# data[].attributes.body
Different firms that produce all output of a product of service

# data[].attributes.body
Agriculture, forestry, fishing

Advantages:

Employment

Taxes

Exports

Import substitution

CFP + CAP

Trends:

Commodities such as beef and milk have become more expensive, as there is a huge global demand due to the increasing population.

Developments in areas of wind energy and solar power. EU has introduced fishing quotas to prevent overfishing.

Reduction in CAP and CFP payments as Ireland becomes a richer EU country.

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Manufacturing, construction

Advantages:

Import substitution

Taxes

Modernising infrastructure and manufacturing

Trends:

Decline in employment due to downsizing or closures.

Increased competition for agribusiness as a result of foreign retailers moving in. ALDI, LIDL.

Increased minimum wage rates mean many companies have moved to Eastern Europe where there is cheaper labour.

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Services

Advantages:

Taxes

Tourism

Good for BOP

Trends:

New taxation such as LPT (Local Property Tax) means that people have less disposable income and thus, reducing sales for business.

Discount retailers make it difficult for small retailers to remain profitable.

The growth of ICT due to FDI has created thousands of jobs in Ireland. Companies such as Intel and Google have set up here.

VAT increases have reduced demand

High commercial rates put pressure on small businesses

Rent increases in cities cause employees to seek higher wages

Successful wage demands in transport sector(Dublin Bus, Luas) lead employees to seek more pay

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Land - fixed, value increases when scarce, rent
Labour - skilled and unskilled, wages
Capital - consumer c., social c., private, fixed c., working c., interest
Enterprise - profit

# data[].attributes.body
Advantages:

Easy to form/close

All decisions

All profit

Disadvantages:

Unlimited liability

No continuity of existence

Self-raised capital

Income tax > corporation tax

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2-20 partners /// Deed of partnership

Advantages:

Easy to form

Easy to raise finance

Shared losses

Shared expertise

Disadvantages:

Unlimited liability

Conflict

Shared profits

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Separate legal entity set up under the Companies Act 1963-2009 for the purpose of carrying out business activity

PRIVATE LIMITED COMPANY:

Board of directors

1-149 shareholders

Certificate of incorporation

No shares to public/on stock exchange

# data[].attributes.body
Advantages:

Limited liability

Separate legal entity

Easy to raise finance

Low corporation tax

Disadvantages:

Costly to form

Shared profits

Accounts must be published

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1. Documents to Registrar of companies - MOA and AOA

2. Form A1 - list of directors + consent, declaration of compliance with acts, statement of authorised and issued share capital

3. Documents and fees to registrar

4. Certificate of incorporation is issued

5. Statutory meeting held - present MOA and AOA to shareholders, appoint directors and auditors, give share certificates, open bank a/c

6. Incorporated - separate legal entity, limited liability, can begin trading

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MOA:

external relationship

Clauses:

must end name with PLC or Ltd

objects of the company must be specified - carrying out other activities is illegal and known as acting ultra vires

statement that company has limited liability

statement of amount of authorised share capital

signed by each subscriber who has agreed to form the company (agree to take shares listed by their name)

location of registered office

AOA:

internal rules

not compulsory as companies can adopt a model AOA known as Table A

Contents:

statement of authorised share capital

voting rights of each class of shares

procedure for issuing/transferring shares

procedure for calling meetings

procedure for electing/replacing directors

procedure for winding up the company

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7+ shareholders /// can sell shares to public and on stock exchange

Advantages:

Easy to raise finance

Limited liability

Continuity of existence

Disadvantages:

Costly to form (€400,000+)

Profits are shared

Accounts are published

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Method of marketing via a proven business formula licensed from franchiser to franchisee

Advantages to franchiser:

Easy form of expansion

Less direct investment

More profits

Advantages to franchisee:

Attract customers

Reduced business risk

Economies of scale

No competition

Training and advice

Disadvantages to franchisee:

Lack of ownership

Must raise capital

All financial risk

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Open membership, democratic, profits in proportion to amount of trade

Formation:

7+ members

Registrar of Friendly Societies

Incorporated under the Industrial and Provident Societies Acts 1893 - 2014

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Headquarters in one country: operates in many countries

Why:

Low tax

Eu free trade

English + highly-skilled

IDA Ireland

Advantages:

Employment

Exports / import substitution

Tax revenue

Disadvantages:

Repatriate profits

Closures = unemployment

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Electric Ireland, CIÉ, Fáilte Ireland

Advantages:

