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 create a bar chart representing the sales of cars from January to June, follow these steps:
-
Label the Axes: The horizontal axis (x-axis) should represent the months (January to June), while the vertical axis (y-axis) should represent the number of cars sold.
-
Draw the Bars: For each month, draw a bar corresponding to the sales figures:
- January: 50
- February: 40
- March: 35
- April: 30
- May: 35
- June: 40
-
Color the Bars and Add Title: Use a uniform color for all bars and label the chart appropriately as "Sales of Cars, Jan to June 2009."
Step 2
Explain the term 'Sole Trader'.
Answer
A sole trader is an individual who owns and operates their own business, retaining all the profits and assuming all risks associated with the business. This type of business structure is characterized by its simplicity and direct control, providing the owner with complete authority over business decisions and operations.
Step 3
Outline two disadvantages of a sole trader business.
Answer
- Unlimited Liability: The owner is personally liable for all debts incurred by the business, meaning that personal assets are at risk if the business fails.
- Lack of Continuity: The business does not continue if the owner becomes incapacitated or passes away, which can affect the stability of the business.
Step 4
Outline three advantages of conducting market research.
Answer
- Informed Decision Making: Market research provides valuable data about customer needs and preferences, helping businesses make informed decisions.
- Identifying Opportunities: It helps in discovering potential new products or markets, allowing a business to seize opportunities early.
- Understanding Competition: By analyzing competitors, businesses can develop strategies to improve their market position.
Step 5
Explain the following terms and identify one example of each:
Answer
- Field Research (Primary Research): This involves collecting information directly from the marketplace. An example would be conducting surveys or interviews with potential customers.
- Desk Research (Secondary Research): This involves analyzing existing data from secondary sources like reports or studies. An example would be reviewing statistics from government publications.
Step 6
Outline three items of information that the bank manager would require in assessing Jim's loan application.
Answer
- Business Plan: This would detail Jim's business objectives, strategies for achieving them, and the financial forecasts for the business.
- Cash Flow Forecast: A projection of the business's cash inflows and outflows to show the ability to repay the loan.
- Credit History: Information on Jim's financial history, including any previous loans and repayment records, to assess creditworthiness.