Business Studies...Business Studies – Common Level 2 Instructions There are two sections in this paper. Section A 90 marks 15 Questions Section B 180 marks 3 Questions Answer all

J.22 Pre-Junior Cycle Final Examination, 2020 Business Studies Common Level Time: 2 hours 360 marks

EXAM ID

NAME

SCHOOL

TEACHER

A A 2020-J022-1-EL-01/24

For the Examiner only

Section Question Mark A 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

B 16. 17. 18.

Total

%

School Stamp

A 2020-J022-1-EL-01/24

CANDIDATE DETAILS

Optional 4 or 5-digit number(only if provided by your school)

9638dd7b-6110-409b-9600-60ccfe535e16

Pre-Junior Cycle Final Examination, 2020 Business Studies – Common Level

2

Instructions

There are two sections in this paper.

Section A 90 marks 15 Questions

Section B 180 marks 3 Questions

Answer all questions.

Write your answers in blue or black pen. You may use pencil for graphs and diagrams only.

Write your answers in the spaces provided in this booklet.

This examination booklet will be scanned and your work will be presented to an examiner on screen. Anything that you write outside of the answer areas may not be seen by the examiner.

There is extra space at the end of Section B.

Calculators may be used.

Write the make and model of your calculator here:

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Section A 90 marks Answer all questions. All questions carry equal marks. Question 1 Ireland’s Local Enterprise Offices (LEOs) offer support to entrepreneurs. (i) Outline two ways in which Local Enterprise Offices (LEOs) support entrepreneurs.

1.

2.

(ii) Identify two skills of an entrepreneur.

1.

2.

Question 2 Eddie received an Apple iPad Pro tablet for his birthday. (i) Explain one advantage of branding to a business.

(ii) Name one complementary good to the Apple iPad Pro tablet.

(iii) Name one substitute good to the Apple iPad Pro tablet.

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Question 3 Explain two benefits of European Union (EU) membership to Ireland.

1.

2.

Question 4 (i) Identify two taxes collected by the Government from Irish businesses.

1.

2. (ii) Explain two sources of revenue for the Government, other than taxes.

1.

2.

Question 5 Indicate whether the assets listed below are fixed or current by placing a tick () in the correct box:

Assets Fixed Current

Premises

Cash

Delivery Truck

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Question 6

Using the above images, identify one example of a social enterprise, a cultural enterprise

and a financial enterprise.

Organisation

Social Enterprise

Cultural Enterprise

Financial Enterprise

Question 7

Nurses and midwives hold third 24-hour strike over pay.

The Irish Times, February 2019

(i) State two reasons, other than pay, for industrial disputes in Ireland.

1.

2. (ii) Explain one law that protects the rights of workers in Ireland.

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Question 8 The graph below shows the cost of living for a household in 2018 and 2019:

Household Cost of Living - 2019 and 2018

(i) Calculate the rate of inflation.

Workings _____________________ %

(ii) Explain why a low rate of inflation in Ireland is desirable.

Question 9 (i) Explain what is meant by the term ‘globalisation’.

(ii) Outline two reasons why many global companies have chosen to locate in Ireland.

1.

2.

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Question 10 Balance the cash book for the Davis family for the month ended 31/01/2020:

Date Details Bank Date Details Bank

Jan. 1 Balance b/d 80 Jan. 2 Groceries 180

10 Wages - Ms Davis 1,600 5 Petrol 90

21 Wages - Mr Davis 960 13 Tyres 320

17 Clothes 225

22 Mortgage 1,350

23 Groceries 180

31 Balance b/d

Feb. 1 Balance b/d Question 11

Government announce unexpected €100m Budget surplus.

This is being put down to an increase in tax take from corporations and a €250m underspend.

Irish Examiner, January 2019 (i) Is tax a capital or a current source of revenue for the Government?

Give a reason for your answer.

(ii) Give one example of capital expenditure and one example of current expenditure

by the Department of Health.

Capital expenditure:

Current expenditure:

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Question 12 Unemployment in Ireland is currently at a 10-year low.

