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The Liscarriag Equestrian Centre provides individual and group horse riding lessons - Leaving Cert Business - Question Liscarriag Equestrian Centre - 2013
Question Liscarriag Equestrian Centre
The Liscarriag Equestrian Centre provides individual and group horse riding lessons. It has a café and an activity centre for children. There are 12 full-time staff ... show full transcript
Worked Solution & Example Answer:The Liscarriag Equestrian Centre provides individual and group horse riding lessons - Leaving Cert Business - Question Liscarriag Equestrian Centre - 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 insurance protects against claims made by members of the public for injury or damage resulting from accidents on the premises.
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Employers Liability Insurance – This covers the costs of claims made by employees who suffer from accidents or illnesses arising from their work environment.
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Motor Insurance – Statutory insurance for all motor vehicles used in the business, covering damages and liabilities.
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Property Insurance – Protects against theft, fire, flood, or damage to the physical property and assets of the centre.
Step 2
Outline two responsibilities Liscarriag Equestrian Centre has towards its employees.
Answer
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Pay Fair Wages – The centre is responsible for ensuring that all employees receive fair compensation at least at the minimum wage level.
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Provide Safe Working Conditions – It must ensure a safe and healthy work environment, including offering regular safety training and necessary equipment to prevent accidents.
Step 3
Step 4
Explain two factors a bank should consider before granting loan.
Answer
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Capacity to Pay Back the Loan – The bank should assess whether Liscarriag Equestrian Centre can meet the repayment schedule based on projected cash flows.
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Collateral – The availability of assets that can secure the loan in case of default is crucial for the bank to mitigate risks.
Step 5
Based on the Cash Flow forecast above, would you advise the bank to give Liscarriag Equestrian Centre the loan? Outline two reasons for your answer.
Answer
Yes, I would advise the bank to grant the loan for the following reasons:
- Positive Cash Flow for 3 Months – The cash flow forecast indicates positive cash flow over three consecutive months, showing likely profitability.
- Business is Well Positioned for Expansion – The centre is aiming to expand, which could increase its market reach and revenue potential, suggesting a good strategic plan.