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‘Franchise’ (explain): This is the granting of a licence by the franchisor to the franchisee allowing the sale of its product or service - Leaving Cert Business - Question Question 1 - 2007
Question Question 1
‘Franchise’ (explain): This is the granting of a licence by the franchisor to the franchisee allowing the sale of its product or service. The licence is expensive an... show full transcript
Worked Solution & Example Answer:‘Franchise’ (explain): This is the granting of a licence by the franchisor to the franchisee allowing the sale of its product or service - Leaving Cert Business - Question Question 1 - 2007
Step 1
‘Franchise’ (explain):
Answer
A franchise is a legal agreement that allows the franchisee to operate a business using the trademarked name and business model of the franchisor. This arrangement generally requires the franchisee to pay an initial fee and ongoing royalties, which can amount to a percentage of sales. Advantages for the franchisee include using an established brand, receiving training, and gaining access to a proven system of operation.
Common examples of franchises include McDonald's, Supermac's, The Body Shop, and O'Brien's Sandwich Bars.
Step 2
Three reasons why businesses carry out market research (outline):
Answer
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To Find Out Information about the Target Market: Businesses gather data to understand the demographics, preferences, and behavior of their potential customers.
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To Determine Demand for a New Product/Service: Market research helps in evaluating whether a new idea meets consumer needs and has market viability.
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To Establish the Best Marketing Mix: Identifying the right combination of 4Ps (Product, Price, Place, Promotion) is crucial for attracting customers and achieving sales goals.
Step 3
Using examples, explain the terms (i) field research and (ii) desk research:
Answer
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Field Research (Primary Research): This involves collecting new data directly from the marketplace. Techniques may include surveys, interviews, and observations. For example, a company might send marketers into the field to collect consumer opinions about a new product.
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Desk Research (Secondary Research): This type of research uses existing information that has been previously collected. It often involves analyzing reports, studies, and databases. For instance, a business might look at industry reports or government statistics to understand market trends.
Step 4
Outline one financial reward and one non-financial reward that Michael may receive in his new job (outline):
Answer
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Financial Reward: Salary/Wages - This is the monetary compensation that Michael will receive for performing his job duties, typically paid on a monthly basis.
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Non-Financial Reward: Benefits-in-Kind - This may include perks such as a company car, health insurance, or bonuses that are not part of regular salary but add value to his compensation package.
Step 5
Outline the purpose of two of these forms:
Answer
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Form P21: This form is a summary of an employee's tax affairs for the year, which helps ensure the correct amount of tax has been paid.
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Form P60: This document provides a summary of an employee's earnings and the tax deducted during the tax year, which is useful for both the employee and HMRC.