william murphy teaches business at the institute of education

L E A V I N G C E R T I F I C A T E B U S I N E S S N O T E S 2 0 1 0

E X A M L A Y O U TThe layout of the higher level paper is set out below. Pay careful attention to the timing. The times shown allow you 5 minutes at the start of the exam to have a quick look over the paper and 5 minutes at the end to read over your answers, before handing them up. As a very rough rule of thumb, make sure that you are starting a new question roughly every half hour.

Higher Level Exam Tuesday 15th June 2.00 – 5.00 pmThe exam lasts for 3 hours and there are three sections in it to be answered as follows:Section Contents Instructions Marks Areas

coveredTiming

10 short questions

Answer any 8 20% Any part of the course

30 minutes or just under 4 minutes per

questionApplied Business Question

This question is COMPULSORY and all three parts MUST

be answered

20% The ABQ questions will

come from units 2, 3 and 4 of the course.

36 minutes

Part 1 contains 3 questions


You must answer FOUR questions from

the 7 given, as follows:

Two from Part 1 and Two from Part 2

OR

One from Part 1 and Three from Part 2

60%Part 1 questions

come from units 1,6 and 7 of the course

Part 2 questions come from

units 2, 3, 4 and 5 of the course

26 minutes for each one of the

4 questions answered.

S E C T I O N 1 – S H O R T A N S W E R Q U E S T I O N SYou should do the short answer questions first in the exam. They tend to be the best answered part of the whole exam and you can get them done quickest. If you have time you can try all 10 as you are marked on your best 8.

Think before you write! You only have four lines to fill so think first and give the examiner the best four lines you can. The most important rule for answering these short questions is to write TWO points for each one (unless you are specifically told otherwise in the question). Your first point should be a definition. A fully explained example, an advantage or a disadvantage can make an excellent second point. It is important, though, that each point is sufficiently detailed. Usually, you get 5 marks for each point you write, so write only one and you get a D1. Write two and you get an A1!

© William Murphy 2010 1


The following examples are taken from the past papers.


2006 Higher Level: Illustrate your understanding of the term ‘entrepreneurship’

1. Entrepreneurship involves using your initiative to identify a need and then taking the steps and risks (financial and personal) to satisfy that need e.g., by setting up a business), in the expectation of a reward.

2. For example, Gillian Bowler spotted that no Irish travel agent organised holidays to Greece. She left her job and set up Budget Travel to do so and became very wealthy

2009 Higher Level: Explain the role of the Council of Ministers in EU decision making. Name two other EU decision-making institutions

1. The Council of Ministers consists of government ministers from each EU country.2. It has the final say on EU laws together with the European Parliament. If the

Council says no to a proposal, it does not become law in the EU. European Commission European Parliament

Remember to write two points for every short question

2007 Higher Level: In a legal context, consideration means…..

1. the payment that one person gives to the other as part of a contract. It must be real and valuable. There must be consideration for an agreement to be a legally binding contract.

2. It involves a ‘quid pro quo’- both sides must get something out of it. For example, you hand over cash to a supermarket in consideration for the groceries you bought there.

2008 Higher Level: List five grounds under which employment discrimination is illegal in Ireland.

(i) Gender(ii) Marital Status(iii) Family Status(iv) Age(v) Disability

List means that you only have to name the items.

Remember to write two points for every short question

‘Illustrate’ means that your second point must be a fully explained example


Practice all the short answer questions (1999-2009). Download them from www.examinations.ie and print them off. Practice writing them in the spaces provided. Remember to write two points for each one. You will notice that sometimes the same questions repeat.

S E C T I O N 2 – A P P L I E D B U S I N E S S Q U E S T I O N

The Applied Business Question (ABQ) is for Higher Level students only. It comprises a story about a businessperson and the questions are based on the information in the story. It is 20% of the entire exam and is the only section of the paper where you have no choice. You must answer all three parts to the ABQ. It is essential therefore that you practice as many ABQs as you can. This year’s (2010) ABQ will be based on Units 2, 3 and 4 of the course. You need to know these units


2001 Higher Level: Draft a memorandum (memo) using an appropriate format, to all Sales Executives in the organisation listing two methods of sales promotion to be used in the business.

