*W19B*

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Pre-Junior Cycle Final Examination 2024

Business Studies
For the Examiner only
Ques on Mark
1

(Option B) 2
3
4

Common Level 5
6

2 hours
7
8
9
270 marks 10
11
12
13
14
15
Grade
16
17
18
School use only: Total
Spelling Waiver Granted %

*01*
Instructions

There are two sec ons in this paper.

Sec on A 90 marks 15 Ques ons

Sec on B 180 marks 3 Ques ons

Answer all ques ons.

You may only use blue or black pen when wri ng your answers. You may use pencil for graphs only.

Write your answers in the spaces provided in this booklet.

This examina on booklet will be scanned and your work will be presented to an examiner on
screen. Anything that you write outside of the answer areas may not be seen by the examiner.

Addi onal space is provided at the end of the examina on booklet. Label any extra work
clearly with the ques on and part.

Calculators may be used.

Write the make and model of your calculator here:

*02*
 Section A 90 marks

Answer all ques ons.

All ques ons carry equal marks.

Ques on 1

What do the following le ers stand for? (Write each answer in full in the space provided.)

VAT

EU

PRSI

Ques on 2

The graph below shows the Murphy family household expenditure.

Murphy Family Household Expenditure

Discre onary
expenditure
Fixed
24%
expenditure
40%

Irregular
expenditure
36%

(i) Which type of expenditure had the highest percentage of total expenditure in the Murphy
household?

(ii) Give one example of each type of expenditure below.

Fixed expenditure:

Irregular expenditure:

Discre onary expenditure:

*03*
Ques on 3

Place the following parts of the ‘channels of distribu on’ in the correct order (One has been
completed for you.):

Retailer, Producer, Consumer, Wholesaler

Producer


Ques on 4

Complete the following extract from the Hogan household budget for three months.

Months January February March Total

Net Cash 300 300 200 800

Opening Cash 100 400

Closing Cash 400

Workings

*04*
Ques on 5

Based on the graph above, indicate which of the following statements are true or false by placing a
ck () in the correct box.

True False

The growth rate was highest in 2015.

The growth rate decreased in 2017 from the previous year.

There was a posi ve trend in the growth rate from 2017 to 2021.

*05*
Ques on 6

Complete the three missing balance figures on the Statement below.

Date Details Dr (€) Cr (€) Balance (€)

1/5/2024 Balance forward 600

3/5/2024 Invoice no. 10 348 948

10/5/2024 Credit note 100

15/5/2024 Invoice no. 11 450

28/5/2024 Payment EFT 600

Ques on 7

The graphic presented below displays the expenditures of the Irish Government for the year 2023,
categorised by department.

Adapted from the Where Your Money Goes website

(i) In which department did the Government spend the least?

(ii) Iden fy one example of capital expenditure and one example of current expenditure for
the Department of Health.

Capital expenditure:

Current expenditure:

*06*
Ques on 8

Every bar of Cadbury’s Dairy Milk that you buy helps to make
a difference in many different ways. Cadbury’s Dairy Milk
sources its cocoa sustainably through Cocoa Life, and the goal
is for all Cadbury products to be sustainably sourced by 2025.

Indicate with a ck () which of the following best describes how Cocoa Life ensures sustainability.



Teaching cocoa farmers to grow crops in a way that does not look a er the
environment.

Cu ng down trees without replan ng new ones.

Ensuring that cocoa farmers can earn a be er living, giving a be er quality of

life to their families and communi es.

Ques on 9

The graphic below shows the Irish Government’s plan to develop public transport by 2040; this
plan is only one part of Project Ireland 2040.

(i) How much does the Irish Government expect to spend on the MetroLink project?

(ii) What is the expected meline to construct DART+ West?

*07*
Ques on 10

The following trial balance was taken from the books of Hanlon Ltd on 31/12/2023, the end of its
financial year. The authorised share capital is 300,000 €1 ordinary shares.

Trial Balance of Hanlon Ltd as at 31/12/2023

Dr € Cr €

Cash sales 510,000

Cash purchases 320,000

Carriage inwards 26,000

Stock 01/01/2023 35,000

The following addi onal informa on is provided on 31/12/2023:

• Stock 31/12/2023: €22,000

From the given figures, complete the Income Statement for Hanlon Ltd for the year ended
31/12/2023.

Income Statement of Hanlon Ltd for the year ended 31 /12/2023

€ € €

Cash sales 510,000

Less cost of sales

Stock 01/01/2023 35,000

Cash purchases

Add carriage inwards

Cost of goods available for sale

Less stock 31/12/2023 22,000

Cost of Sales

Gross Profit

*08*
Ques on 11

Complete the Fixed Assets sec on of the Statement

Deprecia on workings (if required):
of Financial Posi on as at 31 December 2023.

