money markets management

what is a budget

a budget is a financial plan for managing your income and expenses over a certain period of time

advantages of a budget

it can help prevent impulse spending and help you decide what you can and cant afford. It enables you to keep track of how you spend your money and it creates a visual spending picture

median house price

the value of the middle house when arranged in order

difference between mean and median house price

the mean house price might not be accurate as there could be a significant outlier that greatly impacts the mean value, whereas the median house value gets little to no impact, making it more accurate

Interest rate

It is the percentage charged on a loan or paid on savings

annual credit card fee

a yearly fee charged by a bank for using a credit card

advantage of using a credit card

using a credit cards might have rewards and perks as some cards offer cash back, collectable points or discounts

disadvantage of using a credit card

if monthly repayments arent managed well, interest is added and that increases your debt

interest free period

a period of time where no interest will be charged on new purchases

credit rating

a score that shows how reliable someone is at repaying debt. If you have a low credit rating, it might be harder to get loans or credit from the bank

GST

it is a tax of 10% on most goods and services in australia. it is paid by consumers to the government so that they can provide the community with basic needs.

income tax

everyone in australia who earns an income must pay income tax. the employer takes out money from each workers pay. the more money you earn the more income tax you pay, not a fixed ratr

entrepreneur

someone who has the willingness and ability to start, operate and assume the financial risks of a business with the intention of making a profit

qualities of an entrepreneur

innovative - either creating or significantly improving a good or service.

Risk taking

Problem solving

CSR

refers to the needs to consider how a business can go above and beyond the basic legal requirements to improve the welfare of its stakeholders.

stakeholders

anyone affected by the business’s actions. customers, employees, shareholders, and the wider community

business structures

sole trader

partnership

company

sole trader

a business that is owned and run by one person

partnership

a business usually owned by 2-20 people who share profits and responsibilities

company

a legal entity seperate from its owners.(limited liability) which means the owners are not personally responsible for any business debts.

4ps of marketing

1. product - an item or service sold to meet a customer need

2. price - the amount charged for a product

3. place - where the product is sold or how its delivered to customers

4. promotion - how the product is advertised to customers

accounting equation

assets = liabilities + owners equity

assets, liabilities, owners equity

assets - what the business owns

liabilities - what the business owes

owners equity - what the owner owns in the business

source documents

original documents that prove a financial transaction. examples : receipts, invoice, bank statement