
business where one person (franchiser) sells the right to use their name, idea
or business to another entrepreneur (franchisees), who sets up a replica of the
business
·
Name
Alliance:
Both
business keep their own name for the duration of the alliance.
Swatch and
Mercedes came together to create the SMART car, both businesses kept their
names
Franchise:
The
franchisee pays the franchiser to trade under their name.
Mary Smyth
(franchisee) pays McDonalds (franchiser) to use McDonalds name for her fast
food restaurant.
Headings to Contrast under
- Name
- Formation
- Liability
- Continuity of existence
- Finance
- Accounts
- Profits
- Control
- Termination
Setting
up a franchise is costly due to the large fee to open up the franchise. The
franchisee must sign a contract to obey the rules and conditions laid down by
the franchiser. This is to ensure the reputation of the business is
safeguarded.
Mary
Smyth paid Supervalu a fee and signed a contract to obey the rules set out by
supervalu
- Liability
Limited
Liability, shareholders are not personally liable for paying back the company
loans. In the event of financial difficulties all the shareholders lose is the
amount invested
Mary
Smyth's personal assets are safe if the business got into financial bother.
- Continuity of existence
As there
are numerous franchises this ensures the business existence
If Mary
Smyth closed down her Supervalu franchise, there would still be many others.
- Finance
A
franchise is an established business, this reduces the risk of failure , which
in turn makes getting finance easier. Banks are more likely to lend money to a
well known business.
As
Supervalu is a well known brand Mary Smyth found it easy to gain a bank loan
- Accounts
The
accounts must be audited (verified by an accountant) every year. The co-op must
publish its financial accounts each year. Customers, competitors, employees and
the general public can see the financial position of a company.
- Profits
The
franchisee must pay the franchiser an annual fee from the profits. However,
because of the size of franchises and head office buying stock the franchise
will avail of substantial economies of scale. The franchise also benefit from national
advertising, which reduce marketing costs. Lower costs give the franchise
higher profits.
Mary
Smyth buys Supervalu branded goods from head office who buy for all stores. In
this way Mary Smyth makes huge savings
- Control
The
franchiser imposes restrictions and conditions on the running of the business.
This leave the franchisee with little control in their own business. The
franchisee is under a lot of pressure to meet the very high standards of the
franchiser.
Mary
Smyth must have Supervalu name at front of the store, she must stock Supervalu
branded goods, she must use Supervalu shopping bags etc
- Termination
The
franchisee can not stop trading without permission from the franchiser
Mary
Smyth must get permission from Supervalu before selling her shop on
Notes on Alliance
- Formation
This is a
voluntary / temporary arrangement so it is easy to form. It opens new markets
for both firms.
The
Independent and the Institute of Education worked together on Exam Brief. This
was a voluntary agreement and gave The Independent access to the student market
and The Institute advertising in a national newspaper.
- Liability
Limited
Liability, shareholders are not personally liable for paying back the company
loans. In the event of financial difficulties all the shareholders lose is the
amount invested
- Continuity of existence
As it is
short term, when the project ends the alliance ends.
When the
Nokia Lumia comes to decline in its lifecycle the alliance with Nokia and
Microsoft will end.
- Finance
Both
established firms provide money for the alliance to work.
Swatch
and Mercedes are very successful businesses and when coming together to create
the SMART car they both would have invested into it.
- Accounts
The
accounts must be audited (verified by an accountant) every year. The co-op must
publish its financial accounts each year. Customers, competitors, employees and
the general public can see the financial position of a company.
- Profits
All money
made is shared between the 2 businesses in the alliance
- Control
Control
should be shared, however if one business tries to dominate and takeover, this
may result in conflict.
- Termination
This is a
voluntary / temporary arrangement so it is easy to end.
Once the
Exam Brief supplement is completed the alliance between The Independent and The
Institute of Education ends.
15. Evaluate 'franchising' as a
form of business ownership for a new enterprise. 20 marks
A
business where one person (franchiser) sells the right to use their name, idea
or business to another entrepreneur (franchisees), who sets up a replica of the
business
Statements
only, you must expand and EVALUATE
- Recognised brand name
- Reduced risk
- Economies of scales
- Major advertising campaigns16. Contrast the importance of transnational
and state owned companies as forms of business organisations in Ireland. 30
marks
State Owned Enterprise / State Sponsored Bodies/
Semi-State Bodies
Businesses owned by the government on behalf of the
people of Ireland.
