Third Year Christmas Tests

Question 1

Name 2 ways that a culture enterprise play in society

Answer 1

Inspire other entrepreneurs: it can encourage other businesses to start a similar enterprise
Community: it brings people together and allows people to connect and form relationships and bonds

Question 2

Name 1 law which protects consumers from false or misleading advertising

Answer 2

Consumer protection Act 2007

Question 3

Define the term global company

Answer 3

Global company is a company who is known all over the whole world. They would have many branches in different countries and its headquarters would be in one. Eg,Googles headquarters is in California but has a branch in Dublin. They sell products all around the world and treated it as one big market.

Question 4

Explain two challenges facing global companies such as Kelloggs

Answer 4

Language barriers: countries speak all different languages and trying to converse they could accidentally set a bad public image
Current issues: the delays of importing wheat from Ukraine leads to uncertainty,scarcity or delays in distribution

Question 5

Define the term sustainable development

Answer 5

Sustainable development means to be able to meet their present needs without destroying the needs for future generations. Companies need to balance production against economic social and environmental needs for example recycling.

Question 6

Outline two factors a new company should consider for deciding the price

Answer 6

Cost of production: the business should consider how much it cost to produce/manufacture their product
Stage in the product life cycle : products behind demand can cost more than ones in decline

Question 7

Identify two benefits of membership of the European union for Ireland

Answer 7

EU social policy has improved the rights of workers by improving health and safety and setting minimum wage levels

Foreign direct investment: many foreign businesses have located their European headquarters in Ireland so that they can access the single European market

Question 8

Discuss 2 roles that a social enterprise plays in society

Answer 8

Provide services: provide services and support their communities by meeting community needs that are not served by the state or by commercial enterprises.
Employment: while social enterprise often rely on the work of volunteers some help to create employment in their local communities.

Question 9

What is interest

Answer 9

Interest is the reward given by a financial institution for saving money with them

Question 10

Explain why low interest rate are good

Answer 10

Low interest rates encourage boring as there’s some of money to pay back will be lower

Question 11

Explain two ways change in age profile will increase government expenditure

Answer 11

The government will have to invest more hospitals and medical equipment due to the greater demand on services

There will be a greater demand on pensions as more and more people will retire

Question 12

Define the term industrial relations

Answer 12

Industrial relations refers to the relationship and exist between employees and their employers in a workspace

Question 13

Outline two benefits of international trade for Irish businesses

Answer 13

Spread risk: a business can spread risk by not only relying on the Irish market
Increased profit: the Irish mortgage is quite small by exporting it will increase sales

Question 14

What would be two advantages of PayPal for an employee?

Answer 14

It is environmentally friendly as there is no paper in involved and reduces carbon footprint.
It is safer than cash as it is guaranteed to go straight into a bank account and won’t get lost.

Question 15

Explain one economic benefits of using solar panels as an alternative to burning fossil fuels

Answer 15

Cost savings: to get an installed solar panels is even cheaper than buying cold or oil so you can save your money

Question 16

Explain one environmental benefit of using solar panels as an alternative to burning fossil fuels

Answer 16

There will be less carbon emissions in the air and better air quality will improve peoples lungs and breathing

Question 17

Define the term resource

Answer 17

A resource is anything we can use in order to meet our needs or help us to achieve our goals. Resources include your textbook, pens, computers, people, knowledge, money and time.

Question 18

Define the term digital technology

Answer 18

Digital technologies are a set of technological tools and resources used to communicate and create, distribute, store and manage information, for example mobile phones, apps, tablets and computers.

Question 19

Explain 3 opportunities associated with using digital technology

Answer 19

› Production: The increased use of technology in production allows for standardisation and mass production, resulting in increased output and reduced costs.
› Sales and marketing: Using digital technology in sales and marketing allows businesses to see what consumers are buying and to pick which sector of the market to focus on.
› Travel and meetings: A business can use email and video conferencing to reduce the costs of travel and meetings.

Question 20

Explain 3 ways digital technology can crest a cost for the business

Answer 20

Capital costs: There will be capital costs when installing new technology.
› Recruitment and training: Cost of recruiting and training specialist staff along with the loss of working time while staff are being trained.
> Website: Cost of designing, maintaining and hosting a website.

Question 21

Name 5 benefits of a business using digital technology

Answer 21

> Recruiting and managing staff
Market research and marketing
Finance
› Administration.
• Production

Question 22

List 5 ways in which organisations use technology

Answer 22

› To design and produce products
> To conduct market research
› To prepare financial budgets and accounts
› To communicate with suppliers, customers and employees
• To promote and sell their products and services online.

Question 23

What is a cash flow forecast

Answer 23

estimates the expected flow of cash coming in and out of your business, across all areas, over a given period of time

Question 24

Why would you pay a car with a medium term loan

Answer 24

A medium-term source of finance is suitable for the purchase of a new sales vehicle as this is a medium-term need and it will be repaid between 1-5 years.

Question 25

List the 7 types of income

Answer 25

Wages
Pension
Child benefit
Job seekers benefit
Bonus
Overtime
Interest

Question 26

Name 2 types of advertising

Answer 26

General advertising and information advertising

Question 27

Name 3 advantages of desk research

Answer 27

> Quick to gather
Easy to obtain, as it uses information that is already available
Cheaper than field research, as it does not require trained interviewers

Question 28

Name 3 disadvantages of desk research

Answer 28

> As the information gathered is not for the specific needs of the business, it may not be as useful or relevant as primary research
› Information may be outdated
› The researcher may have to read a lot of information to find what they need

Question 29

List 2 advantages of field research

Answer 29

› Up-to-date information is gathered
› Relevant information is gathered for the specific needs of the business

Question 30

List 3 disadvantages of field research

Answer 30

> Time-consuming
› Expensive
› Requires skill to conduct

Question 31

Define the term a government budget surplus

Answer 31

the amount of money by which a government’s income is greater than the money it spends

Question 32

List two direct taxes

Answer 32

Income tax and corporate taxes

Question 33

List 2 indirect tax

Answer 33

VAT and excise duties

Question 34

Name 2 sources of government income

Answer 34

EU grants and profit from selling state companies

Question 35

What agency should you if you need help? If you order from a business online in the European union and your product has not arrived?

Answer 35

European consumer centre Ireland

Question 36

State one way in which a large increase in the rate of inflation may affect consumers in an economy

Answer 36

Inflation increases the prices of goods and services and reduces the purchasing power of money that consumers have to spend; therefore, consumers will not be able to buy as many goods and services as they did previously. This will result in a lower standard of living

Question 37

What law is is that makes sure all consumer goods are of merchantable quality

Answer 37

Sale of Goods and Supply of Services Act 1980.

Question 38

Explain one social benefit if Irelands EU membership

Answer 38

EU social policy has strengthened the rights of Irish consumers and employees. Eg.now workers must get paid at least the minimum wage.

Question 39

Advantages of a trading membership

Answer 39

If you’re part of a trade union you can negotiate better pay.
If you are part of a trade union it will also lead to furnace in a workplace as you can complain to your staff Stewart if unfairness is being shown.