Transcript File - Ms Marshall`s Notes

Unit 6 Chapter 19
Unit 6 comes up in Part 1 of the long
questions.
6th Year Business Ms. Marshall
Indigenous Firm
Transnational
Co.
Sole Trader
Alliance
Franchise
Types of
Organisati
ons
Partnership
Private Limited
Co.
Public Ltd. Co.
Cooperative
Semi-State
6th Year Business Ms. Marshall
Semi-State
Cooperative
Sole Trader
Structures used to
start up a company
Private
Limited Co.
6th Year Business Ms. Marshall
Partnership
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Sole Trader: a business set up, owned and run by one
person, e.g. a local hairdressers or chemist.
Partnership: a business set up, owned and run by
between two and twenty people with the intention of
making a profit. E.g. KPMG, PWC accountants.
Private Limited Company: a business which may
have between 1 and 99 shareholders, who operate
the business with the benefit of limited liability e.g.
Eason Ltd.
Cooperative: businesses set up by at least seven
members who democratically control the enterprise
for their own benefit. E.g. Credit Unions, Producer
Co-ops such as Kerry Co-op, and Worker Co-ops such
as Greencaps in Dublin Airport.
6th Year Business Ms. Marshall
Sole Trader
Partner
LTD. Co
Co-op
Formation &
Dissolution
Easy to set up.
Register with
Revenue for tax.
Register name if
different.
No continuity
Easy to set up.
Register with
Revenue for tax.
Register name if
different.
Deed of Partnership
– contract drawn up
before setting up.
Register with
Revenue.
Register with CRO.
Continuity.
LTD after name.
Register with
Revenue.
Register with CRO.
Continuity.
Ownership &
Control
Owned & controlled
by one owner
Confidential
business
Owned & controlled
by partners.
Confidential
business.
Owned by
shareholders.
Controlled by BOD.
Not confidential.
One share=one
vote.
Owned by
shareholders.
Controlled by
management
committee.
One member = one
vote.
Not confidential.
Management &
Finance
Decisions made by
one owner.
Raising finance can
be difficult.
Often long hours &
a lot of stress.
Decisions made by
partners.
More partners =
more finance but
dilution of
ownership.
Stress & hours
shared.
Decisions made by
BOD with
shareholder
approval.
Finance can be
raised by selling
shares, but NOT on
stock exchange.
Decisions made by
management
committee with
members approval.
Finance raised by
getting new
members – can be
low due to
democratic
structure.
Profits & Risk
Keeps all profits.
Pays income tax.
Unlimited liability.
Share profits. Pay
income tax.
Unlimited liability.
Profits shared.
Corporation tax
paid.
Limited liability.
Profits shared.
Corporation tax.
Limited liability.
6th Year Business Ms. Marshall
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Sole Trader
A person who runs a business enterprise under his/her own name, e.g.
Marian Kelly, or under a business name, eg MK Electronics is regarded as a
sole trader. Examples of sole traders are retail outlets of many kinds such
as local shops, garages, restaurants, electrical retailers, etc. and also
tradespeople such as plumbers, electricians, carpenters and hairdressers.
Advantages
There is a greater self-interest on the part of the owner. The proprietor
or owner will either make a profit or a loss and is therefore encouraged
to make greater efforts to succeed in the enterprise.
The owner has more in-depth knowledge of the business.
The business owner can make quick decisions. There is no need for
regular meetings with other people.
When business is small, the sole trader maintains very close contact with
employees and customers.
Better relationships with these important groups result.
Because a sole trader is very easy to establish formation of the enterprise
is both quicker and cheaper than other forms.
6th Year Business Ms. Marshall
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Disadvantages
The control and management of the business
enterprise may fall on the shoulders of one person.
There is less capital available for expansion in the
future.
The owner must bear all the risk of possible business
losses and is personally liable for all debts of the
enterprise in the event of it having to close down.
Long illnesses and the taking of holidays cause
problems for sole traders.
The retirement or death of the sole trader may mean
that there is nobody to take over the enterprise – no
continuity of existence of the business.
There is a taxation disadvantage for the sole trader income tax at the personal rate is higher than the
Corporation tax rate.
6th Year Business Ms. Marshall
Opportunities
 Partnerships have access to greater amounts of
capital as up to twenty partners can bring
financial resources to the business.
 Partnerships have access to different skill sets as
new partners may bring new skill sets and
expertise to the business e.g. IT or marketing
skills.
