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Andrew Roche, a qualified plumber, has recently set up his own business - Leaving Cert Business - Question A - 2007
Question A
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 A - 2007
Step 1
Describe three enterprising skills/characteristics that Andrew has as an entrepreneur.
Answer
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Innovation: Andrew demonstrates the ability to think creatively in finding solutions to plumbing problems, which can set his business apart from competitors.
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Risk-taking: By starting his own business, Andrew is assuming financial risks associated with entrepreneurship, which is crucial for growth and opportunity.
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Decision-making: Andrew is required to make informed decisions regarding business operations, employee management, and customer satisfaction, showcasing his leadership skills.
Step 2
Explain two appropriate sources of finance that Andrew may use to purchase the van.
Answer
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Hire-purchase: In this arrangement, Andrew can obtain the van immediately but pays for it in installments over time. Once all payments are completed, ownership of the van transfers to him, allowing for financial flexibility in his initial setup.
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Term Loan: Andrew can apply for a business loan from a bank or financial institution, which provides him with a lump sum for the van. He would repay this loan in fixed installments over a specified term, enabling him to manage cash flow effectively.
Step 3
Outline three disadvantages of Andrew setting up his own business.
Answer
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Unlimited liability: As a sole proprietor, Andrew may be personally liable for all business debts, which puts his assets at risk if the business fails.
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Excessive workload/stress: Running a new business often demands long hours and can be physically and mentally exhausting, leading to burnout.
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Difficult to get all the capital: Securing sufficient funds to cover startup costs can be challenging, hindering business growth and operational capacity.
Step 4
Outline two suitable methods that Andrew could use to promote his new business.
Answer
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Local radio: Advertising on local radio can reach a broad audience and inform potential customers about his services, especially if it’s tailored to the community he serves.
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Flyers: Distributing flyers in local neighborhoods can effectively promote special offers or his plumbing services, directly targeting households that may need his expertise.
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 future human resource needs, ensuring that the organization has the right number of employees with the necessary skills to meet its objectives.
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Recruitment and Selection: The HR Manager is responsible for attracting, screening, and selecting qualified candidates for job vacancies, ensuring that the organization hires individuals who align with its values and needs.