1.1 INTRODUCTION
What is Business Studies?
Business Studies is that part of the curriculum which enables the student to make informed decisions in the everyday business of living, which contributes to the student's understanding of the world of business, which encourages a positive attitude to enterprise and which develops appropriate skills in that field.
The syllabus is balanced between the business education necessary for the individual/household area and business education in the purely commercial context. This balance is achieved by devoting separate syllabus sections to 'the Business of Living' and 'Enterprise'. The business concepts and skills introduced in one are restated and reinforced in the other. A section on economic awareness forms a bridge between these two sections.
The syllabus consists of the main topics outlined below. These topics are interrelated and the achievement of the aims of the syllabus depends upon recognition of the need to integrate these various aspects of Business Studies.
1.1.1 The business of living
The management of personal finance is an important lifeskill which must be practised by everyone, young and old. In business studies much business knowledge and many o f its skills may be taught through reference to familiar situations - personal or household. The topics dealt with in this section include: personal income and expenditure, consumer education, budgeting, financial services for the individual, borrowing and insurance.
The development of communications skills, both oral and written, and the skill of efficient record-keeping (and its role in decislon-making) are also central to the business of living.
1.1.2 Economic awareness
Without a basic level of economic awareness citizens cannot fully participate in the democratic process, Every day, individuals make economic decisions, as do business firms and governments. It is becoming increasingly difficult to make political choices without some knowledge of economics. Business Studies aims to make some contribution to economic literacy among students in order to enable them to make an informed contribution to the democratic process.
1.1.3 Enterprise
Many of the concepts and skills introduced in 'the business of living' are restated and reinforced in 'enterprise'. The syllabus thus leads the student from the familiar personal/household situation to the less familiar commercial situation. Topics covered in 'enterprise' include forming a business, marketing, business overheads and related accounting including final accounts and balance sheet.
The accounting element seeks to promote in students the attributes of neatness and accuracy; it also seeks to develop the skill of communication in numerical form. It involves the assembly, the recording, the processing, the analysing and the interpretation of numerical data. Students are introduced to accounting principles and to the key concepts of accountability and control.
Accounting is an important aspect of business education but it should not be taught in isolation from the rest of the syllabus. It should be seen as a form of communication, as a record-keeping process, as a major contribution to decision-making and not as an end in itself.
Information technology
The advance of new technology has already reached the stage where all students should be given some experience in its operation. Business Studies makes provision for basic keyboard training, it also advocates the use of this skill in operating appropriate computer software. It is recognised that students, teachers and schools face a great challenge with the spread of modern technology. Business Studies can help to meet that challenge in a school environment which is receptive to modern technology.
2. AIMS AND OBJECTlVES
2.1 Aims
2.1.1 To contribute to a balanced and appropriate general education at the Junior Cycle level leading to the personal and social development of each student
2.1.2 To develop, in each student, habits and methods of investigation, analysis and problem solving at an appropriate level
2.1.3 To familiarise each student with technological developments in the business environment
2.1.4 To encourage initlatlve and develop self reliance in each student
2.1.5 To provide each student with an appropriate level of economic/business literacy
2.1.6 To develop in each student a positive attitude to the creation of wealth and its distribution
2.1.7 To provide a foundation for students which could lead to employment/further studies in the business field
2.2 Objectives
2.2.1 To encourage in students an interest in, and a positive attitude towards, the business world and to enable them to acquire a knowledge and an understanding of commercial activities and to provide an introduction to the structures and functions of business institutions and their inter-relationships
2.2.2 To develop in students skills of communication, use of technology and recording of information and transactions
2.2.3 To enable students to apply oral and written communication skills to business activities and to develop the vocabulary necessary for further progress in the business world
2.2.4 To enable the students to develop skill in nnmeracy, neatness and accuracy in respect of recording transactions, summarising these and interpreting the results
2.2.5 To develop the skill of accurate keyboarding
2.2.6 To develop in students an understanding of the new information technologies and, as far as possible, to enable them to establish a practical and useful skill in the use of computers and office technology
2.2.7 To enable students to integrate knowledge and skills in a practical and useful way and in particular in applying them to realistic business/personal situations
2.2.8 To encourage students to apply business knowledge and skills to the commercial aspects of their own lives and that of their households
2.3 Attitudinal development
While not specifying attitudes for each section of the syllabus it is expected that in covering the syllabus students will be positively encouraged
2.3.1 To develop a positive attitude towards budgeting in the personal, business and national context
2.3.2 To develop an awareness of the market forces at work in society and to develop a discriminating attitude in dealing with them
2.3.3 To develop an openness to and appreciation of the differing viewpoints in industrial relations
2.3.4 To develop an appreciation of accounts as a form of communication and to develop confidence in reading accounts
2.3.5 To develop a positive attitude towards entrepreneurs, towards profits, towards the creation of wealth and its distribution
2.3.6 To develop a confidence when dealing orally or in writing with financial institutions
2.3.7 To develop a positive attitude towards our export market and to transfer that attitude towards acquiring foreign language skills
2.3.8 To develop an awareness of the important role of the state in economic affairs and how that role might be manifested
2.3.9 To appreciate the importance of acquiring basic economic literacy in order to make informed political choices
2.3.10 To develop a positive attitude towards technological development in the domestic, business and industrial world
3. SYLLABUS STRUCTURE AND CONTENT
3.1 Knowledge and skills
Each section of the syllabus is described in an introductory sentence. The key concepts and knowledge are then listed. These are followed by a llst of skills with which the student should be equipped having completed that section of the syllabus. The student will be assessed on the skills as well as on the knowledge content .