 Partnership can lead to more effective decision
making as the decision making process is shared
eliciting different points of view and opinions
from a range of talented people.
 Ability to achieve economies of scale.
 Financial information can remain confidential.
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6th Year Business Ms. Marshall
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Challenges
Partners in the main have unlimited liability. This means that
they are responsible for the debts of the business if it goes
bankrupt and may have to forfeit their personal assets in order to
pay business debts
The partners are jointly and severally liable for the debts of the
business which means that they have a collective responsibility
for each other’s debts and their personal assets can be used to
clear the debts of their partners.
Shared decision making could lead to differences of opinion,
disagreements, arguments between the partners, and lost
opportunities. This could at best lead to delayed decision making
or at worse lead to the dissolution of the partnership.
The profits of the business have to be shared according to the
ratio set out in the deed of partnership.
Not a separate legal entity therefore partners and not the
business can be sued in law.
If one partner dies or resigns the partnership must be dissolved
6th Year Business Ms. Marshall
The steps involved in the formation of a Private Limited Company
 Private limited company is a business which may have between 1 and 99 shareholders, who
provide finance in return for shares.
 The Companies Act 1963 outlines the procedures for setting up a Private Limited Company
as follows:
 1. The following documents must be prepared:
Memorandum of Association: This outlines the relationship of the company with the public. It
contains the name and address of the company, its objectives, details of share capital,
shareholder information and their signatures. It also states that the shareholders have
limited liability. A company is not allowed to do anything that is not written in its
objectives.
Articles of Association: this contains the internal rules for running the company such as how to
appoint the director or conduct the meetings. It also outlines the share structure of the
company and how additional shares can be issued.
Form A1: This includes a list of all directors and a signed statement that the company will
apply with the provision of the Companies Acts 1963- 2009.
2. The above documents are sent to the Registrar of Companies.
3. If all documents are in order, the Registrar issues a Certificate of Incorporation. This is the
Birth Certificate of a company. Once the Certificate is received they can now begin
trading.
4. The company must hold its very first meeting, the statutory meeting. Shareholders receive
a share certificate and have the Memorandum and Articles explained to them.
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6th Year Business Ms. Marshall
 The
shareholders of a private limited
company have limited liability. This means
that the shareholders are not personally
liable and can only loose the amount of their
original investment, if the business fails.
 One of the main attractions of the private
limited company structure is the ability to
raise capital by selling shares up to a
maximum of 99 shareholders. The maximum
share capital that can be raised is stated in
the Memorandum of Association. Profits are
distributed to shareholders in the form of
dividends.
6th Year Business Ms. Marshall
A
private limited company is controlled by
the shareholders based on the rule “one
share one vote”. The shareholders elect a
board of directors who are responsible for
the running of the company. The board of
directors elect a Managing Director (MD) or a
Chief Executive Officer (CEO) who is
responsible for managing the company on a
day-to-day basis. The original shareholders
can maintain control of the company as long
as they continue to hold 51% of the ordinary
share capital.
6th Year Business Ms. Marshall
6th Year Business Ms. Marshall
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The members of co-ops have the protection of limited
liability. This means their liability is limited to the amount
invested in the co-op.
Co-operatives in Ireland may find it difficult to access
funding. This is because there is only a limited amount of
finance that can be raised from its members. The amount
the member subscribes depends on the type of cooperative. Members receive a share of the profits in
proportion to their turnover with the co-operative
(producer co-operative) or as a percentage of the savings
(credit union).
Co-operatives have a democratic structure, where each
member has one vote, “one member one vote”, with
majority decision making and an elected management
committee accountable to its members. This management
committee run the business and make the important
decisions. Members have an equal say in the running of the
co-op regardless of the number of shares held.
6th Year Business Ms. Marshall
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Also known as Semi- States
These are businesses owned, financed and controlled by
the State on behalf of the taxpayer. E.g. RTE, VHI, CIE.
Formation & Dissolution: Can be set up using specially
written laws or can be registered with the Companies
Registration Office.
Ownership & Control: The responsibility of the relevant
government department.
Management & Finance: the government provides the
start-up finance for the business and may subsidise any
losses. They may guarantee the repayment of any loans.
Profits & Risk: Profits may be reinvested in the enterprise
or paid out in dividends to the government. Losses mean
the taxpayer is losing money.
In 2009 the ESB made €580
million and paid €280 million
in dividends.