MEMORANDUM

TO: All Sales Executives FROM: Marketing DirectorDATE: 15th June 2010 SUBJECT: Sales Promotion The two methods of sales promotion we will be using are merchandising and money off vouchers.

SIGNED: Kate Fiona Tara MurphyKATE FIONA TARA MURPHYMarketing Director

2005 Higher Level: Distinguish between the insurance principles (i) utmost good faith and (ii) indemnity.

1. Utmost good faith means that you must answer every question truthfully when applying for insurance and volunteer any other relevant information. Otherwise, the policy is void.

2. Indemnity means that you cannot make a profit from insurance. The compensation you receive is exactly equal to the value of the loss you suffered.

Make sure that each point is sufficiently detailed


REALLY WELL. They will stand you in good stead though, as they also form a lot of Section 3 of the exam, and so could possibly account for up to an additional 30% of the exam.

Rules For Answering ABQ in the Exam You have a maximum of 36 minutes [6 minutes to read and 30 minutes to write]

to answer the ABQ. Read the questions FIRST! This will let you know what is important in the story. Then read the story of the ABQ. Divide the marks for each part by 5 to see how many points the examiner expects

you to write. But if you are asked to identify a simple list of items in the text (e.g., enterprising characteristics or skills), give an extra one to be safe.

Answer each question as follows: State the point you are making. Explain the point you are making. Extra information. If you are asked to discuss, analyse or evaluate, then you

must give an extra piece of information. Give your opinion on the topic and state an advantage or disadvantage - “I think it’s good (or bad) because and give one advantage (or disadvantage)”

Quote from the story to back up the point you are making.A lot of the marks go for quoting from the story. You must back up EVERY point you make with a relevant quote from/reference to the story. It’s a good idea to use a highlighter to make your quotes stand out.

Practice Question – 2005 Higher Level ABQLook at this question in your exam papers. It too is based in Units 2, 3 and 4 of the course. Here is a sample solution to it.

Part (a)State 1. Characteristic = Risk takerExplain Entrepreneurs are not afraid of taking a chance and having a go,

even though they might fail. They take sensible risks, ones that have a decent chance of

success.Evaluate? Analyse? Discuss? This question does not use these words, therefore no

opinion is needed.Quote Tom left his job as a fulltime electrician with a local building

firm to set up his own business.

State 2. Characteristic = Self MotivatedExplain Entrepreneurs push themselves to achieve their goals.

They are driven and their drive to succeed comes from themselves.

Evaluate? Analyse? Discuss?



Quote Tom was willing to work late and at weekends.

State 3. Skill = Human RelationsExplain Entrepreneurs are good with people.

They have a charming way about them that brings out the best in others and persuades them to do what the entrepreneur needs done.

Evaluate? Analyse? Discuss?Quote Tom gained many building and maintenance contracts because

he was very flexible with his customers.

State 4. Skill = Decision Making Explain Entrepreneurs list all the possible solutions to a problem or

opportunity. They then choose the option with the most advantages for their

business.Evaluate? Analyse? Discuss?Quote Tom realised that the construction industry was changing and

made the decision to set up Circuit Ltd to provide electrical services in 1972.

State 5. Skill = Planning Explain Entrepreneurs set goals for the business to achieve in the future.

They then come up with strategies that will help the business achieve these goals.

Evaluate? Analyse? Discuss?Quote Tom has set the goal of developing a specialised department to

concentrate on installing wireless computer networks. His strategy is to use a new technology and redeploy and retrain staff.

Part (b)

Part (b)State 1. Recruitment and SelectionExplain Recruitment involves finding suitable people for a job vacancy in the

business and persuading them to apply for it. Selection involves choosing the best person for the job from all those

who applied. Evaluate?Analyse?Discuss?

Quote

Evaluation: I think that Tom did an excellent job of personally handling the

recruitment and selection of all staff. He clearly selected excellent people as his business has expanded and his annual turnover has


Note: So far, every time that unit 2 has been examinable on the ABQ, it has come up. Make sure you know the characteristics and skills of entrepreneurs. Make sure your try part (a) of each the following ABQs – 1999, 2000, 2004, 2005 and 2009.


grown to €1.5 million.

State 2. TrainingExplain Training involves teaching workers the knowledge, skills and attitude

they need to perform the duties of their job properly. On the job training involves teaching them at work by showing them

how to do the job and letting them practice until they can do it. Off the job training means teaching them how to do the job by sending them on courses outside of work.

