Third Year Christmas Tests Flashcards
Name 2 ways that a culture enterprise play in society
Inspire other entrepreneurs: it can encourage other businesses to start a similar enterprise
Community: it brings people together and allows people to connect and form relationships and bonds
Name 1 law which protects consumers from false or misleading advertising
Consumer protection Act 2007
Define the term global company
Global company is a company who is known all over the whole world. They would have many branches in different countries and its headquarters would be in one. Eg,Googles headquarters is in California but has a branch in Dublin. They sell products all around the world and treated it as one big market.
Explain two challenges facing global companies such as Kelloggs
Language barriers: countries speak all different languages and trying to converse they could accidentally set a bad public image
Current issues: the delays of importing wheat from Ukraine leads to uncertainty,scarcity or delays in distribution
Define the term sustainable development
Sustainable development means to be able to meet their present needs without destroying the needs for future generations. Companies need to balance production against economic social and environmental needs for example recycling.
Outline two factors a new company should consider for deciding the price
Cost of production: the business should consider how much it cost to produce/manufacture their product
Stage in the product life cycle : products behind demand can cost more than ones in decline
Identify two benefits of membership of the European union for Ireland
EU social policy has improved the rights of workers by improving health and safety and setting minimum wage levels
Foreign direct investment: many foreign businesses have located their European headquarters in Ireland so that they can access the single European market
Discuss 2 roles that a social enterprise plays in society
Provide services: provide services and support their communities by meeting community needs that are not served by the state or by commercial enterprises.
Employment: while social enterprise often rely on the work of volunteers some help to create employment in their local communities.
What is interest
Interest is the reward given by a financial institution for saving money with them
Explain why low interest rate are good
Low interest rates encourage boring as there’s some of money to pay back will be lower
Explain two ways change in age profile will increase government expenditure
The government will have to invest more hospitals and medical equipment due to the greater demand on services
There will be a greater demand on pensions as more and more people will retire
Define the term industrial relations
Industrial relations refers to the relationship and exist between employees and their employers in a workspace
Outline two benefits of international trade for Irish businesses
Spread risk: a business can spread risk by not only relying on the Irish market
Increased profit: the Irish mortgage is quite small by exporting it will increase sales
What would be two advantages of PayPal for an employee?
It is environmentally friendly as there is no paper in involved and reduces carbon footprint.
It is safer than cash as it is guaranteed to go straight into a bank account and won’t get lost.
Explain one economic benefits of using solar panels as an alternative to burning fossil fuels
Cost savings: to get an installed solar panels is even cheaper than buying cold or oil so you can save your money
Explain one environmental benefit of using solar panels as an alternative to burning fossil fuels
There will be less carbon emissions in the air and better air quality will improve peoples lungs and breathing
Define the term resource
A resource is anything we can use in order to meet our needs or help us to achieve our goals. Resources include your textbook, pens, computers, people, knowledge, money and time.
Define the term digital technology
Digital technologies are a set of technological tools and resources used to communicate and create, distribute, store and manage information, for example mobile phones, apps, tablets and computers.
Explain 3 opportunities associated with using digital technology
› Production: The increased use of technology in production allows for standardisation and mass production, resulting in increased output and reduced costs.
› Sales and marketing: Using digital technology in sales and marketing allows businesses to see what consumers are buying and to pick which sector of the market to focus on.
› Travel and meetings: A business can use email and video conferencing to reduce the costs of travel and meetings.
Explain 3 ways digital technology can crest a cost for the business
Capital costs: There will be capital costs when installing new technology.
› Recruitment and training: Cost of recruiting and training specialist staff along with the loss of working time while staff are being trained.
> Website: Cost of designing, maintaining and hosting a website.
Name 5 benefits of a business using digital technology
> Recruiting and managing staff
Market research and marketing
Finance
› Administration.
• Production
List 5 ways in which organisations use technology
› To design and produce products
> To conduct market research
› To prepare financial budgets and accounts
› To communicate with suppliers, customers and employees
• To promote and sell their products and services online.
