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Andrew Roche, a qualified plumber, has recently set up his own business - Leaving Cert Business - Question Question 1 - 2007
Question Question 1
Andrew Roche, a qualified plumber, has recently set up his own business. He provides services for households and small businesses in his local area. He has rented pr... show full transcript
Worked Solution & Example Answer:Andrew Roche, a qualified plumber, has recently set up his own business - Leaving Cert Business - Question Question 1 - 2007
Step 1
Describe three enterprising skills/characteristics that Andrew has as an entrepreneur.
Answer
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Innovation: Andrew demonstrates creativity and the ability to develop unique solutions tailored to client needs, setting him apart in the competitive plumbing market.
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Risk-taking: By starting his own business, Andrew is willing to take calculated risks, which is essential for entrepreneurial success—investing in equipment, premises, and possibly employees.
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Decision-making: As an entrepreneur, Andrew is required to make critical decisions related to finances, staffing, and business strategy, showcasing his ability to analyze situations and drive his business forward.
Step 2
Explain two appropriate sources of finance that Andrew may use to purchase the van.
Answer
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Hire-purchase: This allows Andrew to obtain the van by paying a deposit and then making regular payments over time until he owns the van. This method enables him to manage cash flow effectively while securing the asset needed for his business operations.
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Term Loan: He may apply for a term loan from a bank, which provides a lump sum that he must repay in installments over a specified period. This approach could help him finance the van while managing his business’s budget.
Step 3
Outline three disadvantages of Andrew setting up his own business.
Answer
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Unlimited liability: As a sole trader, Andrew is personally liable for all debts incurred by the business, putting his personal assets at risk if the business fails.
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Excessive workload/stress: The demands of running a business can lead to long hours and significant stress, particularly as he balances client needs and operational tasks while planning for growth.
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Difficult to get all the capital: Securing sufficient funding for start-up and ongoing expenses can be challenging, limiting Andrew's ability to invest in necessary resources for his business.
Step 4
Outline two suitable methods that Andrew could use to promote his new business.
Answer
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Advertising through local radio: Utilizing local radio stations can effectively reach potential customers in his area, creating awareness of his plumbing services.
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Flyers: Distributing flyers in neighborhoods can help target specific local markets and inform residents and businesses about his services and promotions.
Step 5
Step 6
Identify and explain two functions of a Human Resources Manager.
Answer
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Human Resource Planning: This function involves forecasting an organization’s future human resource needs to ensure staffing levels meet business objectives, which is vital for planning growth as Andrew hires more staff.
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Recruitment and Selection: The HR Manager manages the process of attracting, interviewing, and selecting suitable candidates for employment, ensuring that Andrew finds the right talent to support his business's growth.