Evaluate?Analyse?Discuss?

Quote

Evaluation: I think that Tom did an excellent job of training his employees to do

their jobs properly as the firm experienced few health and safety difficulties. All the current employees had trained, or were in training, with the firm.

State 3. Performance AppraisalExplain This involves the manager assessing how well/badly each worker is

doing her job. Workers are set goals and tasks to achieve. When the task is done, the manager will grade the worker on how well she has performed the task.

Workers who score highly may be rewarded with promotions, bonuses or pay rises.


Quote

Evaluation: I think that Tom was good at performance appraisal as he set targets

for his employees (loyalty, commitment and honesty), checked up on their progress and rewarded those who achieved their goals with regular substantial bonuses.

State 4. Pay and RewardsExplain Pay and Rewards consist of all the incentives the employer offers the

employees for the work they have done. They can be in the form of money or payments worth money. These

are called financial rewards. Alternatively the can be non financial such as longer holidays.


Quote

Evaluation: I think that Tom was good at pay and rewards as he pays the

recommended trade union rates and rewards employees with regular substantial bonuses. His employees are clearly happy with this as the firm experienced few industrial relations problems.

State 5. Managing employer and employee relationships Explain This involves the manager making sure that there is a good

relationship between the employers and employees in the business. He must ensure that they communicate well with each other, work

well together and generally get along with each other. Evaluate?Analyse?Discuss?

Evaluation: I think that Tom was good at employer-employee relations. Despite

the fact that he does not recognise any trade union within the firm,



Quotehe clearly has a good relationship with his staff as the firm experienced few industrial relations problems.

Part (c)PlanningPlanning is the management activity of setting goals for the business to achieve in the future and devising strategies or methods to achieve these goals.State Manpower PlanExplain Manpower planning involves setting the goal of making sure that the

business has enough workers with the right skills to do all the jobs needed.


ADVICE: I think Tom should draw up a manpower plan for his “specialised department”. He should estimate how many workers his business will need to “install wireless and computer networks” and compare that to how many workers he currently has.

Quote If Tom carries out manpower planning, he will see that he is short of skilled and experienced workers for the new department. He can then begin a recruitment drive to hire employees who have the skills needed to do the work. Then he will save money on the “extensive retraining” of his existing staff.

OrganisingOrganising is the management activity of arranging all the resources in the business in the best possible way to help it achieve its goals. It involves developing an appropriate organisation structure for the business.

State Matrix Organisation StructureExplain A matrix organisation structure combines the functional organisation

structure with a project team structure It is used when the business is involved in major temporary projects that require

expertise from all the business’s departments. Evaluate?Analyse?Discuss?

ADVICE: I think Tom should use a matrix structure and set up a project team to deal with the introduction of the “specialised department”.

Quote This will help Tom because the employees he chooses for the project team will feel special to have been chosen and more motivated to accept the “redeployment of half of the current staff and extensive retraining”.

ControllingControlling is the management activity of making sure that the business remains on target to achieve its goals by constantly measuring its performance against its planned objectives and taking corrective action whenever the business veers off target.State Quality ControlExplain Quality control involves making sure that the quality of a business’s

products meets the expectations of consumersEvaluate?Analyse?Discuss?

ANALYSE: I think Tom should improve his quality control by introducing quality circles into his business. A quality circle is where small group of employees volunteer to discuss quality problems in the factory and suggest solutions to them.



Quote The employees “installing the wireless and computer networks” will know better than anyone the problems arising with them. They will solve any quality problems arising from the use of the “new and promising technology”. Better quality will help Tom to win lots of “high margin contracts” and help “this major development to succeed”.

Practice Question – 1999 Higher Level ABQ (c)To help you with the management skills, a solution to 1999 ABQ part (c) is provided below. You will find the question in your exam papers.

LeadingLeading (or leadership) is the ability to direct people, give them instructions and make them follow and obey you. State point Barry and Marian should delegate. Explain point

This means that Barry and Marian should give some of their own management work to their “generally excellent employees” to do for them.

Barry and Marian give their employees the authority to carry out the work and hold them responsible for doing a good job.

Evaluate?

Analyse?

Discuss?

Evaluation: I think that delegation will help the couple to succeed better in business because by delegating the less important work to their employees, Barry and Marian will have more time to devote to the most important issues in their business.