6th Year Business Ms. Marshall
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Creates employment
Provides essential
services to all people in
all parts.
State owned enterprises
play a major role in
developing Ireland’s
economy e.g. IDA
Ireland attracts FDI.
Government receives
dividends from
profitable businesses.
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Subsidies are paid to loss
making Semi-states.
Less incentive to keep
costs to a minimum,
resulting in inefficiencies
and a waste of taxpayers’
money.
Some appointments may
be politically motivated.
Many enterprises have to
take out large loans as
money for expansion is not
available from the
government.
The ESB employs
over 6,800 people
6th Year Business Ms. Marshall
IndigenousTNC’s
Public
Limited
Companies
Expanding your
organisation
Franchises
Alliances
6th Year Business Ms. Marshall
 Owned
by at least seven shareholders who
benefit from limited liability. The company
can raise funds by selling shares on the Stock
Exchange. There is no limit to how many
owners they can have. E.g. Glanbia PLC.
 Formation & Dissolution: A PLC must start
off as a Private Limited Company or a Co-op
before applying to a stock exchange for a
listing/quotation. This process is time
consuming and complex. Stock market
listings are only available to firms with
established track records.
6th Year Business Ms. Marshall
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Ownership & Control: It is easy to transfer the legal
ownership of shares from one person to another.
However, because the PLC is on the Stock Exchange it
can become a target for a hostile takeover.
Management & Finance: Selling shares on the stock
market means PLCs have access to large sources of
finance. Share options are often a good motivator for
staff. However, they have to comply with detailed
regulations. This is not a confidential type of
business.
Profits & Risks: Limited liability. There is prestige
associated with having a stock market listing
however, many shareholders are speculators with a
very short term view of the business. High dividends
may be expected.
6th Year Business Ms. Marshall
 Franchising
means the renting of a complete
business idea, including name, logo and
product to someone else. E.g. McDonalds.
 An alliance occurs when two or more firms
agree to cooperate in the establishment of a
project or business together. They remain
separate companies but share skills and
resources to maximise possibility of success,
e.g. Glanbia and Yoplait. Swatch and
Mercedes made the SMART car.
6th Year Business Ms. Marshall
Franchise
Alliance
Formation & Dissolution
Renting an idea with a proven
track record.
Dissolved by ending contract.
Formed by contract negotiated
by the two companies. Can be
time consuming.
Ownership & Control
Ownership of the idea remains
with the franchisor.
Shared resources, expertise,
ownership & control. May be a
clash of company cultures.
Management & Finance
Training, advice & support
provided by franchisor. Little
independence for the franchisee
despite having to put up most of
the finance.
Both firms can invest funds and
share the costs and financial
risks. However, greater
communication is needed and
disagreements can occur.
Profits & Risk
Low cost method of expansion
for the franchisor. Low risk
because contract can be
cancelled if conditions are
broken. Percentage of profits
sent to franchisor. Biggest risk is
that an unsuitable franchisee
can damage the reputation of
the brand.
Any profits must be shared.
Risk is reduced due to shared
costs, staff, technology etc.
6th Year Business Ms. Marshall
Indigenous firms are businesses set up, owned
and managed by Irish people. Their main place
of business is Ireland yet they may export to
other countries. e.g. Stira Stairs, Supermacs,
Easons, Smyths Toys, Irish Times.
 A Transnational Company Transnational Company
–has its controlling head quarters in one country
and branches in many other countries/ operate
on a world-wide scale. A transnational produces
or markets goods in more than one country. It
treats the world as a single marketplace and may
move operations from one country to another in
response to changing market conditions.
 E.g. Intel.
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6th Year Business Ms. Marshall
Loyalty: they are loyal and are more likely to
remain in Ireland, even in times of recession.
They have a loyalty to the local economy. (They
are not footloose)
 Profit Distribution: They re-invest their profits
in Ireland, and spend within the economy.
 Local benefits: They help other businesses in
their locality and nationally, by buying raw
materials and services from them. This creates
‘spin off’ business/improved infrastructure.
 Entrepreneurship: If they prove to be
successful, indigenous firms may stimulate other
entrepreneurs to set up business and this
generates a culture of local industrial/service
development.
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6th Year Business Ms. Marshall
Less dependence on foreign transnational
companies: By encouraging “internationally
traded indigenous industry” Ireland lessens its
dependence on foreign transnational companies
to create work and wealth in the economy.
