5N1610: You And A Friend Have Decided To Go Into Business Together: Business Adminsitrations Skills Assignment, BCFE,, Ireland

THE SCENARIO:

You and a friend have decided to go into business together, by opening a chain of six restaurants based in Dublin, Wicklow, and Kildare. The company is owned by both you and your friend – each of you having a 50% share. Your company is set up as a partnership with unlimited liability.

Section A – Sources of Finance

1) Name four potential sources of finance available to your business. Then explain one potential drawback (or disadvantage) for each option.
2) Considering all the options available for raising finance for your business, explain 2 advantages to getting a loan.

Section B – Company Formation

1) Give 2 advantages and 2 disadvantages of setting up a business as a partnership.
2) If your business fails, what difference does it make if you have unlimited liability or limited liability?
3) Your business needs to hire five new restaurant managers. Name and describe 4 different methods you could use for finding the best candidates for the job.
4) Name 4 types of business insurance that your company should have, briefly explaining why you chose each one.

Section C – Management Functions

1) Identify 4 main functions of management.
2) Give two reasons why the management control of stock will be important for the success of your business.
3) In your monthly Cash Flow Statement, you have a section for Inflow (money coming into the business) and Outflow (money leaving the business). Give two examples of what could appear under Inflow and two examples of what could appear under Outflow.
4) In the context of your company’s hierarchy, explain the term Span of Control.
5) Name and describe 3 appropriate Quality Awards that your business could apply for.