Leaving Cert Business — Higher Level

Marks: 5 + 5 (3 explain + 2 example).

Chain of command is the line of authority that runs vertically through the organisation, from the most senior manager at the top to the most junior employee at the bottom. It defines who reports to whom and the path orders, instructions and feedback travel along. A clear chain of command avoids confusion and ensures accountability. Example: in Tesco Ireland a checkout assistant reports to a duty manager, who reports to the store manager, who reports to a regional manager.

Span of control is the number of subordinates that report directly to one manager. A wide span (10+) suits routine work and skilled staff; a narrow span (3–5) suits complex work or new staff. Example: a primary school principal with 12 teachers reporting directly has a span of 12.

Marks: 2 × 5 (3 explain + 2 example).

1. Urgency / speed. If the message must reach the recipient immediately the medium must be fast and confirmable. Slow media like postal letters waste time and can cost the business money. Example: a supplier who cannot deliver a critical part calls the production manager rather than emailing.

2. Confidentiality. Sensitive information (dismissal, financial results, legal warnings) must use a medium that is private and produces a record. Open or shared channels risk leaks. Example: dismissing an employee is done in a private face-to-face meeting followed by a confidential letter, not by email visible on a shared inbox.

Other valid factors: clarity of language, cost, accuracy/record, feedback needed, technology available, target audience.

Marks: 4 (define) + 6 (2 × 3).

Delegation is the assignment of authority and responsibility for a specific task from a manager to a subordinate. The manager remains accountable for the outcome. Genuine delegation requires giving the subordinate the resources and trust to complete the task without micromanagement.

Benefit 1 — Frees up the manager's time for strategic work. The manager hands routine tasks to staff and uses the time saved on planning, decision-making and external relationships, increasing the value the manager adds to the business.

Benefit 2 — Develops the workforce. Subordinates given new responsibilities build their skills and confidence, giving the firm a stronger talent pipeline and reducing succession risk when senior staff leave.

DAC — Designated Activity Company (Companies Act 2014; can only do what its objects clause states).

MNC — Multinational Company (operates in more than one country).

IBEC — Irish Business and Employers Confederation (employer interest group).

ICTU — Irish Congress of Trade Unions (umbrella body for trade unions).

CAP — Common Agricultural Policy (EU farm support and food-supply policy).

Marks: formula 2 marks + workings 6 marks + comment 2 marks.

Formula: Debt : Equity = LT Loan : (Issued Share Capital + Reserves)

Workings: 240,000 : (400,000 + 160,000) = 240,000 : 560,000 = 0.43 : 1.

Comment: the business is low-geared (under 1:1). Most of its capital is equity. This is a healthy position — interest payments are low, banks are likely to lend more, and the firm can fund expansion through additional debt without becoming risky.

Contribution per unit (CPU) = SP − VC = 12 − 4 = €8.

(a) BEP (units) = FC ÷ CPU = 240,000 ÷ 8 = 30,000 units.

(b) Margin of Safety = Forecast output − BEP = 40,000 − 30,000 = 10,000 units.

(c) Profit at forecast output = (FO × CPU) − FC = (40,000 × 8) − 240,000 = 320,000 − 240,000 = €80,000.

1. Utmost Good Faith. The proposer must disclose all material facts when applying for insurance, even those not asked about. Hiding material information voids the policy. Example: a homeowner applying for fire insurance must reveal that the house is thatched and 200 metres from a fire hydrant; failing to do so means no payout if a fire occurs.

2. Indemnity. The insured cannot profit from a claim — they are restored to the financial position they were in just before the loss, no better. Example: a 5-year-old company van written off in a crash is paid out at its current second-hand value, not the price the firm originally paid.

Others: Insurable Interest, Subrogation, Contribution.

Inflation is a sustained increase in the general level of prices for goods and services in an economy over a period of time. It is measured by the Consumer Price Index (CPI), which tracks the price of a fixed basket of typical purchases each month. Inflation reduces the real purchasing power of money: €1 buys less than it did a year before.

Cause 1 — Cost-push (rising input costs). When raw materials, energy or wages rise, businesses pass higher production costs to consumers. Example: 2022–23 European energy spike pushed up grocery and hospitality prices.