 Foreign Trade: Many indigenous firms are
involved in the export services sector and
thereby improve Ireland’s Balance of Payments.
 Employment: Tend to be more labour intensive
than transnationals/employment may be more
stable than that provided by transnationals.
 Taxation: Source of revenue for the Government
through VAT, Corporation Tax etc.
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6th Year Business Ms. Marshall
Emergence of Irish Transnational Companies
 Irish firms such as Fyffes and Kerry Group
have set up operations in many countries due
to the growth of free trade, membership of
the EU and the small size of the Irish market.
6th Year Business Ms. Marshall
Transport Improvements: The availability of
faster and cheaper methods of air and sea travel
has made it easier to supply markets world-wide.
 Improved Tele-Communications: Improvements
in communications have made it easier for firms
to send and receive information.
 Larger Markets: Many companies find that their
home market does not offer the necessary scope
for expansion. By selling to or setting up
operations overseas they can maximise sales and
can spread business risk/saturated home market.
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6th Year Business Ms. Marshall
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Economies of Scale: Expanding abroad allows firms to
achieve economies of scale and thereby lower costs per
unit. This enables them to compete more effectively with
larger competitors.
Removal of Trade Barriers: The removal of trade barriers
has opened up international markets. The World Trade
Organisation (WTO) has facilitated agreements between
countries eliminating or reducing barriers and freeing up
international trade. Can locate a division in Ireland and
sell products into the EU member states
Financial incentives from government agencies. Some
governments offer grants for these companies to set up,
e.g. a grant for their premises.
Taxation advantage in Ireland: 12.5% corporation tax
rate, this is one of the lowest rates in Europe and attracts
companies such as Google and Fecebook.
6th Year Business Ms. Marshall
 Skilled
labour force.
 High Productivity.
 English speaking.
 European Union access.
 Government Grants.
 Low corporation taxation regime.
 Centralised Partnership agreements/Social
partners.
 Political and Economic stability.
6th Year Business Ms. Marshall
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ADVANTAGES
Create thousands of jobs
e.g. Intel directly employ
5,000 people.
Bring new technologies,
products and skills.
Bring competition to the
market – good for
consumers.
Pay corporation tax to the
Irish Govt.
Buy supplies & materials
from Irish companies.
Improve infrastructure –
Intel built flyover costing
€20 million.
6th Year Business Ms. Marshall
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DISADVANTAGES
Many have closed down to
move to cheap labour
countries, despite having
received grants and low
taxes. E.g. Dell have
moved to Poland.
They can put pressure on
the Government if they
are very important e.g. if
Intel threatened to move
the Govt. would
incentivise them to stay.
Repatriate their profits.
Head office decisions may
not reflect Irish interests.
 2009:
Evaluate franchising as a form of
business ownership for a new enterprise (20
m). (see ch18 notes for more
detail…advantages & disadvantages for
franchisee.)
 2013: Write true or false after this
statement:
(2 marks)
 A sole trader is an ownership structure that
benefits from limited liability.
 2013: Discuss the opportunities and
challenges of Partnership as a form of
business ownership
(20 marks).
6th Year Business Ms. Marshall
 2010
Outline the purpose of a company’s
Articles of Association. List three items
included in the Articles of Association.
 (10 marks).
 2013: Outline two characteristics of a
private limited company (10 marks).
 2008: Explain the term ‘Transnational
Company’.
 Discuss the reasons for the development of
TNC’s in Ireland. (20 m).
6th Year Business Ms. Marshall
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2012
Discuss cooperatives and private limited companies
as forms of business ownership, using the following
headings:
Formation; Liability; Finance; Control
(20 marks).
2011
Describe the steps involved in the formation of a
Private Limited Company. (20 marks)
2010
(a) Illustrate your understanding of the term
‘Indigenous firm’
(b) State two benefits of promoting the development
of ‘Indigenous firms’ for the Irish economy.
(10
marks).
6th Year Business Ms. Marshall
2004: Explain why you would recommend a
private limited company as a type of business
organisation for a new business venture (20 m).
 2005: Distinguish between a Sole Trader and a
Partnership as a form of business organisation.
Use an example of each in your answer (15 m).
 2003: Contrast Business Alliances and
Franchising as different types of business
organisations. Use examples to illustrate your
answer (30 m).(may need to check the ch18
notes again for this).
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6th Year Business Ms. Marshall
 2001:
Contrast a Private Limited Company
with a Public Limited Company as a form of
Business Organisation (20 m).