Services in unprofitable areas

Control certain services

Employment

Tax revenue

Finance req. is too high for private enterprise

# data[].attributes.body
Job creation

More disposable income

Greater demand for housing

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Eg. Ballymun - support enterprise and quality of life in urban areas

Aim:

Creating jobs by promoting economic projects

Training(career guidance, CV prep)

Placements on work experience schemes(eg with Tús)

Financial support - grants and loans

Pobal:

State agency that distributes national and EU funding

Funds APCs

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Local Enterprise Office - County Enterprise Boards

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Local Enterprise Office - County Enterprise Boards

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31 offices

Aim:

To help small enterprises and encourage local initiatives

Functions:

Funding + Advice on funding

Training

Mentoring entrepreneurs

Advice on local authority, planning and the environment

Grants:

50% of €150,000 of total capital req.

75% of €5,000 of cost of feasibility study

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EU funded programme to encourage and assist rural communities to develop enterprises

Aim:

Improve competitiveness of agri- and forestry business

Improve environment and quality of life

Encourage diversification - eg. Baldwin’s farmhouse ice-cream

Funding:

Market research, prototype development and feasibility studies

Themes:
Economic Development, Enterprise Development

and Job Creation:

Rural Tourism

Enterprise Development

Rural Towns

Broadband

Social Inclusion:

Basic Services targeted at hard to reach communities

Rural Youth

Rural Environment:

Protection and sustainable use of water resources

Local Biodiversity

Renewable energy

# data[].attributes.attachment_link.title
Leaving cert & Junior cert Exam Revision | Studyclix makes exams easier

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Leaving Cert and Junior Cert exam paper questions and marking schemes listed by topic. Studyclix makes exam revision and study easier

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Biggest employer - March 2012 - 130,000 public service

FDI - Enterprise Ireland + IDA Ireland

Training - government funding

Infrastructure - boost construction industry

PAYE reductions - makes employment attractive

IT in education - skilled population

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Education and training
PAYE rates
Privatisation
Social partnership - centralised wage agreements
Enterprise Ireland - grants - creates employment

# data[].attributes.body
Sales: High income taxes and VAT reduce disposable income and demand.

Costs: High income tax and PRSI encourage works to seek higher wages. High corporation tax reduces profits and businesses may move abroad. Collecting taxes incurs financial costs for employer.

Business confidence: High taxes discourage businesses from expanding or coming to Ireland. High PRSI deters people from working.

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Sales: More government investment results in more money in the economy.

Costs: Spending on infrastructure and services reduces business costs. However, unnecessary investment must still be paid for with taxation.

Business confidence: Investment boosts confidence, unless it is unnecessary/involves borrowing, as this must be repaid.

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Enterprise Ireland - supports development and growth of indigenous firms. Concentrates on businesses with more than 10 staff who have possibility to enter export market.

Helps with:

Market research

Product development

Business strategy

Management skills

Networking

International sales and marketing

Grants and venture capital investment

IDA Ireland - attracts FDI to Ireland, especially if they are export-oriented.

Supports:

Promotes Ireland to investors

Provides advice about setting up in Ireland

Sources premises for FDI

Grant and financial supports for equipment and training

Networking

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Sales: Advice and grants improve competitiveness.

Costs: Finance and advice reduce start-up costs and help to ensure business survival. Grants for expansion help to increase profitability.

Business confidence: Advice encourages entrepreneurs to take risks.

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Employment/Industrial Relations: prevents discrimination and unfair dismissals.
Unfair Dismissals Acts 1977-2015, Employment Equality Acts 1998-2015, Industrial Relations Act 1990, Health and Safety Authority

Consumer protection: stops unfair practice and misleading advertising.
Sale of Goods and Supply of Services Act 1980, Consumer Protection Act 2007, CCPC

Data protection: require businesses to abide by conditions in relation to storing information on private individuals.
Data Protection Acts 1988-2003

Companies: Companies Act 2014 ensures companies are set up correctly and monitored by Companies Registration Office.

Other:

CCPC - fair competition

EPA - environmental laws

Commission for Energy Regulation (CER) - regulates competition in energy supply market

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All government organisations owned/financed by the state, e.g. civil service, semi-states, hospitals, schools. Protect public interest, usually without profit.

Impact:

Job creation(18% of workforce)

Taxation - more people employed results in higher expenditure and taxation.

Wages - boosts economy through sales.