Cause 2 — Demand-pull (excess demand). When consumer demand outstrips supply (after a tax cut, post-Covid spending or low interest rates) sellers raise prices because the market will bear them.

1. Financial supports. LEOs provide grants to micro-enterprises (≤10 employees): Feasibility Study Grants (test viability), Priming Grants (start-up capital), Business Expansion Grants and microfinance loans up to €25,000. This reduces the financial risk of starting a business.

2. Mentoring and training. LEOs match new entrepreneurs with experienced business mentors and run "Start Your Own Business" courses, marketing workshops and Trading Online Vouchers (up to €2,500 for digital). This raises the skill level of the founder.

1. Develop a written Code of Ethics. The firm publishes a clear set of moral standards (honesty, no bribery, fair treatment of customers and suppliers) and includes it in employment contracts. Staff know exactly what is expected and the consequences of breaches.

2. Lead by example / management role-modelling. Senior managers act ethically in visible decisions (refusing to cut corners on safety, paying suppliers on time, declining gifts that look like bribes). Staff copy what they see leaders do, so ethical behaviour spreads from the top.

Others: ethics training at induction; whistleblowing protection; rewards for ethical behaviour; ethical audit.

Demographic segmentation divides the market by measurable population characteristics — age, gender, income, family size, occupation, education. It is the most common method because the data is easy to collect and apply. Example: Lego markets specific kit ranges to children aged 4–8 (Duplo), 9–14 (Technic) and adults (Architecture).

Psychographic segmentation divides the market by lifestyle, personality, values and attitudes. It targets how consumers think rather than who they are. Example: Patagonia targets environmentally-conscious outdoor enthusiasts who care about sustainability — buyers may be different ages and incomes but share values.

Step 1 — Tax on cut-off: 20% × €42,000 = €8,400.

Step 2 — Balance taxed at higher rate: €48,000 − €42,000 = €6,000 × 40% = €2,400.

Step 3 — Gross PAYE: €8,400 + €2,400 = €10,800.

Step 4 — Less tax credits: €1,875 + €2,000 = €3,875.

PAYE due = €10,800 − €3,875 = €6,925.

Marking pattern: 2 (name) + 2 (explain) + 1 (link) per skill.

1. Risk-taker. Entrepreneurs accept the personal and financial risk of setting up a business, knowing the venture may fail. Link: "Niamh left her marketing role with a multinational to set up the business, investing her redundancy payment plus a €60,000 loan from a credit union."

2. Innovative / future-focused. Entrepreneurs spot gaps and create new products that solve real customer problems. Link: "Two recent best-sellers — a vegan moisturiser and refillable packaging — came from these brainstorms."

3. Decisive / decision-making. They take well-informed decisions quickly under uncertainty. Link: "Niamh has hired a Quality Manager and is exploring TQM" — a decisive response to the recall crisis rather than waiting and hoping it passes.

4. Networking / human relations. Entrepreneurs build relationships with funders, suppliers and state agencies to access resources. Link: "Niamh secured a €250,000 grant from Enterprise Ireland to fund the expansion" — Enterprise Ireland funding is highly competitive and depends on credibility and relationships.

Other valid skills with text quotes: confident/self-belief (going to Germany), resilient (Instagram backlash), realistic (recognised need for Quality Manager).

Niamh is a clear Theory Y / democratic manager. McGregor's Theory Y assumes employees are self-motivated, creative, willing to take responsibility and want to contribute. Such managers consult, delegate, empower, and treat employees as partners.

1. Consultation. "Niamh holds weekly all-staff meetings where she encourages employees to suggest new product ideas." This is text-book Theory Y — staff input is genuinely sought, not just communicated to.

2. Empowerment. "My role is to provide the resources and step out of the way." Niamh acts as a facilitator-leader — giving staff tools and authority and trusting them to deliver. This raises motivation (Maslow's esteem need is met) and intrapreneurship (the moisturiser idea came from staff).

3. Trust. Two of the firm's best-sellers came from staff brainstorms, evidence that Niamh implemented their ideas rather than overriding them. The result is a self-renewing pipeline of innovation that suits Lúnasa's premium niche.

