Unit 6 Definitions

Question 1

Exchange rate

Answer 1

This is the price of one currency expressed in terms of another currency

Question 2

VAT (Value added tax)

Answer 2

VAT is a tax on goods and services paid by both consumers and business. The standard rate is 23%. Some foods and services being sold have 0% VAT (medicine, food staples etc.)

Question 3

Corporation Tax

Answer 3

An annual tax on q company’s profits. The corporation in ireland is currently 15%. The tax is calculated based on the company’s net profit position.

Question 4

Inflation rate

Answer 4

It is the rate (%) of increase in the general price of goods and services in an economy measured over q time period (usually a year), measured by the Consumer Price Index (CPI)

Question 5

Interest Rate

Answer 5

This is the cost of borrowing money, expressed as a percentage of the sun borrowed. Can be quoted as APR (Annual Percentage Rate)

Question 6

Local Enterprise Office (LEO)

Answer 6

State agency that helps local entrepreneurs establish and grow a business.

Question 7

Enterprise ireland (EI)

Answer 7

State agency that helps existing indigenous firms to expand.

Question 8

Fáilte Ireland

Answer 8

State agency that supports the tourism industry and works to promote ireland as a tourism destination.

Question 9

Industrial Development Authority (IDA)

Answer 9

State agency that aims to attract foreign investment into Ireland.