Transnational
/ Multinational Companies
·
A company with headquarters in one
country and further branches around the world.
·
Known as business giants.
·
They bring new technology, job
opportunities and competition to the Irish market.
Answer:Done on mind map in class.
17. Explain the term TNC 10
marks
- A company with headquarters in one country and further branches around the world.
· Known as business giants.
· They bring new technology, job opportunities and competition to the Irish market.
Examples:
-
18. Discuss the reasons for the
development of Transnational Companies in Ireland. 15 marks
-
You must expand on each point
·
Membership to the EU
·
Low Corporation Tax
·
Well educated workforce
·
Development sin ICT
19. Evaluate, using example, he arguments in favour OR against the privatisation of commercial state enterprises in Ireland. 20 marks
19. Evaluate, using example, he arguments in favour OR against the privatisation of commercial state enterprises in Ireland. 20 marks
- Sale of a state owned business to a private enterprise or company.
- Source of Capital income for the state
- Source of income for the state
- State no longer has the financial burden of the business
- Encourages enterprise
- More choice for consumers
- Job losses
- Decisions made for the good of the business not the country
- Government lose their dividend
- Higher prices for consumers
- Sell
shares
- Privatisation
- Attain
Limited Liability
- Become
a franchise
- Involved in National Agreements
- Set up government agencies
- Pay out government grants
- Pass laws
- Set taxes
- Government as an employer
- Set up government agencies
- Set taxes
- Government as an employer
- Pass laws
- Crime
rates increase
- Less
government spending
Privatisation
The state owned firm may be sold to the general
public on the stock exchange, or, it could be sold to another business.
Selling an asset can bring in a large amount of
money to the government that can be used on capital expenditure, such as
schools and hospitals.
In 1999 Telecom Eireann was privatised and became
Eircom PLC. It was floated on the stock exchange and small first time investors
were encouraged to buy shares
Advantages
of privatisation
OR
Disadvantages of privatisation
20.
Describe two reasons why a business enterprise might change its organisational
structure over time. Use illustrations to support your answer. 20 marks
1. Raise Finance
If a business does not have enough income for spending it will then require finance. A business may change its structure to raise finance. It could:
Kerry group Co-operative changed its structure to a PLC in order to sell shares on the stock exchange.
Telecom Eireann was sold and became Eircom PLC, this provided the government with well needed finance.
John Murphy sandwiches decided it would change to O'Brien's by buying into the O'Brien's Sandwiches franchise.
If a business does not have enough income for spending it will then require finance. A business may change its structure to raise finance. It could:
Kerry group Co-operative changed its structure to a PLC in order to sell shares on the stock exchange.
Telecom Eireann was sold and became Eircom PLC, this provided the government with well needed finance.
2. Reduce risk of failure
the main aim of a commercial business is to succeed
and make a profit. A business may change its structure in order to survive and
do well. It could:
Limited liability eliminates the risk of loss of
personal assets. An entrepreneur with limited liability will only lose what
they have invested.
Mary Jones Stores (Sole Trader) changed to Mary
Jones stores ltd in order to gain limited liability for the owners
(shareholders)John Murphy sandwiches decided it would change to O'Brien's by buying into the O'Brien's Sandwiches franchise.
21.
Using examples, analyse the role of the Irish Government in creating a suitable
climate for business enterprises in the state. 20 mark
The political parties running the Irish government are Fine Gael
and The Labour party.
The government work with the social partners (ICTU,
IBEC, CIF, IFA) to reach agreements in areas such as pay and conditions for
workers. They do this to help improve industrial relations and help the
business plan for the future. These agreements are made to help business
survive and expand, generating profits and creating jobs.
The government have set up a number of agencies to
help expand, succeed and create employment.
