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Study the information supplied and answer the questions which follow: The secondary sector of the economy includes the manufacturing and construction industries - Leaving Cert Business - Question 2 - 2008
Question 2
Study the information supplied and answer the questions which follow: The secondary sector of the economy includes the manufacturing and construction industries. (... show full transcript
Worked Solution & Example Answer:Study the information supplied and answer the questions which follow: The secondary sector of the economy includes the manufacturing and construction industries - Leaving Cert Business - Question 2 - 2008
Step 1
Outline three benefits that the growth in the construction industry in recent years has brought to the Irish economy.
Answer
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Increased Employment: The growth in the construction industry has generated numerous job opportunities, which helps reduce unemployment rates and boosts the overall economy.
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Spin-off Effects: Furthermore, as construction projects increase, so do the sales of retail furniture and other related products, thus benefiting sectors that support construction.
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Increased Revenue for Government: Higher levels of construction lead to increased government revenue through taxes and levies, which can then be reinvested into public services and infrastructure.
Step 2
Explain two challenges faced by manufacturing industries in Ireland.
Answer
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Increased Fuel/Energy Costs: Manufacturing industries often face rising costs for energy and fuel, which can squeeze profit margins and hinder growth.
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High Wages: The demand for skilled labor can drive wages higher, increasing operational costs and potentially leading to less competitive pricing in the global market.
Step 3
Step 4
Briefly explain two services of a Credit Union to its members.
Answer
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Loans: Credit Unions offer various loan products to their members, making it easier for them to access funds at competitive interest rates.
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Savings Accounts: They provide savings accounts where members can deposit money and earn interest, promoting saving habits among the community.
Step 5
Explain what is meant by the term 'partnership'.
Answer
A partnership is a business arrangement where between two and twenty people work together to operate a business with the aim of making a profit. Each partner contributes to the resources and efforts required for the business to function.
Step 6
Give three advantages of a partnership as a type of business organisation.
Answer
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More Capital: Partnerships can pool resources from multiple partners, which can help in generating more capital to fund the business.
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Different Experience/Expertise of Partners: Partners often bring diverse skills and experiences to the table, enhancing the business’s ability to solve problems and innovate.
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Accounts are Confidential: Unlike corporations, partnerships enjoy a higher degree of privacy concerning their financial records, which can be advantageous for business operations.