 2002: Contrast the importance of
transnational and state owned companies as
forms of business organisations in Ireland.
(30 m).
6th Year Business Ms. Marshall
Regain
Control
To raise
capital
Lower Risk
Reasons to
change structure
To Increase
Sales &
Profits
To acquire
new skills
6th Year Business Ms. Marshall
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Regain control: some owners
turn their firms into limited
companies and PLCs to raise
finance then end up
regretting the loss of
ownership and control. They
may buy back the shares they
sold and turn the business
back into a private limited
company.
6th Year Business Ms. Marshall
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E.g. Richard Branson started
off business as a sole trader.
As the business grew he
became a private limited
company, Virgin Ltd.
When setting up the airline
he changed to a PLC in order
to raise large amounts of
finance. He became
frustrated with shareholders
with a short term view and
bought back the business
with his own money. Going
from a Public Limited
Company back to a private is
known as “going private”
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To Raise Capital:
Changing a structure
can lead to more
money. For instance,
changing from a Ltd
company to a PLC
allows you to sell on
the Stock Exchange.
E.g. Kerry Co-op
changed to PLC and
used the money
raised for expansion.
6th Year Business Ms. Marshall
Lower the Risk:
 Some types of
business benefit from
limited liability,
where you only lose
what you put into a
business. A sole
trader may change to
a Ltd co to benefit
from this.
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 To
Increase Sales
and Profits
 Changing the
business structure
can give the ability
to sell more
products. E.g.
entering into an
alliance opens new
markets to you,
becoming a PLC
attracts attention.
6th Year Business Ms. Marshall
 To
Acquire Skills:
 Certain skills may
be needed for the
business to reach its
potential. E.g. a
sole trader might
join a partnership to
benefit from their
partners financial
background or
marketing skills.
Privatisation &
Nationalisation
Emergence of
Irish TNC’s
Co-ops
becoming PLCs
Trends
Increase in
Alliances
Increase in
Franchising
6th Year Business Ms. Marshall
 Co-operatives
–>
PLC’s
1. Sell shares – raise
more finance
2. Attract the best
workers
3. Free publicity
 Alliances
1. Economies of scale
2. Shared risk, cost
ideas.
6th Year Business Ms. Marshall
 Growth
of
Franchising
1. Common method
of expansion for
service firms such
as McDonalds &
Starbucks.
2. Low cost & low
risk for franchiser.
Irish Firms
becoming TNC’s
discussed earlier.
P372
txtbook
The number of state owned companies was in
decline as the government adopted a policy of
privatisation e.g. Eircom, Aer Lingus. However,
in recent years it was necessary for the
Government to fully or partially nationalise some
key firms, whose collapse would have had
widespread implications for the Irish economy.
E.g. Anglo Irish Bank, AIB.
The government are now considering privatisation
of state assets as an option to raise funds.
http://per.gov.ie/wp-content/uploads/Document53a-14-9-10.pdf
6th Year Business Ms. Marshall
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Privatisation is the selling off of state owned enterprises to
the private sector.
The arguments in favour of privatisation of commercial
state enterprises
Government Revenue: Selling of a state enterprise
provides the government with a large sum of money e.g.
Aer Lingus.
Reduced Expenditure: The sale of a loss making enterprise
means it will no longer have to be subsidised on a yearly
basis by the government/less borrowing required by
government/money available for other services.
Efficiency: State owned enterprises are often perceived as
being inefficient because they can rely on government
funding and have little competition. Private firms are
driven by a profit motive and should therefore be more
efficiently run.
6th Year Business Ms. Marshall
Access to Finance: Privatised firms are able to
take out loans and shares and generally have
greater access to sources of finance than state
enterprise. This makes it easier to fund
expansion.
 Industrial Relations: With greater job security
employees in state enterprises are more likely to
take part in industrial action in pursuit of pay
claims, better working conditions etc. than those
in the private sector.
 Competition: The elimination of a state
monopoly can lead to open market competition
and can lead to greater choice and lower prices
for consumers e.g. Eircom.
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6th Year Business Ms. Marshall
Loss of state assets: The state protects
industries of strategic interest to the country
e.g. transport network, the country’s energy
supplies for industry and domestic purposes,
water supply, communications systems, the
economic infrastructure of the country etc
 Increased Unemployment: There may be a loss
of jobs through rationalisation of services,
leading to higher social welfare spending.