What is a cash flow forecast
estimates the expected flow of cash coming in and out of your business, across all areas, over a given period of time
Why would you pay a car with a medium term loan
A medium-term source of finance is suitable for the purchase of a new sales vehicle as this is a medium-term need and it will be repaid between 1-5 years.
List the 7 types of income
Wages
Pension
Child benefit
Job seekers benefit
Bonus
Overtime
Interest
Name 2 types of advertising
General advertising and information advertising
Name 3 advantages of desk research
> Quick to gather
Easy to obtain, as it uses information that is already available
Cheaper than field research, as it does not require trained interviewers
Name 3 disadvantages of desk research
> As the information gathered is not for the specific needs of the business, it may not be as useful or relevant as primary research
› Information may be outdated
› The researcher may have to read a lot of information to find what they need
List 2 advantages of field research
› Up-to-date information is gathered
› Relevant information is gathered for the specific needs of the business
List 3 disadvantages of field research
> Time-consuming
› Expensive
› Requires skill to conduct
Define the term a government budget surplus
the amount of money by which a government’s income is greater than the money it spends
List two direct taxes
Income tax and corporate taxes
List 2 indirect tax
VAT and excise duties
Name 2 sources of government income
EU grants and profit from selling state companies
What agency should you if you need help? If you order from a business online in the European union and your product has not arrived?
European consumer centre Ireland
State one way in which a large increase in the rate of inflation may affect consumers in an economy
Inflation increases the prices of goods and services and reduces the purchasing power of money that consumers have to spend; therefore, consumers will not be able to buy as many goods and services as they did previously. This will result in a lower standard of living
What law is is that makes sure all consumer goods are of merchantable quality
Sale of Goods and Supply of Services Act 1980.
Explain one social benefit if Irelands EU membership
EU social policy has strengthened the rights of Irish consumers and employees. Eg.now workers must get paid at least the minimum wage.
Advantages of a trade union
If you’re part of a trade union you can negotiate better pay.
If you are part of a trade union it will also lead to furnace in a workplace as you can complain to your staff Stewart if unfairness is being shown.
Identity two examples of social protection payments
Jobseekers benefit and child benefit
Identity one risk of taken out a long term loan
One risk of a long-term loan is that it may be more expensive overall. As you’ll be paying interest for longer so it can end up being costly even if interest rate seems low. This may not suit your financial situation in the future.
List the four factors of production
Land,labour,capital,entrepreneurship
One factor that should be taken into consideration when deciding what price to charge consumers
Factor in the price of competition to try and price match with them so they are not blown out of the market.
Define the term assurance
financial coverage that provides remuneration for an event that is certain to happen.eg while life insurance
State one ethical reason why the government imposes tax
Redistributing wealth and income for the common good: A major purpose of taxation is to transfer money from those on high incomes to those on lower or zero incomes.
Outline 2 social benefits of the European Union
You are able to study and go on holiday in any European country without needing a visa and there is now improved rights for workers like they have to be paid at least the minimum wage
Outline 2 economic benefits of the European Union
Single market access:removal of custom barriers meaning that less cost on importing and exporting goods and services. Increased sales:larger market to sell goods and services to, increasing sales and profits too.
List 5 barriers to trade
Tarifas
Embargo
Quota
Subsidy
Administration
Outline 2 benefits of globalisation
Increased profits and sales and the economy is a scale meaning the more goods made the more the cost goes down.
Outline 2 challenges of globalisation/international trade/European Union
Increased competition and environmental impact as an increase in consumerism leads to an increase in waste produced.
Define the term a living wage
Living wage is the amount of pay per hour employees should be paid to keep up with the inflation. So they can provide all their goods and services for their families e.g. able to pay for groceries.
What does APR stand for
Annual Percentage Rate
Define the term liquidity
Liquidity refers to the ability of a company or an individual to settle short-term liabilities easily and on time
What does Leo stand for
Local enterprise office
Explain how am increase in interest rates can cause a decrease in inflation
If interest rates increase it makes the cost of borrowing money more expensive. This makes consumers spend less
Explain 2 ways in which economic growth can negatively impact the environment
Pollution, such as oil drilling spills and polluted waste water from mining.