Quote This will ensure the couple are no longer “always rushing” and will give them the time to develop a “vision for the business in the future”.

MotivatingMotivating involves the manager energising employees and providing them with incentives so that they will co-operate and work harder for the business, while finding their work fulfilling.

State point Barry should become a Theory Y manager. Explain point

Douglas Mc Gregor’s theory on motivation states that a Theory Y manager believes that his employees enjoy working, that they have ambition and want to get on in the business and that they want more responsible and more challenging jobs.


Note: So far, every time that management skills and management activities have been examinable on the ABQ, one of them has come up. Make sure you know the management activities (planning, organising and controlling) and the management skills (leading, motivating and communicating). Make sure your try each of the following ABQs – 1999 (c), 2000 (b), 2001 (a), 2004 (c), 2005 (c), 2006 (a) and 2009 (b).


As a Theory Y manager Barry should motivate by offering promotions and titles to his “generally excellent employees” who perform well.

He should praise employees for “meeting deadlines” and “working long hours”.

Evaluate?

Analyse?

Discuss?

Evaluation: I think that Barry becoming a Theory Y manager will help the couple to succeed better in business because McGregor said that a Theory Y manager results in happy, co-operative employees who will work hard.

Quote This will help the couple motivate the employees to provide the “after sales service promised in the advertisements”.

CommunicatingCommunicating involves transferring information from one person to another. It involves the sender turning an idea into a message by using words and/or pictures. She then sends that message through a medium to the receiver, who must interpret the message and act upon it.

State point Barry and Marian should have a meeting. Explain point

A meeting is when two or more people come together to discuss a predetermined topic.

The personal nature of the face-to-face communication in a meeting makes it easier for the participants to reach agreement.

Evaluate?

Analyse?

Discuss?

EVALUATION: I THINK that Barry and Marian should call a staff meeting with all their employees. Meetings are a great way to make decisions. Barry and Marian and “their generally excellent employees” can discuss the issues of “constant pressure on staff”, and dismissing “one staff member”.

Quote Everyone can contribute ideas and brainstorm to come up with a much better solution “for the business in the future” than Barry or Marian could alone.

S E C T I O N 3 Q U E S T I O N S

Rules For Answering Section 3 Questions in the Exam You should spend no more than 26 minutes on each of the 4 questions you have to

do. As usual in Business, divide the marks by 5 to see how many points they expect

you to write in your answer. However, very high mark questions such as 40 marks generally require no more than 5 more detailed points.

Write each point in a different paragraph. It is also a good idea to number each paragraph. It is ESSENTIAL that you state your point and then EXPLAIN your point. You get roughly 40% (D3) for stating your point. You get the remaining 60% for explaining it well. Therefore, if you don’t explain each point, you will get a D3 in Business.



Some Verbs/Phrases Used in The Exam It is really important that you answer the question you are asked and for that reason, key verbs that are used in the exam are explained.

E V A L U A T EIf you get a question with the word EVALUATE, you should name each point, explain each point and then GIVE YOUR OPINION WHETHER YOU THINK IT IS A GOOD THING OR A BAD THING.

(i) CAPThe CAP was devised to give EU farmers a decent standard of living. It tries to achieve this in the following ways:1. EU farmers can sell their produce anywhere in the EU without any trade or other

barriers or restrictions. Evaluation: I think that this has a positive impact on Ireland because it gives Irish farmers a much bigger market to sell to and therefore the opportunity to increase their sales and profits.

2. Farmers who make certain produce are guaranteed that if they cannot sell whatever they make, the EU will buy it from them for a guaranteed price. Evaluation: I think that this has a positive impact on Ireland because it guarantees all Irish farmers a basic minimum wage.

(ii) Competition PolicyEU competition policy is a set of rules intended to ensure free and fair competition between businesses in the EU. 3. EU competition policy ensures that Ireland’s state owned companies cannot enjoy

a monopoly position. They must be open to competition. Evaluation: I think that this has a positive impact on Ireland because greater competition in these sectors should ensure better service and lower prices for consumers.