1. Commission (financial). "Niamh moved staff onto a basic-plus-commission model." Commission ties pay directly to sales, motivating production and sales staff to push output. Evaluation: effective in the short term — productivity rises, turnover follows. Risk: encourages quantity over quality, which is dangerous after a product recall. The Quality Manager hire offsets this risk.

2. Flexitime (non-financial). "Niamh has introduced flexitime." Staff can choose start/finish times within agreed core hours. This satisfies Maslow's esteem and self-actualisation needs and supports work-life balance. Evaluation: a strong retention tool in the current Irish labour market where housing costs and Dublin's pull have caused two senior staff to leave; flexitime is cheap to provide and signals a modern, trusting employer.

The planned Employee Share Purchase scheme would add a third lever — share-ownership creates long-term commitment and would directly address the Dublin churn issue.

1. Net profit margin: 8% → 14% (improved). Net profit margin shows the percentage of every euro of sales that becomes profit after all expenses. Lúnasa nearly doubled it, a major improvement. This was driven by economies of scale (German expansion spread fixed costs over more units) and a premium-price strategy. Link: "the German organic market is three times the size of Ireland" suggests volume-led margin growth.

2. Current ratio: 1.4:1 → 2.1:1 (improved, now ideal). The current ratio measures whether short-term assets cover short-term liabilities. The textbook target is 2:1; Lúnasa now matches it. The firm can comfortably pay supplier and tax bills as they fall due — vital after the €40,000 recall expense.

3. Debt/Equity ratio: 0.8:1 → 0.5:1 (improved). Gearing measures how much of the firm's capital is borrowed. Lúnasa moved from moderately geared toward low-geared. The Enterprise Ireland grant (equity-style funding, no repayment) replaced borrowed money. Banks will see Lúnasa as a safer borrower if it needs more debt for further expansion.

Overall comment. All three ratios improved. The firm is more profitable, more liquid and less risky than a year ago — a strong financial platform from which to handle the recall fallout, retain key staff with the share scheme, and consider further EU expansion.

(A) Four factors when choosing a communication medium (20 marks, 4 × 5).

1. Clarity / appropriate language. Match the wording to the audience. Customers need plain English; engineers can handle jargon. Mismatched language causes errors.
2. Confidentiality. Sensitive issues (dismissal, finance, legal) need private media — face-to-face meeting or sealed letter. Public channels risk leaks.
3. Cost. A worldwide CEO update by video conference is cheaper than flying in 50 managers.
4. Urgency / speed. A faulty-product recall requires a phone call or text, not a posted letter.

Others: feedback, accuracy/record, technology available.

(B) Implications of a manager adopting Theory X (20 marks, 4 × 5).

1. Low staff morale. Theory X assumes staff are lazy; constant supervision is demotivating and increases absenteeism.
2. No intrapreneurship. Decisions stay with management; staff who could spot improvements stay silent.
3. High labour turnover. Talented employees leave for Theory Y workplaces, increasing recruitment cost.
4. Possible short-term productivity gain in low-skill, time-critical work where strict supervision suits the task — but unsustainable long-term.

(C) SWOT of a small Irish indigenous food business — example: Glenisk yogurt (20 marks, 4 × 5).

• Strengths: strong organic brand, family ownership, Irish provenance, Bord Bia listings, online presence.
• Weaknesses: small scale vs Danone, dairy-only product range, cost of organic milk is rising.
• Opportunities: growing plant-based and high-protein segments, EU export markets, sustainability premium.
• Threats: retailer concentration (Tesco/Dunnes squeeze prices), inflation in inputs, competition from German organics.

(A) Three principles of insurance (15 marks, 3 × 5).

Utmost Good Faith — proposer must reveal all material facts (e.g. previous claims, smoking, building materials). Hiding facts voids the policy.

Indemnity — payout restores the insured to the financial position before the loss; no profit. A 5-year-old van written off is paid at second-hand value, not new price.

Subrogation — once the insurer pays, it takes over the right to sue any third party who caused the loss. Stops the insured collecting twice.

