28 terms

TCG Business Studies Definitions 2nd Year Economics & Companies

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Self employed
Someone who is employed by themselves or their own company.
Dividend
A sum of money paid regularly by a company to its shareholders out of its profit.
Overdraft
A deficit in a bank account caused by drawing more money than the account holds.
Fixed Expenditure
Any cash outflow that remains constant that remains constant regardless of the level of activity.
Utmost Faith
When person is taking out insurance, they must answer all the questions on the proposal form truthfully and give the insurance company any important information about themselves and the item they want to insure.
Sole Trader
A person who owns or runs her own business
Private Limited Company
A company which is formed when between 1 and 50 people put together money to start a new business with limited liability
Limited liability
This means that if a private limited company goes bankrupt, the shareholders will only lose the amount the invested in the company
Economic System
The way a country uses its factors of production to produce goods or services
Factors of production
Land, labour, capital, enterprise
GNP
gross national product
Economic growth
the change in quantity of goods and services produced in a country from one year to the next
Inflation
An increase in prices from one period to the next
National Budget
A document that gives a detailed breakdown of government income and expenditure for the next year
Current income
The day to day regular income e.g. income tax
Capital expenditure
Long term or once off expenditure e.g. building a new school
Surplus Budget
Planned total income is greater than planned total expenditure
Debt servicing
Money allocated in the budget to pay off part of the National debt
PAYE
Pay As You Earn. It is a method of Income tax and deductions under which a person's employer calculates and deducts the amount(s) due each time a payment of wages, salary, etc. is made to an employee.
DIRT tax
A tax on the interest earned by people on their savings
privatisation
the sale of a semi state company by the government
co-operative
an organisation formed by people who join together to achieve a particular objective e.g. credit union
incorporating the company
once the documents for a private limited company have been prepared, the must be brought to the companies registration office.
chief executive
the person the board of directors elect to run the company
the capital of a business
the amount invested in the business by the owners
import substitution
the purchase of irish made goods instead of foreign goods
balance of payments
total exports - total imports
balance of trade
visible exports - visible imports