Deforestation from forestry and to make new farmland
Explain an exception to the law of demand
Necessary or basic goods: People will continue to buy necessities such as medicines or basic staples such as sugar or salt even if the price increases. The prices of these products do not affect their associated demand
List two Advantages of selling on credit
When a company sells on credit, it attracts new customers who would otherwise not buy from the company. This is mostly true for companies that sell expensive items.
Selling on credit increases the volume of sales a company makes since the number of customers will increase.
Explain the term USC
The Universal Social Charge is a tax you pay on gross income, including notional pay (notional pay is a non-cash benefit, such as benefit-in-kind), after any relief for certain capital allowances
Impact of Brexit on Ireland
The effects of Brexit on Ireland is that foreign direct investment will increase as businesses will come to Ireland as they can no longer trade freely while operating in the UK. Another effect is the restricted movement of Irish people into and out of the UK.
What is the European Union trading block?
European Union trade block is a group of countries who agreed to free trade = the single European market
How much did Ireland export to the US in 2023?
54 billion
How much did Ireland import from the US in 2023?
23 billion
What is a false economy
In economics, a false economy or hallucinated economy is an action that does save money at the beginning but which, over a longer period of time, results in more money being spent or wasted than being saved.eg Buying cheap household appliances is a false economy - they’re twice as likely to break down.
Define the term higher purchase
a system by which one pays for a thing in regular instalments while having the use of it. A three party agreement between buyer seller and financial institution. Easier to get than a medium term loan
How could you improve a cash flow forecast?
You could reduce planned payment by switching light and electricity providers and use a long-term loan instead of spending all at once e.g. mortgage to purchase the premises or you could rent.
Name two current assets
Cash in hand and closing stock
Name two current liabilities
Debtors and overdraft
Define the term liquidity
Liquidity is a company’s ability to convert assets to cash or acquire cash through a loan or money in the bank. To pay its short-term needs or liabilities
What is capital gains taxes
If you sell an asset for more than you paid for it, the difference is your capital gain, and you’ll need to pay tax on this amount
Four things of the economic cycle
growth, boom, recession ,depression
Define term resource
A resource is anything we can use in order to meet or needs or help us reach our goals
What is prioritise expenditure?
Spend money on the most important items first examine the household needs and wants and decide which are more important and urgent items need to get prioritise over wants for example food and heat payments must be prioritise over TV
Define the term cash flow
It is the day-to-day money coming into and going out of a household
Define the term balance
It is the difference between the amount of money on the debit and credit side of an account
Define the term bank overdraft
It is an arrangement to the bank that allows an account holder to withdraw or spend more money than they actually have in their current account
Define the term phishing
Criminals use fake email and fake website is a way of tricking people into giving away passwords and bank details
What are some factors to consider when saving?
Risk, reward, liquidity, taxation, convenience, future benefits, terms and conditions
Define the term demand deposits
Allow you to withdraw your money when you choose to you don’t have to give the bank any notice
Define the term term deposit
Requires you to leave your money in the account for a certain length of time anywhere from 7 to 5 years
Define the term notice deposit
Requires you to give the bank advance notice of your intention to withdraw money
Define the term annual equivalent rate
It is the rate of interest you could earn on your savings in a full year with a compound interest rate
Define the term collateral
It is something used as security free payments of a loan if you cannot pay back loan the lender can take the acid such as your property and sell it to recover the money owed by you
Define the term credit rating
It is an estimate of a present ability to pay off loan based on their savings and borrowing history with financial institutions
Define the term declining principle
It is the amount you still owe at any point in the loan it gets lower every month because of repayments
Define the term in solvent
Being unable to pay your debts as they fall due
What does CCPC do?
Provides information and education to consumers about the personal finance and their consumer rights conduct research into consumer matters represents consumers interest by advising government and possible changes to consumer law and enforces consumer protection law in Ireland
What is a small claims procedure?
