Delegation requires:
A clear definition of the responsibilities to be delegated, the proper authority to carry out responsibilities, good performance appraisal process, good communication between the superior and the subordinate, accountability by the person delegating the task.

Explain the concept of Limited Liability:
This is the privilege given to the registered limited companies. The shareholders have limited liability i.e. in the event of the wind up of the company they are only liable for business debts up to what they have invested as shareholders. This makes people much more likely to invest in businesses in that the risk of loss is limited.

What is the Marketing Mix?
It comprises the 4P’s i.e. Product, Price, Promotion and Place. It is imperative for a business to integrate these four elements closely for success. Each element is dependent upon each other. Each element may need to be altered to reflect changing circumstances as business operates in a dynamic business environment.

Which principle of insurance do you feel is the most important one? Explain Why?
Utmost Good Faith is very important because all material facts must be disclosed to the insurance company so that the insurance company can assess the risk that it is taking on and thus decide on the premium to charge. If any material fact is withheld on the proposal form the insurance company may declare the contract void.

List three benefits of Electronic Mail:
1. It is an exceptionally fast method of communication
2. Distance between the sender and receiver is not important, this makes E-Mail very cheap
3. It allows businesses to keep close contact with subsidiaries, customers and suppliers

TQM helps business because:
It ensures that the firm is focused on customer needs, it allows for continous improvement of business processes to occur, it eliminates waste, reduces costs, it empowers workers to take responsibility and it requires on-going benchmarking.

List five headings contained in a business plan:
1.Description of enterprise
2. Key personnel
3. Market analysis
4. Marketing strategies
5. Products and services
6. Manufacturing, operations and premises
7. Financial Analysis
8. Investment Proposal
9. Conclusion

A formal Organisational Structures is:
An agreed method or means by which the organisation’s activities are co-ordinated so that it has the best chance of achieving its objectives.

Outline two economic variables that affect the Irish economy:
(A) Inflation- It can cause the general price level in a country to rise making goods and services more expensive to buy. This gives rise to bigger wage demands, it hurts export competitiveness, it raises interest rates and impacts negatively on investment. It favours debtors over creditors.
(B) Interest Rates- This is the cost of borrowing money. Higher interest rates hurt investment and job creation, they also affect the value of the currency.

What is global marketing?
It is where a firm identifies the world as a potential market and produces products and services based on similarities between national markets. It purchases, distributes and advertises world-wide and ignores borders where they exist. Its logic is to gain the economies of scale of standardisation. Examples include: Ford, Nike and Microsoft.

An indigenous firm is one that:
Has been set up, founded or originated in a locality. The enterprise is not foreign, it is not imported it is native to and based in Ireland. Examples include: Kerry Foods and Iona Technology.

Privatisation means:
Selling a state owned business to the private sector. The state may wish to disengage from a particular sector e.g. Telecom Eireann. The state gives the public the opportunity to invest and become the new owners.

A Feasibility Study is:
A project conducted to research the viability of a product both commercially and technically. The study is conducted in such a way to assess the future possibility of success of for a product or service on a target market.

Define the term ‘code of ethics’ for a business:
This is a collection of accepted ways of behaviour- a list of policies and principles that will guide the behaviour of people working in an organisation. It defines right and wrong ways of doing things. It clarifies unacceptable behaviour.

Branding involves:
The marking of goods for goods marketing purposes with a distinguishing mark or a distinguishing name, shape, sign, symbol or design which allows a customer to easily recognise the product from competitors. Examples are Levi’s, Puma, Coca-Cola.

Performance Appraisal involves:
A review of how the job was performed under a number of specific headings, a review of the person performing the job again under a number of headings and a rating scale, a career planning and guidance review, and a remuneration review where performance is linked to salary.

Networking is an important business activity because:
It links enterprising people together
It aids personal contacts
Stimulates creative thinking
Allows the sharing of essential information
Spreads the benefits of experience

Explain the purpose of an EU Directive:
The purpose of an EU directive is to harmonise laws in the European Union by attempting to remove differences between national laws. They do not take over from national laws but they do oblige member countries to change their laws to meet the needs of the directive. An example is the Directive on Company Law- The Fourth Directive on Information disclosure.

Merchandising involves:

Anything at or near the point of sale that is designed to facilitate a purchase by a customer. It can comprise publicity material and sales promotion schemes such as trial packs. It can have a big impact upon the sale of impulse bought items such as sweets and biscuits.

Low inflation is good for a business because:
It can mean export prices remaining competitive
It gives greater confidence in the value of a country’s currency
It helps keep costs down
It encourages people to invest in productive investment
It makes business planning easier
It encourages saving as savings are not losing value

Explain your understanding of the term ‘Interest Group’:
These are groups that wish to influence the political and decision making process but are not part of the accepted political structures of the country- examples include farmers, trade unions and Greenpeace.