๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐ Flashcards
what is insurance?
Protection against a loss you hope will not happen
What is assurance?
Protection against a loss you know will happen
(Life assurance)
Explain adequate
Appropriate for the situation/ just the right amount
Explain what household insurance covers (4)
Fire
Theft
Flood
Accidental damage
Explain what premium in insurance is
The cost of your insurance
What is compensation in insurance?
The money the insurance company pays out on a claim
What is insurable risk?
Things that can be insured
Explain what exclusion clause is
Situations that cannot be insured
Explain what policy excess means
If the damage is under a certain amount of money
Explain frivolous claim
Small unnecessary claims
Excess clause
The insured person may have to pay the first โฌ100 of the compensation themselves
What are the 2 reasons why we have excess clause
To reduce the number of small claims made
To be more careful
What is the policy in insurance
The contract of insurance
How do insurance companies make profit?
Large number of small premiums - eg. โฌ500 per customer
1 million customers= โฌ500,000,000
Insurance companies base theyre profit on likelihood.
Eg. If a customer needed โฌ100,000 for insurance they will have enough in said pool fund to have profit
What is insurance policy
An important document that details all information about your insurance cover
Explain insurable interest
In order to insure something you must benefit from its existence and suffer from its loss.
What is utmost good faith
Tell all relevant information when filling out an application for insurance
What is indemnity?
You cannot make a profit from insurance.
You cannot insure your house for more than it is worth as the ins. Co. Will only compensate you for the actual value of the house
What is contribution?
If a risk is insured with two insurance companies each will pay half of the compensation
What is subrogation?
Passed the legal right of the insured over to the insurer to claim from a third party who caused the loss.
Whirlpool oven causes house to go on fire. Ins. Co. Pays compensation to insured and then seeks their own compensation from whirlpool
Explain average clause
Related to underinsurance and partial loss.
If you only insure an item for a fraction of the value, you only get the same fraction compensation
Explain the formula for insurance
SUM INSURED x CLAIM= COMPENSATION
ACTUAL VALUE
Name the 2 documents used in insurance
Proposal form
Application form for insurance
What is cover note?
Temporary policy
Used in car insurance, while you are waiting for insurance disc
When does the national budget release
Around october each year
how often is the national budget released
The national budget is released in october for the upcoming year.
Who delivers the budget to the government
minister of finance
what is the national budget?
All the governments have a national budget which includes the amount of money it has and how it plans to spend that money in a given year on goods, services, and transfer payments.
What is an enterprise
Enterprise is any attempt to start or do something new. Enterprise is about turning ideas into actions, using creativity and willingness to try new things
4 Types of enterprise in the home/ personal life
helping out with keeping the house clean/tidy
babysitting
cooking for the family
taking the initiative to live a healthier lifestyle
3 Types of enterprise at school
being a part of the student council
organising a litter pick
starting a petition to change something that isnโt working
Types of enterprise (3)
Local organisations - operate in a specific local area
National organisations- operate or have branches all over ireland
Global organisations- are very large and have operations all over the world
name 4 types of local enterprises
baker
butcher
hairdresser
local shop
name 5 types of national enterprise
OโNeills
Elverys
Super value
Centra
Supermacs
name 3 types of global enterprises
Penneys
Mc donaldโs
Smyths
What is a financial enterprise
A financial enterprise is setup up to make a profit by selling a product or service
Name the 3 roles financial enterprises play in society
provides goods and services
provides employment
boosts economic growth
Not-For-Profit-Enterprises
Not for profit enterprises include charities and voluntary organisations that provide a range of services and benefits to communities
Local enterprise office
Thirty one local enterprise offices across the country offer a range of support and services to people interest in starting up a new business
What is a social enterprise
A social enterprise is one that puts people and community ahead of private and personal gain
Name 2 examples of a social enterprise in ireland
Social entrepreneurs ireland
Credit unions
The role social enterprises have in society
Provides services
Creates and supports employment
A society that encourages people to be enterprising and take the initiative
What is a cultural enterprise
a cultural enterprise provides local or national consumers with access to the arts and cultural activities and events
The role of cultural enterprises in ireland
Promotes arts and culture
Creates employment (e.g summer jobs)
Support the local economy (spend money in the local economy)
Entertainment
What is a sole trader
The some trader owns and runs their own business. The sole trader is the one who makes all decisions and provides the money in their business.