4. EU competition policy prohibits mergers and takeovers that would restrict free competition. Any proposed merger or takeover must seek and obtain permission from the European Commission to go ahead. For example, in 2007, the EU blocked Ryanair’s proposed takeover of Aer Lingus.Evaluation: I think that this has a positive impact on Ireland because it ensures that Irish consumers cannot lose out because of a lack of competition in certain markets.


Example: 2006 Higher Level Section 3 - Question 3 (b) (B) Evaluate the impact on Ireland of any two of the following

(i) The Common Agricultural Policy(ii) The Competition Policy(iii) The European Union Social Charter (20 marks)

20 marks ÷ 5 = 4 points. Write two points on each policy.


D E F I N EIf you get a question with the word DEFINE, you should explain the topic with TWO points. Even though you may give an excellent definition, the Business examiner expects you to write TWO points. If you only write one, you will get a low C or D grade.

1. Global marketing involves selling the same product the same way (using the same product, price, promotion and place) in all the countries of the world. Example: Coca-Cola.

2. Adapted global marketing involves changing the product, price, promotion and place in different countries for local tastes and conditions. Example: right hand drive cars in Ireland and UK and left hand drive cars for other countries. This leads to additional production, advertising and packaging costs

D R A F TIf you get a question with the word DRAFT, you should draw up whatever they are asking you to draft. Draft is often used in communications questions. Make sure you can draft bar charts, business letters, memos, business reports etc.

BUSINESS PLAN FOR PAULA AND THOMAS

Description of EntrepreneurWe are Paula and Thomas. We have both recently returned to Ireland after working abroad with transnational companies for ten years. Paula has particular expertise in production and finance while Thomas’ areas of expertise are marketing and human resources.

Market Analysis


Example: 2004 Higher Level Section 3 - Question 3 (a) Define Global Marketing

Example: 2006 Higher Level Section 3 - Question 6 (a) Paula and Thomas have recently returned to Ireland having worked with transnational companies for ten years. They wish to set up in business together in Ireland manufacturing a range of new organic breakfast cereals. Paula has particular expertise in production and finance and Thomas in marketing and human resources.

Draft a Business Plan for this proposed new business using five main headings, outlining the contents under each heading. (40 marks)


We have conducted market research that shows that the market for breakfast cereals in Ireland is very large and growing. A big market trend in the entire food industry is the increasing interest in organic products. We therefore believe that our target market of health-conscious consumers is large enough for our business to be very profitable. Our unique selling point is that unlike most cereal manufacturers, our cereals will be made from entirely organic ingredients.

Marketing Plan.We have carried out market research and believe there to be a large market for organic breakfast cereals. The product is aimed at health conscious consumers. The brand name “Organics” will instantly let the target market know what the product is all about. The price of the cereals will be higher than famous brand names in the breakfast cereal sector. This will reinforce the quality and exclusive image of our product. Promotion will consist of ads on tv during health and fitness programmes as our target market are known to watch such programmes.Place. The cereals will be distributed in health food shops all over Ireland.

Production PlanThe cereals will be made using mass production and the latest engineering technology, including Computer Aided Manufacture [CAM]. This will minimise the need for expensive wage bills. We will apply for ISO9000 certification to ensure the quality of our cereals meets world class standards.

Finance PlanWe will need €250,000 to set up the business. This will pay for the CAM technology, the machines, stock and suitable factory premises. We have managed to raise €50,000 from our local County Enterprise Board and have savings of €10,000. Therefore, we are seeking a loan of €190,000.

Projected profits are as follows:

2010 2011 2012Sales [€’000] 360 400 500Costs [€’000] 390 390 420Profits [€’000] (30) 10 80

Signed: Paula and Thomas



I L L U S T R A T EIf you get a question with the word ILLUSTRATE, you should name each point, explain each point and then GIVE AN EXAMPLE for each point.

1. INTERNAL = SKILLS AND HOBBIES A would-be entrepreneur may have special aptitudes or talents that he could turn

into a profitable business. He may have been born with these aptitudes or may have learned and developed them over time.

For example, if he is good at art, he could set up a business decorating shop windows for Christmas. If he can drive a car, he could set up a business giving driving lessons.

2. INTERNAL = EMPLOYEE SUGGESTIONS [INTRAPRENEURSHIP] A business can get good ideas for new products and services from its employees.

To encourage intrapreneuship, the business can set up a formal employee suggestion scheme offering rewards for good ideas. It is important that the managers are approachable and open to ideas from workers.