 Social Commitments: Non-profit making
essential services may be discontinued by the
private business in an effort to reduce costs e.g.
the postal and telecommunications service,
electricity, gas and water services to remote
areas, etc.
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6th Year Business Ms. Marshall
 Loss
of Control /Costs to state: The shares
of privatised firms may end up with foreign
investors. There may be high costs involved
in preparing a company for privatisation.
 Profit Motive/increased prices: Privatised
companies must maximise returns to the
shareholders and this could result in
increased prices for consumers.
6th Year Business Ms. Marshall
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“It would be bad enough to try and force the sale of our State enterprises
but worse the Troika is insisting that a substantial part of the proceeds
goes into the black hole of banking debt. In other words it is almost
literally like the selling off of the family silver to pay the family creditors
except in this case the debts did not originate with the family members.
Semi state companies could play a key role in rescuing the Irish economy
from the dire consequences of the policies of austerity being imposed on
our people in order to channel their resources to rescuing the big
financial gamblers . The savage assault on incomes and living standards
has meant a drastic shrinking in the domestic economy and this is what is
causing the live register of unemployed and seriously underemployed
people to veer toward half a million. These companies now employ over
40,000 workers. However they could be developed in a way that would
increase those numbers massively.
The government wants to sell off substantial parts of the ESB. Instead
this company should be used to channel major investment infrastructural
projects around the country. This could be in the area of alternative
energy generation or related activities that could see workers of many
different skills taken off the dole.” Joe Higgins, TD
6th Year Business Ms. Marshall

Speaking in relation to Michael Noonan's comments on the RTE
News At One (15.2.2011) and the Fine Gael election manifesto,
Henry Upton stated "The Fine Gael privatisation plans for CIE and
Dublin Bus in particular will cause chaos. Dublin Bus provides a
service for all the communities of the city, not-for-profit but for
the good of the people. Any privatisation of bus routes will
inevitably lead to private operators "cherry picking" high volume
routes such as the 46a, whilst neglecting smaller local
communities."
"I have been campaigning with local residents across Dublin South
Central who are worried about losing their bus services. People in
Inchicore, Ballyfermot and Crumlin are worried about losing their
local services. It is older people and the less mobile who will
suffer most from cutbacks in services. Services such as the 19,
the 121 and the 122 are already under threat" said Henry Upton
"Henry Upton concluded "We need to prioritise good public
transport, available to all. This cannot be sacrificed to meet the
privatisation agenda of people in Fine Gael or Fianna Fail."
6th Year Business Ms. Marshall
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Sales of State Assets
Over time, we also propose to finance the investment programme from the sale of certain State
assets. We will only sell State assets, however, if the sale coheres with the following
principles:The asset is not a monopoly or of strategic importance to the State. We will not repeat
the mistake of Eircom by selling off a strategic asset which is a natural monopoly. As a result, we
would retain ESB Networks and Eirgrid (which we will merge) and the national electricity grid in
majority state ownership along with Bord Gais Networks, Coillte and Bord na Mona. An Post and
RTE will not be considered for privatisation.
The asset is sold for the best price possible which may mean deferring sales until market
conditions improve.
If there is no economic and social case for a company remaining in State ownership it should not
remain in State ownership.
The staff of any company sold are given a share in the company subject to their co-operation.
Applying these principles, Fine Gael sees no impediment to selling: Bord Gais Energy
ESB Power Generation (excluding the hydro plants)
The ESB Customer Supply Companies
RTENL (the mast and towers but not the TV or Radio stations)
Davy Stockbrokers estimate that Ireland could raise €4 billion from a trade sale of Bord Gais
Energy, ESB Power Generation and ESB Supply alone.
If it proves necessary to finance the investment programme, we will also consider sales of minority
stakes in the electricity, gas and water networks, with the State remaining in majority control.
We will also appoint a committee to examine the accounts and cost base of the semi-States - a
'Bord Snip' for the semi-States - to recommend ways to reduce costs and improve efficiencies in
each company with a view to passing on any savings to customers
6th Year Business Ms. Marshall
 2004:
Describe two reasons why a business
enterprise might change its organisational
structure over time. Use illustrations to
support your answer. (20 m)
 2010: Outline the reasons why a business
may change its organisational structure from
a sole trader to a private limited company.
 2008: Evaluate, using examples, the
arguments in favour OR against the
privatisation of commercial state enterprises
in Ireland.
6th Year Business Ms. Marshall