They take all the risk and gain all the reward
Steps for becoming a sole trader (4)
decide what type of business you want to go in to
find a suitable premises
register your business with the register of businesses. However, if you want to use your own name you do not have to register and can begin trading immediately
apply for a license if you need one
Advantages of a sole trader
Full control can make all decisions quickly
can open and close when they like
keeps all the profit- donโt have to share with anyone
easy and cheap to set up- a license may/may not be needed
Disadvantages of a sole trader
Unlimited liability- can lose your own property to pay debts
the sole trader provides all finances to start the business
the owner makes all big decisions, alone cant be an expert in everything
hard to compete with larger business
long working hours
business does not survive its owner
Definition of liability
Financial responsibility or any money the business owes. Anything the business if financially responsible for
Partnership definition (3)
A partnership is a business where between 2 and 20 people come together to set it up and share control of the business. The owners have unlimited liability
Partnerships are common in types of businesses such as private medical practices and solicitors
A set of rules and responsibilities for the company are agreed and written down in a partnership deed
The deed of a partnership will include (5)
How profits are to be shared
How capital will be provided
Duties and tasks of each person in within the partnership
Rules for new partners
What happens if the business closes down/ someone leaves
Advantages of a partnership (5)
Easy set up
Extra money access in comparison to sole trader
more expertise and i make decisions
Financial and information is confidential
A confidential type of business Final accounts and Balance Sheets dont have to be published meaning business model not easily copied
Disadvantages of partnerships
unlimited liability
profits are shared rather than kept to one individual like sole traders
decision making can be slow since all partners have to be consulted
When a partner leaves, a new deed has to be drawn up, no continuity of existence
Dividend definition
A share of the profits given to share holders as a return for investment
Private limited company definition (3)
Formed when between 1 and 149 people put together money to start a new business. The people who put money in are called shareholders.
If the company makes a profit, shareholders receive a dividend. The dividend received depends on the amount of shares you invest. 1 share = 1 vote
Shareholders have limited liability and the words ltd come after the company name
Advantages of Private limited companies
Limited liability only lose what you put into the business
can raise money by selling shares
when a shareholder dies the business keeps going
as the company expands it can employ more experts
Disadvantages of private limited companies
Profits are to be shared
more expensive to set up
many legal requirements
the original founders can lose control if bought out
Public limited companies definition
A public limited company has 7+ shareholders and has directors who are voted by shareholders. These shareholders have limited liability.
they must follow many laws, rules , regulations a lot more than private limited companies. a shares can be bought and sold in the Stock Exchange. The name of the company will end with PLC
Advantages of Public Limited company
Limited liability- only lose what you put into the business
Can raise money by selling shares
Generally have a good credit rating
when a shareholder dies the business keeps going
as the company expands it can employ more experts
corporation tax 12.5%
Disadvantages of Public Limited Companies
Profits are shared
More expensive selling shares to the public
many legal requirements
the original founders can lose control if bought out
State owned companies
Formed by the dรกil and owned by the state with a board of directors appointed to run them
When a government sells a state- owned company it is called privatisation
if the government takes over a company it is called nationalisation
Name 5 state owned companies
RTE
An post
Bord bรญa
Solas
Vhi
State owned companies advantages
employment
provide essential services
profit-income for state
keep control over natural resources
State owned companies disadvantages
lack of funding which in turn leads to borrowing more from government especially if business is not making a profit
the directors of some forms lack appropriate knowledge in the firms particular area, this is because they are appointed through political contacts
the lack of profit making sometimes leads to lack of motivation in the work place
Co-operatives definition
co-operatives pool resources to achieve common goals, which as individuals they may not achieve alone. The people who set it up are called members and all profits go to the members
Go-operatives have limited liability which means only lose what has been invested
each member has one vote regardless of the amount of shares they own
Co-operatives advantages
Limited liability
all members have an equal say
create employment
achieve more collectively than individually
Co-operatives disadvantages
usually too small to compete with large companies
less of an incentive for to invest because one vote is one share
managerial appointments sometimes based on popularity rather than ability
What is franchising
Franchising is a business arrangement whereby one person sells the right to use their name, idea or business to others and allows the to set up and exact replica of that business
franchise advantages
proven business model
on-going support
cost saving
bulk buying
franchise disadvantages
little control licence agreement must follow
does not encourage entrepreneurship
royalties and fees go back to main franchise
stay at home parent
work
students in school
work
teachers in classrooms
employment
volunteering for a charity
volunteerism
work defiintion
is any productive activity that requires effort
employment definition
work for which a person receives a payment
employees definition
are people who work for employers in return for payment
employer definition
someone who pays another person to work for them
Loading
The higher the risk the higher the cost
entrepreneurship characteristic and skills
creativity
entrepreneurship
leadership
communication
types of employment 8!!
