Here is a list of definitions for Junior Cert. Business Studies

 Key Business Terms


Basic wage – Payment for working a normal week
Bonus – Income in addition to basic pay
Budget – A plan of future income and expenditure
Commission -  A payment based on each item sold to encourage salespeople to sell more goods.
Deductions  - Money taken from an employees pay before he receives it.
Gross pay  - total earnings before deductions.
Income tax – money paid to the government
Net Pay - Take home pay
Overtime  - The payment for working extra hours
Payslip – the document that an employee gets on payday, giving details of pay and deductions.
Statutory Deductions – Deductions compulsory by law paid to the government.
Tax credit – Given each year to individual taxpayers for the purpose of reducing their tax liability


False economies – Short term saving – long term cost
Impulse buying – Buying without thinking of the cost.
Opportunity cost – Making a choice as a result of having a limited income.
Priorities – Spending on the most needed or most important items first

Household budgeting

Breakeven – Income equals expenditure
Budget – A plan of future income and expenditure
Closing Cash – Opening cash and net cash.
Consumer Durables – Goods that will last for a long period of time.
Deficit -  Expenditure greater than income
Estimate – A guess at the size of the income and expenditure.
Net Cash – Total income minus total expenditure
Surplus – Income greater than expenditure.

Household accounts

Balance – The difference between the two sides of an account
Contra Entry – Where money is switched between the Cash A/C and Bank A/C.
Credit  - Right hand side of Analysed Cash book
Debit – Left hand side of Analysed Cash book

The consumer

Loss Leader - A product sold at a very low price to attract customers. 
Price war - Where shops are selling similar products undercut each other to attract customers. 

Caveat Emptor

Caveat Emptor - Let the buyer beware - Goods should be carefully examined before purchase
Redress - Some form of compensation

Money and Banking 


Cheque - Written instruction by a current account holder to his bank to pay a stated amount of money to a named person. 
Credit Card - Plastic money: Buy now - Pay later with interest
Token money - Coins that do not contain their actual value in metal 
Bank Reconcilliation Statement - Prepared to reconcile bank account and bank statement
Bank statement - Contains details of all transactions in a customers current account 
Current account - Customer receives cheque book - no interest paid on account 
Deposit account - Savings account where interest is earned on money invested. 
Government Duty on Cheques - Tax collected by the government on cheques 
Overdraft Accommodation - Permission granted by banks to currecnt account holders allowing them to overdraw their accounts by a stated amount. 
Electronic Funds Transfer at Point of Sale - The use of Laser Cards and smart cards to pay for goods.
Executor -  A person appointed by another to ensure that his / her estates is distributed according to his / her will. 
Life assurance - Policy providing money for family after death of main earner in family. 
Mortgage - House Loan, deeds of house are given as security. 
Share - Part ownership of a company 
Stock Exchange - A market where shares are bought and sold 
Trustee - A person appointed by another person to manage funds.