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Jim and Martina White own Wholefood Farm Products Ltd, an organic farming and food production business in Cork - Leaving Cert Business - Question 2 - 2010
Question 2
Jim and Martina White own Wholefood Farm Products Ltd, an organic farming and food production business in Cork. They produce a range of fresh and frozen products in ... show full transcript
Worked Solution & Example Answer:Jim and Martina White own Wholefood Farm Products Ltd, an organic farming and food production business in Cork - Leaving Cert Business - Question 2 - 2010
Step 1
State two advantages of a private limited company.
Answer
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Shareholders have limited liability, meaning they are only at risk for their investment and personal assets are protected.
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More capital can be raised as a private limited company can have up to 99 shareholders, which allows for greater funding opportunities.
Step 2
Outline two environmental responsibilities of business.
Answer
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Businesses should actively work to prevent pollution in air, water, and soil by ensuring that no harmful emissions are released that could impact the environment.
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Proper waste disposal is essential; companies must ensure that waste is disposed of legally and sustainably, preventing any environmental damage.
Step 3
Explain how Wholefood Farm Products Ltd can behave ethically towards: (i) its customers; (ii) its employees.
Answer
i) Customers:
- Provide good quality products and charge reasonable prices, ensuring value for money.
- Ensure products are safe and healthy by adhering to health standards and regulations.
- Handle customers' complaints fairly and in a timely manner, promoting customer satisfaction.
ii) Employees:
- Pay a fair wage and provide decent working conditions to promote job satisfaction.
- Provide opportunities for personal development and training, showing a commitment to their growth.
- Treat employees with respect and dignity, fostering a positive workplace culture.
Step 4
State three challenges/difficulties Jim and Martina may have if they decide to export to other markets.
Answer
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Distribution costs may become significant, especially if they are far away locations that increase transportation expenses.
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They may face currency fluctuations, where changes in exchange rates (e.g., Euro to Dollar) can impact pricing and profits.
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There could be challenges with cultural and language barriers when dealing with foreign customers, which may complicate communication and relationship building.
Step 5
Outline positive benefits that Wholefoods Products Ltd may bring to the local community.
Answer
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Employment opportunities: They employ local people, creating jobs in the area.
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Spinoff effects: Local businesses benefit from increased patronage due to Wholefood Ltd’s operations, stimulating local economic growth.
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Community involvement: Spending by Wholefood Ltd employees in Cork boosts the local economy, supporting local shops and services.