atlantic surf ABQ

Question 1

what does being an entrepreneur involve (in regards to Atlantic Surf)

Answer 1

•innovative/creative
•risk taker
•initiative
•resilient/confident

Question 2

innovative/creative

Answer 2

•entrepreneur good with coming up w/ideas
•constantly look for new ideas & ways of improving what they do
•show imaginative, initiative, resourcefulness and readiness to undertake new projects
•think outside box to develop new products/improve existing products

Question 3

risk taker

Answer 3

•involves personal and financial risks in pursuit of a business idea
•successful entrepreneurs aren’t afraid of taking risks however they’re realistic risk takers and take calculated risks

Question 4

initiative

Answer 4

•shay showed initiative by bringing his surfing skill and experience to ireland
•took advantage of ireland’s growing reputation for quality waves
•saw opportunity presenting itself in surfing along the west coast of ireland

Question 5

resilient/confident

Answer 5

•entrepreneurs not put off by failure. have strong sense of self belief in their business ideas
•shay showed confidence & belief in Atlantic Surf. he sees failure as an opportunity to learn
•having ambition and desire for success is central to being an entrepreneur

Question 6

offer

Answer 6

•promise made by person making offer to be bound by the offer provided the terms of the offer are accepted
•offer can be made orally, in writing, or implied by conduct & is a clear indication of the offerors willingness to enter into an agreement under specified terms

Question 7

offer link

Answer 7

•”He telephoned the landlord and suggested a more realistic price of €7500”

Question 8

legality of form

Answer 8

•certain contacts, to be considered legal, must be drawn up in a particular manner
•some contracts must be in writing to be legally valid. E.g. sale of property and land

Question 9

legality of form link

Answer 9

•”The necessary documentation for the rental was signed in the solicitors office”

Question 10

acceptance

Answer 10

•the second party must agree to the terms of the offer as it stands
•the acceptance must be clear, complete and unconditional

Question 11

acceptance & agreement link

Answer 11

•”Shay was delighted when the landlord said yes to an annual rent of €8000”

Question 12

agreement

Answer 12

•for agreement to exist, there must be a clear, complete and unconditional offer & an acceptance of that offer made by another party

Question 13

consideration

Answer 13

•each party in a contract must give something of value to the other party
•something of value must be exchanged
•usually some monetary payment but could also be something valuable exchange as part of the contract

Question 14

consideration link

Answer 14

•”Shay secured the premises and paid €8000 to the landlord”

Question 15

capacity to contract

Answer 15

•must have legal capacity to enter into a contract
•Exceptions: under 18s, insane persons, bankrupt persons, people under the influence of drugs or alcohol, diplomats who can claim diplomatic immunity and company director acting ultravires

Question 16

capacity to contract link

Answer 16

•In April 2009, just before celebrating his twenty-eighth birthday..”

Question 17

stock control

Answer 17

•concerned with keeping optimum stock levels so that Atlantic Surf doesn’t have too much or to little stock

Question 18

meaning of effective stock control

Answer 18

•means you have the optimum level of stock and have enough to meet consumer demands, whilst also keeping them to a minimum

Question 19

stock control benefits

Answer 19

•eliminate costs associated with too much/little stock i.e high storage & administrative costs due to too much stock/production stoppages due to lack of raw materials & components for production

Question 20

stock control eval of Atlantic Surf

Answer 20

•i think Atlantic Surf should improve their stock control as I don’t think they’re managing it well. They should order less stock
•”the annual stocktake revealed a high level of kite surfing equipment still unsold.”

Question 21

quality control

Answer 21

•concerned with checking/inspecting work done to ensure it meets the required quality standards of the business. It could involve physical inspections, quality circles, etc

Question 22

what may Atlantic Surf achieve for quality control

Answer 22

•as part of a quality control system, Atlantic Surf may achieve a quality control symbol like an ISO 9000 award. this symbol may be recognized worldwide and would be a major benefit to Atlantic Surf in marketing its products internationally

Question 23

benefits of quality control

Answer 23

•effective quality control leads to efficiencies in the business because consistently high quality products are being sold, resulting in repeat purchasing, consumer loyalty and the ability to charge higher prices

Question 24

Atlantic Surf quality control eval

Answer 24

•i think atlantic surfs quality control is already of a great standard & i don’t think they need to improve on anything
•”The shop sells high quality stock including wetsuits, surfboards…”

Question 25

credit control

Answer 25

•controlling the amt of credit given to customers & the payment period given to customers
•good credit control ensures that payments are made in full and on time. involves checking credit worthiness of customers, setting credit limit, credit periods & deciding on penalties for late payments. seeks to minimize bad debts

Question 26

credit control eval

Answer 26

•i think atlantic surf had good credit control as they can be sure that they’re getting the full amount of money on time by only allowing cash payments
•”From the beginning Karen adopted a cash sales only policy with customers”

Question 27

financial control

Answer 27

•aim is to ensure overall business profitability and liquidity (ability to pay bills due)
•involves preparing Cash Flow budgets, ratio analysis, and employing cost control measures (eg utilities, wages, etc)
•these can provide an early warning of possible financial problems

Question 28

financial control eval

Answer 28

•i think their financial control is good as more people would be inclined to go for the discounted a offer which makes them pay in advance, ensuring that the business will receive the payment