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Read the information supplied and answer the questions which follow: Jason saw a business opportunity in January 2010 when snow and bad weather hit the country - Leaving Cert Business - Question 4 - 2011
Question 4
Read the information supplied and answer the questions which follow: Jason saw a business opportunity in January 2010 when snow and bad weather hit the country. He ... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow: Jason saw a business opportunity in January 2010 when snow and bad weather hit the country - Leaving Cert Business - Question 4 - 2011
Step 1
Outline three enterprising characteristics/skills displayed by Jason.
Answer
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Innovative / Opportunistic: Jason identified a business opportunity amidst the snow and bad weather, showcasing his ability to seize chances for a new business venture.
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Decisive: He made quick decisions, such as setting up a business and employing part-time staff to manage the workload efficiently during peak demand.
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Good Communicator: Jason effectively communicated with his parents to secure financial help and with the bank to obtain a loan, demonstrating his communication skills.
Step 2
Explain two advantages of a partnership as a form of business.
Answer
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More Capital Available: Partnerships can pool resources, allowing for greater investment in the business, which is particularly beneficial for startup ventures like Jason's.
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Better Decision-Making: With multiple partners, decision-making can be more comprehensive, as different perspectives and expertise can lead to improved business strategies and operational effectiveness.
Step 3
Outline two factors that a bank would take into account before lending to a business.
Answer
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Ability to Repay / Profitability: The bank would assess the business's projected income and profitability to determine if it can repay the loan.
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Credit Rating / History: The bank would investigate the credit rating and financial history of the business and its owners to evaluate the risk involved in lending.
Step 4
Describe three responsibilities of an employer towards employees.
Answer
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Provide a Safe and Healthy Working Environment: Employers must ensure the workplace adheres to health and safety regulations, protecting employees from hazards.
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Pay the Agreed Wage for the Work Done: Employers are obligated to pay employees at least the minimum wage and ensure timely salary payments.
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Provide Appropriate Records for Tax and PRSI Returns: Employers must maintain accurate records of employee earnings and deductions for taxation and social security contributions.
Step 5
The following forms are used in PAYE taxation: Form P60, Form P45 and Form P21. Outline the purpose of two of these.
Answer
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P60: This form is given by the employer to the employee at the end of the tax year, summarizing total pay and tax deducted during the year.
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P45: This form is issued when an employee leaves a job, detailing their earnings and tax deductions to date, which can be necessary for tax calculations when starting a new job.