commerce end of year exam

why might young people move from home?

- job opportunities
- family disputes
- freedom and independence
- to start a family
- parents unable to sustain dependents
- schooling opportunities

pros of moving from home

- independence gained
- growth in skills e.g. finance or cooking
- new friends/community
- privacy - widens school and job communities

cons of moving from home

- expensive - leaving family/familiarity - overwhelming responsibility - chores - roommates

when can you legally leave home?

16+ with income and safe housing

why are australians living at home longer?

house prices rising, hard to get secure work, school eats up time, centerlink = insufficient

what essential documentation do you need to move out of home?

medicare card, birth certificate, photo ID

example of gov organisations that can support those moving out

department of social services, department of communities & justice, centrelink

examples of religious/community organisations that can assist when leaving home

anglicare, kids helpline, youth centres, community housing, vinnies

who are the taldemunde youth services?

organisation that offer 3 stages for young people who need help leaving home.

steps in renting a property

1. find the property
2. obtain the residential tenancy agreement
3. complete the condition report
4. pay a reservation fee (if appliquable- usually worth one wks rent)
5. read and sign the lease
6. pay the rental bond (4 wks rent held by rental bond board, operated by NSW fair trading)

what should you be provided with when you move into a rental?

- tenant checklist
- copy of lease
- 2 copies of the condition report
- a bond lodgement form (to be signed)
- keys 🔑😍

why should you read the lease before signing?

- removes doubt and confusion
- helps tenants understand their rights
- legal obligation to fully read lease

what is a residential tenancy agreement?

the RTA is a document that must be signed by both the landlord and tenant which outlines each of their rights and responsibilities.

examples of what is included in the RTA

- 60 days notice must be given before a rent increase
- tenant has the right to quiet enjoyment
- the landlord mjust give permisssion to keep pets

quiet enjoyment

right for tenants to not be interrupted by the landlord unannounced

condition report

outlines the function and state of certain items in a property and any pre-existing damages

why is the condition report important?

prevents the tenants from being held liable for damage they did not create & protect landlords when tenants refuse to repair or deny causing damage

when is a condition report completed?

prior to moving in

what are some ways renters can handle landlord disputes?

- write to landlord about the issue (ensures a record)
- complain to nsw civil & administrative appeals tribunal
- have a witness confirm your issue & attempts to follow up

what should NOT be done when arguing with a landlord?

DO NOT stop paying rent or move out without notice - can result in eviction or loss of bond payment

pros of roommates

- various house members = various skills & resources from home
- great way to make new friends & social networks
- reduces living costs via sharing bills

cons of roommates

- arguments surrounding expenses and division of costs
- arguments surrounding lifestyle factors e.g. cleaning, entertaining, use of kitchen, bathroom or TV

what is the best way to avoid roommates refusing to pay rent or utilities?

put all roommates names on the lease and utilities contracts so everyone is legally responsible

how can you maintain harmony in a sharehouse?

- have a kitty for shared payments
- consider having your own connections where possible to avoid disputes
- make a roster of chores

what is a kitty?

a central fund of money that has been contributed by a group of people (e.g. flatmates).

costs other than rent (examples)

bills/utilities, kitty, groceries, furniture, insurance, bond, removalists

superannuation

a compulsory savings account that employers must contribute 10.5% of your income to- ensures you have money for retirement

strategies to minimise financial struggle

budgeting, superannuation, monitor spending

what is income tax?

a tax based on how much you earn that all people must pay. in aus, taken from your pay as you go, that is why it is compulsory to conduct a tax return.

what type of tax system is used in aus

a progressive tax system

insurance

promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company

insurance premium

the amount of money an insured person pays to be covered by insurance. can increase due to various factors e.g. accidents, age, medical conditions

home vs contents insurance

home insurance protects the physical property whereas contents insurance protects the products inside of the home

what is the relationship between insurance claims and insurance premiums?

the more claims there are, the higher insurance premiums will be in order to pay for and cover all of these claims

what is renter's insurance?

like contents and can also provide somewhere to live if the property you are renting is damaged.

compulsory third party (green slip)

pays compensation if you kill or injure someone on the road- illegal to not have

third party property damage

pays compensation to others if you damage their property

comprehensive car insurance

compensates for loss or damage to your own vehicle as well as others.

life insurance

insurance paid to named beneficiaries when the insured person dies

health insurance

insurance that covers additional medical services not covered by medicare e.g. orthodontics

worker's compensation

compulsory form of insurance for all employers to provide money for any employees injured at work

public liability

covers firms for the high costs incurred if they are sued by members of the public who suffered injury or property damage as a result of their business.

marine insurance

covers boats and ships for accident damage

pluvial insurance

provides compensation loss of takings due to rain. functions such as outdoor sporting events and concerts are usually covered.

pet insurance

helps cover the cost of vet and hospital fees

insurance process

1. obtain and compare quotes
2. fill in proposal form (in full truth)
3. pay premium and insurance policy is issued
4. a renewal is issued annually
5. a claim form is completed any time you wish to seek compensation

what was traded in customary trading?

