8+9: Saving and Borrowing
This means setting aside part of your income instead of spending it now
Saving
This is a compulsory payment to the government used to fund services like schools and hospitals.
This term describes the growing connection of countries through trade, technology, and business.
People who start and run businesses are known by this name.
An Entrepreneur
What type of enterprise aims to make a profit by selling goods or services?
Financial Enterprise
Commercial Enterprise
Key term?
a group of people who live in the same place or who have certain attitudes and interests in common.
Community
What is an example of work
Work is any productive activity that requires effort
So anything really?
Employer vs Employee
Employer - is someone who pays another person to work for them.
Employee -are people who work for employers in return for a payment
What is an example of digital technologies?
mobile phones, apps, tablets and computers.
Is a survey an example of desk or field research?
Field
What is cash flow?
the movement of money into and out of an organisation. It measures the ability of an organisation to pay its day-to-day expenses and debts.
Buyer or Seller
What are the three type of accounts we have used in Double Entry Booking.
Analysed Cash Book
General Ledgers
Trial Balance
Define Economics
In basic terms, it is the study of people and their choices. It studies how people with limited resources make choices in order to satisfy their needs and wants.
It considers how things are made (produced), how things are moved around (distributed), and how things are used (consumed)
What is an Economic System?
Economic System – is the method that countries use to distribute economic resources and trade goods and services
This tax is deducted from interest earned on savings in Ireland.
DIRT (Deposit Interest Retention Tax)
This type of tax is paid on goods and services in Ireland, with a standard rate of 23%
Global companies are also known by this name.
Multinational companies or TNCs (Transnational Companies)
This is the term for any attempt to start or do something new. The new idea
Enterprise
This type of enterprise reinvests profits into helping communities or solving social problems.
What 3 perspectives do we look at when discussing the impacts of organisations
Economic
Environmental
Social
Name three types of employment
Full Time
Part Time
Casual
Fixed Term
Self - Employment
Job Sharing
Flexitime
Remote working (teleworking/hybrid working)
Explain one type of industrial action
Official Strike
Work to Rule
Token Stoppage
Go Slow
Overtime ban
Unofficial Strike
Wildcat/Lightning Strike
M-Commerce
Mobile Commerce - Many consumers use their smartphones to buy products
Explain target market using an example?
Rolex watch = high income earners
ETC
What does buying on credit mean?
Buy now, pay later
A) Trade Discount
B) VAT
A) Subtract
B) Add
Rules of Analysed Cash Book -
What side for money in and out?
Money in = debit
Money out = credit
Rational Vs Irrational Choices
A rational choice is one where the expected gains outweigh the expected losses
Public sector: The part of the economy that is owned and controlled by the (local and national) government.
Private sector: Businesses owned by private individuals that produce and sell goods and services with the aim of making a profit.
This is the extra amount paid to a lender for borrowing money
Interest
This unique number is used in dealings with Revenue and public service agencies in Ireland.
PPSN (Personal Public Service Number)
This type of commerce means buying and selling goods online.
E-Commerce
Electronic Commerce
Name one possible source of ideas for entrepreneurs mentioned in the chapter.
brainstorming, growing trends in the market, family/friends, or existing businesses/products
Name one cultural enterprise in Ireland that promotes Irish sport, music, dance, or language.
GAA or Comhaltas Ceoltóirí Éireann
Jobs that parents/guardians have - Childcare facilities are indirect
Hotels - food suppliers/farmers for food
The labour force refers to all those people of working age (16–65) who are willing and able to work for payment.
Who does it not include?
Retired People
Full Time Students
People who have an illness or disability that prevents them from working
Name 1 law we studied to protect employees
Protection of Young Persons (Employment) Act 1996
Employment Equality Acts 1998–2015
Unfair Dismissals Acts 1977–2015
Industrial Relations Act 1990
Hardware vs software
Hardware is the physical parts of a computer, such as the monitor, scanner and printer.
Software refers to the programs that provide instructions to a computer, for example spreadsheets and word processing.
What is an advantage of field research?
Up-to-date info
On the spot data
Info is relevant
How do you calculate working capital?
Total Assets - Total Liabilities
What does 'E&OE' stand for and what does it mean?
This stands for ‘errors and omissions excepted’. This means that the seller will not be held responsible if an error has been made and it can correct the price if it has made a mistake.
In the analysed cash book - how many entries for Sales with VAT
3 - Bank, Sales and VAT
Name the Factors of Production, give an example of each.
Land - sea, rivers, fields, oil, coal
Labour - any job
Capital - buildings, machinery, vehicles, computers
Enterprise - trhe new idea
Example of a Free Market Economy
USA, Singapore, Switzerland
This long-term loan is commonly used to buy property
Mortgage
This is the term for pay before deductions such as tax and pensions are taken away.
Gross Pay
Name the four delivery systems mentioned when transporting goods globally
Rail, Road, Sea and Air
In the product development process, this stage involves making a sample version of the product before launch.
Prototype Development
Provides services
Tackle Social Problems
Volunteerism opportunities
Employment
Finance
Enterprising Culture
How do organisations impact the economy positively?
Direct and Indirect Employment
Tax
Improved standard of living
Economic Growth
Promote an Enterprising Culture
Multiplier Effect
Why do people Volunteer? (3 points)
They are passionate about a cause.