full time employment
part time employment
fixed term employment
casual employment
self-employment
job sharing
flexitime
teleworking
fixed term basisโ explanation
many people are employed in a fixed term basis. Their temporary employment finishes when the contract ends
casual employees definition
casual employees are on standby to do work as required without fixed hours
Job sharing definition
In job sharing, two employees together make up one working week in a particular role. They share the hours, workload and pay associated with the job
flexitime definition
flexitime means that an employee can start and finish work at any time that suits them each day, as long as they do the hours stated in their contract
Teleworking definition
teleworking the employer works from home and carries out the duties as if they were working on the business premises
3 Rewards and benefits of work employment
(both) Help achieve goals
(both) develop Talents and skills
(both) sense of satisfaction/ personal achievement
(work x employment) important for self esteem
Employment definition
the labour force refers to all those people of working age who are willing and able to work for payments t
unemployment
members of the labour force who cannot find paid work are classified as unemployed
3 voluntary work organisations
tidy towns
goal
svp (st. vincent de paul)
volunteering definition
volunteering is when people carry out some work or activity without payment for their time and effort
benefits and rewards of volunteerism to the individual volunteer 3!
learning new skills/using skills
shoes initiative/personal enterprise
enhances personal satisfaction/wellbeing
benefits and rewards of volunteerism to the organisation 3!!
new range of skills/ ideas to organisation
benefit from passionate and highly motivated people
volunteers may act as ambassadors for the organisation the wider the community
benefits and rewards of volunteerism to society (3)
communities improve as members work together
many voluntary organisations play and important role in reducing social isolation
volunteering gets things done!
right definition
a right is something you are entitled to receive, for example be treated fairly or to receive at least the minimum wage
Responsibility definition
a responsibility is a duty or something you should do, such as treat others with respect
Statutory law
these are rights and responsibilities set out in law
Social rights and responsibility definition
A responsibility is to respect the rights of others, and to act in the best interest of society as a whole
environment rights and responsibilities
Insuring that the actions of individuals and organisations do not damage the environment
Ethical rights and responsibilities
Doing what we believe to be right, such as treating employees fairly
Laws protecting employees (3)
Protection of Young Persons (Employement) Act 1996
Employment Equality Acts 1998-2015
Unfair Dismissals Acts 1977-2015
Protections of Young Persons (Employment) Act 1996
See a copy of the employees birth certificate
Get a letter of consent from the childโs parent/ guardian if the employee is under 16
Keep records of the employees details, such as date of birth and the hours worked
Employment Equality Acts 1998-2015
(the laws outline)
These laws outline discrimination on nine grounds:
Age
Gender
Race
Sexual orientation
Religion
Family status
Marital status
Disability
Member of the travelling community
Employment Employment Equality Acts 1998-2015 (Definition)
These laws define discrimination as โthe treatment of one person in a less favourable way than another person is, has been or would be treatedโ.
Unfair Dismissals Acts 1977-2015 (10)
Age
Becoming pregnant
Religious beliefs
Political beliefs
Race
Sexual orientation
Being a member of the travelling community
Being a member of the trade union
Taking part in official strike
Taking legal actions against an employer
Name the 5 reasons for valid reasons for dismissal
Incompetence (not doing work)
Misconduct (broken rules)
Redundancy (job no longer needed)
Unqualified (doesnโt have necessary skills for the job)
incapability (unable to do job because lateness/absences)
6 Legal rights of employees
Recurve at least minimum wage
Receive a written contract of employment
Receive the correct amount of paid holidays
Work in a workplace that is safe and healthy
Recurve proper rest breaks during work
Be provided with all information about them that is held by their employer
National minimum wage 2023/2024
2023- โฌ11.30
2024- โฌ12.70
Contract of employment definition
Employees are legally entitled to a contract of employment from their employer. This must be signed by both parties within 2 month of the start date
Probation period definition
A probationary period is a specified trial period at the start of the employment to see if the employee is suitable for the position
2 Social rights for employees
To work in a safe and respectful atmosphere
To a join a trade union if they choose to do so
What is a trade union?
