Leaving Cert Business Revision Notes 2024

VOCABULARY flashcards covering the Leaving Cert Business Revision Notes for 2024, including People in Business, Conflict, Management, HR, Finance, and the Economy.

Commercial organisation

An organisation set up to provide goods and services with the primary goal of making a profit.

Social enterprise

A not-for-profit organisation set up to provide goods and services.

Stakeholders

Different groups of people who are directly affected by how a business operates.

Entrepreneur

A person who takes the initiative and risk to turn an idea into a business.

Equity capital

Money provided by owners or investors in exchange for partial ownership in the business.

Loan capital

Finance provided to a business that must be repaid with interest.

Grants

Gifts of money provided to a business that do not need to be repaid as long as certain conditions are met.

Interest groups

Groups that represent stakeholders sharing a common interest who attempt to influence the decisions of others through lobbying or negotiation.

Irish Business and Employers Confederation (IBEC)

An interest group representing small and medium-sized businesses that attempts to influence governments on legislation, taxes, and regulation.

Cooperative business approach

A win-win stakeholder relationship where parties work together for mutual benefit.

Contract

A legally binding agreement that can be enforced in a court of law.

Invitation to treat

An invitation to a customer to make an offer, such as items displayed in a shop with a price tag.

Consideration

What each party agrees to give or do for the other in a contract, proving the agreement's existence.

Ultra vires

A legal term meaning a company has entered a contract outside of its legally stated purpose in its Memorandum of Association.

Caveat emptor

A legal term meaning 'let the buyer beware,' requiring the buyer to use a certain degree of common sense.

Merchantable quality

A legal requirement that goods must be reasonably durable and do the job they are intended for.

Consumer Protection Act 2007

A law protecting consumers against unfair business practices, such as false product descriptions, false prices, or misleading advertising.

Competition and Consumer Protection Commission (CCPC)

The state agency that promotes fair competition and protects consumer interests.

Industrial relations

The quality of relations existing between managers and employees in a workplace.

Trade unions

Organisations that represent employees to protect their rights and negotiate for better pay and conditions.

Industrial Relations Act 1990

The law setting out the rules regarding legitimate trade disputes, secret ballots, and picketing.

Primary picketing

Peaceful picketing by employees at the employer's workplace during a legitimate industrial dispute.

Constructive dismissal

A situation where an employer's behavior makes it impossible for an employee to stay, forcing their resignation.

Employment Equality Act 1998

A law making it illegal to discriminate on nine specific grounds, including gender, race, and disability.

Intrapreneurship

Entrepreneurship specifically within the workplace where employees use their initiative to develop new ideas for the business.

Autocratic leader

A leader who prefers not to share power or decision-making and gives orders rather than listening to staff.

Democratic leader

A leader willing to discuss issues with staff and delegate power and responsibility.

Laissez-faire leader

A leader who gives staff a general goal or target and allows them to decide how best to achieve it.

Maslow’s hierarchy of needs

A motivation theory stating that human needs are arranged in a specific hierarchy from basic physiological needs to self-actualisation.

McGregor’s Theory X

A management view that employees are naturally lazy, dislike work, and must be closely supervised and motivated by fear.

McGregor’s Theory Y

A management view that employees like work, are creative, and seek responsibility when motivated correctly.

GDPR (General Data Protection Regulation)

The EU law designed to protect personal data of citizens, requiring data to be accurate, up to date, and used for lawful purposes.

SWOT analysis

A management tool used to assess a business's Strengths, Weaknesses, Opportunities, and Threats.

Mission statement

A short, precise statement used to describe who a business is and what they are currently doing.

Functional organisational structure

An organisational structure that divides a business into departments such as marketing, production, HR, and finance.

Matrix organisational structure

A team-based structure where staff from different departments work together on specific projects, often reporting to two bosses.

Span of control

The number of people who report directly to a specific manager.

Just in Time (JIT)

A stock-control system where stock is delivered only exactly when it is needed to reduce storage costs and waste.

Total Quality Management (TQM)

An approach aimed at maximising quality by encouraging all staff to constantly look for ways to improve.

Person specification

A document describing the specific qualities, skills, and experience required for a job applicant.

Performance appraisal

The process of regular assessment of an employee's performance against agreed standards.

Insurable Interest

A principle of insurance stating the insured must benefit from the existence of the item and suffer financially from its loss.

Utmost Good Faith (Uberrimae Fidei)

A principle requiring the insured to disclose all relevant facts and tell the truth when applying for insurance.

Indemnity

An insurance principle stating that the insured should be compensated for the actual loss and should not make a profit from a claim.

Subrogation

A principle allowing an insurer who has paid out a full claim to take ownership of the item and sue a third party for damages.

Corporation Tax

A tax paid on company profits, currently at a rate of $12.5\%$ in Ireland.

Tax Evasion

The illegal practice of avoiding tax by not declaring income or claiming fraudulent deductions.

Cash-flow forecast

A document showing the planned flows of money in and out of a business or household over a specific period.

Gross Profit Margin

A ratio calculated as: $\frac{\text{Gross Profit}}{\text{Sales}} \times 100$

Acid Test Ratio

A measure of liquidity calculated as: $\frac{\text{Current Assets} - \text{Closing Stock}}{\text{Current Liabilities}}$

Return on Investment (ROI)

The percentage return a business generates on capital employed, calculated as: $\frac{\text{Net Profit}}{\text{Capital Employed}} \times 100$

Market Segmentation

Dividing the total market into clearly identifiable sections with specific characteristics, such as age or location.

Marketing Mix

The four elements (Product, Price, Place, Promotion) used to satisfy a target market.

Product Life Cycle

The theory that products pass through distinctive stages: Introduction, Growth, Maturity, Saturation, and Decline.

Price Skimming

A pricing strategy where a high price is charged at launch to recover development costs quickly.

Penetration Pricing

Charging a low price for a new product to capture as much of the market as possible.

Sole Trader

A business owned and managed by one person who has unlimited liability for the business's debts.

Limited Liability

A legal protection where shareholders only lose the amount they invested if the business fails.

Organic Growth

When a firm expands gradually using its own existing products or by developing new ones internally.

Privatisation

The selling of state-owned companies to buyers in the private sector.

Nationalisation

The transfer of ownership of a firm from the private sector to the public (state) sector.

Balance of Payments

The total difference between all flows of money into and out of a country in a year.

Globalisation

The emergence of the world as a single interconnected marketplace.