They have personal experience of a cause, so they want to help others who are going through the same thing.
They have received help themselves and now want to ‘give back’.
They have time available and want to help their community.
They have a skill that is needed and they want to put it to good use.
They enjoy the work and get satisfaction from doing it.
Two rights of an employee
Safe working conditions and a clean and healthy working environment.
A fair day’s pay for a fair day’s work – at least the legal national minimum wage.
Receive the correct amount of paid holidays and leave.
Equal treatment in the workplace. Discrimination in the workplace is illegal and unethical.
Join a trade union.
Benefits and Rewards of using Digital Technology in Finance
Spreadsheets: Spreadsheets can be used to prepare accurate cash flow budgets and accounts.
Electronic payment systems: EPOS technology is widely used to pay for consumer goods and we are also seeing a rise in the use of digital currencies (also called crypto-currencies).
Presentations: Presentation software can be used to make financial information more engaging when looking for investment.
Graphs and charts: Graphs and charts can be created to analyse and interpret financial information.
Loans: It is possible to research loan comparisons and apply for loans online.
3 examples of desk research
Internet
Business sales reports
Newspapers
Magazines
CSO - Central Statistics Office
Consequences of cash flow problems
Unable to pay bills on time: Loss of suppliers/services. If wages are not paid = industrial relations problems.
Loss of discounts: Some suppliers offer discounts if bills are settled quickly -> short of cash = lost discount
Penalties for late payment: Organisations may charge extra for late payment
Poor reputation and credit rating: If late payment = organisation may get a bad name and credit rating may suffer -> Harder to borrow in future
What should the buyer and seller both do with all the business documents and why?
Store/File them.
To be able to easily retrieve them if any issues arise
What is the rule transferring ACB to the Ledgers
Do the opposite
DR ACB = CR Ledger
CR ACB = DR Ledger
➤ The Minister for Public Expenditure and Reform must decide whether to spend money on building a new national children’s hospital in Dublin or a range of smaller healthcare projects and facilities across the country.
➤ A business wants to expand and has €100,000 retained profit. It must decide whether to hire more employees or invest in research and development.
What are the 3 main Economic Systems?
→ Centrally planned economy
→ Free market economy
→ Mixed economy
Name the three types of deposit accounts offered by commercial banks
Demand deposits allow you to withdraw your money on demand, i.e. whenever you choose to.
Term deposits require you to leave your money in the account for a certain length of time (the deposit term).
Notice deposits require you to give the bank advance notice of your intention to withdraw money, e.g. 10 days.
Name the two current income tax rates mentioned for PAYE workers in Ireland.
20% (standard rate) and 40% (higher rate)
Key term?
Globalisation has increased this type of investment, where companies invest money into businesses in other countries.
Foreign Direct Investment (FDI)
Name the final three stages of the product development process in order.
1. Idea Generation
2. Product Screening
3. Concept Development
4. Feasibility study
5. Prototype Development
6. Test marketing
7. Product launch
Name one government organisations mentioned that support and promote the arts in Ireland.
Culture Ireland and Arts Council of Ireland
Negative SOCIAL impacts of organisations
Population
Social Tension
Traffic
Rewards and benefits of volunteerism to the organisation (2 points)
Volunteers contribute diverse skills, expertise, and ideas.
Their passion for causes enhances motivation within the organisation.
Unpaid volunteers allows funds to focus on causes - the organisation's core activities, like reducing homelessness in a charity.
Volunteers can serve as ambassadors, generating positive publicity and promoting the organisation's values.
Two responsibilities of Employers
Pay employees a fair day’s pay for a fair day’s work.
Treat all employees equally and not discriminate in any way.
Operate a healthy and safe working environment.
Comply with all employment law and give each employee a written contract of employment.
Promote policies for sustainable development.
Pay a fair price for materials and pay suppliers on time.
Deduct income tax and PRSI from employees’ wages and submit the money to the Revenue Commissioners.
Give proper consideration to employee requests for remote working and to provide written responses for refusing the request.
Provide employees with all information requested by them.
Use fair procedures when dealing with staff redundancy.
IoT - What does it stand for, explain it with an example
›The internet of things describes how everyday objects and devices (cars, smartwatches, fridges, traffic signals, Siri, house alarms) can be connected to the internet and are able to interact and share information with other devices.
Benefits of carrying out market research X 2
›Information about customers’ needs and wants
›How consumers feel about changes to an existing product or service
›Information about their competition
›The best price to charge their customers
›Consumers’ reaction to how a product is promoted
›The likely level of demand/sales for a new product or service
What factors influence the source of finance a company picks
The purpose of the finance
The amount of finance required
Cost of finance
Control
Security Required
When is a credit note issued?
OWF
Overcharging
Wrong goods sent (and returned)
Faulty/damaged goods returned
What is the rule transferring Ledgers to the Trail Balance
Do the same
DR Ledger = DR TB
CR Ledger = CR TB
Define utility.
When choosing between two or more alternatives, we will choose the one that will provide us with the greatest benefit or satisfaction from our limited resources. The economic term for this is utility.
What is the Circular Flow of Income?
The circular flow of income shows how economic resources and wealth move around an economy.