Why start a business?

• Challenge: Some people will become restless working for someone else, want more of a challenge
• Profit: Setting up the business offers the chance of earning profits
• New Ideas/Inventions:
• Circumstances: People can be forced to set up their business due to unforeseeable circumstances e.g A redundant worker with a sum of money

Problems in setting up a business:

• Right Product: getting the right product that will satisfy the needs for the customer fully e.g. Value for money
• Cash Flow: new starts ups often fail because cash flow issues i.e. run out of cash
• Premises: finding the... (More)

https://quizlet.com/41550927/money-management-leaving-cert-home-economics-flash-cards/

• Budget – A plan for spending money.
• Income – Money received.
• Expenditure – Money paid out.
• Gross Income – Total amount earned before deductions.
• PAYE – Pay As You Earn. Income Tax. Paid to State.
• PRSI – Pay Related Social Insurance. Pays for benefits if and when needed.
• Net Income – Total amount earned after deductions. Take home pay.
• Statutory Deductions – PAYE and PRSI
• Voluntary Deductions – Optional, e.g. health insurance.
• Household Expenses – Accommodation (rent/mortgage). Food. Clothing. Medical expenses. Travel. Electricity. Heating (gas/oil/etc.). Entertainment. Savings.
• Tax Credit – System used to calculate the amount of tax a... (More)