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Andrew Roche, a qualified plumber, has recently set up his own business - Leaving Cert Business - Question A - 2007
Question A
Andrew Roche, a qualified plumber, has recently set up his own business. He provides services for households and small businesses in his local area. He has rented pr... show full transcript
Worked Solution & Example Answer:Andrew Roche, a qualified plumber, has recently set up his own business - Leaving Cert Business - Question A - 2007
Step 1
Describe three enterprising skills/characteristics that Andrew has as an entrepreneur.
Answer
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Innovation: Andrew has an innovative mindset, which allows him to find new solutions to problems and create services that meet the specific needs of his clients. This adaptability is crucial for the success of his plumbing business.
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Risk-taking: Starting his own business involves taking financial and operational risks. Andrew demonstrates a willingness to take these risks, understanding that calculated risks can lead to potential rewards and growth.
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Decision-making: Effective decision-making is essential in entrepreneurship. Andrew must make informed choices on various aspects of his business, from finances to hiring staff, impacting its overall direction and success.
Step 2
Explain two appropriate sources of finance that Andrew may use to purchase the van.
Answer
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Hire-Purchase: This option allows Andrew to acquire the van without paying the full price upfront. Over time, he would make regular payments, eventually owning the van. This method helps in managing cash flow while ensuring he can start using the van immediately.
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Term Loan: Andrew could approach a bank or financial institution for a term loan. This provides him with a lump sum amount to buy the van, which he would repay over a specified term with interest. This option is beneficial if he can ensure steady revenue from his business operations.
Step 3
Outline three disadvantages of Andrew setting up his own business.
Answer
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Unlimited Liability: As a sole proprietor, Andrew could be personally liable for any debts or legal actions against the business. This risk means his personal assets could be at stake if the business faces financial difficulties.
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Excessive Workload/Stress: Starting a business often requires long hours and significant responsibility. Andrew might experience stress and burnout from managing all facets of the business, especially in the initial stages.
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Difficult to Get All the Capital: Securing sufficient funding can be a challenge for new business owners. Andrew could struggle to attract investors or get loans, limiting his ability to fully realize his business plans.
Step 4
Outline two suitable methods that Andrew could use to promote his new business.
Answer
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Local Radio Advertising: Utilizing local radio stations can effectively reach a broad audience in the community. By creating engaging advertisements, Andrew can inform potential customers about his services, building brand awareness.
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Flyers: Distributing flyers in local neighborhoods and businesses is a cost-effective way to promote his services. Include special offers or discounts to encourage people to contact him, thereby increasing customer engagement.
Step 5
Explain the term 'human resource management'.
Answer
Human Resource Management (HRM) refers to the strategic approach to managing an organization's most valuable asset—its people. HRM encompasses recruiting, training, and developing employees to ensure that they are aligned with the organization's goals and objectives. This function is vital for creating a motivated workforce and maintaining organizational effectiveness.
Step 6
Identify and explain two functions of a Human Resources Manager.
Answer
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Human Resource Planning: This function involves forecasting the organization's future human resource needs and developing action plans to meet those needs. It ensures that the right number of employees with the right skills are available at the right time to fulfill business objectives.
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Recruitment and Selection: The HR Manager is responsible for attracting and choosing candidates to fill job vacancies. This process includes drafting job descriptions, sourcing candidates, and conducting interviews to select the most qualified individuals for the organization.