Enterprise Ireland: Help indigenous business expand
and export offering advice, grants and support
FÁS: Trains potential workers with skills needed
for business
Bord Bia: Helps Irish food and drink business to
sell their products abroad
IDA: attracts transnational to Ireland creating
jobs and providing services
A grant is a one off lump sum that does not have to
be paid back once the recipient meets the grants criteria. Government give
grants to help with business start up, purchasing assets, providing training,
carrying out feasibility studies. Grants allow business to set up and expand,
generating profits and creating jobs.
Government regulations is the laws the government
pass to control business activities and protect all parties involved in
business. Laws include:
Sale of goods and supply of services Act 1980 -
retailer responsibilities
Consumer protection Act 2007 - advertising, pyramid
schemes and set up NCA
Industrial relations Act 1990 - industrial action
Unfair dismissal Act 1977 / 1993 - dismissing staff,
fair, unfair, how it should be done, redress
Employment equality Act 1998 /2002 - deals with
discrimination under 9 grounds
Data Protection Act 1988 - information held on
computers
Companies Act 1990 - ensures companies are set up
correctly and accounts are monitored
When the government lower tax it helps all parties
in business.
Corporation tax - helps companies become more
profitable and attracts TNC's - 12.5%
PAYE - helps workers giving them more disposable
income - lower rate 20% upper rate 41%
The Irish government is the biggest employer in
Ireland, creating 1000's of jobs. It employs people in
Civil service - government departments
Public service - doctors, nurses, teachers
State owned enterprise - CIE, An Post
Not only is it creating jobs but also providing
vital service to other businesses to succeed
22.
Discuss the different ways in which the Irish Government affects the labour
force in Ireland. 20 mark
Labour force
Number
of people available to work in the country (employed and unemployed)
The government have set up a number of agencies to
help expand, succeed and create employment.
FÁS: Trains potential workers with skills needed
for business
When the government lower tax it helps all parties
in the labour force.
PAYE - helps workers giving them more disposable
income - lower rate 20% upper rate 41%.
When low it encourages people to return to work and to work overtime.
The Irish government is the biggest employer in
Ireland, creating 1000's of jobs. It employs people in
Civil service - government departments
Public service - doctors, nurses, teachers
State owned enterprise - CIE, An Post
Not only is it creating jobs but also providing
vital service to other businesses to succeed
Government regulations is the laws the government
pass to control business activities and protect all workers . Laws include:
Industrial relations Act 1990 - industrial action
Unfair dismissal Act 1977 / 1993 - dismissing staff,
fair, unfair, how it should be done, redress
Employment equality Act 1998 /2002 - deals with
discrimination under 9 grounds
Data Protection Act 1988 - information held on
computers
23. Discuss the effects of increasing unemployment on
the Irish Economy 20 marks
Unemployment
·
% of the
labour force that does not have a job
·
Ireland's
unemployment rate is 13.7%
Rise in unemployment:
·
Bad for
economy:
o Social welfare demands
Unemployed receive a weekly income from the
government known as unemployment benefit. This is a current expense for the
government and a rise in unemployment puts a strain on government spending. In
order to pay current expenditure the government increase current income (tax)
o Less disposable income
When people are not working they receive a less
income on social welfare payments. In turn they have less money to spend on
products and services.
24. Discuss the impact of inflation and interest
rates on business in Ireland. 20
marks
Inflation
·
Annual
percentage increase in the level of prices in the economy.
·
Measured
using CPI (Consumer Price Index)
·
Ireland's
inflation rates
| CPI Ireland 2012 |
1.22 %
|
|||
| CPI Ireland 2011 |
2.45 %
|
|||
| CPI Ireland 2010 |
1.29 %
|
Rise
in inflation:
·
Bad for the
economy
o Demands for higher wages
As prices of goods and services rise
employees will seek higher wage to afford the cost of living. If business
refuse pay rise this may lead to bad industrial relations.
o Rise in business expenses
Cost of raw materials for business will
increase and this will result in less profit for the business.
