Photo AI
Study the information supplied and answer the questions which follow: Jim Ryan recently established a garage selling cars - Leaving Cert Business - Question 6 - 2009
Question 6
Study the information supplied and answer the questions which follow: Jim Ryan recently established a garage selling cars. His sale trader business trades under the... show full transcript
Worked Solution & Example Answer:Study the information supplied and answer the questions which follow: Jim Ryan recently established a garage selling cars - Leaving Cert Business - Question 6 - 2009
Step 1
Present the above information in the form of a bar chart.
Answer
To present the sales of cars from January to June in a bar chart, the x-axis should represent the months and the y-axis the number of cars sold. Each bar will correspond to the number of cars sold for each month:
- January: 50
- February: 40
- March: 35
- April: 30
- May: 35
- June: 40
The final bar chart will visually depict these sales figures, allowing one to easily compare sales over the months.
Step 2
Explain the term ‘Sole Trader’.
Answer
A sole trader is an individual who owns and operates their own business. This person is responsible for all aspects of the business, including making profits and bearing any financial risks. They have complete control over their operations, but also face unlimited liability, meaning their personal assets are at risk if the business fails.
Step 3
Outline two disadvantages of a sole trader business.
Answer
-
Unlimited liability: This means that if the business incurs debts, the sole trader is personally responsible for paying these debts, which can put their personal assets at risk.
-
Lack of continuity: If the sole trader becomes ill or decides to retire, the business may cease to operate and may be difficult to sell, leading to potential financial losses.
Step 4
Outline three advantages of conducting market research.
Answer
-
Understanding the target market: Market research helps identify consumer needs and preferences, allowing the business to tailor products and services accordingly.
-
Informed decision-making: Gathering data provides insights that contribute to making informed business decisions, such as pricing strategies and marketing approaches.
-
Competitive advantage: By understanding competitors and market trends, a business can develop strategies that better position itself in the market.
Step 5
Outline the following terms and identify one example of each: Field Research; Desk Research.
Answer
Field Research: This involves gathering data directly from the marketplace through methods such as surveys and interviews. An example would be conducting surveys among potential customers to gather opinions about a new car model.
Desk Research: This involves compiling existing data from secondary sources, such as government publications and research reports. An example of desk research would be analyzing sales records and market reports to understand sales trends.
Step 6
Outline three items of information that the bank manager would require in assessing Jim’s loan application.
Answer
-
Business Plan: This would outline Jim's business model, market analysis, and strategies for profitability.
-
Financial Projections: A cash flow forecast detailing expected revenues and expenses over the next few years.
-
Collateral: Information on assets that can be used as security for the loan, which would reduce the bank's risk.