For example, workers in Microsoft gave the idea of the games console, XBOX 360 to Bill Gates when they saw the success of other games consoles.

3. EXTERNAL = IMPORT SUBSTITUTION Entrepreneurs can get an idea for a business by examining products that are

currently imported with a view to making similar products here in Ireland. For example, Joe Murphy spotted that most of the crisps sold in Ireland were

made in the UK. This inspired him to set up an Irish crisp business in 1954 which he called Tayto.

4. EXTERNAL = FAMILY AND FRIENDS A would-be entrepreneur may get an idea for a business after hearing their family

and friends complain about not being able to get a product or service they need. For example, Jack Odell thought of the idea for Matchbox toys from his daughter

when she told him that she was allowed to bring toys into school only if they were small enough to fit into a matchbox.


Example: 2003 Higher Level Section 3 - Question 6 (a) Illustrate two internal and two external sources of new product or service ideas.

(25 marks)


C O N T R A S T / D I S T I N G U I S HIf you get a question with the word CONTRAST or DISTINGUISH, you should show the DIFFERENCES between the two things mentioned in the question. If the differences are not very obvious, you can contrast them by simply stating various points about each one.

1. A sole trader is a business set up, owed and run by an entrepreneur on her own. An example is a farmer. In contrast, a partnership is a business owned and managed by between 2 and 20 owners called partners. They set up the business together to pool their resources and talents to make a profit. Examples include the accountancy partnership KPMG.

2. The sole trader is in full control over her business. She makes all the decisions. She can take advantage of any business opportunities instantly as there is no time wasted consulting others. In contrast, decision-making is slower in a partnership because all the partners have to be consulted. They may spend so much time debating new opportunities that by the time they all agree, someone else will have exploited the opportunity.

3. It is hard for a sole trader, on her own, to raise all the money needed to set up and run the business. It is difficult to get loans from banks as sole traders are the business organisation most likely to go bankrupt. In contrast, because there are more people setting up a partnership, more capital is available to the business. The business will be able to raise more money to set up than a sole trader.


Example: 2005 Higher Level Section 3 - Question 2 (a) Distinguish between a Sole Trader and a Partnership as a form of business organisation. Use an example of each in your answer. (15 marks)

15 marks ÷ 5 = 3 points.


P R O D U C T O F Y O U R C H O I C E

If you get a question with the phrase PRODUCT OF YOUR CHOICE, you should name each point, explain each point and then REFER EACH POINT BACK TO A FAMOUS PRODUCT.

The product I have chosen is Ribena and particularly the Ribena pouch pack.

1. Product A product is defined as anything that can be offered to satisfy a need or want. To help its product sell in greater quantities, a business must give a lot of consideration to the packaging and brand name it uses.

Ribena pouch packIn March 2000, Ribena launched a new product – the Ribena pouch pack. The Ribena pouch pack was developed for older children who like the taste of Ribena but want it in a more grown up and trendy packaging. The target market is 8-14 year olds, who might consider other Ribena packaging not "cool" enough for them.

EvaluationI think that this is an excellent product. The pouch pack is cool and streetwise and therefore appeals to its target market. Since its launch in March 2000, sales have been very good, with more and more consumers buying into this new trendy packaging.

2. Price The price is the amount of money the business charges consumers for its product. It is important that the business charges the right price for its product. If it is too high, consumers will not buy it. If it is too low, the business might make a loss and consumers might think it is inferior.

Ribena pouch packThe Ribena pouch pack is more expensive than many soft drinks, such as Coca-Cola.

EvaluationI think that this is an excellent pricing strategy. It appeals to parents who believe that


Example: 1999 Higher Level Section 3 - Question 7 (c) If the Marketing Mix is to succeed, it must be based on customer needs and must support the image required for a particular product or service.

Evaluate the elements of the marketing mix using a product or service of your choice.(30 marks)


the higher price is worth paying because they believe Ribena is better for their children than fizzy drinks. In this way, Ribena makes higher profits from the higher price.3. PromotionPromotion involves communicating with customers to let them know about the product and to persuade them to buy it. The four main ways to promote a product are advertising, sales promotions, public relations and personal selling.

Ribena pouch packRibena advertises extensively on TV. Its ads feature the Ribenaberry cartoon characters.