Fall
in inflation:
·
Good for
economy
o More spending
If goods and services cost less people will
have more money to spend
o Business expansion
If there are less wage demands and raw
materials are low price, this will increase a business profits and encourage
them to expand
Interest
rates
·
Cost of
borrowing
·
Expressed as
a percentage of the amount borrowed
·
Interest
rates in Ireland are determined by the ECB (European Central Bank)
·
The European
Central Bank, cut its main interest rate to a new low of 0.25 per cent in
November 2013
Rise in interest:
·
Bad for
economy:
o Less profit
Interest on loans is a business expense and
if it rises will result in less profit for the business
o Harder to expand
If interest rates goes up a business may not
be able to afford the loan and may not have the finance to expandFall in interest rates:
·
Good for
economy
o More disposable income
If mortgage rates go down this gives
consumers more money to spend on goods and services
·
Less
business expenses
Business expenses will decrease and this will
increase the business profits and allow them to spend in other areas.Sole trade -
A
business that is set up and run by an individual entrepreneur on their own.
This is a popular type of organisation for a first business.
Partnership -A business set up and managed by between 2 and 20 owners.
- Name
The
entrepreneur will need to register the name of the business with the registrar
of business names if the name of their business is different from their own
name. For example if Joe Smyth calls his business 'Joe Smyth Plumbing' he would
not have to register but if he called it 'ABC Plumbing' he would need to
register.
Partnership:The name should end with '& Co.' and must be registered with the 'registrar of business names'.- Formation
The
business must register with the revenue for taxes such as VAT, SAIT (Self
Assessment Income Tax) and PAYE.
Partnership:
Before they begin trading the partners draw up a contract called a 'deed of partnership'. It sets out how profits are shared, what each partners role is, how the partnership should be run, salaries and so on. The partnership must register with the revenue for relevant taxes
- Continuity of existence
If the
sole trader decides they are for some reason no longer able to run the
business, there may not be anyone else to take over.
Partnership:
As there are between 2-20 partners, if 1 leaves the business will still continue
26. Outline the categories of industry in the Irish economy. In the case of one of these describe its contribution to the economy. 20 marks
- Primary Sector
This sector includes all the businesses involved in taking / extracting raw materials from nature.
- There are 4 sectors in this industry
The primary sectors is made up of:
- Agriculture
- Fishing
- Mining
- Forestry
2. Secondary Sector
This sector changes raw materials into finished goods
- There are 2 industries in this sector
The secondary sectors is made up of:
- Manufacturing
Make finished goods
2. Construction
The service providers
Create jobs
Generate money into the economy
Contribute to the balance of payments
Provide services
2. Construction
Involved in designing, producing and maintaining the built infrastructure of the economy.
3. Service / Tertiary Sector
This sector do not take things from nature of make a physical product
Importance of the Service Sector27. Discuss the importance of the categories of industry to the current Irish economy 20 marks
- Primary Sector: important to local economies, Killybegs are highly reliant on fishing
- Secondary Sector: Massive job losses in construction
- Service / Tertiary Sector : 65% of jobs are in this sector
- Primary Sector: are largest export is meat, which is sourced in this sector
- Secondary Sector: Manufacturing finshed visible goods is important to balance of trade
- Service / Tertiary Sector : Invisible trade from services is very important to the country
- Primary Sector: provide raw material, such as potatoe
- Secondary Sector: make raw material into finished good, crisps
- Service / Tertiary Sector : sell the finished goods, supermarkets
Also known as Tertiary sector. The service providers
This sector do not take things from nature of make a physical product
29. Outline how the Irish Governments policy of increased taxation and decreased public expenditure is impacting on business. 20 marks
Tax
Corporation tax - tax on company profits 12.5%
VAT - tax on consumer spending 23%
Motor tax - tax of vehicles, ranges depending on year and engine size
- Less overtime
- Less profits
Public expenditure
Governments current and capital spending and development of our country.
- Less social welfare
- Poor infrastructure
30. Discuss the opportunities and challenges of partnership as a form of business ownership 20 marks
A business set up and managed by between 2 and 20 owners.
Opportunities
- Continuity of existance
- Do not need to publish accounts
It is a confidential business and the financial accounts do not need to be published. Only the sole trader has access to the accounts.
Challenges
- Liability
- Decision making
Decisions must be shared in a partnership, any decisions take time and discussion. There should be a clause for ending the business in the 'deeds of partnership'.