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Economic activities not owned by State

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Agreements where private sector owns and operates a service on behalf of government, for a profit.
Usually agreements last for a fixed number of years and then ownership passes back to State.
EG: M3 toll motorways

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State companies:
Commercial - provide service for a price (RTÉ, ESB)
Non-commercial - services are seen as essential (IDA Ireland, WRC)

Privatisation: selling state companies(fully or partially) to private sector, eg National Lottery.
Nationalisation: transferring ownership to state, eg state nationalising banks to prevent their collapse.

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For:

private firms are free from political interference.

private firms reduce waste and inefficiency.

better quality and price for consumers

private firms find it easier to raise finance for expansion.

raises money for government.

ideological - leave business to private sector.

Against:

nationalisation protects services.

ownership of strategic industries to protect against purchase by foreign companies who aren't loyal to Ireland.

protecting employment.

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Moral rules that guide decision making; helping to make decisions that are right, regardless of profits.

Reasons for unethical decisions:

Greed - more profits.

Fear - employees are afraid of demotion, pay cuts, job losses.

Apathy - lack of leadership leads to an 'anything goes' attitude.

Bad example set by managers

Lack of regulations - no punishments.

Encouraging ethical behaviour:

Code of ethics - document setting out guidelines to follow when making decisions - may be signed by staff and used as grounds for dismissal.

Encouraging employees to report unethical behaviour - removing fear and the need for whistleblowing.

Senior managers must lead by example

Clear disciplinary procedures - penalties to deter unethical behaviour and rewards for being ethical.

Staff training

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Obligation of business to act in the interest of all stakeholders.

Employees:

No discrimination

Fair and safe conditions

Secure employment

Challenging work

Investors:

Open and honest information

Fair dividend

Accurate financial accounts

No excessive salaries to managers

Follow MOA and AOA

Suppliers:

Fair negotiations - no pressure

Pay debts in full and on time

Honour all agreements and contracts

Avoid suppliers using child labour or other unethical practices

Customers:

Abide by legislation

Truthful advertising

Fair prices

Safe, reliable products

Uphold right to complain

Government:

Collect and pay all taxes

Obey all local, national and EU laws

No bribery or corruption

Community:

No pollution

Protect quality of life (traffic, noise)

Support employment

Support local suppliers

Sponsor local activities

Society and the planet:

Minimise pollution and be environmentally sustainable

No trading with corrupt governments

Do not produce undesirable products (cigarettes, landmines)

Compete ethically and fairly

Transparency

Support good causes

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Business that can continue indefinitely without causing permanent harm to environment for future generations.

Important issues:
Climate change - more severe weather conditions, melting ice caps, rising sea levels.
Energy - possibility of shortages once fossil fuels are exhausted.
Waste - dumping contaminates soil and incineration releases harmful chemicals - must reduce, reuse, recycle.
Pollution - waste emissions damage human and animal health, especially through waterways.
Destruction of natural resources - destruction of habitats leads to extinction.

Characteristics of a environmentally responsible business:

Produce durable goods - not producing goods so that they wear out quickly.

Produce in a sustainable manner:

Locate away from ecologically sensitive areas

Become energy efficient and renewable

Eliminate pollution and waste - Supervalu are first Irish supermarket to offer bio-degradable bags

Seek the advice of the EPA - law requires new business developments to carry out an Environmental Impact Assessment - looks at expected effect of business on environment and locality.

Goods should not have unnecessary packaging.

Plan for disposal after use -  goods should be easy to reuse, repair and recycle.

Conduct regular environmental audits - studies into impact on environment.

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Costs of meeting social and environmental responsibilities

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Costs of meeting social and environmental responsibilities

# data[].attributes.body
Paying fair wages costs more

Honest information may reduce how much investors are willing to invest

Truthful advertising may reduce sales

Sustainable production equipment is expensive

Fair competition reduces profits

Obeying tax laws reduces profits

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Benefits of meeting social and environmental responsibilities

# data[].attributes.subject
Benefits of meeting social and environmental responsibilities

# data[].attributes.body
Proper waste management saves money in long term

Avoidance of fines and scandals

Attracts customers

Easier to recruit skilled staff

Easier to access finance

Improved marketing promotion

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Introduced in 2011 to replace Fás
Education and Training authority

Functions:

The Department of Social Protection will be responsible for community employment schemes.

The Department of Education and Skills will be responsible for training and education and will provide courses linked to the needs of the labour market.

This involves preparing job seekers for the job market.

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Economy - The legal, political and social framework within which business is conducted.

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Open economy -
Economy in which people and businesses can own the factors of production and trade in goods and services - buying, selling, importing and exporting.
E.g Ireland, UK, America.
In open economy, everyone in the state is free to open a business. (wider choice of high quality goods/services).

