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Describe three enterprising skills/characteristics that Andrew has as an entrepreneur - Leaving Cert Business - Question A - 2007
Question A
Describe three enterprising skills/characteristics that Andrew has as an entrepreneur. (B) Explain two appropriate sources of finance that Andrew may use to purchas... show full transcript
Worked Solution & Example Answer:Describe three enterprising skills/characteristics that Andrew has as an entrepreneur - Leaving Cert Business - Question A - 2007
Step 1
Describe three enterprising skills/characteristics that Andrew has as an entrepreneur.
Answer
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Innovation: Andrew demonstrates innovation by providing unique plumbing services to both households and small businesses. This skill allows him to identify new opportunities and tailor his services to meet market demands.
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Risk-taking: As a new business owner, Andrew exhibits risk-taking by investing time and resources into starting his own venture. This involves navigating uncertainties and making decisions that could impact his financial stability.
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Decision-making: Andrew must make critical decisions regarding staffing, finance, and service offerings. Effective decision-making will be vital for the growth and sustainability of his business.
Step 2
Explain two appropriate sources of finance that Andrew may use to purchase the van.
Answer
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Hire-Purchase: This option allows Andrew to acquire the van by paying in installments while having immediate use of it. After completing all payments, ownership of the vehicle is transferred to him. This method is beneficial as it spreads the financial burden over time.
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Term Loan: A term loan involves borrowing a fixed amount from a financial institution, which Andrew can repay over a predetermined period. This enables him to purchase the van outright, but he must commit to monthly repayments along with interest.
Step 3
Outline three disadvantages of Andrew setting up his own business.
Answer
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Unlimited Liability: Being the sole proprietor, Andrew is personally responsible for all debts incurred by the business, which puts his personal assets at risk.
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Excessive Workload/Stress: Starting a new business often requires long hours and significant effort. This can lead to stress and burnout, especially as he manages various aspects of the operations alone.
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Difficult to Get All the Capital: Securing sufficient funding for startup costs can be challenging, particularly as a new entrepreneur with limited credit history or proven revenue streams.
Step 4
Outline two suitable methods that Andrew could use to promote his new business.
Answer
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Local Radio Advertising: Advertising on local radio can effectively capture the attention of potential customers in Andrew's service area, making them aware of his plumbing services.
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Flyers: Distributing flyers in the local community can reach prospective clients directly. This method is cost-effective and can highlight specific services or promotions to attract new customers.
Step 5
Explain the term ‘human resource management’.
Answer
Human resource management (HRM) involves overseeing and managing an organization’s workforce. This includes recruitment, training, performance evaluation, and ensuring that the workforce aligns with the organization's goals and objectives.
Step 6
Identify and explain two functions of a Human Resources Manager.
Answer
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Human Resource Planning: This function involves assessing the organization’s current and future workforce needs, ensuring that the right number of staff with the necessary skills are available to meet business objectives.
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Recruitment and Selection: This function focuses on attracting and choosing qualified candidates for job openings. It includes developing job descriptions, advertising positions, screening applicants, and conducting interviews to select the best candidates.