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Study the information supplied and answer the questions which follow: The secondary sector of the economy includes the manufacturing and construction industries - Leaving Cert Business - Question 2 - 2008
Question 2
Study the information supplied and answer the questions which follow: The secondary sector of the economy includes the manufacturing and construction industries. (... show full transcript
Worked Solution & Example Answer:Study the information supplied and answer the questions which follow: The secondary sector of the economy includes the manufacturing and construction industries - Leaving Cert Business - Question 2 - 2008
Step 1
Outline three benefits that the growth in the construction industry in recent years has brought to the Irish economy.
Answer
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Increased Employment: The growth in the construction industry has led to the creation of numerous jobs, lowering the unemployment rate and boosting the economy.
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Spin-off Effects: There are significant spin-off effects, such as increased demand for retail furniture and other construction-related goods and services. This stimulates further economic activities in related sectors.
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Increased Revenue for Government: As construction projects flourish, the government collects higher revenues from taxes, including VAT and other levies, which can be reinvested into public services and infrastructure.
Step 2
Explain two challenges faced by manufacturing industries in Ireland.
Answer
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Increased Fuel/Energy Costs: Manufacturing industries are facing the challenge of rising energy prices, which can significantly increase operational costs and affect profit margins.
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High Wages: A tightly-knit labor market often leads to higher wage demands from workers, which can strain the financial resources of manufacturing companies and reduce their competitiveness in both local and international markets.
Step 3
Step 4
Briefly explain two services of a Credit Union to its members.
Answer
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Loans: Credit unions provide loans to members at competitive interest rates, which can be used for a variety of purposes, such as purchasing homes, cars, or funding education.
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Savings Accounts: Members can open savings accounts in a Credit Union, allowing them to save money securely while earning interest on their deposits.
Step 5
Explain what is meant by the term 'partnership'.
Answer
A partnership is a business arrangement where between two and twenty people come together to run a business with the intention of making a profit. Each partner contributes resources and shares in the profits and losses of the business.
Step 6
Give three advantages of a partnership as a type of business organisation.
Answer
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More Capital: Partnerships can combine the financial resources of multiple individuals, allowing for greater capital investment than a sole proprietorship.
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Different Experience/Expertise of Partners: Partners often bring varied skills and experiences, enhancing decision-making and operational effectiveness within the business.
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Ease of Formation: Establishing a partnership is generally simpler and less expensive than setting up a corporation, which often entails more complex regulations and requirements.
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Accounts are Confidential: Partnerships do not need to publicly disclose their financial records, allowing for privacy in their financial affairs.