(B) Áine PAYE / USC / PRSI / net pay (20 marks).

Total taxable income = €58,000 + €15,000 (BIK) = €73,000.
PAYE: 20% × 44,000 = €8,800; 40% × 29,000 = €11,600; gross PAYE €20,400. Less credits €3,875 = €16,525.
USC: 0.5% × 12,012 = €60.06; 2% × 13,748 = €274.96; 3% × (70,044 − 25,760) = €1,328.52; 8% × (73,000 − 70,044) = €236.48. Total USC = €1,900.02.
PRSI: 4.1% × 73,000 = €2,993.
Total deductions = 16,525 + 1,900.02 + 2,993 = €21,418.02.
Net annual take-home = 58,000 − 21,418.02 = €36,581.98 (BIK is taxable but not paid in cash, so subtract deductions from cash gross).

(C) Two strategies to manage change (15 marks, 3 × 5).

Communication and consultation — explain why the change is needed and listen to staff concerns; reduces fear and resistance.

Training and development — staff who feel skilled to operate the new system embrace change instead of resisting it; e.g. ICT training before a CRM rollout.

Rewards and incentives — bonus for hitting milestones during the change project keeps energy high.

(D) Benefits of TQM (10 marks, 2 × 5).

Reduced costs through zero-defects (fewer recalls, less wastage); improved customer loyalty through consistent quality; higher staff motivation through quality circles and empowerment; international quality marks (ISO 9000) open export markets.

(A) Advantages and disadvantages of an acquisition / takeover (20 marks, 4 × 5).

Advantages: instant access to new markets and customer base; eliminates a competitor; achieves economies of scale; can be funded with shares (no cash needed).

Disadvantages: high purchase price (often a premium of 20–30%); culture clash between the two workforces leading to staff loss; "synergies" often overestimated; competition authorities (CCPC) may block large deals.

(B) Four NPD stages, apart from launch (20 marks, 4 × 5).

1. Idea generation — internal (R&D, staff brainstorming) and external (customers, suppliers, competitor monitoring).
2. Product screening — eliminate ideas that fail technical, financial or strategic fit tests.
3. Concept development — turn the idea into a defined product with USP, target market, price point.
4. Feasibility study + prototype — small-scale build to test technical feasibility, then test-market with a focus group before full launch.

(C) Medium-term sources of finance for fleet replacement (20 marks, 3 × 6 + 2).

Term Loan — borrowed sum from a bank repaid over 1–5 years with interest. Pros: ownership of the asset, fixed repayments. Cons: collateral required, interest cost.

Hire Purchase — three-way deal (buyer, seller, finance company); buyer uses the asset immediately, ownership transfers on final payment. Pros: tax-deductible interest. Cons: more expensive than a loan in total.

Leasing — never own the asset; pay a rental for use over a fixed term. Pros: no large up-front cost; servicing usually included. Cons: never an asset on the balance sheet; total cost over time can exceed purchase.

For a transport firm: leasing or hire purchase usually beats a term loan because vehicles depreciate quickly and tax treatment is favourable.

(A) Product portfolio (6 marks) + four segmentation methods (14 marks, 2 × 7).

Product portfolio = the range of all products and product lines a business sells, often analysed using the BCG matrix (stars, cash cows, question marks, dogs).

Demographic — age/gender/income/family. Procter & Gamble target babies (Pampers), women (Olay) and men (Gillette).

Geographic — region/country/climate. P&G sells different detergent formulations for hard-water and soft-water regions.

Psychographic — lifestyle, values. Eco-conscious consumers buy P&G's refillable Tide Eco-Box.

Behavioural — usage rate, brand loyalty, occasion. Heavy users get loyalty rewards; gift packs target Christmas occasion buyers.

(B) Four reasons to conduct market research (15 marks, 3 × 5).

Estimate market size and growth; identify customer wants; check competitor activity and pricing; reduce the risk of new-product failure.

(C) Break-even chart — FO 30k, SP €15, VC €5, FC €200k (25 marks).

