Short answer questions part 1

Question 1

PAYE

Answer 1

Pay As You Earn

Question 2

PRSI

Answer 2

Payy Related Social Insurance

Question 3

USC

Answer 3

Universal Social Charge

Question 4

Maslows Hierarchy of Needs

Answer 4

1. Physiological/Physical Needs
2. Security/Safey Needs
   3 Social Needs
3. Esteem Needs
4. Self-Actualisation Needs

Question 5

3 reasons why someone would think about becoming an entrepreneur

Answer 5

own boss/self employed/ independent/ own decisions
To make money or profit
to create employment

Question 6

Elements of Marketing Mix

Answer 6

1. Product
2. Price
3. Place
4. Promotion

Question 7

Explain “Multinational Company” and give example

Answer 7

A business with headquarters in one country and many bases/ branches in other countries.
Ex Google

Question 8

calculate working capital ratio and acid test ratio

Answer 8

(i) Working Capital Ratio:
Current Assets: Current Liabilities
280,000 : 140,000
2 : 1
(ii) Acid Test Ratio
Current Assets - Closing Stock : Current Liabilities
280,000 - 70,000 : 140,000
210,000 : 140,000
1.5 : 1

Question 9

Visible import or expert or invisible import or expert -

Australian tourists

Answer 9

Invisable export

Question 10

Visible import or expert or invisible import or expert -

Greek cheese sold in Ireland

Answer 10

Visible import

Question 11

Visible import or expert or invisible import or expert -

Irish lamb sold in France

Answer 11

Visible expert

Question 12

Visible import or expert or invisible import or expert -

One D concert in the O2 Dublin

Answer 12

Invisable import

Question 13

List 2 elements of a valid contract

Answer 13

Consideration

Legality to form

Question 14

Market Research: Desk or Field

Questionnaire

Answer 14

Field

Question 15

Market Research: Desk or Field

Central Statistics Office Statistics

Answer 15

Desk

Question 16

Market Research: Desk or Field

Government Publications

Answer 16

Desk

Question 17

Market Research: Desk or Field

Focus Group

Answer 17

Field

Question 18

Market Research: Desk or Field

Observation

Answer 18

Field

Question 19

Outline 2 advantages of leasing as a medium source of finance

Answer 19

No capital/ lump sum required to purchase asset

No security required

Question 20

3 benefits of a business investing in new technology

Answer 20

Production becomes more efficient/ time saving
Production costs are lowered
It allows instant worldwide communication - emails, videoconferencing

Question 21

True or False

The balance sheet is a statement of assets and liabilities.

Answer 21

True

Question 22

True or False

Quality control involves monitoring how much money is owed to the business by its customers.

Answer 22

False

Question 23

A Tactical Plan is a long term plan set out by the business.

Answer 23

False

Question 24

A Mission Statement outlines what a business sets out to do.

Answer 24

True

Question 25

A cash flow is an example of financial plan.

Answer 25

True

Question 26

Outline 2 methods for rewarding employees.

Answer 26

Piece Rate - paymen based on amount of items produced

Benefit in Kind (Perks) - non cash form of payment ex company car, phone, laptop, health insurance