Business
This section covers the Business domain of the Leaving Certificate Business examination. The paper tests whether you can use core business concepts-enterprise, stakeholders, the business environment, finance, marketing, and human resource management-to explain how Irish and international organisations make decisions. You are expected to move beyond definitions: the applied business question and long questions reward candidates who apply concepts to a stimulus, calculate accurately, and justify a recommendation.
Core rules and concepts
- Enterprise and stakeholders: an entrepreneur identifies a gap, takes calculated risk, and assembles resources. Stakeholders (owners, employees, customers, suppliers, community, government) have objectives that can conflict; answers should name the conflict and suggest a resolution.
- Legal structures: sole trader, partnership, private limited company (Ltd), public limited company (plc), and co-operative differ in liability, continuity, taxation, and access to finance. Limited liability is a key exam distinction.
- Finance: cash flow is not profit. A business can be profitable but insolvent if cash timing is poor. Know sources of finance (short, medium, long), break-even, and the distinction between fixed and variable costs.
- Marketing: the marketing mix (product, price, place, promotion) must be consistent with the target segment. Market research reduces risk but cannot eliminate it.
Worked example
A firm has fixed costs of €40,000, sells at €20 per unit, and has variable costs of €12 per unit. Contribution per unit = €20 − €12 = €8. Break-even = €40,000 ÷ €8 = 5,000 units. If budgeted sales are 6,500 units, margin of safety = 6,500 − 5,000 = 1,500 units. Reasoning shown: identify fixed costs, calculate contribution, divide, then subtract break-even from actual sales.
Traps that cost marks
- Giving a definition without applying it to the case.
- Confusing profit with cash flow.
- Omitting units or the formula in calculations.
- Listing stakeholders without explaining conflicting objectives.