Just finalised the "Key Revision Topics for Business Examination 2017" Short Question – Answer 8 Questions – 3 Minutes per question - AFTER 30 MINUTES MOVE ONTO THE LONG QUESTIONS! – LEAVE ABQ TILL LAST!!! Short Questions to look at: - Memo Layout – Look at Short Question Q.2 2009. - Difference between a Regulation and Directive A regulation is an EU Law which becomes immediately enforceable as law in all members states. Regulations take precedence over national laws. Regulations are self-executing and do not need any implementing measures. Examples: EU European Communities (Birds and Natural Habitats) Regulations 2011, was transposed into Irish national law. A Directive provides an outline to member states of legislation to be achieved in specific areas by a given date. Directive is binding on each state but the choice as to how to incorporate it into national legislation is left to the authorities in that member state. Examples: WEEED – Waste Electrical and Electronics Equipment Directive. Nitrates Directive – Directing the levels of fertilizers to be used on land by Irish Farmers. - Calculation of Balance of Trade (physical goods, visible) versus the Balance of Payments (invisible + physical goods). Note if Ireland is exporting more that it is important, that is good for our economy, more jobs to create products that has been exported = Surplus, the opposite is a Deficit (we are buying more goods from abroad, importing more than exporting). - Break Even Diagram Calculate the BE Point => Fixed Cost / CPU (Sales – Variable Costs). What happens if the Sales figure changes? Variable Costs increase? Shift in BE Point!! - Protectionism - Setting up barriers to trade to reduce imports to the country, to protect home industry from foreign competition, to protect jobs. Tariffs – Taxes or duties on imported goods to make them more expensive. Quotas – Limit on quantities of goods that can be imported. Embargos - Ban on importing of specific goods from particular countries. - Difference between a Condition and Warranty. Condition a clause that is vital and goes to the heart of the contract Warranty is less important clause, allows the injured party to sue for damages. - Insurance - Average Clause, know how to calculate it! Value Insured (What you insured it for) x Loss Value of House (Actual Value) Note: The average clause state that if a partial loss is suffered and the property is under insured, then only a proportion of the amount insured will be paid. Long Questions – 4 Questions to be completed in total! Long Questions – State, Explain and give Examples to show your understanding of the topic! - Characteristics of Entrepreneurs – Control, Self-confident, Decisive, Creative/Innovated, Energetic. - Enterprising skills – Planning/Goal setting, Assessing risk/decision making, Time management, HR, Innovation, Reality perception, Inner control. - Leadership styles, effect on the organisation and staff (link to Motivational theory Maslow, X&Y). - Management Activities – POC (Planning, Organising & Controlling). - Management Skills - LMC (Leading, Motivating and Communications). - Relationships that exist between the parties in business co-operative and competitive - Q.1 2005 (be able to use examples). - Consumer Rights – Sales of Goods and Supply of Services and redress/remedies for breach of the Act. Role of Small Claims Court and Ombusman for Public Services. - Insurance, know the Principles of Insurance, be able to give examples. Types of Insurance – Public Liability, Fidelity Guarantee….. - Contract Law Elements and Termination of Contract - TQM – Total Quality Management, how does it benefit the business and affect its performance? - What are the benefits of empowerment for a business? How does it affect employee motivation? - Organisational structure, why would an organisation change its structure? (Reasons why a Business Enterprise might change its organisational structure). VIP - Wages Calculation – Look at Question 5 – 2013. - Wages and Wages Calculation, remember USC on Gross Wages (include BIK) especially know the forms P12A, Tax Credit, P21. Business Plan – Layout (5 Headings) Look up LC Q.6 – 2006 full & Q.5 (C) 2005 1, Description of Business – Name of Company etc. 2. Organisation and Management – Management team, qualifications experience etc ….. 3. Marketing and Marketing Strategies – Target market, Market research, 4P’s……. 4. Manufacturing Operations and Premises – Manufacturing process, premises, Q.C….. 5. Financial Analysis and Investment proposal, Finance requirements, Finance available….. Signed:………… Owner of the Business What are the benefits for an enterprise preparing a Business Plan? You could have a Generic Layout done for this and then apply to the case scenario “case study” piece on the day! - Know Report Layout, Letter Layout, Memo, Agenda layout. The Business exam is very practical this year. - Communication – Effective communication, why is it important for a business? - Does the style of Management effect the employment motivation? - What are the strategies for managing change in a business? VIP - Ratio Analysis, NEED know all ratios either comes up as a short or long question in examination. Calculate on the Issued Share Capital (given to Shareholders not the Authorised Share Capital. Why would shareholders use profitability ratios when making a decision about whether to invest in the business? Why would a business need to prepare Ratios for a business? Discuss the different forms of finance, benefits and drawbacks of each form. 3 Ratios: 1. Profitability: ROI, Gross & Net Profit Margin. 2. Liquidity: CA:CL (2:1) & Acid Test (Quick) CA-Stock : CL (1:1). 3. Debt/Equity (Gearing): Long term Debt : Equity (Ordinary Issued Share Capital & Reserves/Retained earnings). Comment on findings! NOTE: Always quote figures when stating findings in question, you have calculated them, use figures gained in answer. - Community Development, its benefits & Business Ethics CSR – Q.2 (C) 2012. - What are the effects of meeting Ethical, Social and Environmental Responsibilities on a firms’ revenue and costs? - Direct Foreign Investments Benefits to Ireland. Advantages and Disadvantages of Transnational Companies in Ireland. - Reasons for Business Expansion? How would the business finance the expansion? - Importance of Business Expansion – Why is EU important for Ireland? - Discuss the impact of the European Union (EU) on Irish business – Challenges/Benefits? - Economy "What effect will "Brexit" have on Ireland Economy, benefits and challenges - “Explain the role of Special Interest Groups in the decision making process of the European Union (EU)” “Discuss the benefits for the Irish Economy of on-going membership of the European Union (EU) after Brexit”, I suggest that you look at sample answers, click on web link: https://businesseducation.ie/business/european-union/ - Know the EU Decision Making Process, EU Policies and Global Marketing Strategy. - Marketing Question look at 2006 Q.7 – Excellent to practice Report Layout, Stages in development of a new Product/Service, Packaging, Branding, Product Life Cycle and Channel of Distribution. - The 2017 ABQ will be based on Units 4, 5 and 6 of the syllabus, similar to the 2007 and 2012 examination as the ABQ operates on a five-year cycle so do out: 2002, 2007, 2012, before doing out new ABQ – Look at link: https://businesseducation.ie/applied-business-question-2017/ Remember to link the business key theory to the “case study material”, show the link!! Sources of Finance could be linked into the ABQ – Short, Medium and Long.