Unemployment in Ireland, 2009-2018

2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

10

20

2

12U

ne

mp

loy

me

nt

(%)

4

14

6

16

8

18

(i) Outline two impacts of low unemployment on the Irish economy.

1.

2.

(ii) Name two other economic indicators.

1.

2. Question 13 Complete the wage slip showing gross pay, total deductions and net pay.

Employee No. 0128 Anna O’Brien Week 3 20/01/2020

PAY: € DEDUCTIONS: €

BASIC 578⋅00 PAYE 170⋅20 M and H Sheds Ltd OVERTIME 126⋅00 PRSI 28⋅16

USC 23⋅70

SAVINGS 50⋅00 NET PAY

GROSS PAY: TOTAL DEDUCTIONS:

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Question 14

(i) Outline the benefit of having a personal financial life cycle plan.

(ii) Explain the difference between a ‘state pension’ and an ‘occupational pension’.

Question 15

‘Digital technologies drive growth for Irish businesses’

The Irish Times, February 2017 Explain one social cost and one environmental cost of the advances in technology in recent years.

Social cost:

Environmental cost:

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Section B 180 marks Answer all questions. All questions carry equal marks. Question 16 (a) In the final year of his degree at the Dublin Institute of Technology,

Pat Hall prepared a business plan for a shop that sells and repairs laptops, tablets and other mobile devices. Following his graduation in 2014, Pat founded his company, Total Technology Ltd.

(i) Total Technology Ltd is a private limited company. One advantage of a private limited

company is limited liability.

Explain the term ‘limited liability’.

(ii) Outline two advantages, other than limited liability, of a private limited company.

1.

2.

(iii) Although Pat invested his personal savings in the business, he needed additional funding.

He researched several sources of finance, including credit unions, government grants, crowdfunding and commercial banks.

Answer true or false to each of the following statements about sources of finance by placing a tick () in the correct box.

True False

Crowdfunding is primarily conducted online.

A credit union is owned by its members.

European Union grants must be paid back within 5 years.

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(b) Pat’s company has now been in business for five years. The following Trial Balance was taken from the books of Total Technology Ltd on 31 December 2019, the end of its financial year. The Authorised Share Capital is €250,000 €1 ordinary shares. You are also given the following additional information as on 31 December 2019:

Closing Stock €7,600 Depreciation: Equipment 10% Motor Vehicles 15%

Trial Balance of Total Technology Ltd as at 31 December 2019

Dr Cr

€ €

Sales 172,000

Purchases 66,500

Opening Stock 3,600

Wages 28,200

Advertising 1,750

Insurance 9,400

Carriage Inwards 450

Light and Heat 3,100

Internet and Telephone 3,800

Bank 12,800

Debtors and Creditors 6,700 6,300

Premises 160,000

Equipment 22,000

Motor Vehicles 35,000

Loan 30,000

Reserves (Profit and Loss Balance) 20,000

Issued Share Capital: €1 Ordinary Shares 125,000

353,300 353,300

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(i) From the information given, complete an Income Statement (Trading, Profit and Loss Account) for Total Technology Ltd for the year ended 31 December 2019.

Income Statement of Total Technology Ltd for the year ended 31/12/2019

€ €

Sales

Less Cost of Sales

Opening Stock

Purchases

Carriage Inwards

Cost of Goods Available for Sale

Less Closing Stock

Cost of Sales

Gross Profit

Less Expenses

Wages

Advertising

Insurance

Light and Heat

Internet and Telephone

Depreciation

Total Expenses

Net Profit

Reserves

Retained Profit

(ii) From your Income Statement, would you consider Total Technology Ltd to be in a good financial position in relation to its income and expenditure? Give a reason for your answer.

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(c) (i) From the information given, complete a Statement of Financial Position (Balance Sheet) for Total Technology Ltd for the year ended 31 December 2019.

