Seven news stories you should read ahead of the Leaving Cert business exam

Topical items don’t typically feature in textbooks but can show up on the day

Exam papers will often reference topical events which have recently dominated the news, but which don’t feature in textbooks.

It can be hazardous at the best of times trying to second-guess what questions will come up in next June’s Leaving Cert business paper.

But one thing’s clear: exam papers regularly reference topical events which have recently dominated the news, but which don’t feature in textbooks.

Last year, for example, there were topical questions in the Leaving Cert business exam ranging from the Government’s tax arrangements with Apple to Ryanair’s flight scheduling controversies.

The Irish Times has compiled some of the biggest stories and themes in business over recent months, along with a handy glossary to explain some more technical terms.

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While there’s no guarantee these stories will feature in the exam, they can help ensure you’re better prepared for any topical issues that may arise.

1. Brexit

It’s the single biggest issue which has dominated the business world given the uncertainty over everything ranging from border controls to supply-chains.

This story, 'No-deal Brexit throws up really big calls on jobs, the rural economy and peace', captures many of the complex issues which would affect Ireland in the event of a no-deal. And this piece, "Explainer: What does the no-deal Brexit Bill do?',explains in detail how businesses would be supported.

Glossary:

Common Travel Area: Also known as the CTA, this is the long-standing arrangement that permit Irish people to enter and work in the UK and for British people in Ireland. It dates back to the 1920s, shortly after the formation of the Irish Free State.

Good Friday Agreement: Also known as the Belfast Agreement, this agreement between the Irish Republic and the UK helped establish a devolved government and included a pledge to avoid a hard border between north and south.

2. Mortgages

Mortgages and house prices have rarely been out of the news over recent months. The fact that it was the 10th anniversary of the economic crash last September also prompted a wealth of articles looking back on the past decade.

This piece, 'Irish house prices rose by 431% during the boom, new study reveals', gives a up-to-date overview of just how big the property bubble got.

And this article, 'Hundreds of repossession cases may be affected by Appeal Court ruling' shows how the dust is still settling from the property crash.

This detailed overview, 'Ireland in danger of turning boom to bust again', reminds us that we're not out of the woods by any means.

Glossary:

Troika: This is a reference to the European Commission, the European Central Bank and the IMF, who lent Ireland more than €67 billion as part of bailout following the economic crash.

3. PCPs

Personal Contract Plans (PCP) – common in car sales - have been in the news over recent months amid calls for the introduction of legislation to protect consumers.

This piece, 'PCP car finance may need new legislation, says report' gives an overview of some of the issues.

While this piece, 'Irish consumers don't understand PCP car finance', shows how much ignorance there is out there on this issue.

Glossary:

PCP: Personal Contract Plans work similarly to hire purchase loans in that the buyer pays a deposit, normally 10 to 30 per cent of the price of the car, then 36 monthly instalments before facing a final outstanding "balloon" payment at the end of the deal.

4. Pensions/auto-enrolment

With about half the working population without a pension, this issue has now become a hot topic for the State.

One of the solutions much talked about over the last couple of months is “auto-enrolment” or mandatory pensions.

This article, 'Will auto-enrolment pensions ever actually be introduced?' gives a good overview of the issue and the obstacles its introduction faces

And this piece, 'Pension regimes struggle to gain trust of workers, says OECD' illustrates how many workers view pensions and the promises made by providers.

And this story shows what's in store for many in this country when it comes to pension provision and expectations: 'Half of Irish workers say they will have to keep working in retirement'

Glossary:

Auto-enrolment: where employees are automatically enrolled into a pension scheme and receive contributions from both the State and their employer.

Defined benefit pension: a pension plan in which an employer promises a specified pension payment based on the employee's pay and length of service.

Defined contribution pension: a pension plan in which the employer, employee or both make contributions on a regular basis. The eventual pension depends on the accumulated contributions and whatever accrues from investments made.

5. Payday loans

The fact that the Central Bank granted a licence to UK moneylender Amigo to operate in Ireland has been the source of some uneasiness.

Amigo is to charge Irish customers an interest rate of up to 49.9 per cent. Licensed moneylenders are also known as “payday lenders”.

These article, UK Lender targeting people with bad credit to move into Irish market, illustrates how this type of company operates

And this piece, "Sinn Fein chief rails against State permit for UK moneylender", along with this article, "Strict controls on licensed moneylenders urged', show some of the uneasiness that its arrival generated.

Glossary:

Payday lender: a company that lends to people with a bad credit history who are unable to access credit elsewhere. They charge interests rates much higher than traditional lenders. Its name comes from the practice of paying off the loan when the next pay day fell due.

6. Peer-to-peer lending

Borrowing from banks can be difficult, especially for smaller companies, and this where peer-to-peer lending has been proving popular in recent times.

This article, "Linked Finance says its loans have created 2,400 jobs", illustrate the type of lending that 's going on", shows the type of lending taking place.

And this this story shows some of the issues facing peer-to-peer lenders, "Grid finance suspends taking investments below ¤100,000".

Glossary:

Peer-to-peer lending: This type of lending, also known as P2P lending, is a form of crowd funding. Is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the traditional route.

7. GDPR

GDPR, or General Data Protection Regulation, has been in the news for a while and will continue to be so as regulators throughout Europe clash with the tech giants such as Facebook and Google over what personal data harvested from users they can and cannot use.

This article outlines "everything you need to know" about the data regulations.

This story, "Facebook faces seven data protection investigations in Republic'", gives a flavour of what faces companies such as Facebook and regulators alike,

And this piece shows how the State itself can fall foul of GDPR, "Data watchdog investigating potential GDPR breaches in government".

For some global background on how GDPR came about, check out this piece: "Hooray for GDPR: scale of data grabbing exposed to the light."

And this piece gives a good sense of greater awareness on how "the penny has finally dropped about the intrusions of big tech."

Glossary:

GDPR: Often described as "technology neutral", the regulation's focus is on demanding accountability from organisations into how they collect and process personal data.

It takes what is described as a “risk-based” approach to data protection and imposes new obligations, such as mandatory reporting of data breaches within 72 hours. Individuals are entitled to compensation from organisations where their rights are breached.