Business

• Limited resources

  Resources that are finite and can run out (scarce resources)
• Unlimited resources


  Resources that can't run out and don't have a finite supply
• Need


  Goods and services that are necessary for our survival, common to everybody
• Needs

  • food, water, shelter, clothing
• Want


  Something that you would like to have but isn't necessary for our survival, can improve quality of life, differ between people
• Financial cost


  The amount of money it costs to purchase the goods or services you want
• Opportunity cost


  The item we have to do without when we purchase another item, the item we didn't purchase
• Economics


  The study of how individuals, businesses and governments with limited resources make choices
• Economic resources

  Things such as machinery, land, materials, employees, money etc used in the production of goods and services
• Income


  Money received into you or into a household
• Regular income


  Money received every week or every month
• Regular income example


  • Salary
• Irregular income


  Income received from time to time
• Irregular income example


  • Lottery winnings
• Salary


  Fixed annual payment made by an employer to an employee for the work that they do during the year
• Salary


  • Teachers get paid a fixed salary per year but this amount increases year by year. It is paid twice a month every second thursday
• Wage


  Payment received for work done, calculated hours worked or on the work completed, employees are usually paid weekly, this amount can vary
• Types of wages


  • Time rate - get paid hourly
  • Piece rate - the more you produce the more you get paid
  • Commission - you get a percentage of the sales you make
  • Overtime - the extra hours a person works in a day after they have worked their basic working hours
• Gross pay


  An employee's income before deductions (total amount)
• Net pay


  Known as take home pay, this is an employee's income after all deductions (remaining amount)
• Child Benefit

  Paid by the department of social protection to all parents/guardians of children that are within the education system
• Grant


  Paid by the Department of Education and Skills to students studying at college
• Jobseeker's benefit

  A weekly payment paid by the department of social protection to unemployed people
• Benefit in kind

  A non cash form of income, motivates employees
• Benefit in kind example


  • In a business you are able to use the company car or have a gym membership
• Bonus


  Extra payment made to employees
• Regular income for each of the following

  • Employed person - Wages, Salary, Children's Allowance
  • Unemployed person - Social Welfare, Jobseeker's Allowance
  • Retired person - Pension
• PAYE (pay as you earn)


  Collected from all employees salaries by their employer to fund the government's expenditure
• PAYE example


  • Paying wages of public servants (teachers, doctors, nurses, guards)
• PRSI (pay related social insurance)

  Goes towards running the country, social welfare benefits (dental treatment, pensions, jobseekers benefit)
• USC (Universal Social Charge)


  A tax on income that has been in place since 2011 which has helped increase the government finance and to balance the budget
• Disposable income


  Income that remains after statutory deductions have been made
• Expenditure


  The money spent during a particular period
• Fixed expenditure


  Expenditure that remains the same from one months to the next
• Fixed expenditure example


  • Mortgage
• Irregular expenditure


  Spending that changed from one month to the next
• Irregular expenditure example


  • Light and heat
• Discretionary expenditure


  Spending on unnecessary items if one has surplus cash, spending money on wants instead of needs
• Current expenditure


  Day to day expenditure, happens regularly and ongoing
• Current expenditure example


  • Groceries, heating bill