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Explain the term secondary sector - Leaving Cert Business - Question A - 2016
Question A
Explain the term secondary sector. Explain one other sector of the economy.
Worked Solution & Example Answer:Explain the term secondary sector - Leaving Cert Business - Question A - 2016
Step 1
Explain the term secondary sector.
Answer
The secondary sector refers to the part of the economy that involves manufacturing and construction. This sector takes raw materials from the primary sector and processes them into finished products. Examples of products from the secondary sector include furniture, computers, and cheese. Additionally, this sector encompasses industries like indigenous firms, multinational companies, and agribusiness.
Step 2
Step 3
Apple is a multinational company. Explain the term multinational company.
Answer
A multinational company is a corporation that has its operations and offices in multiple countries. This type of company engages in international business by having a head office in one country while maintaining branches or subsidiaries in various other countries. Such organizations aim to leverage global resources and markets.
Step 4
Step 5
Outline two possible reasons why Apple decided to locate in Ireland.
Answer
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Low Corporation Tax: Ireland's corporation tax rate of 12.5% is attractive to companies because it allows them to retain more profits compared to countries with higher tax rates.
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English-Speaking Country: Ireland is predominantly English-speaking, which facilitates smoother communication and business operations for international companies seeking to enter the European market.
Step 6
Apple is a Public Limited Company (plc). Explain two benefits of operating as a plc.
Answer
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Limited Liability: Shareholders are only required to invest what they put into the company; they are not personally liable for the company's debts.
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Easier Access to Finance: As a plc, Apple can raise capital from the public through the sale of shares, which can help to fund expansion and other business initiatives.
Step 7
Outline two benefits of economic growth for the Irish economy.
Answer
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Increased Employment: Economic growth often leads to more job creation, which reduces unemployment and raises the standard of living for individuals.
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Higher Government Revenue: As businesses thrive and employment increases, government tax revenues also rise, which can be used to improve public services and infrastructure.