Statement of Financial Position of Total Technology Ltd as at 31/12/2019

Cost Depreciation Net Book Value

€ € €

FIXED ASSETS

Premises

Motor Vehicles

Equipment

Total Fixed Assets

CURRENT ASSETS

Closing Stock

Debtors

Bank

CURRENT LIABILITIES

Creditors

Working Capital

Total Net Assets

Financed by Authorised: Issued:

Share Capital

Reserves

LONG-TERM LIABILITIES

Loan

Capital Employed

(ii) What advice would you offer Total Technology Ltd in relation to its Statement of Financial Position (Balance Sheet)?

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Question 17 (a) Caroline O’Flynn is planning to purchase a used car

and is hoping to keep the cost of ownership down. (i) She needs to take out a loan to finance the purchase.

Complete the blanks below:

A car loan is an example of a _____________________________________ term loan

APR stands for A_________________ P_________________ R_________________

Monthly loan payments are an example of _______________________ expenditure

Caroline is looking to take out a personal loan of €15,000. She receives the following

information from the Competition and Consumer Protection Commission (CCPC) website, based on KBC and Ulster Bank’s personal loans.

KBC Personal Loan

Ulster Bank Personal Loan

Your Loan Search

Loan Amount (€): €15,000 €15,000

Loan term (years): 4 4

Monthly Repayments (€): €353⋅14 €363⋅58

Total cost of credit (€): €1,950⋅54 €2,451⋅72

Total amount repayable (€): €16,950⋅54 €17,451⋅72

Loan details

APR: 6⋅3% 7⋅9%

Rate type: Fixed Fixed

Set-up fees: None None

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(ii) Based on the information provided, would you recommend the KBC Personal Loan or the Ulster Bank Personal Loan to Caroline?

(iii) Give one reason for your above recommendation.

(iv) Outline three rights and three responsibilities that Caroline has as a borrower.

Rights as a borrower:

1.

2.

3.

Responsibilities as a borrower:

1.

2.

3.

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(b) (i) Caroline has received a quote for comprehensive car insurance. The car is valued at €17,000. Caroline has two years no claims bonus.

The quote from CM Insurance Ltd is as follows: €35 per €1,000. €150 extra for comprehensive cover. There is a discount of 10% per year of a no claims bonus (maximum 5 years). Caroline decides to accept the quotation. Calculate the cost of Caroline’s car insurance.

Yearly Premium: €

Workings

(ii) Caroline was offered a discount on her car insurance for having a no claims bonus.

Explain two other steps a motorist could take to lower their car insurance premiums.

1.

2.

(iii) When Caroline contacted CM Insurance Ltd for a car insurance quote, they asked her

whether she had other types of insurance. Identify three other types of insurance that Caroline might require.

1.

2.

3.

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(c) (i) Caroline uses her car to commute to work. She is also a volunteer driver with Meals on Wheels, which delivers meals to individuals at home who are unable to prepare their own meals.

Explain two differences between volunteering and employment.

1.

2.

(ii) Caroline decided to purchase a diesel car and will be affected by recent increases

to the carbon tax outlined below.

‘Carbon tax to be increased by €6 per tonne’ The announced increase in Carbon Tax is expected to add approximately 2c to a litre of petrol or diesel.

rte.ie, October 2019 Outline two benefits of the carbon tax.

1.

2.

(iii) The carbon tax is an example of an indirect tax.

Differentiate between ‘direct taxation’ and ‘indirect taxation’.

Direct taxation:

Indirect taxation:

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Question 18

‘Longford primed for ten-fold tourism boost as Centre Parcs set to open’

The highly anticipated holiday village located very close to Ballymahon caters for up to 2,500 guests in 466 lodges and 30 apartments, across 400 acres in Longford Forest.

Irish Independent, July 2019 (a) (i) Explain two ways in which this enterprise may have a positive impact on the

local community.

1.

2.

(ii) Explain two ways in which this enterprise may have a negative impact on the

local community.

1.

2.

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(iii) Longford Forest is Centre Parcs’ first holiday village outside of the United Kingdom (UK). In its first months of operation, Centre Parcs welcomed many tourists from the UK.

Tourism is an example of an invisible export.

