Junior Cert Flashcards
When writing a business plan, what should you include
When writing a business plan, you should make sure to include details on the business, your goals how you plan to finance the business and where you see your business in five years time.
What does GDP stand for?
Gross domestic product
Explain two impacts on increased euros zone interest rates
Less borrowing: due to increased interest rates less borrowing would occur on people would not throw money in savings account. This is due to the cost of borrowing being too expensive.
Business failure: Higher interest rates may encourage households to save their money. This will reduce consumer spending and may lead to business closures.
How do entrepreneurs contribute to society?
Increased standard of living: By creating jobs and providing services, entrepreneurs help to improve the standard of living in their communities.
Sponsorship: Many entrepreneurs support and sponsor a variety of community-based organisations, including clubs and charities.
How do entrepreneurs contribute to the economy?
Taxation: The entrepreneurs and their employees pay taxes to the government and this money can be reinvested into the local or national economy.
Provide goods and services: Businesses started by entrepreneurs provide consumers with a range of goods and services.
What is one social benefits of sugar tax?
Benefit of sugar tax as it prevents obesity: Obesity in kids is very common in Ireland and by increasing the tax on products with sugar in them this discourages people from buying them. This is a way to try and tackle obesity problems in Ireland.
What factors should be considered when deciding how to invest savings
Goals: a person or business should identify what they want to get out of saving their money. E.g. do they want to earn much back.
Security: a person or business should make sure that the bank or provider that they go with is secure and regulated. So they know their money is safe. They also want to make sure that their money doesn’t lose value.
Name four methods of promotion
Advertising, public relations, sales promotion and direct selling
Outline one positive and one negative effect of economic growth
Higher economic growth leads to higher tax revenues and this enables the government can spend more on public services, such as health care and education e.t.c. This can enable higher living standards.
Environmental Degradation: Economic growth, particularly when driven by industrialization, often comes at the cost of environmental health, leading to pollution, deforestation, and climate change.
Define the term cultural enterprise
A cultural enterprise provides local or national consumers with access to the theatre, film, language, food, traditional sports, festivals, events, etc. Cultural enterprises can be either commercial or non-commercial. Its main goal is to promote the arts and national culture eg GAA
Define the term indenemity
The insured person should not profit from insurance. This is the most important rule of insurance because insurance exists to put the insured person back in the same financial position that they were in before suffering the loss, not a better one. For example, if a car valued at €10,000 is stolen, the maximum amount of compensation that will be paid is €10,000.
What is the consumer law and name one?
The consumer law is put in place to represent the right of the consumers who purchase the goods and services. Eg competition and consumer protection commission (CCPC)
Name two long-term sources of finance
Mortgage and long-term loan
One impact of high interest rates on businesses
The cost of borrowing increases making it more expensive to finance business expansion, purchase new equipment or manage cash flow
One impact of height interest rates on the economy
Reduced inflation: by dumping demand in the economy, making more attractive to save and less attractive to borrowing
What is the role of the EU court of justice?
And make sure that EU laws are applied fairly and consistently in all member states. The court has the power to force government and businesses to comply with EU laws.
What is one economic benefits of electric cars?
Cheaper to fuel: fuel electric vehicle costs much less than fuel a petrol or diesel car. You can save between 50 and 60% on fuel cost leasing to people having more disposable income encouraging more spending.
Identify three characteristics of an entrepreneur
Risk takers
Productive
Decisive
Is the role of the European central bank?
› Sets the monetary policy of the EU. It controls interest rates and the supply of the euro.
› Keeps the level of inflation in the euro area under control.
› Ensures that the euro is a safe and secure currency.
› Issues euro notes and coins.
What is a tariff?
A tariff is a tax on goods that are imported from other countries
What is an embargo?
Ban
What is a quota?
Limit
What is a subsidy?
Part pay
Name one positive effect of economic growth
Increased jobs: due to more economic growth companies increase their output to meet the increased demand. Companies do this by investing more and hiring more workers.
Name the consumer law that protects you against false advertising
Consumer protection act 2007
What does gross domestic product measure
Economic growth
Outline 2 social responsibilities a business has to the local community
Invest money into the local community: businesses can sponsor local GAA clubs or help with the fundraising for local events
Employee locally where possible or use local suppliers to help boost the community’s economy and attract multinational companies into their community
What is one benefit of membership of the eurozone for Ireland
Membership of the eurozone eliminates exchange rate risk when Irish businesses export to or import from these countries. It also makes it more convenient for tourism as tourists from these countries do not need to exchange their currency when traveling to Ireland.
Impact of inflation on businesses
Rising costs: increases in price of raw materials causes business cost to increase as fuel and material costs go up. The business may pass the price hike onto consumers
2 impacts of low economic growth
Increased unemployment:Due to low economic growth business sales will decrease and so will profits meaning not many employees are needed
Decrease in disposable income:Households will have less money left over after prioritising food and clothing having less to spend on wants resulting in a lower standard of living
2 impacts of trade barriers on Ireland
Limit consumers choice:Tariffs mean that it cost to much for Ireland to import some goods and services leading to less choice available
Reduced employment:less materials are coming into the country meaning that jobs like truck drivers won’t be needed as much causing unemployment
A impact of a budget surplus
Increased capital expenditure: due to a budget surplus the government will receive more money from taxes and can fund it back into the public by creating and improving facilities.eg building a new children’s hospital in Dublin
Definition of overdraft
A bank overdraft is an arrangement with the bank that allows an account holder to withdraw or spend more money than they actually have in their current account.
Explain the term investing
Is often seen as putting money aside in order to get a better return on it in the future
Define the term bank statements
A current account holder receives a statement from their bank on a regular basis. This statement shows all transactions that have taken place during that time period
PIN
personal identification number
POS
point of sale
CT
Corporation tax
IBAN
International Bank Account Number
BIC
Business Identifier Code
3 reasons why people save
1 For future planned expenditure, e.g. a new car, holiday, home extension
2 For emergencies: to have money available in case something goes wrong, for example a washing machine breaks and needs to be replaced
3 For retirement, when our income level will reduce