BEP = 200,000 ÷ (15 − 5) = 20,000 units (sales €300,000).
MoS = 30,000 − 20,000 = 10,000 units.
Profit at FO = (30,000 × 10) − 200,000 = €100,000.

Chart: x-axis output 0–30k units; y-axis €. Plot horizontal FC line at €200k; TC line from (0, 200k) to (30k, 350k); TR line from (0,0) to (30k, 450k). BEP where TC meets TR (20k units). Shade MoS between BEP and FO. Label profit gap between TR and TC at FO.

(A) Four essential elements of a valid contract (20 marks, 4 × 5).

Consideration — each party gives something of value. Example: employee gives labour, employer gives wages.

Capacity to contract — both parties have legal capacity. Excludes minors (under 18 except for necessities), bankrupts, intoxicated/insane persons, companies acting ultra vires.

Consent to contract — agreement is genuine, not given under duress, undue influence, fraud or mistake.

Legality of form — some contracts must be in writing to be enforceable: sale of land, hire purchase, contracts of guarantee.

(B) Four types of industrial action (20 marks, 4 × 5).

Official strike — secret-ballot mandate, ICTU sanction, picket. Most disruptive.

Work-to-rule — employees do exactly what their job description says; nothing extra. Slows operations.

Overtime ban — refusal of paid overtime; effective in retail/transport at peak times.

Token stoppage — short symbolic stoppage to signal further action will follow if no agreement.

(C) Discrimination — Employment Equality Act 1998/2015 (20 marks).

(i) Definition (8 marks): treating an employee less favourably than another would be treated in a comparable situation on any of the nine protected grounds.

(ii) Four grounds, other than gender / sexual orientation (12 marks): civil status; family status; religion; age; race; disability; membership of the Traveller community.

(A) Four ways government creates a positive climate for business (20 marks, 4 × 5).

Low corporation tax (12.5%) attracts MNCs (Pfizer, Apple, Google), creating jobs and tax revenue.
Capital expenditure on infrastructure (Metrolink, broadband, hospitals) creates contracts and improves business productivity.
State agencies — IDA Ireland (FDI), Enterprise Ireland (indigenous exporters), LEOs (micro-business) — provide grants and mentoring.
Investment in education and skills ensures a steady supply of qualified labour; SOLAS retrains the unemployed.

(B) Two benefits and two challenges of increasing employment (20 marks, 4 × 5).

Benefits: rising consumer spending boosts sales for Irish retailers and hospitality; more income tax revenue lets government fund services and grants.

Challenges: labour shortages drive up wages and recruitment costs (especially in hospitality and tech); housing supply pressure makes it hard to relocate workers, hurting productivity.

(C) Four types of business organisation (20 marks, 4 × 5).

Sole trader — one owner, unlimited liability, easy set-up, full control.

Partnership — 2–20 partners under Partnership Act 1890, joint liability, shared expertise.

Franchise — franchisee pays a fee plus royalty to use a proven business model (e.g. Supermac's). Lower failure risk, less independence.

Public Limited Company (PLC) — minimum 7 members, listed on stock exchange (e.g. Kerry Group), limited liability, greater capital but higher disclosure and takeover risk.

(A)(i) Directive vs Regulation, with examples (14 marks, 2 × 7).

EU Directive — sets a result that member states must achieve, but each chooses how to legislate it. Time limit applies. Example: the Working Time Directive (max 48 hours/week) was implemented in Ireland by the Organisation of Working Time Act 1997.

EU Regulation — directly binding law in every member state from the day it enters into force; no national legislation needed. Example: GDPR (Regulation 2016/679) applied identically across the EU on 25 May 2018.

(ii) Impact of one directive — WEEE (6 marks). Retailers selling electrical goods must accept old units back free of charge. Increases retailer costs and admin but cuts illegal dumping and supports the circular economy.

(B) Global marketing mix for an Irish whiskey distillery (20 marks, 4 × 5).

Product — same whiskey worldwide; minor packaging differences (Japanese-style smaller bottles for Asian giftware).
Price — premium positioning held globally; adjusted for local taxes (high alcohol duties in Scandinavia).
Place — exclusive distributor in each country; duty-free retail at airports; direct online for EU.
Promotion — brand storytelling adapted to language; influencers in each market; cultural events (e.g. St Patrick's Day in the US).

