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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question Question 1 - 2013
Question Question 1
Read the information supplied and answer the questions which follow. The Liscarriag Equestrian Centre provides individual and group horse riding lessons. It has a c... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question Question 1 - 2013
Step 1
Outline four types of insurance you would expect Liscarriag Equestrian Centre to have.
Answer
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Public Liability Insurance: This covers claims made by members of the public resulting from accidents on the premises.
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Employers Liability Insurance: This protects against claims made by employees due to workplace accidents.
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Property Insurance: This protects against risks such as theft or damage to premises and equipment.
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Fidelity Guarantee Insurance: This safeguards against losses incurred due to employee dishonesty.
Step 2
Outline two responsibilities Liscarriag Equestrian Centre has towards its employees.
Answer
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Pay Fair Wages: The Centre must ensure that employees are paid at least the minimum wage applicable.
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Provide Safe Working Conditions: It should ensure a work environment that is safe and conducive to health.
Step 3
Step 4
Explain two factors a bank should consider before giving Liscarriag Equestrian Centre a bank loan.
Answer
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Capacity to Pay Back the Loan: The bank must assess whether the Centre can meet its repayment obligations without financial strain.
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Credit History: The bank should evaluate the Centre's previous borrowing experience and repayment track record.
Step 5
Based on the Cash Flow forecast, would you advise the bank to give Liscarriag Equestrian Centre the loan? Outline two reasons for your answer.
Answer
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Positive Cash Flow for 3 Months: The forecast shows closing cash balances increasing, indicating financial stability.
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Sales Peak in Summer: The Centre can expect higher receipts during the summer months, enhancing its ability to repay the loan.