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Study the information supplied and answer the questions which follow: Sinéad has been working for a number of years in a busy department store in Dublin, a distance of 50 kilometres from her home - Leaving Cert Business - Question 5 - 2008
Question 5
Study the information supplied and answer the questions which follow: Sinéad has been working for a number of years in a busy department store in Dublin, a distance... show full transcript
Worked Solution & Example Answer:Study the information supplied and answer the questions which follow: Sinéad has been working for a number of years in a busy department store in Dublin, a distance of 50 kilometres from her home - Leaving Cert Business - Question 5 - 2008
Step 1
Identify two risks and two rewards for Sinéad if she sets up her own business.
Answer
Risks:
- Personal Failure: Sinéad might struggle to run her business, which could lead to complete failure.
- Loss of Personal Assets: If the business incurs significant debts, Sinéad could potentially lose personal assets such as her house.
Rewards:
- Can Earn Profits/Income: Successfully running her business could lead to earnings that support her financial independence.
- Personal Satisfaction of Succeeding: There is immense satisfaction in building a successful business from scratch.
Step 2
Outline three sources of new business ideas for Sinéad.
Answer
1. Personal Interests, Hobbies, Skills: Sinéad can explore business ideas based on her own passions and strengths.
2. Market Research: Investigating market needs could unveil opportunities for new products or services.
3. Government Agencies: Seeking support and advice from local government agencies or development programs can provide valuable insights into business opportunities.
Step 3
Outline three methods Sinéad could use to recruit employees for her business.
Answer
1. Advertising in Newspapers/Local Radio: Placing ads can attract local talent who are interested in employment opportunities.
2. Online Job Portals: Utilizing websites such as Recruit Ireland can help reach a wider audience of job seekers.
3. Word of Mouth: Encouraging recommendations from friends and family can often yield trustworthy candidates.
Step 4
Step 5
Name two long term sources of finance Sinéad could use to start her business and explain one of them.
Answer
1. Mortgage: This is a loan secured against her property, allowing her to access funds for her business.
2. Owner's Capital/Savings: Using her personal savings involves allocating her own funds towards the business, therefore minimizing debt.
Explanation of Mortgage:
A mortgage can provide substantial financial resources by leveraging the value of her property. It requires regular repayments over a specified term, but it typically offers lower interest rates compared to unsecured loans.