JC Business Studies Revision Third Years

The person who calculates the insurance premium is

• Accountant

• Broker

• Agent

• Actuary

The insurance principle which means you cannot make a profit from insurance is

The extra amount added to an insurance premium to cover increased risk is called

Use the figures to calculate Net Profit or Net Loss. Sales €100,000, Cost of Sales €40,000 and Expenses €30,000.

• €90,000

• €110,000

• €30,000

• (€30,000)

Payment made to an insured person if they suffer an insured loss.

Buy now, pay later.

• Debit

• Credit

• Finance

• Savings

Tax on interest earned on savings.

• PAYE

• DIRT

• CAT

• COD

Ownership of an insured item passes to the insurance company once they have paid compensation for that item.

• Contribution

• Indemnity

• Subrogation

• Utmost good faith

Penny must choose between spending some of her savings on new furniture or taking her children away for a short holiday. Each option costs €1,500 and she does not have enough money to pay for both. Select the correct answer.

• Penny's financial cost is €3,000.

• The opportunity cost of paying for the furniture is €1,500.

• The opportunity cost of paying for the holiday is €1,500.

• The opportunity cost of the furniture is the holiday.

Ireland has a / an ___________ economy.