(C) Four barriers to free trade (20 marks, 4 × 5).

Embargo — total ban on imports from a country, typically political (US embargo on Cuban goods).
Quota — physical limit on quantity imported (EU quota on certain Chinese textiles).
Subsidy — government payment to a domestic industry to make it cheaper than imports (CAP for EU farmers).
Tariff — tax on imports raising their price (Trump tariffs on European cars).

Generic advertising promotes a whole product category, not a specific brand. Example: the National Dairy Council's "Drink Milk" campaign benefits every dairy producer in Ireland.

Persuasive advertising convinces the consumer that a specific brand is better than alternatives, usually by appealing to emotions or aspirations. Example: Apple's "Think Different" or Nike's "Just Do It" campaigns push the brand, not the product category.

1. Low corporation tax (12.5%) and the new 15% rate for very large MNCs — among the lowest in the OECD, meaning higher retained profit. Apple, Google, Pfizer all chose Ireland partly for tax efficiency.

2. English-speaking, well-educated workforce inside the EU single market. Since Brexit, Ireland is the only English-speaking country in the EU, giving MNCs duty-free access to a 450 million consumer market plus a 53% third-level qualified workforce.

1. Collective bargaining power. Individually, an employee has little leverage on pay or conditions. As a union, they can negotiate as a group via the shop steward, and threaten industrial action if needed.

2. Personal representation. Union officials accompany members in disputes with management, at WRC adjudications and in legal cases, often providing free legal advice.

The CPI measures the change in the average price of a fixed basket of goods and services bought by a typical household. The CSO collects around 53,000 prices each month from shops, online retailers and service providers across Ireland and compares them to a base period. The index is published monthly; year-on-year change is the headline inflation rate.

1. Greater efficiency through competition. Private firms face the discipline of profit and shareholders, encouraging cost discipline. Example: Eircom's privatisation pushed broadband competition.

2. Government revenue + reduced subsidy burden. Sale of state assets raises one-off cash and ends ongoing taxpayer support. Example: the partial privatisation of Aer Lingus generated funds and removed an annual state liability.

Lobbying is one-sided: an interest group (IBEC, ICTU, Friends of the Earth) tries to influence decision-makers (TDs, ministers, EU commissioners) through petitions, media campaigns, public protests and meetings. The decision still rests with the government.

Negotiation is two-sided: parties with different objectives meet, exchange offers and counter-offers, and try to reach a mutually acceptable compromise. Example: employer–union pay talks at the WRC.

Import substitution is when a domestic firm produces a good or service that consumers previously bought from abroad. Example: an Irish craft brewery whose stout replaces imported English ales.

Impact on Balance of Payments: imports fall, so money outflow drops. Other things equal, this improves the BoP — moving it toward surplus or reducing a deficit. Tax revenue (VAT and corporation) also stays in Ireland.

1. Sponsorship — Allianz sponsors the GAA National League, putting the brand in front of 1m+ Irish viewers.

2. Press release / news conference — Volkswagen issues a release announcing a new EV model, generating free media coverage.

3. Celebrity endorsement / influencer partnership — Adidas pays footballers to wear its boots and post on Instagram, lending the brand credibility.

(A) Provisions of Consumer Protection Act 2007 (20 marks, 7+7+6).

1. Price display regulations. Prices of certain products must include all charges, fees and taxes (no hidden surcharges). Empowers the Minister to set further rules.

2. Ban on misleading commercial practices. Traders cannot mislead consumers about product features, price, sponsorship or legal rights. Aggressive practices (harassment, coercion, undue influence) are banned.

3. Enforcement. CCPC can issue compliance notices, on-the-spot fines (€300), publish a "Consumer Protection List" of offenders, and refer serious cases to the DPP.

(B)(i) Office of the Ombudsman (8 marks). Investigates complaints that public service bodies (HSE, councils, social welfare) gave wrong information, made unfair decisions or delayed unreasonably. Last-resort body — internal complaints procedures must be exhausted first. Recommendations are not legally binding but are usually accepted.

