LEAVING CERTIFICATE BUSINESS NOTES 2010
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The 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 pm
The exam lasts for 3 hours and there are three sections in it to be answered as follows:
Section Contents
Instructions
Marks
Areas
Timing
covered
10 short
questions
Answer any 8
20%
Any part of the
course
Applied
Business
Question
This question is
COMPULSORY and
all three parts MUST
be answered
20%
Part 1
contains 3
questions
You must answer
FOUR questions from
the 7 given, as
follows:
The ABQ
questions will
come from
units 2, 3 and 4
of the course.
Part 1 questions
come from
units 1,6 and 7
of the course
Part 2
contains 4
questions
Two from Part 1 and
Two from Part 2
OR
60%
30 minutes or
just under 4
minutes per
question
36 minutes
26 minutes for
each one of the
4 questions
answered.
Part 2 questions
come from
units 2, 3, 4 and
5 of the course
One from Part 1 and
Three from Part 2
SECTION 1 – SHORT ANSWER QUESTIONS
You 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!
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The following examples are taken from the past papers.
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
Remember to
write two
 European Parliament
points for
every short
question
2008 Higher Level: List five grounds under which employment discrimination is
illegal in Ireland.
(i)
(ii)
(iii)
(iv)
(v)
Gender
Marital Status
Family Status
Age
Disability
List means
that you only
have to name
the items.
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.
Remember to
write two
points for
every short
question
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
‘Illustrate’ means
that your second
point must be a
fully explained
example
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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
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
DATE: 15th June 2010
FROM:
SUBJECT:
Marketing Director
Sales Promotion
The two methods of sales promotion we will be using are merchandising and money
off vouchers.
SIGNED:

Kate Fiona Tara Murphy
KATE FIONA TARA MURPHY
Marketing Director
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.
SECTION 2 – APPLIED BUSINESS QUESTION
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
REALLY WELL. They will stand you in good stead though, as they also form a lot
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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 ABQ
Look 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
Explain
1. Characteristic = Risk taker
 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
Explain
2. Characteristic = Self Motivated
 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.
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State
Explain
3. Skill = Human Relations
 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
Explain
4. Skill = Decision Making
 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
Explain
5. Skill = Planning
 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.
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.
Part (b)
Part (b)
State
Explain
Evaluate?
Analyse?
Discuss?
Quote
1. Recruitment and Selection
 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.
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
grown to €1.5 million.
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State
Explain
2. Training
 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? Evaluation:
Analyse?  I think that Tom did an excellent job of training his employees to do
Discuss?
their jobs properly as the firm experienced few health and safety
difficulties. All the current employees had trained, or were in
Quote
training, with the firm.
State
Explain
3. Performance Appraisal
 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.
Evaluate? Evaluation:
Analyse?  I think that Tom was good at performance appraisal as he set targets
Discuss?
for his employees (loyalty, commitment and honesty), checked up
on their progress and rewarded those who achieved their goals with
Quote
regular substantial bonuses.
State
Explain
4. Pay and Rewards
 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.
Evaluate? Evaluation:
Analyse?  I think that Tom was good at pay and rewards as he pays the
Discuss?
recommended trade union rates and rewards employees with
regular substantial bonuses. His employees are clearly happy with
Quote
this as the firm experienced few industrial relations problems.
State
Explain
5. Managing employer and employee relationships
 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? Evaluation:
Analyse?  I think that Tom was good at employer-employee relations. Despite
Discuss?
the fact that he does not recognise any trade union within the firm,
he clearly has a good relationship with his staff as the firm
Quote
experienced few industrial relations problems.
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Part (c)
Planning
Planning 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 Plan
Explain
 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.
Evaluate? ADVICE: I think Tom should draw up a manpower plan for his
Analyse?
“specialised department”. He should estimate how many workers his
Discuss?
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.
Organising
Organising 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
Explain
Matrix Organisation Structure
 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”.
Controlling
Controlling 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 Control
Explain
 Quality control involves making sure that the quality of a business’s
products meets the expectations of consumers
Evaluate? ANALYSE: I think Tom should improve his quality control by
Analyse?
introducing quality circles into his business. A quality circle is where
Discuss?
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
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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”.
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).
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.
Leading
Leading (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
 This means that Barry and Marian should give some of their own
point
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? Evaluation:
I think that delegation will help the couple to succeed better in business
Analyse?
because by delegating the less important work to their employees,
Discuss?
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”.
Motivating
Motivating 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
Explain
point
Barry should become a Theory Y manager.
 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.
 As a Theory Y manager Barry should motivate by offering
promotions and titles to his “generally excellent employees” who
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Evaluate?
Analyse?
Discuss?
Quote
perform well.
 He should praise employees for “meeting deadlines” and “working
long hours”.
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.
This will help the couple motivate the employees to provide the “after
sales service promised in the advertisements”.
Communicating
Communicating 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
Explain
point
Evaluate?
Analyse?
Discuss?
Quote
Barry and Marian should have a meeting.
 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.
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”.
 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.