The following addi onal informa on is provided on

31/12/2023:

• Buildings Cost €300,000 to be depreciated by 10%

Statement of Financial Posi on of Hanlon Ltd as at 31/12/2023

€ € €

Fixed Assets Cost Deprecia on Net Book Value

Buildings

Ques on 12

Explain, with an example, the insurance principle ‘Insurable Interest’.

Ques on 13

The European Central Bank raised interest rate borrowing costs to their highest level in 22 years,
to 3.5%, extending the fight against infla on that remains stubbornly high in the eurozone.

Indicate which of the following statements are true or false by placing a ck () the correct box.
True False

As interest rates on borrowings go up, more businesses and households cannot

afford to take out loans.

An increase in the price of goods and services is called infla on.

When infla on is high in the eurozone, the European Central Bank raises
interest rates on borrowing to help reduce infla on.

*09*
Ques on 14

Balance the following bank account and bring down the balance at the end of the month.

Dr Bank Account Cr

Date Details Total Date Details Total

2024 € 2024 €

Jan 1 Balance b/d 250 Jan 5 Wages 450

Jan 20 Cash sales 840 Jan 25 Cash purchases 375

Ques on 15

In the diagram below, fill in the remaining three factors of produc on.

1. 2. Labour

Factors of Produc on

3. 4.

*10*
 Section B 180 marks

Answer all 3 ques ons.

All ques ons carry equal marks.

Ques on 16

(a) (i) Fill in on the table below one other life stage from the list given and an example of a
need, want, and source of income for that life stage.

Life stages: 0-20 yrs., 20s, 30s, 40s, 50s, 60s +

Financial Life Cycle Table

Life Stage Need Want Source of Income

Example: (0-20 yrs) Accommoda on Phone Credit Pocket Money

(ii) Complete the two missing balance figures in the bank statement below.

Bank Statement

Date Details Debit (€) Credit (€) Balance (€)

01 JAN BALANCE FORWARD 400 CR

02 JAN CHILD BENEFIT 140 540

03 JAN WAGES – PAYPATH 2,500 3,040

07 JAN DD – ELECTRICITY BILL 200 2,840

10 JAN FEES AND CHARGES 10 2,830

15 JAN ATM WITHDRAWAL 50 2,780

20 JAN SO – RENT 1,000 1,780

22 JAN LOAN REPAYMENT 500 1,280

25 JAN CT – MAM 200 1,480

26 JAN ALDI GROCERIES 80 ________

31 JAN INSURANCE 1,000 ________

*11*
 (iii) Iden fy the following transac ons from the bank statement above. Fill in the answers
below.

Iden fy one standing order.

Iden fy one direct debit.

Iden fy one credit transfer.

(iv) Explain the term PayPath.

(v) Indicate which of the following statements are true or false by placing a ck () in the
correct box.

True False

A deposit account is a savings account.

An account holder can earn interest on a current account.

A current account allows an account holder to pay bills by se ng up a direct debit.

*12*
(b) Nicola Murphy is 21 years of age and has recently passed her driving test. She purchased
a secondhand car valued at €5000 with a car alarm fi ed. She is shopping around for the
best quote for a fully comprehensive car insurance policy. She was offered the following
charges and discount from AXA Insurance:
• Novice driver charge: €200
• Fully comprehensive insurance extra cost: €300
• Discount for car alarm (10% of basic premium plus loadings).

(i) Complete the following car insurance quote from AXA Insurance using the details above.

Car Insurance Quote € €

Basic Premium 600

Add Loadings

Less Discounts

Yearly Premium

The Sale of Goods and Supply of Services Act 1980 states that goods must be of
merchantable quality, fit for the purpose intended, as described, and conform to sample. If
they are not, consumers can ask for a refund (get their money back).

(ii) Describe one other form of redress apart from a refund available to consumers.

(iii) Indicate which of the following statements are true or false by placing a ck () in the
correct box.

True False

A social enterprise is not always about making a profit. The aim is to solve
a social problem like homelessness.

A private limited company can sell shares on the stock exchange.

A co-opera ve is a business that is owned and run by a group of people to meet

a common need.

*13*
(c) Jeffrey Bezos is an American entrepreneur.
He is the founder of Amazon, with a net worth of US $125 billion, as of April 2023.

(i) Explain two characteris cs of an entrepreneur like Jeff Bezos.

1.

2.

(ii) Indicate which of the following statements are true or false by placing a ck () in the
correct box.

True False

The services sector of the economy includes employees like doctors, hairdressers,
and mechanics.
One possible non-financial benefit of being an employee is that you can gain
new skills.

One reason for unemployment is an economic boom.

(iii) Fill in on the table below one example of a short, a medium, and a long-term source of
finance.

Sources of Finance
Short-term Medium-term Long-term

Ques on 17

(a) Arán is a restaurant which operates in five loca ons in Ireland.

(i) Complete the Analysed Cash Book of Arán Ltd for the month of
January from the informa on provided below. Balance the account.

