Entrepreneurship and Management Skills Quiz

Leaving Cert Business Revision Notes (2024)

• These notes are for revision, not exam answers. Points should be expanded upon and examples provided where necessary.
• Not all definitions are exhaustive.
• Please do not copy or distribute these notes as your own work.
• Best of luck!

People in Business

• A business is an organization set up to provide goods and services.
• Commercial organizations aim to make a profit.
• Social enterprises are not-for-profit organizations.
• Private sector businesses are individually owned.
• Public sector organizations are state-owned.
• Stakeholders are the various groups of people affected by a business' operations.
  • Internal stakeholders: employees, owners, company representatives (e.g., managers).
  • External stakeholders: suppliers, customers, society, governments, creditors, shareholders.
• Entrepreneurs: Initiate ideas into businesses. Need investor funding.
• Investors: Provide financial resources for businesses.
  • Owner's/equity capital: Exchange funds for equity in the company.
  • Loan capital: Loans with interest that must be repaid.
  • Grants: Gifts of money that do not need to be repaid under certain terms.
• Employers: Recruit staff, responsibilities include:
  • Hiring employees as needed
  • Directing work as needed
  • Dismissing fairly (Unfair Dismissals Acts 1997-2007)
  • Providing a written contract of employment
  • Paying wages as agreed
  • Providing safe working conditions
  • Complying with employment laws
• Employees: People recruited by the business for wages. Their rights include:
  • Written contract of employment
  • Payment as agreed
  • Safe and healthy workplace
  • Freedom to join a union

Other Key Concepts

• Producers and Suppliers: Producers create products, suppliers provide the raw materials.
• Consumers and Customers: Consumers use goods/services, customers may resell them.
• Society: The local and global community affected by the business.
• Government: Local and national authorities that regulate businesses and set rules and regulations.
• Interest Groups: Groups representing specific stakeholders (e.g., employees, customers, or business owners) trying to influence decisions.
• Trade Associations/Chambers of Commerce: Organizations representing businesses in the same industry to advocate for their interests.

Resolving Conflict in the Marketplace

• A contract is a legally binding agreement enforceable in court.
  • Elements of a contract: offer, acceptance, consideration, intention to contract, consent to contract, capacity to contract, and legality of purpose
• Ways to resolve conflict:
  • Negotiation
  • Mediation
  • Arbitration
• Legal remedies for breach of contract:
  • Rescinding the contract
  • Seeking compensation
  • Specific performance order from the court to fulfil contract terms.

The Sale of Goods and Supply of Services Act 1980

• Legal rights of consumers:
  • Goods must be of merchantable quality
  • Goods must be suitable for purpose intended
  • Goods must be as described
  • Buyers are entitled to legal possession and quiet possession
  • Services must be provided by skilled people with due care
• Legal responsibilities of retailers
  • Retailers are legally responsible for any defects in products, even if it's the manufacturer's fault.
  • Retailers must respect their consumers' rights.
  • Handling complaints appropriately
• Product guarantees: Clarify what goods are covered, who is offering it, and details of the claims procedure
• It is illegal to demand payment of unsolicited items

The Consumer Protection Act 2007

• Protects consumers from unfair business and customer practices.
• Prohibits practices like false or misleading descriptions.
• Prohibits practices like the incorrect marking of sales items

Resolving Marketplace Conflicts

• Legal, non-legislative ways to resolve conflict
• Courts (Small Claims procedure)
• Alternative conflict resolution options

Industrial Relations

• Good industrial relations: Easier recruitment, lower absence rates, more productive staff, fewer disputes
• Causes of industrial disputes: wages, conditions, work regulations, and dismissal
• Industrial relations can worsen due to poor communication, unrealistic demands from employees or employers or aggressive management

Pay and Working Conditions

• Negotiations for pay and conditions (cost of living claims, comparability, relativity, productivity)
• Types of industrial action (token stoppages, work to rule, go slow, overtime bans, all out strike)
• Consequences of industrial action (effects on businesses, employees, customers, economy)
• Organisations that provide information and assist in resolving industrial disputes (e.g. the Labour Court, Workplace Relations Commission)

The Unfair Dismissals Acts 1997-2007

• A dismissal is fair if the employee was incompetent, incapable or had unacceptable conduct.
• If a dismissal is unfair:
  • Procedural unfairness: Not following correct procedure
  • Substantive unfairness: Justifications for dismissal were not valid (lacked proof)
• Remedies for unfair dismissals: Financial compensation, reinstatement with compensation (lost earnings, etc.)

Discrimination

• The Employment Equality Act 1998: Prohibits discrimination based on specific grounds.

Entrepernurship and Enterprise

• Enterprise: any new activity or attempt to do something new
• Intrapreneurship: Taking an entrepreneurial approach within a company.
• Rewards and risks: Advantages: independence, personal satisfaction, profitability, business growth Disadvantages: loss of money, time, stress
• Personal characteristics of an entrepreneur: confident, proactive, determined, motivated, innovative, creative, risk-takers
• Skills: identifying opportunities, setting goals, managing stress, communication and social interaction, decision making and problem solving
• Importance of enterprise: Business: increased profits, improved efficiency and productivity, growth opportunities, development of new products/services Society: creation of jobs, economic growth, development of innovation and technology

Intro to Management

• Strategic goals: Long-term (5-20 years)
• Tactical objectives: Short-term (1–5 years)
• Management skills: Communication, Motivation, Leadership
• Management activities: Controlling, planning, organizing
• Personal characteristics: Decision-making, problem-solving, inspiring, confidence

Leadership and Motivation

• Styles of leadership: Autocratic (decisions made solely by manager), democratic (involving staff discussion), Laissez-faire (no direct involvement from manager)
• Motivational theories (e.g., Maslow's hierarchy of needs)
• Delegation advantages/disadvantages (time management, experience for staff, increased morale, etc.

Effective Communication

• Formal/Informal communication
• Media channels (e.g., Written/Verbal/Visual)
• Communication with internal stakeholders
• Communication with External stakeholders

Managing Meetings

• Types of Meetings (formal/informal, ad-hoc, board, AGM)
• Preparing meetings (agenda, notices to attendees)
• Running meetings (chairperson, secretary, minutes)

Quality Control

• Methods (e.g, inspections, quality circles, employee focus groups)
• Importance (e.g., reduce waste, increase efficiency, enhance reputation)
• ISO / Q Mark awards (excellence and quality standards)

Credit Control

• Processes (monitoring, managing payment terms)
• Credit controller responsibilities (record-keeping and investigating)
• Credit/Debit types, including overdraft, terms

Financial Control

• Monitoring techniques (cash-flow forecasts, ratios, break-even analysis)
• Importance of Control (detecting problems early, increase efficiency, assess profitability)

Human Resource Management (HRM)

• HR Planning: Identifying future staff needs, planning and recruitment
• Recruitment and Selection: Job descriptions, person specifications, advertising vacancies
• Training and Development: Induction, on-the-job training, off-the-job training.

18 - Industries + Sectors of the Economy

• Primary sector: Agriculture, forestry, fishing
• Secondary sector: Construction, manufacturing
• Tertiary sector: Service industries (e.g., tourism, education, retail, financial services.)

17 - Business Expansion

• Reasons for organic and inorganic growth (improving profitability, increasing market share) and financial incentives
• Types of expansion: takeover, merger, joint venture, acquisition

23 - Ireland and the Global Economy

• International Trade (Imports / Exports)
• Balance of Payments
• Benefits + Risks of International Trading for Firms/Individuals
• Globalization + Regional cooperation impacts (examples, e.g. EU)