31. Discuss co-operatives and private limited companies as forms of business ownership, using the following headings. 25 marks
Private limited company
A company owned by between 1 and 50 shareholders
Co-operative
Set up by
a group of people, who come together and establish an enterprise with the aim
of helping (co-operating) with one another
- Name
Co-operative : The name should end in 'co-op'
- Formation
Co-operative: Forming a co-op is complicated.
The owners apply to the register of friendly societies for permission to set up the co-op by submitting a copy of the rules they intend to use to run the business.
- Numbers
Co-operative: There must be at least 7 owners to form a co-op and no upper limit.
- Profits
Co-operative : All the profits are shared among the members, the better the co-op does the higher the return for the member
- Termination
Co-operative : This must be agreed by all members at the AGM or at an EGM.
32. Outline the reasons why a business may change its organisational structure from a 'Sole Trader' to a 'Private Limited Company'. 20 marks
Define both
Statements only, you must expand
- Continuity of existence
- Limited Liability
- Raise Finance
- Develop status
33. Describe the steps involved in
forming a private limited company 20 marks
Step 1 Prepare the following documentation, amemorandum of association, the articles of association, form A1. (see book page 363 -365 for more on each document)
Step 2 Send all documents to the Registrar of Companies at the Companies Registration Office.
Step 3 Receive a Certificate of Incorporation from the Companies Registration Office. This is the birth certificate of the company
Step 4 Register with the revenue for Corporation tax,VAT, PAYE
Step 5 Hold the first meeting, called its Statutory Meeting. At this meeting the Board of Directors are appointed. (see book page 367 for more on the board)
Encourage Business
Corporation tax - helps companies become more profitable and attracts TNC's - 12.5%
PAYE - helps workers giving them more disposable income - lower rate 20% upper rate 41%
Regulate Business
Sale of goods and supply of services Act 1980 – sets out the retailers responsibilities in selling goods and giving services.
Consumer protection Act 2007 – sets guidelines for business with regards to advertising and pyramid schemes. It also established NCA to protect consumers.
Industrial relations Act 1990 – protects employees who wish to take industrial action
Unfair dismissal Act 1977 / 1993 – protects employees as it deems all dismissal unfair until proven otherwise. The law sets out dismissal deemed fair and unfair. How dismissal should be dealt with and redress for dismissal
Employment equality Act 1998 /2002 - deals with discrimination under 9 grounds.
A
company owned by between 1 and 50 shareholders. The name must end with LTD
Step 1 Prepare the following documentation, amemorandum of association, the articles of association, form A1. (see book page 363 -365 for more on each document)
Step 2 Send all documents to the Registrar of Companies at the Companies Registration Office.
Step 3 Receive a Certificate of Incorporation from the Companies Registration Office. This is the birth certificate of the company
Step 4 Register with the revenue for Corporation tax,VAT, PAYE
Step 5 Hold the first meeting, called its Statutory Meeting. At this meeting the Board of Directors are appointed. (see book page 367 for more on the board)
34. Outline the role of the Irish
government in encouraging and regulating business in Ireland 20 marks
The political parties
running the Irish government are Fine Gael and The Labour party.Encourage Business
- Pay out government grants
A grant is a one off lump sum that does not have to
be paid back once the recipient meets the grants criteria. Government give
grants to help with business start up, purchasing assets, providing training,
carrying out feasibility studies. Grants allow business to set up and expand,
generating profits and creating jobs.
- Set
taxes
Corporation tax - helps companies become more profitable and attracts TNC's - 12.5%
PAYE - helps workers giving them more disposable income - lower rate 20% upper rate 41%
Regulate Business
·
Protect consumers
Sale of goods and supply of services Act 1980 – sets out the retailers responsibilities in selling goods and giving services.
Consumer protection Act 2007 – sets guidelines for business with regards to advertising and pyramid schemes. It also established NCA to protect consumers.
·
Protects employees
Industrial relations Act 1990 – protects employees who wish to take industrial action
Unfair dismissal Act 1977 / 1993 – protects employees as it deems all dismissal unfair until proven otherwise. The law sets out dismissal deemed fair and unfair. How dismissal should be dealt with and redress for dismissal
Employment equality Act 1998 /2002 - deals with discrimination under 9 grounds.
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