EvaluationI think that this is an excellent advertising strategy. The target market for the Ribena pouch pack watches a lot of TV and is therefore very likely to see the ads. Furthermore, the Ribenaberry cartoon characters are an excellent advertising tool because they convey the essence of the drink – the fact that it is made from blackcurrants – and they also add an element of fun, which appeals to children. This encourages children to buy the product.

4. PlacePlace involves the business getting its product to consumers by using an appropriate channel of distribution. The product has to be available where and when people need and want it.

Ribena pouch packThe Ribena pouch pack is well distributed throughout Ireland and is sold in supermarkets, newsagents and garage forecourts around the country.

EvaluationI think that Ribena is excellent at ‘place’ because the pouch pack is available everywhere children might look for it. If they are shopping with their parents in the supermarket, it is there. If their parents pull in to get petrol, the Ribena pouch pack is there also.



G E N E R A L A D V I C E

On the day - Tuesday 15 th June 2010 2.00 pm Bring a CALCULATOR! There are lots of mathematical questions you can be asked – accounting ratios, breakeven, tax, insurance, balance of trade, balance of payments etc.

At the exam: Write clearly and neatlyLay your answer out well – put each point in a separate paragraph.Name and EXPLAIN each point.

NB!! Timing is the keyYou need to have a plan for timing in the exam and you must stick to it. Write the time you MUST finish each question on the exam paper itself – a constant reminder of time, for example:

Exam Paper Section Finish at the LATEST by1 – All eight short answer question 2.35 pm2 – All three parts of the applied business question 3.15 pm1st long question 3.41 pm2nd long question 4.07 pm3rd long question 4.33 pm4th long question 5.00 pm



E X A M L A Y O U TThe layout of the ordinary level paper is set out below. Pay careful attention to the timing. The times shown allow you 5 minutes at the start of the exam to have a quick look over the paper and 5 minutes at the end to read over your answers, before handing them up. As a very rough rule of thumb, make sure that you are starting a new question roughly every half hour.

Ordinary Level Exam Tuesday 15th June 2.00 – 4.30 pmThe exam lasts for 2½ hours and there are two sections in it to be answered as follows:Section Contents Instructions Marks Areas

coveredTiming

15 short questions

Answer any 10 25% Any part of the course

32 minutes or just over 3 minutes per

questionPart 1

contains 3 questions


You must answer FOUR questions

from the 8 given, as follows:

Two from Part 1 and Two from Part 2

OR

One from Part 1 and Three from Part 2

75%Part 1 questions come from units 1,6 and 7 of the

course

Part 2 questions come from units

2,3,4 and 5 of the course

27 minutes for each one of the 4

questions answered.

S E C T I O N 1 – S H O R T A N S W E R Q U E S T I O N SYou should do the short answer questions first in the exam. They tend to be the best answered part of the whole exam and you can get them done quickest. If you have time you can try all 15 as you are marked on your best 10.

The most important rule for answering these short questions is to write TWO sentences for each one (unless you are specifically told otherwise in the question). Usually, you get 5 marks for each sentence you write, so write only one and you get 5 out of 10 – a D1. Write two and you get 10 out of 10 – an A1!



Some examples follow:

A question that has come up every year is what do these initial stand for?


2003 Ordinary Level: Outline the importance of Quality Control to a business(1) Quality control means making sure that the quality of the business products reaches a high standard. (2) It leads to lower costs as money is not wasted giving refunds as customers are happy with the high quality products.

2001 Ordinary Level: Describe two functions of the Data Protection Act 1988.(1) A person can get see exactly what information is stored about them on someone else’s computer. (2) If any of that information is wrong, the person who keeps it must delete it or correct it.

1999 Ordinary Level: What do these letters stand for?(1) SWOT Strengths, Weaknesses, Opportunities, Threats (2) TQM Total Quality Management (3) HRM Human Resource Management

2000 Ordinary Level: What do these letters stand for?(1) DIRT Deposit Interest Retention Tax (2) EU European Union (3) ICTU Irish Congress of Trade Unions

2001 Ordinary Level: What do these letters stand for?(1) PRSI Pay Related Social Insurance (2) IBEC Irish Business and Employers Confederation (3) EDI Electronic Data Interchange