What is meant by the term invisible export?

(iv) Outline two ways that tourism in Ireland may be affected by Brexit, the decision by the UK

to leave the European Union.

1.

2.

(b) The Goldsmith Hotel is located in Ballymahon, Co. Longford, only 4 kilometres

from Centre Parcs. In 2019, it underwent a large-scale renovation. Sam Nolan has recently been appointed Marketing Manager at The Goldsmith Hotel.

(i) Outline three rights and three responsibilities that Sam has as an employee.

Rights as an employee:

1.

2.

3.

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Responsibilities as an employee:

1.

2.

3.

(ii) Sam has been tasked with updating The Goldsmith Hotel’s marketing plan in order to

better promote the hotel. In December 2019, he offered free weekend breaks at The Goldsmith Hotel to selected

Irish journalists. Explain why Sam would make this offer.

(iii) Sam has asked his marketing team to carry out market research.

Explain the term desk research.

(iv) Give two examples of desk research.

1.

2.

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(v) The General Manager of the hotel is concerned that very few guests use the swimming pool and spa. He has asked Sam to prepare a questionnaire to find out what actions the hotel could take to encourage guests to use the pool and spa.

Prepare a questionnaire for The Goldsmith Hotel to distribute to its customers. Use

the template below and include a minimum of two open-ended questions and two closed-ended questions.

The Goldsmith Hotel

1. Which age group are you in? Tick the appropriate box.

(a) 15 - 29 years

(b) 30 - 44 years

(c) 45 - 59 years

(d) Over 60 years

2.

3.

4.

5.

6.

Thank you for taking the time to complete this questionnaire

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(c) Lena Hogan is a professional photographer with a small studio in Ballymahon selling framed photographic prints to tourists.

The demand and supply curves for Lena’s photographic prints

are shown below.

10

0

20

30

40

50

60

70

200 40 60 80 100 120 140

Demand and Supply Curves for

Framed Photographic Prints

S

D

Q

P(�)

(i) On the diagram above, show the equilibrium price and quantity for Lena’s photographic

prints. Write your answers in the spaces provided below.

Equilibrium price: €

Equilibrium quantity: (ii) What impact would the following have on the demand for Lena’s photographic prints?

Place a tick () in the correct box.

Increased demand for photographic prints

Decreased demand for photographic prints

Another photography studio opening in Ballymahon.

A decrease in the price of Lena’s photographic prints.

Prolonged roadworks outside of Lena’s studio.

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Additional writing space for Section B. Label all work clearly with the question number and part.

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Acknowledgements Images Image on page 3: www.pixabay.com Images on page 4: www.clipart-library.com Images on page 5: Focus Ireland; Wexford Festival Opera; www.dublin.sciencegallery.com; commons.wikimedia.com; worldvectorlogo.com Image on page 5: www.rollingnews.com Image on page 7: commons.wikimedia.com Image on page 8: www.cso.ie Images on page 9: www.cso.ie; www.iristimes.com Image on page 10: www.istockphoto.com Image on page 10: www.istockphoto.com Image on page 14: www.istockphoto.com Images on page 17: www.istockphoto.com Image on page 18: www.istockphoto.com Image on page 19: www.istockphoto.com Image on page 21: www.istockphoto.com Image on page 22: DEB Exams Copyright notice This examination paper may contain text or images for which DEB Exams is not the copyright owner, and which may have been adapted, for the purpose of assessment, without the authors’ prior consent. This examination paper has been prepared in accordance with Section 53(5) of the Copyright and Related Rights Act, 2000. Any subsequent use for a purpose other than the intended purpose is not authorised. DEB Exams does not accept liability for any infringement of third-party rights arising from unauthorised distribution or use of this examination paper.

Pre-Junior Cycle Final Examination, 2020 – Common Level Business Studies Time: 2 hours A 2020-J022-1-EL-24/24

J.22A

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Documents

Business Studies...Business Studies – Common Level 2 Instructions There are two sections in this paper. Section A 90 marks 15 Questions Section B 180 marks 3 Questions Answer all