(B)(ii) Two features of Small Claims Procedure (12 marks). Max €2,000 claim; €25 fee; no solicitor needed; online via Courts Service; case heard by District Court Registrar within weeks; aimed at faulty goods, bad workmanship, minor property damage.

(C) Three remedies for breach of contract (20 marks, 7+7+6).

Sue for damages / compensation — court orders the breaching party to pay the loss caused.
Specific performance — court orders the breaching party to fulfil their original obligation (used for unique goods like land).
Rescind the contract — court cancels the contract and both parties revert to their pre-contract position.

1. Inform consumers — website, helpline, social media, financial calculators. Empowers buyers to make better-informed decisions.

2. Enforce consumer law — investigates breaches, issues fines, takes prosecutions. Punishes wrongdoing.

3. Investigate mergers — protects competition by approving or blocking M&A activity (e.g. blocked Topaz/Statoil overlap stations).

4. Advise government — recommends new legislation when consumer harm emerges.

Evaluation: the CCPC is effective but under-resourced — it relies heavily on consumer complaints to detect issues, and large multinationals (especially online platforms) operate at a scale beyond Irish enforcement. Coordination with EU authorities (DG COMP) is improving via the Digital Services Act and DMA.

(A) Four skills of a successful Irish entrepreneur — example: Pat McDonagh (Supermac's) (20 marks, 4 × 5).

Risk-taker — opened first Supermac's in Ballinasloe in 1978 with personal savings.
Innovative — created Irish-style fast food using local beef when the market was dominated by US chains.
Decisive — fought a 14-year EU trademark battle against McDonald's and won.
Networking — built relationships with GAA (sponsorship), local councils (motorway plaza locations) and suppliers.

(B) Distinguish enterprise vs management (20 marks, 10 + 10).

Enterprise = creating something new, taking risk, spotting opportunities. Examples: a student starting a fundraiser; a TY group launching a school newsletter.

Management = achieving objectives through and with people; planning, organising, leading, controlling existing operations. Examples: the school principal coordinating timetables; a deputy organising sports day.

(C) Three reasons to become an entrepreneur (20 marks, 3 × 5 + 5).

Earn higher income — keep all the profit instead of a fixed wage.
Be your own boss — autonomy over decisions and lifestyle.
Achievement / legacy — build something lasting that bears your name.

Other valid: redundancy push, spotting a market gap, family tradition, fulfilling a passion.

(A) Evaluate Private Company Limited by Shares (LTD) as ownership option (20 marks, 3 × 6 + 2 evaluation).

Limited liability — owners only risk their share investment; personal assets protected.
Easier capital raising — up to 149 shareholders, banks lend more readily.
Continuity of existence — separate legal entity; survives shareholder death.
Evaluation: the LTD strikes the best balance for most start-ups: low liability risk, decent capital options, simpler than DAC (no objects clause). For most family businesses considering incorporation it's the default choice.

(B)(i) Business ethics (5 marks). The moral standards or principles that guide a business's decisions and behaviour — "doing the right thing" beyond what the law strictly requires.

(B)(ii) Three ways to encourage ethical employee behaviour (15 marks, 3 × 5). Code of ethics; whistleblowing protection (Protected Disclosures Act 2014); ethics audit by an external auditor; staff training; lead by example.

(C) Social responsibilities to three stakeholders (20 marks, 3 × 6 + 2).

Investors — accurate, timely financial reporting; fair return; ethical use of capital.
Employees — safe workplace, fair pay (above minimum wage), training, dignity at work.
Community / environment — minimise pollution, support local causes, sustainable sourcing.

(A) Four challenges of global marketing (20 marks, 4 × 5).

Language and culture — direct translation can offend (Mitsubishi Pajero in Spanish).
Currency fluctuations — sterling drop after Brexit cut margins for Irish food exporters.
Distribution — finding reliable agents and overcoming logistics costs.
Local competition + protectionism — tariffs, quotas, embargoes.

(B)(i) Indigenous business (5 marks). A business owned and run by residents of the country in which it primarily operates. Example: Glanbia, Kerry Group, Penneys, Glenisk.