SECTION 3 QUESTIONS
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.
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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 E
If 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.
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 ÷ 5
= 4 points.
Write two
points on each
policy.
(20 marks)
(i) CAP
The 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 Policy
EU 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.
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D E F I N E
If 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.
Example: 2004 Higher Level Section 3 - Question 3 (a)
Define Global Marketing
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 T
If 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.
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)
BUSINESS PLAN FOR PAULA AND THOMAS
Description of Entrepreneur
We 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
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
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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 Plan
The 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 Plan
We 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:
Sales [€’000]
Costs [€’000]
Profits [€’000]
2010
360
390
(30)
2011 2012
400 500
390 420
10
80
Signed: Paula and Thomas
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I L L U S T R A T E
If you get a question with the word ILLUSTRATE, you should name each point,
explain each point and then GIVE AN EXAMPLE for each point.
Example: 2003 Higher Level Section 3 - Question 6 (a)
Illustrate two internal and two external sources of new product or service ideas.
(25 marks)
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.
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CONTRAST/DISTINGUISH
If 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.
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.
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.
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PRODUCT OF YOUR CHOICE
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.
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 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 pack
In 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.
Evaluation
I 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 pack
The Ribena pouch pack is more expensive than many soft drinks, such as Coca-Cola.
Evaluation
I think that this is an excellent pricing strategy. It appeals to parents who believe that
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.
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LEAVING CERTIFICATE BUSINESS NOTES 2010
3. Promotion
Promotion 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 pack
Ribena advertises extensively on TV.
characters.
Its ads feature the Ribenaberry cartoon
Evaluation
I 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. Place
Place 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 pack
The Ribena pouch pack is well distributed throughout Ireland and is sold in
supermarkets, newsagents and garage forecourts around the country.
Evaluation
I 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.
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LEAVING CERTIFICATE BUSINESS NOTES 2010
G E N E R A L
A D V I C E
 On the day - Tuesday 15th 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 neatly
Lay your answer out well – put each point in a separate paragraph.
Name and EXPLAIN each point.
 NB!! Timing is the key
You 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
1 – All eight short answer question
2 – All three parts of the applied business question
1st long question
2nd long question
3rd long question
4th long question
© William Murphy 2010
Finish at the LATEST by
2.35 pm
3.15 pm
3.41 pm
4.07 pm
4.33 pm
5.00 pm
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LEAVING CERTIFICATE BUSINESS NOTES 2010
E
X
A
L
M
A
Y
O
U
T
The 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 pm
The exam lasts for 2½ hours and there are two sections in it to be answered as follows:
Section Contents
Instructions
Marks
Areas
Timing
covered
15 short
questions
Answer any 10
Part 1
contains 3
questions
You must answer
FOUR questions
from the 8 given, as
follows:
Part 2
contains 5
questions
Two from Part 1 and
Two from Part 2
OR
25%
75%
Any part of the
course
Part 1 questions
come from units
1,6 and 7 of the
course
32 minutes or just
over 3 minutes per
question
27 minutes for
each one of the 4
questions
answered.
Part 2 questions
come from units
2,3,4 and 5 of
the course
One from Part 1 and
Three from Part 2
SECTION 1 – SHORT ANSWER QUESTIONS
You 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!
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LEAVING CERTIFICATE BUSINESS NOTES 2010
Some examples follow:
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.
A question that has come up every year is what do these initial stand for?
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
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LEAVING CERTIFICATE BUSINESS NOTES 2010
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
SECTION 2 QUESTIONS
Rules 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.
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!
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LEAVING CERTIFICATE BUSINESS NOTES 2010
2005 Ordinary Level – Section 2 – Question 1
Study the information supplied and answer the questions which follow.
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.
(i)
Name the law that protects the consumer in this case.
(10 marks)
Sale of Goods and Supply of Services Act, 1980
Explain Ciara’s legal rights and the duties of Quality Lawnmowers Ltd.
(20 marks)
(ii)
(1)
(2)
(3)
(3)
(iii)
Ciara has the following legal rights:
Products she buys must be of merchantable quality.
They must be fit for their purpose.
Quality Lawnmowers has the following legal duties:
They must give Ciara a full refund of her money as the ride on was not fit
for its purpose.
The company must deal with her complaint directly and cannot fob her off
to the manufacturer.
Outline one non-legislative (non-legal) method of solving the above problem.
(10 marks)
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.

Note: This is the same as 2008 Q1, 2007 Q1, 2003 Q1, 2002 Q1, 2000 Q1, and
1999 Q1. You should try these yourself.
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LEAVING CERTIFICATE BUSINESS NOTES 2010
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 December
2007
2006
€
€
Current Assets
300,000
290,000
Current Liabilities
200,000
145,000
Identify two items that could be included under the ‘Current Assets’ section of
the Balance Sheet of Sweeney Sports Ltd.
(15 marks)
(i)
Closing Cash and Stock
(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 =
2006
=
2007
=
Current Assets ÷ Current Liabilities
€290,000 ÷ €145,000
=
2:1
€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.
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