Changing Ownerahip Structure

Question 1

Why do businesses change ownership structure?

Answer 1

To reduce financial risk for owners

Question 2

What is one reason businesses change ownership structure?

Answer 2

To allow expansion and secure financing

Question 3

What is the benefit of adopting a limited liability structure?

Answer 3

It protects owners’ personal assets from business debts.

Question 4

What is an advantage of privatisation?

Answer 4

It can increase efficiency and competitiveness.

Question 5

What is the taxation incentive for changing ownership structure?

Answer 5

Limited companies pay a lower corporation tax (12.5%) compared to the higher income tax rate (40%) for sole traders.

Question 6

What happened to Aer Lingus in 2015?

Answer 6

It was sold to the International Airlines Group (IAG).

Question 7

What argument do critics make about Aer Lingus being sold to IAG?

Answer 7

They argue that Aer Lingus is no longer incentivised to provide routes beneficial to Ireland.

Question 8

What is one reason proponents supported the sale of Aer Lingus to IAG?

Answer 8

They believe it was unfair for the government to own the airline, and it forced taxpayers to subsidise it.