A trade union is an organisation that represents workers, protects their right and negotiates with employers on pay and conditions of work
Name 3 environmental rights of employees
To have a safer and healthy working environment
To be provided with necessary safety equipment and protective clothing
Not to be asked to carry out work that breaches environmental regulations
3 ethical rights of employees
to receive a fair days pay for a fair days work
to have their religious and cultural beliefs respected
not to be asked to do anything unethical or illegal
6 legal responsibilities of employees
carry out their duties as stated in their contract of employment
follow workplace rules and safety instructions
respect their employerโs property
wear protective clothing and equipment provided by employer
attend all training provided by the business
not discriminate against or bully other employees
social responsibilities of employees (3)
treat customers, co-workers and the employer with respect
work with and support fellow workers in order to achieve the aims of the business
be loyal to their employer and not disclose confidential business information
environmental responsibilities of employees definition
follow all environmental regulations and procedures
Definition for financial institution
A financial institution provides financial services for it customers, including storing their money, managing payments and providing loans
4 main types of financial institutions
Commercial banks
Credit union
Building societies
An post
What is a commercial bank?
A commercial bank is a bank thatโs offers financial services to the general public and go businesses
Definition of current account
used for day to day spending, they are offered by commercial banks, credit unions and building societies
Definition of deposit account
Are used to save money, are offered by commercial banks, building societies, and post and credit unions
What are 4 things a current account is used for?
Day to day spending
Storing money safely
Paying for goods and services
Pay bills and transfer money to others
Lodgement definition
Amounts paid into an account
Withdrawal definition
Amounts paid out of the account
what does DD stand for
Direct debit
Used for utility bills, where you give permission to a business or a person to take money from your account, used to pay bills where the amount and date vary
what does P.O.S stand for
Point of sale meaning time and place of which a transaction has been made
What 3 things are required for opening a current or deposit account
Photographic proof of identity
Proof of address
Personal public service number (PPSN)
what does ATM mean
Automatic teller machine
what does EFT mean
Electronic funds transfer
what does paypath mean
an employer transfers wages or salary directly into the account, this is called a paypath
what does PIN stand for
Personal identification number
4 examples for withdrawing money from an account
Withdrawing cash at a bank using a withdrawal slip
using an ATM to withdraw cash using a card
Paying for items using a debit card
using a digital wallet
Definition for debit cards
Allow consumers to pay for goods and services without using cash. The money is withdrawn electronically from the buyers account and paid into the sellers account
What is a digital wallet?
A digital wallet is an online service that allows you to make electronic transactions
What does SO stand for and mean
Standing order
is an instruction to a financial institution to pay a fixed amount to a specific person or organisation on a certain date
Direct debit definition.
A current account holder gives permission to another person or business to withdraw variable amounts from their account, used when the date and amount are likely to change
Credit transfer definition
Credit transfer is a once off instruction from a current account holder to their bank to transfer an amount of money to another account
cheque definition
A cheque is a written instruction from an account holder to their bank to pay a specific amount of money to a named person or business
Bank fees and charges definition.
Some financial institutions charge customers for their services, some accounts have annual fees and chargers per transactions
Bank statement definition
a current account holder receives a statement from their bank on a regular basis.
the statement shows all transactions that have taken place during that time period
Internet and telephone banking definition
Are useful and convenient ways for customers to pay bills, check their account balance, order statements and transfer money to other accounts
2 advantages of of internet and telephone banking to the account holder
Convenience - 24/7 access
Higher interest rates on savings
2 drawbacks for internet and telephone banking to the account holder
lack of wifi may limit access for some customers
security risks- hacking
Definition of phishing
when criminals use fake emails and fake websites as a way of tricking people to give away passwords and bank details
Credit card definition
Has a spending limit and is set up by the bank, the spending limit is based on the customers income and ability to repay
Credit card statement definition
The statement sets out. all the items purchased during the month as well as any balance due from previous months
Foreign exchange definition
Is the price at which one currency can be exchanged for another
3 types of loans
short term loans
medium term loans
long term loans
