Personal Finance commerce

Flashcards by ameliajaneee, updated more than 1 year ago
Created by ameliajaneee almost 7 years ago


Revision for commerce exam

Resource summary

Question Answer
Wage Money received by workers, usually on a weekly basis, for services they provide to an employer
Commission Percentage of sales received by a salesperson for his or her sales. e.g. real estate agent
Dividend Sum payable as profit for shares
Social welfare payment Payment made by a government to help people in need, e.g. centerlink
Overtime Work done outside of regular hours, e.g. public holidays
Salary fixed amount of money paid on regular basis, e.g. full time job
Superannuation way of saving so an employee has some money for retirement
Rent Payment made by a tenant to an owner for the use of the owners building or land
Royalites Sum paid to authors, musicians as a percentage of the proceeds from their work
Profit What remains after all business expenses are deducted from sales revenue
Fee Money paid to others for their services, e.g. solicitors
Fixed expenses Expenses that are the same amount every time, e.g. rent, bills, taxes
Variable expenses expenses that change overtime
Reasons for saving - purchase an expensive item - superannuation - Holiday - unexpected illnesses, accidents or emergencies - saving money in bank account 'goal saver' - sense of pride and achievement - secure future
Reasons for borrowing money 1. immediate satisfaction 2. convenience 3. improve quality of life 4. forced saving
reasons against borrowing money 1. interest charges 2. impulse buying 3. additional costs 4. loss of control 5. inability to repay 6. false sense of security
Saving involves... being committed to a long term plan and allowing for the occasional hiccup or spending indulgence
income? money received on a regular basis from work, property, business, investment or welfare payments
net income? the amount left after income tax is deducted
Savings plan commitment to regularly put aside money for future use
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