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Business
| Term | Definition |
|---|---|
| Investor | Gives capital to fund a business for a return on their business |
| employer | Hires employees to carry out work, pays them wages |
| Employee | Is paid wages to carry out work for their employer |
| Manager | Runs a business or part of it for the entrepreneur |
| Producer | Manufactures goods from raw materials, combines the factors of production |
| Supplier | Sells a business goods or partly finished goods |
| Entrepreneur | Spots a gap in the market, takes the personal and financial risk of setting up a business |
| Service provider | Offers a business services such as electricity, Internet, legal, banking |
| Consumer | Buys goods and services for their own consumption |
| Government | Sets rules and laws, gets paid taxes, creates suitable climate for businesses |
| Interest group | Lobbies/ negotiates on behalf of a group with a common interest |
| Competitive relationship | Win-lose, one party benefits at the expense of another |
| Co-operative relationship | Win-win, mutual benefit for both parties when working together |
| Agreement | Offer and acceptance must exist, agreement of the terms offered |
| Offer | A promise by a person to be bound to the offer they are offering, can be done orally or in writing |
| Acceptance | The party agrees to the proposed offer |
| Consideration | Something of value must be exchanged between parties |
| Legality of form | Some offers need to be in a certain format |
| Consent to contract | Party cannot be forced to agree a contract through threats |
| Capacity to contract | Legal ability to agree, cant be bankrupt, insane, ultra vires |
| Legality of purpose | Illegal contacts like drug dealing are not enforceable by law |
| Intention to contract | Awareness that the contract is legally binding and not a social arrangement |
| Frustration | Event occurs that cause the contract unable to be completed |
| Performance | Both sides carry out contractual obligations |
| Agreement | Parties decide to end contract early by mutual consent |
| Breach | Party breaks an essential condition |
| Specific performance | Court orders party who broke the contract to fulfil the agreed terms of it |
| Financial compensation | Court orders guilty party to pay damages |
| Rescind contract | Court orders parties to return to initial starting positions |
| Resolving consumer complaints: initial steps | Knows rights, use receipt, act promptly, complain, track complaint |
| Small claims procedure | 25€ fee, up to 2000€, to solve an unresolved consumer conflict |
| Ombudsman | Investigate consumer complaints against public bodies |
| Functions of Competition and Consumers Protection Commission (CCPC): informing the consumer | Provides information online and on social media accounts |
| Functions of Competition and Consumers Protection Commission (CCPC): enforcing consumer law | Issues compliance notices and fines, uses name and shame |
| Functions of Competition and Consumers Protection Commission (CCPC): conducting research into consumer issues | Researches consumer behaviour and outcomes to help consumers realise possible savings/improvements available |
| Functions of Competition and Consumers Protection Commission (CCPC): educating the consumer | Financial calculators, mortgage comparisons on website |
| Functions of Competition and Consumers Protection Commission (CCPC): advising the government | Highlights issues facing consumers and suggests law changes |
| Functions of Competition and Consumers Protection Commission (CCPC): protecting consumers from firms dominating a market | Examines potential mergers and acquisitions, reduces likelihood of monopolies that prevent fair competition |
| Sales of goods and supply of services act 1980: provisions for goods | Merchantable quality for its given price, conforms to sample used to sell it, fit for purpose, as described in advertisement or description |
| Sales of goods and supply of services act 1980: provisions for services | Provider is qualified/has necessary skills, due care is taken ( not rushed), all tools used/goods giv3n ar3 of merchantable quality |
| Guarantees | Additional protection given to the consumer on top of legql rights |
| Signs limiting consumer rights | Cannot display a sign reducing legal right (No Refunds) |
| Unsolicited goods/inertia selling | Goods sent to a person that they did not order |
| Retailer is responsible | Retailer, not the manufacturer, is responsible for fixing the consumers issues |
| Redress available | Cash refund, replace product with similar or new product, repair product |
| Consumer protection act 2007: false claims about a product | Cannot sell counterfeit items as real items, cannot lie about origin, cannot lie about an award received, cannot lie about previous usage |
| Consumer protection act 2007: misleading advertising about a product | When advertising it should be clear what the use is/what can be expected from the product, cannot mislead by comparing different products |
| Consumer protection act 2007: advertising of false prices | Must be truthful about current price, previous price and recommended retail price 8n any comparison |
| Consumer protection act 2007: misleading price displays | Must price all goods for sale, some items must be shown in a particular way |
| Consumer protection act 2007: aggressive selling practices | Prohibited harassment, coercion or exercising undue influence to get someone to buy something |
| Pyramid schemes | Schemes where people buy in at a certain level and recruit more people to buy below them in order to profit from them |
| Price controls | Government can impose a maximum price on certain goods in an emergency situation |
| Benefits of preparing cash flow forecast: improve financial control | Take corrective action in advance of problem, compare actual |
| Benefits of preparing cash flow forecast: access finance | Loan applications, shows ability to repay, attract investors |
| Benefits of preparing cash flow forecast: highlight cash deficits | Predict cash shortages, can arrange short-term finance, spread payments for an asset, try to boost sales or cut spending |
| Benefits of preparing cash flow forecast: Live within its means | Manage realistic idea of ability to spend, adjust expectations |
| Short-term finance | Finance available for up to one year, used for working capital needs, paying bills, buying stock, wages |
| Bank overdraft | Withdraw more money than is in your current account up to an agreed limit and will be paid back with interest |
| Accrued expenses | Delay paying bills for a period to use money for other usez |
| Credit card | Buy now pay later, high interest if unpaid |
| Trade credit | Receive goods now pay supplier later |
| Factoring | Sell your debtors to a debt collector for an upfront payment |
| Medium term finance | Finance available for a period of one to five years, machinery and vehicles with a lifespan of less than five years |
| Leasing | Renting an asset, never owning it, no initial payment needed |
| Hire purchase | Ownership transfers after final payment is made, use it but doesn't own asset until then |
| Medium term loan | Loan between one and five years paid regularly, equal instalments that include interest |
| Long term finance | Used to fund the long term running of the business, more than five years, funds growth, expansion |
| Reserves/retained earnings | Profits left over from trading reinvested |
| Government grant | Money given to a business for a purpose, does not have to be repaid |
| Long term loan | Loan repayable in regular monthly instalments plus interest to a bank |
| Debenture | Loan with interest repaid regularly with the initial principle repa8d at the end |
| Share capital | Share capital raised by selling shares to stakeholders |
| Choosing between different sources of finance: cost | Compare expense measured by APR, extra fees/ charges |
| Choosing between different sources of finance: purpose | Match source for the correct time period |
| Choosing between different sources of finance: amount | Reserves might be limited in size so overdraft might be needed |
| Choosing between different sources of finance: control | Equity capital gives away voting rights, collateral on loans might need to be given |
| Choosing between different sources of finance: collateral | Assets might be required to access a loan, used as security |
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