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Outline four types of insurance you would expect Liscarriq Equestrian Centre to have - Leaving Cert Business - Question (A) - 2013
Question (A)
Outline four types of insurance you would expect Liscarriq Equestrian Centre to have. (20 marks) (B) Outline two responsibilities Liscarriq Equestrian Centre has t... show full transcript
Worked Solution & Example Answer:Outline four types of insurance you would expect Liscarriq Equestrian Centre to have - Leaving Cert Business - Question (A) - 2013
Step 1
Outline four types of insurance you would expect Liscarriq Equestrian Centre to have.
Answer
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Public Liability Insurance: This insurance covers any claims made by members of the public for injuries or damage caused on the premises. It protects the business against legal liabilities.
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Employers Liability Insurance: This insurance protects the owners from claims made by employees who may suffer injuries while working, ensuring the business can handle legal liabilities arising from workplace accidents.
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Property Insurance: This type of insurance protects the Centre's physical assets from various risks, including theft, damage, or destruction by fire or natural disasters.
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Motor Insurance: Essential for insured vehicles owned or used by the Centre, providing coverage against accidents and liabilities that may arise during their operation.
Step 2
Outline two responsibilities Liscarriq Equestrian Centre has towards its employees.
Answer
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Fair Wages: The Centre must ensure that all employees are paid at least the minimum wage, respecting labor laws and promoting financial well-being among staff.
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Safe Working Conditions: It is the Centre's responsibility to provide a safe environment for employees, complying with health and safety regulations to prevent workplace accidents.
Step 3
Step 4
Explain two factors a bank should consider before giving Liscarriq Equestrian Centre a bank loan.
Answer
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Capacity to pay back the loan: The bank should assess whether the Centre generates enough cash flow to cover loan repayments without compromising its operational capabilities.
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Credit History: A bank will consider the Centre’s credit history, including past borrowing behaviors and whether they have successfully repaid previous loans, to evaluate their reliability.
Step 5
Based on the Cash Flow forecast, would you advise the bank to give Liscarriq Equestrian Centre the loan? Outline two reasons for your answer.
Answer
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Positive cash flow for 3 months: The forecasts show that the Centre has a positive cash flow in July and August, indicating sound financial management during these months.
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Future Sales Predictions: While September shows a downturn in receipts, the bank should consider seasonal fluctuations in riding schools, as sales traditionally increase in summer.