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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 2 - 2012
Question 2
Read the information supplied and answer the questions which follow. Kevin Fitzpatrick, MD and his two brothers set up Solar Solutions Ltd in their home town of Kil... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 2 - 2012
Step 1
What do the letters MD stand for? State one function of a MD.
Answer
The letters 'MD' stand for 'Managing Director'. One function of an MD is to manage the company on a daily basis, which includes ensuring that the company’s objectives are met and decisions from the Board of Directors are implemented.
Step 2
'Limited Liability' and 'Continuity of Existence' are two advantages of a Private Limited Company. Explain these underlined terms.
Answer
Limited Liability: This means that if a business fails or goes bankrupt, shareholders are only liable for the amount they have invested in the business. They cannot lose personal assets to pay off the debts of the business.
Continuity of Existence: This indicates that if a shareholder dies or chooses to leave the company, the business does not cease to function. It continues on, unaffected by changes in ownership.
Step 3
Describe two benefits for the town of Kilduff, of the Fitzpatrick brothers setting up Solar Solutions Ltd.
Answer
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Creates jobs/employment for people in the area: The establishment of Solar Solutions Ltd will generate employment opportunities for local residents, thereby supporting the local economy.
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Improved infrastructure: The business may lead to enhancements in local infrastructure, such as better roads and services, which benefits the community as a whole.
Step 4
Explain the term 'Grant' and state one advantage of a grant as a source of finance.
Answer
A grant is a form of financial aid given by government agencies or organizations to support a business, which does not require repayment as long as certain conditions are met. An advantage of a grant is that it does not need to be repaid, which helps lessen financial strain on the business.
Step 5
Outline two ways in which Solar Solutions Ltd can behave ethically towards its customers.
Answer
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Provide quality products: Ensuring that all solar panels produced are of high quality and perform efficiently to meet customer expectations.
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Deal with customers' complaints fairly: Establishing a system to address and resolve customer complaints effectively, while providing after-sales service to support customers post-purchase.