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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: The potential for Sinéad's business to not succeed, leading to financial loss and personal disappointment.
- Loss of personal assets: If the business fails, Sinéad may face the risk of losing personal assets, such as her house.
Rewards:
- Can earn profits/income: Establishing her own business allows Sinéad to potentially earn a sustainable income.
- Personal satisfaction of succeeding: Successfully running her own business may provide a sense of achievement and personal satisfaction.
Step 2
Outline three sources of new business ideas for Sinéad.
Answer
- Personal interests, hobbies, skills: Sinéad can draw inspiration from her own passions and expertise.
- Other businesses: Analyzing existing businesses may reveal opportunities for niche markets or improvements.
- Market research: Conducting research on consumer needs and trends can uncover gaps in the market.
Step 3
Outline three methods Sinéad could use to recruit employees for her business.
Answer
- Advertising in Newspapers/Local Radio: Utilizing local media to reach potential candidates.
- Internet: Using job recruitment websites like Recruit Ireland to attract applicants.
- Word of Mouth: Leveraging her personal and professional network to find suitable 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
- Mortgage: A loan specifically for purchasing property.
- Owner’s Capital/Savings: Using her own savings to fund the business.
Explanation of Owner’s Capital/Savings:
Using her own savings gives Sinéad full control over her investment and avoids debt, but it also increases her personal financial risk.