(B)(ii) Three opportunities of exporting (15 marks, 3 × 5). Larger market = more sales; spreads risk across regions; achieves economies of scale; learns from international best practice.

(C) Role of EU Commission and Parliament (20 marks, 3 × 7,7,6).

Commission — proposes new legislation; "guardian of the treaties"; 27 commissioners (one per state) appointed by Parliament; manages the EU budget; negotiates trade deals.

Parliament — 720 MEPs directly elected; debates and amends Commission proposals; co-legislator with Council; approves the budget; vets Commissioners.

Together they exemplify the "ordinary legislative procedure": Commission proposes, Parliament + Council co-decide.

1. Climate-driven sustainability. Farmers are required to reduce emissions (CAP eco-schemes, nitrates derogation), reforest, and use less synthetic fertiliser.

2. Rising input costs. Energy, fertiliser and feed prices have surged since 2022, squeezing margins and pushing some farmers out of dairy or beef.

Community development = the process by which local citizens improve the social and economic well-being of their area through their own efforts (self-help) rather than waiting for outside agencies.

Service: grant funding via LEADER programme. A rural community group can apply for LEADER co-funded grants to upgrade a community hall, build a playground, or set up a tourism initiative — typically up to 75% of project cost.

A JLC is an independent statutory body made up of equal numbers of employer and worker representatives. It sets minimum pay and working conditions for employees in a specific low-paid sector. JLCs are established by the Labour Court following an application from a trade union, employer body or the Minister for Enterprise. Examples of current JLCs: contract cleaning, security, hairdressing, hospitality.

ASAI = Advertising Standards Authority of Ireland.

1. Sets and enforces advertising codes — its Code of Standards requires ads to be legal, decent, honest and truthful.

2. Investigates consumer complaints about ads. The ASAI can require an ad to be withdrawn or amended if it breaches the code (e.g. misleading health claims).

Batch production = identical units made in defined groups, then production switches to a different batch. Example: a bakery makes 200 loaves, then 200 baguettes, then 200 scones.

Mass production = continuous, large-scale production of one standardised item using assembly lines and high automation. Example: a Toyota plant producing thousands of identical Corolla cars 24/7.

1. Right of access (Article 15). Customers can request a copy of all personal data the business holds on them, free of charge, within one month.

2. Right to erasure / "right to be forgotten" (Article 17). Customers can require the business to delete their personal data when it is no longer needed for the original purpose.

1. Co-legislator. MEPs debate and amend legislation proposed by the European Commission, and adopt it together with the Council of the EU.

2. Approves and supervises the EU budget. The Parliament must approve the annual EU budget and monitors how member states and EU institutions spend it.

Protectionism = government use of trade barriers to shield domestic industries from foreign competition.

1. Tariff — tax on imports, raising their selling price (Trump 25% tariff on European cars).

2. Quota — physical limit on the quantity that can be imported (EU quota on Chinese steel).

(A)(i) Distinguish primary vs tertiary sector (10 marks).

Primary — extracts raw materials from nature: farming, fishing, forestry, mining.
Tertiary — provides services: tourism, banking, retail, healthcare, transport. The largest sector in Ireland (≈75% of employment).

(A)(ii) Three current trends in the tertiary sector (15 marks, 3 × 5).

E-commerce growth (online shopping, delivery apps); staff shortages in hospitality; rising commercial rents and energy costs.

(B) Economic and social benefits of community development (15 marks).

Economic: creates local jobs; spin-off demand for local suppliers; reverses depopulation by giving people reason to stay.
Social: stronger community spirit and pride; better facilities (sports clubs, festivals); improved mental health from connection.

(C) Two implications of meeting environmental responsibilities (20 marks, 2 × 10).

1. Higher short-term costs but stronger long-term reputation. Investing in sustainable packaging, renewable energy and emissions reductions raises costs, but a green brand commands a premium and protects against future carbon taxes and regulatory risk.

2. Easier access to capital. Investors increasingly screen for ESG performance; banks offer green loans at lower rates. Lúnasa-style firms and B-Corps find it easier to raise expansion capital than environmentally laggard rivals.