External Influences: Business: Pearson (Edexcel): GCSE (9:1)

Taxation

Money paid to the government from earnings, profits and financial transactions that are used to fund government spending

National Insurance contributions (NICs)

Money deducted from employees' salaries and from employers to pay for social costs, pensions, etc

Inflation

An increase in the price of goods and services over a period of time, usually expressed as an annual percentage

Income tax

Money paid to the government from employees' salaries

Corporation tax

Money paid to the government from company profits

Council tax

Money paid to local government to pay for local services

National Living Wage

Lowest wage allowed by law to be paid to people according to their age group

Redundancy

Losing your job due to reduced or changed business activity

Unemployment benefit

Money paid by the government to support unemployed people

Minimum wage

The lowest wage allowed to be paid to people by law

Luxury items

Consumer goods that are wants rather than needs

Basic items

Consumer goods that are needs rather than wants

Appreciation

An increase in the value of an asset over a given time

Depreciation

A decrease in the value of an asset over a given time

Strong currency

A national currency that has a high value in comparison to others