Unit 6 short question

Unit 6 Short Questions

 

Unit 6 Short Questions
Year	Question	Topic
2013	1	Ltd
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 there are between 1-50 shareholders, there must be a minimum of 2 directors, if 1 leaves the business will still continue.
	8	Economic variables
1=E 2=F 3=D 4=A 5=B
2012	7	Franchise and merger
Merger ·         Two businesses come together to form one This is when business come together giving them more power and a bigger market share.  Benefits as a form of expansion are Synergy, giving the business more power. Example: Irish Permanent and the Trustee Savings Bank merged to form PermanentTSB Franchise ·         Buying a business name that has already been established 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.  Benefit as a form of expansion is that the brand name is already established. Example : McDonalds, Easons, Supervalu, Dolminos Pizza
	8	Category of industry
·         Also known as extractive industry. 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, forestry and mining Trends: Advances in technology Machinery can now do many of the jobs required.  Machines milk cows etc Focus on organic food Consumers are very health conscious and are demand these food times from agriculture.
2011	6	Government
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 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%
2010	1	Indigenous
A business that is set up in the home country of the entrepreneur An Indigenous firm in Ireland is set up by an Irish entrepreneur and their main place of business is Ireland. Examples: Supermacs, Dunnes Stores Benefits: ·      Indigenous firms have a positive effect on the balance of trade and payments They export goods and services and help the country achieve a surplus ·         Create jobs These firms establish and employ staff which gives people more disposable income and reduces pressure on the state
	3	Exchange rates
The value of one currency over another How much €1 is worth in terms of other currency Rise in € to £: ·         Bad for economy: Increase in imports When the euro increases in value, the price of UK goods goods sold in Ireland decreases. This means that Irish import increase, Irish business sales will drop and this may result in a deficit in the balance of trade and payments. Decrease in exports When the euro increases in value, the price of Irish products sold in UK increases. This means that Irish exporters will sell fewer products in UK. This may result in a deficit in the balance of trade and payments
	5	Articles of association
·         The internal rules This document sets out the regulations for running a company Information: 1.       Details of authorised share capital 2.       Procedures for organising meetings 3.       Powers and duties of directors
2009	5	Community development
Regenerating a local area Encouraging enterprise at a local level Government establish community development organisations to aid community development Benefits : Encourages 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. Creates jobs If business locates in an area this will create jobs for people in the area. This employment will provide people with a higher standard of living than was available to them on social welfare.
	6	Secondary sector
·         Uses output from the primary sector This sector changes raw materials into finished goods ·         There are 2 industries in this sector The secondary sectors is made up of: 1.      Manufacturing Make finished goods 2. Construction Involved in designing, producing and maintaining the built infrastructure of the economy. Trends: Advances in technology Machinery is replacing humans i.e. machines are used to manufacture goods Recession Lots of job losses in construction as people cannot afford to build
2008	8	Community development
Benefits : Encourages 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. Creates jobs If business locates in an area this will create jobs for people in the area. This employment will provide people with a higher standard of living than was available to them on social welfare.   Functions of CEB:   Provide grants to small businesses For feasibility studies, capital grants to help the business start   Provide training Train in marketing, sales, finance and areas the entrepreneur is lacking skills
2007	10	State business
ESB – Produce electricity Reasons: Vital services provided Electricity is required for our country to thrive.  ·         provide income to government ESB is one of the few profit making state owned companies
2006	5	privatisation
Sale of a state owned business to a private enterprise or company. The state owned firm may be sold to the general public on the stock exchange, or, it could be sold to another business. Source of Capital income for the state 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. Source of income for the state When the state sold Telecom Eireann in 1999 is was a huge source of income More choice for consumers The industry is no longer a monopoly held by state and is open to competitors.  BT, Vodafone, Meteor all entered the Irish telecom market
	8	ethics
·         Honesty in business dealings 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.
2005	6	Limited liability
·         Shareholders are not personally liable for paying back the company loans. The company has total responsibility for debts ·         In the event of financial difficulties all the shareholders lose is the amount invested The entrepreneur will not lose their personal possessions ·         Encourages enterprise Entrepreneurs will be more willing to go into business if they have limited liability
2003	1	Service industry
·         Also known as Tertiary Industry ·         The service providers This sector do not take things from nature of make a physical product ·         The service sector is made up of: All those businesses that provide a service to the consumer Examples: ·         An post delivering letters ·         Bank of Ireland provide financial services ·         Local hairdresser cutting hair
	7	Economic variable
Grants: ·         One off lump sum Grants are capital provided to encourage business.  The grant does not need are reached. Example: CEB give grants to small businesses starting off.  The criteria of the grant may be to employ 2 people in year 1, once they do this they do not have to pay back the grant.   Subsidies: ·         Price support This is ongoing support to help decrease the price of a good or service. Example: The government subsidies many of CIE services so that the price of travel in Ireland is affordable
	8	Indigenous
A business that is set up in the home country of the entrepreneur An Indigenous firm in Ireland is set up by an Irish entrepreneur and their main place of business is Ireland. Examples: Supermacs, Dunnes Stores Benefits: ·      Indigenous firms have a positive effect on the balance of trade and payments They export goods and services and help the country achieve a surplus ·         Create jobs These firms establish and employ staff which gives people more disposable income and reduces pressure on the state
2002	2	Industry
·         Primary Industry: agriculture (Kerry Group), Fishing, Mining, Forestry ·         Secondary Industry : Manufacturing ( Tayto) Construction (Builders) ·         Tertiary Industry : Services , Financial Sevice (Bank of Ireland)
	9	deregulation
·         removing or reducing state regulations This takes state control away from an industry and opens it totally to competition ·         Good for consumers When an industry is no longer regulated it gives consumers more choice ·         In 2000 Taxi industry in Ireland was deregulated This meant more people could become Taxi drivers

 

Unit 6 Short Questions
Year	Question	Topic
2013	1	Ltd
	8	Economic variables
2012	7	Franchise and merger
	8	Category of industry
2011	6	Government
2010	1	Indigenous
	3	Exchange rates
	5	Articles of association
2009	5	Community development
	6	Secondary sector
2008	8	Community development
2007	10	State business
2006	5	privatisation
	8	ethics
2005	6	Limited liability
2003	1	Service industry
	7	Economic variable
	8	Indigenous
2002	2	Industry
	9	deregulation