A quick cheap and easy way to resolve a complaint about the faulty good or poor work by service provider without having to hire a lawyer
Define the term corporate social responsibility
The duty of a business to act in the best interest of all those who are affected whether activities e.g. paying employees a fair wage
Define the term CV
Afternoon New Year’s with someone who was applying for a job is a written summary of the job applications professional details, work experience qualifications and achievements
Define the term – database
A computer program the files and storage information in a very structured way so that it can be searched for specific details
Name five stages of the product life-cycle
Introduction growth maturity saturation and decline
Tell me about the advertising standards authority for Ireland
A body set up and financed by the advertising industry that ensures that all marketing communications are legal, decent honest and truthful
Define the term venture capital
Money invested in a new high risk business venture capitalist usually invest in return for shares of business
Define the term debenture
A long-term loan to affect interest rate and specific repayment days
Define the term franchise
One firm has a right to uses products and its brand name to other brands in return for a fee and a share of the profits
What are terms of sale?
Condition attached to sale such as who past delivery what discount is available and when the invoice has to be paid?
Define the term credit note
A document sent by the seller to the buyer to explain a reduction in the amount owed it is issued when God will be purchased on credit. I returned to the seller and it would not be appropriate to provide a cash refund.
What is a debit note?
Send to the buyer it will increase the amount owed these use when there has been under charge in the account
Define the term share capsule
The money invested into business by its owners. The money is often invested at the time the business is being set up.
Define the term audit fees
An auditors role is to examine company accounts in order to ensure that they’ve been properly prepared and that they have accounts present a true and fair picture of the financial position of the business
List the four factors of production
Land labour capital and enterprise
Define the term economic system
The method that countries used to distribute economic resources and trade goods and services
What is the multiplier effect?
As more money spent in the company demand increases which will encourage production. This will lead to increase employment which lead to increase demand.
Define the term business ethics
More principles that influenced the way of business behaves to consumers suppliers employees shareholders, the government and society
What are four positive effects of economic growth?
An increase in economic growth will lead to an improvement in the standard of living for employees.
› The government will have more revenue from the collection of extra taxation.
• The government will be able to provide better public services.
› More goods and services will be available for consumption.
What are four negative effects of economic growth?
Economic growth may cause increased pollution, for example air pollution caused by the fossil fuels
› Increased traffic congestion may be caused by delivering more goods, which in turn increases exhaust emissions, adding to pollution and greenhouse gases.
› More landfill sites will be required for large amounts of consumer waste.
> Economic growth may cause income inequality - the gap between the rich and poor has increased significantly in recent decades.
Define the term, Eurozone
The eurozone is the collective name for the EU member states that share a common currency, the euro
Define the term entrepreneur
An entrepreneur is a person who takes the initiative as well as the personal and financial risk involved in setting up an organisation
Name two other services provided by banks for current account holders
Direct debit and standing order
Outline two reasons why the government provide financial support for some students in third level education
*Providing grants makes it more affordable for students to attend college.
*If more students attend college there will be a better educated workforce for the future.
Name one consumer agency you can contact for advice
Competition and consumer protection commission (CCPC)
Outline two functions of trade unions?
Represent workers rights: they represent workers if there is an industrial dispute in the workplace. Workers will be represented by trading unions.
Help negotiate better pay: help employees get the most out of employer and rewards and perks that they deserve
Outline two roles of the workplace relations commission in preventing and resolving industrial relations disputes
It’s role is to improve workplace relations between employers and employees
The WRC will invite both sides to a talk but will not put forward a solution. It will act as an independent mediator to try to get both sides to discuss their differences and find a compromise or solution.
Explain the term the law of demand
The law of demand means as prices increase the demand for the products will decrease
Explain two impacts of high interest rates on individuals who wish to save
Greater return: Higher interest means higher return the saver will get more money of our return on their investment
Leads to increase saving: due to increased interest rates people are more likely to save money then spend it. They will have less money in the backpack but will receive a larger sum of money over time.
State two causes inflation
Scarcity: as good to become harder to source , the cost charge for them will go up so businesses can knock out low bidders and still maximise profit
Purchasing power: as people have more disposable income businesses will increase prices as they know they can get away with it
Date one reason why unemployment occurs
Technology: due to new technology taking over previous jobs there is less need for human labour. Instead we have computers and robots doing this for us creating unemployment.
