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Read the information supplied and answer the questions which follow: Jim and Susan Doyle and their two children live in Limerick - Leaving Cert Business - Question 5 - 2011
Question 5
Read the information supplied and answer the questions which follow: Jim and Susan Doyle and their two children live in Limerick. Susan, who works as a nurse, has h... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow: Jim and Susan Doyle and their two children live in Limerick - Leaving Cert Business - Question 5 - 2011
Step 1
Outline two benefits of preparing a household budget.
Answer
A household budget helps individuals to plan their spending in line with their income, ensuring that they allocate funds appropriately. Additionally, it aids in identifying periods of high expenditure, allowing families to be more prepared and make adjustments where necessary.
Step 2
Explain one advantage and one disadvantage of leasing.
Answer
An advantage of leasing is that it allows the lessee to access an asset without the need to use capital to buy it outright, preserving cash flow. Conversely, a disadvantage is that leasing can be more expensive in the long term compared to purchasing the asset.
Step 3
Step 4
Explain two of them.
Answer
House/Buildings Insurance provides protection against loss or damage to the structure of the home due to events such as fire or storm. Contents Insurance covers loss or damage to personal belongings within the home, protecting against risks like burglary or water damage.
Step 5
Outline two advantages for Jim of setting up his own business.
Answer
One advantage is the potential for higher income, as Jim can set his own prices and benefit directly from the work he puts in. Another advantage is the personal satisfaction of succeeding in his own venture, giving him greater control over his work life.
Step 6
Outline two difficulties Jim might face in setting up his own business.
Answer
Jim may face stiff competition, especially if there are already established painting and decorating businesses in his area. Furthermore, the financial risk involved, such as not being able to secure enough clients and the burden of initial investments, could pose significant challenges.
Step 7
Explain the terms 'gross pay' and 'net pay'.
Answer
'Gross pay' is the total salary earned before any deductions are made, including bonuses and benefits. 'Net pay', on the other hand, is the amount received by an employee after all deductions (such as taxes and insurance) have been subtracted from the gross pay.