test semester 1

Question 1

subcontracting

Answer 1

means that the business employs another firm to manufacture or produce part of a product or a whole product
example nissan and renault each manufacture cars but they outsource the manufacturing of the engines to another business

Question 2

1 advantage and 1 disadvantage of subcontracting

Answer 2

staff savings - fewer staff are needed ; the labour costs are the responsibility of the business who the jobs are outsourced to.
loss of control- the business may lose control over aspects of production like quality. The production of low quality goods an damage the firms responsibility

Question 3

distinguish between sole trader and a partnership

Answer 3

sole trader- a business owned and run by one person
the entrepeneur makes all the business decisions
it is a common form of business in ireland as it is quick and easy to set up
it is most suited to small businesses like local shops, taxi drivers and farmers
the owner gets to keep all the profits and they have complete control over all business decisions
they may experience high levels of stress due to long working hours and business decisions this can lead to burnout

partnership is a business owned by between 2 and 20 partners
common types of partnerships include solicitors, doctors and accountants
the partnership must register with the revenue commisioners and must also register its name with the CRO
each partner pays self assessment income tax on their share of the partnerships profits
each partner has a wide range of skills and knowledge that help to improve decision making however decision making can be slow as each partner has to be consulted
more people are available to invest in the business so when extra capital needs to be raised it is easier
in contrast with the sole trader thee profits must be shared between all the partners. how the profits will be shared is decided in the deeds of partnership

Question 4

4 types of business co-operatives

Answer 4

producer cooperative
worker cooperative
community cooperative
financial cooperative

Question 5

distinguish between marketing strategy and marketing plan

Answer 5

marketing strategy- examines the overall objectives of the business and develops marketing activities to help the business to achieve these goals.it can include deciding the target market at which the business should compete and identifying the target market. once the business develops a marketing strategy it should formulate a marketing plan. the marketing strategy is ‘what needs to be done’ and the plan is ‘how it will be done’.

marketing plan - the marketing plan implements the firms marketing strategy. for example if the marketing strategy