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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: There is a significant risk that Sinéad may not succeed in her business venture, which could lead to financial loss and emotional stress.
- Business Losses: If the business does not perform well, Sinéad could incur losses that might affect her financial stability.
Rewards:
- Can Earn Profits/Income: Establishing her own business could provide Sinéad with the opportunity to generate profits, potentially leading to financial independence.
- Personal Satisfaction of Succeeding: Successfully running her own business can offer her personal fulfillment and satisfaction from achieving her goals.
Step 2
Outline three sources of new business ideas for Sinéad.
Answer
- Personal Interests, Hobbies, Skills: Sinéad can explore her own passions and skills to create a business idea that aligns with her interests.
- Market Research: Conducting market research can help Sinéad identify gaps in the market or opportunities based on consumer demands.
- Government Agencies: She could seek advice and insights from government agencies that support new businesses and entrepreneurship.
Step 3
Outline three methods Sinéad could use to recruit employees for her business.
Answer
- Advertising Newspapers/Local Radio: Using local media can attract candidates from the community who are interested in working for her business.
- Internet (e.g., Recruit Ireland): Posting job vacancies online can broaden her reach to a wider audience.
- Word of Mouth: Encouraging current employees or acquaintances to spread the word about job openings can help recruit 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: Sinéad could take out a mortgage on a property to secure funds for her business.
- Owner's Capital/Savings: Using her own savings can provide Sinéad with the necessary funds without incurring debt.
Explanation of Mortgage:
A mortgage involves borrowing money from a financial institution for the purchase of property, which she would pay back over time with interest. This allows her to secure a substantial amount of capital to invest in her business while providing the property as collateral.