Mixed Economy -
Exists when both gov. and private enterprise own factors of production.

Controlled economy (Centrally planned economy) -
Where gov. owns all factors of production and controls all economic activity e.g China,Iran.

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Characteristics of economy that is doing well -

Profits are high.

Low unemployment (skilled workers have jobs, wage increase)

Inflation & interest rates are low.

Balance of payments in surplus.

Gov. has budget surplus.

New entrepreneurs set up businesses.

Economic variables that have an effect on economy -

Interest rates

Inflation

Exchange rates

Taxation

Subsidies and grants

Employment and unemployment

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Definition -  The amount of interest charged by bank/financial institution for giving a loan. Price that borrower has to pay for use of the money.

Money saved in bank by customer is a loan to the bank.
Bank uses the money to give loans to other customers.
Margin = Interest rate charged - Interest rate paid (5% - 2% = 3%)

Impact on business of an interest rate increase -

Borrowing would become expensive.

Firms might decide not to borrow. (restricts business expansion)

High inflation, reduces consumer demand because of loss in value of disposable income.

High interest rates on savings accounts, attract savings.

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Definition - Sustained increase in the level of selling prices over specified period e.g month, measured by Consumer Price Index (CPI).
E.g Inflation is 6% means 6% higher than previous year.

Increase in prices = decrease in value of money.

Impact of high inflation on enterprise/economy -

Higher cost of raw materials, therefore increase in selling prices. Firms less competitive. Decline in sales and profits may lead to job losses.

Cheaper supply of raw materials from abroad. Increase in imports, effect on balance of trade and balance of payments.

People may prefer to invest in property rather than business.

Unions will try increase wages.

Decline in export sales. Negative impact on balance of trade.

Impact of low inflation on enterprise/economy -

Firms borrowing for capital expenditure purposes e.g machinery. Job creation.

Manufacturing/wage costs not increasing. Firms remain competitive.

Entrepreneurs willing to invest in new business ventures. Job creation.

Reduction in selling prices.

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Definition - Price of particular currency when expressed in another currency.

Fixed exchange rate -
No currency losses when payments are received/paid.

Floating exchange rate -
Impossible to predict the exchange rate that will exist when payments have to be made.

Balance of trade =
visible exports - visible imports

Fall in euro = cheaper exports, dearer imports. vice versa.

Foreign tourists very conscious of exchange rates so they can plan their holiday financially. Receipts from tourists make significant contribution to Ireland's balance of payments.

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Tax - compulsory contribution to exchequer to meet expenses of gov.

Effects of taxation :
Business enterprises -
Reduces amount of profit available for reinvestment.
Consumers -
VAT increase = reduce demand for certain products, sales decline.
Wage earners -
PAYE = direct tax. Reduces disposable income.

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Subsidies - payment of money by gov. to a firm.

e.g - state pays subsidy to CIE, enables CIE to continue providing services that are unprofitable (benefits economy).

Grants - non-repayable money received by business from gov. or EU to increase it's competitiveness. Some grants have to be repaid.

Firms have been attracted to locate in Ireland because of large number of grants available from Enterprise Ireland.

EU provide grants e.g

European Regional Development Fund.

European Social Fund.

European Cohesion Fund.

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Effects of increasing unemployment on Ireland's economy -

Sales/profits reduced. Some businesses close down.

Unemployed people have less disposable income.

Gov. current expenditure increases because of dole/social protection payments. Keeps taxation levels high.

Social problems e.g crime,drug use. Gov. increase spending on law and order and hospitals.

Gov revenue from PAYE reduced.

Gov revenue from VAT reduces.

Increase in emigration.

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Employment -
Helps improve living standard of people.

Taxation -
Exchequer collects tax :

Corporation tax (12.5%).

Tax from employees.

VAT from consumers (23%).

Environmental issues -
Business responsibilities to environment :

Must adhere to regulations on disposal of  waste.

Manufacturers must ensure there its production do not cause pollution that could damage environment/quality of life of employees/general public.

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Decreases in taxation: PAYE reductions give people more disposable income. Corporation tax reductions improve profits, allowing for growth. VAT reductions increases demand

Increases in state expenditure:  more infrastructure is good for business. Also creates jobs.

State agencies: advice, guidance, training, mentoring, grants - Enterprise Ireland, Industrial Development Authority(IDA) Ireland, SOLAS, Fáilte Ireland, LEO

Government planning: forward planning reduces uncertainty - national wage (€9.55 minimum wage) agreements involving social partners allow businesses to predict their future wage costs - decreases risk of industrial relations problems.