2002 Ordinary Level: What do these letters stand for?(1) ATM Automated Teller Machine (2) SWOT Strengths, Weaknesses, Opportunities, Threats (3) AGM Annual General Meeting

2003 Ordinary Level: What do these letters stand for?(1) VAT Value Added Tax (2) PRSI Pay Related Social Insurance (3) HRM Human Resource Management

2004 Ordinary Level: What do these letters stand for?(1) ATM Automated Teller Machine (2) PAYE Pay As You Earn (3) ROI Return on Investment


S E C T I O N 2 Q U E S T I O N SRules For Answering Section 2 Questions in the Exam You should spend no more than 27 minutes on each of the 4 questions you have to

do. As usual in Business, divide the marks by 5 to see how many points they expect

you to write in your answer. Write each point in a different paragraph. It is also a good idea to number each

paragraph.


2005 Ordinary Level: What do these letters stand for?(1) AGM Annual General Meeting (2) LRC Labour Relations Commission (3) IBEC Irish Business and Employers Confederation

2006 Ordinary Level: What do these letters stand for?(1) SWOT Strengths, Weaknesses, Opportunities, Threats (2) VAT Value Added Tax (3) WWW World Wide Web

2007 Ordinary Level: What do these letters stand for?(1) PRO Public Relations Officer (2) ATM Automated Teller Machine (3) PRSI Pay Related Social Insurance

2008 Ordinary Level: What do these letters stand for?(1) PLC Public Limited Company (2) AGM Annual General Meeting (3) R&D Research and Development (4) MD Managing Director

2009 Ordinary Level: What do these letters stand for?(1) WWW World Wide Web (2) PRSI Pay Related Social Insurance (3) ATM Automated Teller Machine


Two questions have come up a lot on Ordinary Level – one on consumer and employee laws and one on accounting ratios. Make sure to revise these topics carefully!

2005 Ordinary Level – Section 2 – Question 1

Study the information supplied and answer the questions which follow.

(i) Name the law that protects the consumer in this case. (10 marks)

(ii) Explain Ciara’s legal rights and the duties of Quality Lawnmowers Ltd. (20 marks)

(iii) Outline one non-legislative (non-legal) method of solving the above problem. (10 marks)

Note: This is the same as 2008 Q1, 2007 Q1, 2003 Q1, 2002 Q1, 2000 Q1, and 1999 Q1. You should try these yourself.


Ciara bought a ride-on lawnmower from Quality Lawnmowers Ltd. for €2,500. The first time she tried to cut the lawn the blades did not work on the lawnmower.She contacted Quality Lawnmowers Ltd. to complain.

Sale of Goods and Supply of Services Act, 1980

Ciara has the following legal rights:(1) Products she buys must be of merchantable quality.(2) They must be fit for their purpose.

Quality Lawnmowers has the following legal duties:(3) They must give Ciara a full refund of her money as the ride on was not fit

for its purpose.(3) The company must deal with her complaint directly and cannot fob her off

to the manufacturer.

1. Ciara and Quality Lawnmowers can solve the problem by negotiation. This means that they meet each other and talk about the problem. Ciara will set out the facts as she sees them and tell them what she would like to solve the problem.

2. Quality Lawnmowers will then set out its side of the argument and tell Ciara what they are prepared to do for her. When they agree on a solution that they are both happy with, this is called a compromise.


2008 Ordinary Level – Section 2 – Question 7 (d)The following information is extracted from the accounts of Sweeney Sports Ltd.

BALANCE SHEET (Extract) as on 31 December2007 2006

€ €Current Assets 300,000 290,000Current Liabilities 200,000 145,000 (i) Identify two items that could be included under the ‘Current Assets’ section of

the Balance Sheet of Sweeney Sports Ltd. (15 marks)

(ii) Calculate the Working Capital Ratio for 2006 and 2007 and comment on the trend. (Show the formulae and all your workings) (25 marks)


Working Capital Ratio = Current Assets ÷ Current Liabilities2006 = €290,000 ÷ €145,000 = 2:12007 = €300,000 ÷ €200,000 = 1.5:1

The working capital ratio has decreased from 2:1 in 2006 to 1.5:1 in 2007. This is a bad trend as it means that the business has less cash in 2007. Furthermore, the ratio in 2007 is less than the ideal working capital ratio of 2:1.

Closing Cash and Stock

william murphy teaches business at the institute of education

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