Date Transac on Amount €

01/01/22 Shareholders invested in company 15,000
03/01/22 Sold goods 22,000 + VAT at 23%
05/01/22 Paid wages 6,000
10/01/22 Purchased goods for resale 11,100 + VAT at 23%
14/01/22 Paid electricity 700
25/01/22 Paid insurance 1,100

*14*
 Dr Analysed Cash Book of Arán Ltd Cr

Date Details Bank Sales VAT Capital Date Details Bank Purchases VAT Wages Electricity Insurance

2022 2022

*15*
(ii) How much money is in the Arán Ltd bank account at the end of the month?

The following are the totals and balances from the analysed cash book of Arán Ltd,
which were posted to the relevant ledger accounts.

Cr: Sales a/c €22,000

Cr: Capital a/c €15,000
Cr: VAT a/c €2,507
Dr: Purchases a/c €11,100
Dr: Wages a/c €6,000
Dr: Electricity a/c €700
Dr: Insurance a/c €2,100

(iii) Using the Dr. and Cr. balances from the cash book in part (i) and the ledger balances
above, extract a trial balance for Arán Ltd on the 31/01/2022.

Trial Balance of Arán Ltd on 31/01/22

Details Dr Cr

*16*
(b) Arán Ltd has announced the launch of its loyalty app, which will allow
customers to buy Arán products from their phone and gain credit on
purchases and money off their next order.

(i) Indicate which of the following statements are true or false by

placing a ck () in the correct box.

True False

Using the Arán loyalty app for adver sing and ordering can decrease sales and
profits.

Digital marke ng costs more than tradi onal adver sing.

Another example of a promo onal technique is PR.

With higher energy costs, Arán Ltd are finding it hard to break even, and they need to increase
sales.

(ii) Outline one factor other than cost that Arán Ltd should factor in when deciding on the
prices that they charge consumers.

(iii) Indicate which of the following statements are true or false by placing a ck () in
the correct box.

True False

One example of an internal source of business ideas is employee sugges ons.

In a SWOT analysis, an example of an internal weakness to a business can be an

economic recession.
Step 6 in developing a new product or service is Test Marke ng, e.g., a focus
group tas ng the product.

*17*
(c) (i) Outline one benefit for a company of using field research instead of desk research
when conduc ng market research.

(ii) Create three ques ons on how to improve their menu and service that the Arán
restaurant can ask their customers. They need informa on on demographics,
ingredients, service, and prices.

Remember to use mul ple-choice and open-ended ques ons.

Ques onnaire

Please ck () the box.

1.

2.

3.

Thank you for comple ng this ques onnaire.

*18*
Ques on 18

(a) (i) Indicate which of the following statements are true or false by placing a ck () in the
correct box.

True False

A boom is a period of falling economic growth. It is also known as a bust.

A recession is a period of high economic growth.

Economic growth results in more jobs and decreased unemployment.

(ii) Explain one impact that a rising level of taxa on can have on an individual and
a business in your local area.

An individual:

A business in your local area:

(iii) The Government uses revenue from taxes to provide a service to society like helping to
build and run schools.
Give one other benefit of taxa on to society.

Benefit:

(iv) Google's gross profit is €300 bn and their expenses are €20 bn.
They will have to pay 12.5% corpora on tax on their net
profit (gross profit less expenses).

Calculate the corpora on tax that Google will have to pay.

Show your work in the box below.

Workings:

Answer:

*19*
(b) (i) Indicate which of the following statements are true or false by placing a ck () in
the correct box.

True False

Ireland gives grants to companies from another country to set up in Ireland to

increase employment and jobs in lreland.

A tariff is a ban on the trade of certain goods.

An embargo is an unlimited amount of goods produced.

(ii) Explain the term Imports, and give an example of an Irish import.

Explana on:

Example:

(iii) Explain the term Invisible Exports and give an example of an Irish invisible export.

Explana on:

Example:

*20*
(c) (i) Outline two reasons why being a member of the European Union
is important for Irish society.

1.

2.

(ii) Indicate which of the following statements are true or false by placing a ck () in
the correct box.

True False

A free economy example is the USA.

A controlled economy is where the people have total control over the produc on
of goods and services.

Ireland has a mixed economy.

(iii) Match the state-sponsored body with the service they provide. Place the correct le er
under the matching number in the table below.

State-sponsored body Services

1. RTÉ A. A racts foreign companies to come to Ireland.

2. An Post B. Promotes Ireland as an a rac ve tourist des na on.

3. Enterprise Ireland C. Helps Irish businesses export.

4. Local Enterprise Offices (LEOs) D. Provides postal and financial services.

5. IDA Ireland E. Communica on service through television, radio, and online.

6. Fáilte Ireland F. Helps local entrepreneurs and gives advice and funding.

1 2 3 4 5 6

(iv) Explain the term Globalisa on and give an example of a global company.

Explana on:

Example:

*21*
 Addi onal wri ng space for Sec on B.
Label all work clearly with the ques on number and part.

*22*
 Addi onal wri ng space for Sec on B.
Label all work clearly with the ques on number and part.

*23*