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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
Two Risks
- Personal Failure: The possibility of the business not succeeding could lead to a sense of personal failure for Sinéad.
- Business Losses: There is a risk of incurring financial losses, which may affect her financial stability and personal assets.
Two Rewards
- Can Earn Profits/Income: Sinéad has the opportunity to generate her own income through her business.
- Personal Satisfaction of Succeeding: Successfully running her own business would provide her with immense satisfaction and fulfillment.
Step 2
Outline three sources of new business ideas for Sinéad.
Answer
- Personal Interests, Hobbies, Skills: Sinéad could explore business ideas that align with her personal passions and skills.
- Other Businesses: Observing the operations of other businesses might inspire her own ideas.
- Market Research: Conducting market research may highlight gaps in the market that she could fill with her business.
Step 3
Outline three methods Sinéad could use to recruit employees for her business.
Answer
- Advertising Newspapers/Local Radio: Placing advertisements in local newspapers or on local radio stations to reach potential employees.
- Internet: Utilizing online job boards and social media platforms to attract candidates.
- Word of Mouth: Informing her network and encouraging them to spread the word can effectively recruit employees.
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 secured against property, typically with lower interest rates.
- Owner's Capital/Savings: Funds that Sinéad might invest from her savings or personal finances.
Explanation of Mortgage
A mortgage is often used in business to purchase real estate or improve property, allowing the owner to spread the payment over a long period while using the asset to generate income.