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Billy and Bobby recognised the popularity of coffee in Ireland - Leaving Cert Business - Question A - 2017
Question A
Billy and Bobby recognised the popularity of coffee in Ireland. They decided to develop an Irish brand that roasts and distributes speciality coffee for a niche mark... show full transcript
Worked Solution & Example Answer:Billy and Bobby recognised the popularity of coffee in Ireland - Leaving Cert Business - Question A - 2017
Step 1
Step 2
Explain the term unlimited liability.
Answer
Unlimited liability means that the owners of a business are personally responsible for all the debts and obligations of the business. If the business fails and cannot meet its debts, creditors can pursue the personal assets of the owners, putting their personal finances at risk. This arrangement underscores the importance of careful financial management for those involved in partnerships.
Step 4
Outline two features of any one of these methods of production.
Answer
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Job Production: This method involves producing goods one at a time, tailored to specific customer requirements. Each product is unique, which allows for customized features but often results in higher costs and time for completion.
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Mass Production: In this method, large quantities of standardized goods are produced. It capitalizes on assembly line techniques, which enhance efficiency and reduce costs per unit due to economies of scale.
Step 5
Explain two benefits of setting up your own business.
Answer
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Profits: As the owner of the business, you get to keep all the profits after taxes are paid, providing a direct financial incentive for your hard work and investment.
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Control: Owning your own business means you have complete control over decisions and operations. This autonomy allows you to implement your vision and make strategic choices that align with your goals.
Step 6
Illustrate, using a diagram, one channel of distribution used by Billy and Bobby's Boutique Coffee.
Answer
The distribution channel can be illustrated as follows:
MANUFACTURER
|
RETAILER
|
CONSUMER
Alternatively:
MANUFACTURER
|
CONSUMER
This shows how Billy and Bobby's Boutique Coffee supplies retailers or consumers directly.
Step 7
Describe two sales promotions that Billy and Bobby's Boutique Coffee could offer consumers to increase sales.
Answer
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Price Reduction/Discounts: Billy and Bobby's Boutique Coffee could offer a 20% discount on certain days, such as Monday, encouraging consumers to purchase during off-peak times and boosting overall sales volume.
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Buy One Get One Free: They could run a promotion where customers get a free coffee for every coffee purchased. This not only drives immediate sales but also increases customer footfall and could lead to repeat business.