Chapter 22: Government and Business

Question 1

the 4 factors of production and there payments

Answer 1

land - rent
labour - wage
capitol- interest
enterprise - proft/loss

Question 2

the 3 economic systems

Answer 2

centrally planned
free market capitalism
mixed economy

Question 3

why does the government intervene in ireland

Answer 3

1. achieve fairer distribution of wealth
2. to provide essential infrastructure
3. provides essential services
4. regulates

Question 4

what taxes redistribute wealth

Answer 4

paye
corporation tax
vat
property tax

Question 5

what services are provided by the government

Answer 5

transport
education
health
housing

Question 6

what natural resources has the gov developed

Answer 6

energy / gas/ electricity
bog / turf
water systems
wind

Question 7

what infrastructure has the gov devoloped

Answer 7

roads and motorways
broadband
extension of luas and dart
airport terminal

Question 8

define privatisation

Answer 8

selling of state companies to buyers in the private sector

Question 9

arguments for privatisation

Answer 9

creates revenue for the government.
able to sell shares which allows them to generate wealth.
reduces waste and inefficiency.

Question 10

arguments against privatisation

Answer 10

nationalisation protects important service.
jobs can be lost in the motive of making profit.
loss of state asset eg bord na mona

Question 11

function of ida

Answer 11

the responsibility of the IDA is to attract and develop foreign direct investment in ireland
eg google and microsoft

Question 12

3 actions carried out by IDA

Answer 12

offers advice on property for international investors.
builds link between third level education and international businesses.
introduces potential investors to local industry

Question 13

function of enterprise ireland

Answer 13

responsible for developing indigenous irish industry with an export focus. helps irish owned business with 10 or more employees seeking to develop new export sales
eg irish software sector

Question 14

3 actions carried out by enterprise ireland

Answer 14

provides supports for companies and researchers in higher education to develop new technologies.
provides funding and equity investment.
provides international offices that can assist in increasing exports

Question 15

how do country enterprise boards encourage enterprise

Answer 15

1. information and advice on setting up/ expanding small businesses
2. provides grants for capitol costs
3. mentoring programmes
4. helps with training

Question 16

define community development

Answer 16

for any local economy to thrive, he people who live in it and have a stake in its future must actively promote and develop it at every opportunity. projects are undertaken for the benefit of the community and provided by community based groups eg clubs
when the term community development is used , it means that groups of people help themselves and their communities to set up new enterprises, schemes and projects swell as improve the local social and economic infrastructure of their areas.

Question 17

name 3 examples of community development organisations

Answer 17

LEADER +
county enterprise boards
area partnership companies

Question 18

benefits of community initiatives

Answer 18

direct employment 
spin off jobs 
opportunities for personal and skill development 
growth and prosperity in local area
improved physical appearance of town

Question 19

how does the government affect the wage force

Answer 19

setting legal minimum wage 
rates of tax 
ida 
enterprise irland 
major employer - 300,000

Question 20

opportunities of Partnership

Answer 20

have more access to capitol as up to twenty partners can bring financial resources to the business
have access to different skill sets
ability to achieve economies of scale

Question 21

challenges of partnership

Answer 21

unlimited liability
if one partner dies or resigns the partnership must be resolved
not a separate legal entity therefore partners and not the business can be sued in law

Question 22

role of irish government in regulating business in ireland

Answer 22

protect environment - EPA

protect consumer - salle of goods and supply of services act 1980 and consumer protection act 2007

Question 23

role or irish gov in encouraging businesses

Answer 23

decreases in taxation

increases in state expenditure