- goods that had social value e.g. pearl shells worn by powerful male tribe members

what international group did FN people trade with

Indonesian tribes, the Maccassans from Sulawesi, sailed to aus, traded tobacco pipes, beads, iron knives and canoes

where was a popular customary trading location?

Murray river

retail market

shops ➡️ consumers
traded?: goods and services
price: the price of the goods and services
money: profit made from selling goods and services for cheaper than they cost to make

labour market

employees ➡️ employers
traded?: labour
price: wages/income salary
money: employees sell work for income

financial market

banks ➡️ savers & borrowers
traded?: money in form of loans and bank accounts
price: interest
money: banks charge interest on borrowers/invest money from bank accounts

fiscal policy

a government policy where they alter budget and taxation to influence the economy

how can the gov intervene in the market?

- federal budget
- laws & policies to regulate consumers, society and the environment

online business

business that runs all or most of its business online e.g. frank green

on-demand business

business that uses mobile technology (apps) to maximise consumer convenience e.g. menulog

micro business

business with less than 5 employees e.g. local hairdresser

small business

business with 5-19 employees e.g.local ice cream shop

medium business

20-199 employees e.g. monte teaching staff

large business

business with 200+ employees

global business (TNC)

a large company that has branches in many countries e.g. McDonalds

offshore business

business that completes their functions in a different company (to take advantage of cheap labour and production) e.g. Kmart

government enterprise

government-owned and operated business for community services e.g. australia post

not-for-profit

businesses that provide services to the community and do not earn a profit e.g. vinnies

external vs internal influences on a business

external influences are things that businesses CANNOT control whereas internal influences are thing that businesses can choose and control

examples of external influences

technological development, economic change, social change, gov decisions, competitive situation, globalisation

examples of internal influences

location, management & resources

what is an entrepreneur

someone with a new innovation/idea that actively seeks to promote and place that idea into action, CREATING A BUSINESS and making money from this

impact of innovation

a new invention that can bring new competitors & products into the market

corporate social responsibility

involves going above and beyond legal and financial implications when making business decisions

triple bottom line

when business considers the financial, social and environment consequences of its decisions, or more simply - people, planet, profit

benefits of CSR

- more attractive to consumers
- more attractive to employees
- can be a financial asset (e.g. tesla implementing electric vehicle made them more popular)

limitations of CSR

- increases costs e.g. paying higher wages, volunteer work, more expensive manufacturing or technology, paying for higher quality products

leakages

money that leaves the economy e.g. tax, savings and purchase of imports

injections

money that enters the economy e.g. investment, gov expenditure, exports

impacts of economic growth

consumer confidence rises, spending increases, demand increases, production increases, unemployment decreases, incomes increase, firms increase prices (inflation)

inflation measure

measured by comparing changes in the consumer price index. the CPI represents the spending of a normal household basket of goods e.g. housing, food, education

what do RBA interest rates do?

they are percentages set by the gov to control economic growth. To slow the growth, the gov would increase the interest rates, to increase spending, they would lower the rates

how is economic growth measured?

GDP: the value of total production of goods and services in the economy, growth of 3-4% is acceptable

calculating GDP (aggregate demand)

AD = consumption + investment + gov spending + (exports - imports)

phases of the business cycle

peak/boom, expansion, contraction, trough, recession

indicators of a contraction

- less spending, production, wages, employment

law of demand

As prices increase, quantity demanded falls
As prices decrease, quantity demanded rises

what does a change in price cause on the demand and supply curve?

A change in price causes a contraction or expansion in demand/supply – a movement along the demand/supply curve.

law of supply

As prices increase, quantity supplied rises
As prices decrease, quantity supplied falls

market equilibrium

the point where demand = supply

equilibrium in the 5 sector economic model

leakages = injections
S + T + M = I + GE + X

disequilibrium in the 5 sector economic model

when leakages do not equal injections
S + T + M < I + GE + X - GOOD OR
S + T + M > I + G E + X - BAD

price mechanism

refers to the forces of supply and demand in determining price and quantity of goods sold

what do factors other than price do to the supply & demand curves

the curves shift to the left (decrease in demand or supply) and right (increase in demand or supply)

examples for increases in demand

change in consumer tastes and preferences, complementary good becomes cheaper, prices expected to rise in future

examples for decrease in demand

change in consumer tastes and preferences, substitute good becomes cheaper, complementary good becomes more expensive

examples for increase in supply

increased efficiency in production, fall in the cost of production, increased number of suppliers

examples for decrease in supply

unfavourable climactic conditions, an outbreak of disease, increase in cost of production

economy

all activities undertaken for the purpose of production, distribution and consumption of goods and services in a region or country

depression

a severe contraction in the level of economic activity resulting in many business failures, high and sustained levels of unemployment and sometimes falling prices