3.2 Integration
Throughout the course every effort should be made to present the syllabus in an integrated manner, the old division between Business Methods and Book-keeping should be avoided.
3.3 Business Studies and maths
Students are required to display a number of mathematical skills: these skills are part of the Business Studies syllabus. For the most part the teaching of these skills will involve the reinforcement of skills acquired in maths classes.
3.4 Business Studies and language
The communications skills specified in the syllabus are an integral part of the Business Studies course. In some cases it will involve the reinforcement of skills acquired in language class, in others it will involve their introduction ab initio. For many students the vocabulary associated with parts of the course will be totally new - weaker students especially will require time to be spent on familiarlsation with the 'new language'.
3.5 Business Studies and technology
The links between Business Studies and technology should be explored both in the use of information technologies in Business Studies and in the contribution that Business Studies can make to the wider perspectives of technological education in such areas as marketing, costing and social and economic organisation.
3.6 Visual presetation of Information
In presenting data emphasis should be placed on the various ways in which it can be presented e.g. chart, graph, tabular diagrammatic and pictorial form.
3.7 Levels
Sections of the syllabus marked with an asterisk will be assessed at Higher Level only.
SECTION ONE: THE BUSINESS OF LIVING
Budegting
Students are introduced to the matching of income with expenditure
Income
Sources, regular and additional
Statutory deductions and consequent benefits; other deductions
Gross and net pay
Benefit in kind
Cash account
Upon completion students should, from given data, be able to:
Identify sources of income
Estimate or calculate income
Interpret a wages sllp
File and record income
Expenditure
Fixed, irregular, discretionary
Weekly, monthly, annual
Opportunity cost
Impulse buying
Scarcity and choice
Analysed cash accounts
Upon completion students should, from given data, be able to:
List major items of household expenditure
Classify expenditure under appropriate headings
Prepare simple expenditure estimates
Prepare analysed household accounts
Check bills/invoices/delivery notes
File and record expenditure
The budget
Personal/household
Planning a budget
Surplus/deficit
Planning savings
Current/Capital spending
Accruals, e.g. ESB
Upon completion, the students, from given data, should be able to:
Match income and expenditure
Set priorities in expenditure
Identify false economies
Identify shortfalls in income
Prepare personal/household budget
Analyse critically personal/household spending
Classify and record income and expenditure
Compare the budget with the actual expenditure
Consumer Education
Students are introduced to the concept of being a good consumer, consumer rights and consumer protection.
The consumer
The informed consumer
Reasons for protection
Agencies involved
Legislation (elementary knowledge)
Procedure for redress
Writing a business letter
Ordering goods/services; receipts; credit notes
Upon completion students should, from given data, be able to:
Identify causes for complaint
Apply legislation
Present oral or written complaint
File and record details
Carry out simple research into consumer products
Financial Services for the Consumer
Students are introduced to money, banking services, personal borrowing, savings and insurance.
Money and banking
Forms of money
Money transfer facilities
The use of cheque card; credit card;
Eurocheques; travellers' cheques; cash dispenser;
Paypath Factors involved in selection of an agency (money transmission and savings) from: An Post, credit unions, building societies, commercial banks
Upon completion students should, from given data, be able to:
Identify different types of money
Open and operate an account
Recommend a method of payment
Complete a cheque Interpret a statement
File and record data
Cross a cheque in an appropriate manner
Show how a cheque might be negotiated
Recommend a suitable financial institution
Prepare a bank reconciliation statement
Calculate interest on deposits
Corrowing
Cash v. credit
Being a debtor
Nature and purpose of financial requirement
Lending agencies including licensed moneylenders
Rates of interest
Collateral Hire-purchase and rental
Borrower as a consumer Bankruptcy
Upon completion students should, from given data, be able to:
Compare cash with total credit cost
Select an appropriate source of credit
Present a written or oral application for credit
Calculate and compare the cost of credit
Compare the true v. flat rate of interest
Compare rental, purchase and hire-purchase Identify the rights of the borrower
Budget for the borrowing cost
File and record data
Insurance
Need for adequate insurance
Insurable and non-insurable risks
Basis of insurance Personal Life Car All risks
Proposal form Premium Claim Compensation Average clause
Upon completion students should, from given data, be able to:
Identify insurance requirements
Estimate cost Identify risk effects on premium
Estimate compensation (including the average clause)
Calculate a premium
Explain terms used
Complete a proposal or claim form
SECTION TWO: ECONOMIC AWARENESS
The National Business
The student is introduced to basic economic concepts and to the economic environment in which he/she lives.
Economic framework
What is economics?
Choice, scarcity, limited resources
Purpose of the economic system
Rate of inflation Economic Growth
Budgeting
National Budget (outline)
Expenditure - an introduction to main services provided by the state with particular reference to public utilities Income - main sources
Deflcit/surplus
Trade
Imports and exports
Importance of trade
Main types of goods traded
Sources of imports, destination of exports
Foreign currencies and exchange rates
Balance of trade - simple outline*
Balance of payments - simple outline*
On completion a student should, from given data, be able to:
Draft a simple budget
Identify a surplus or deficit
Identify on a map sources/destinations of Ireland's main exports/imports
Identify the member states of the EC, their language and currency Identify the currencies of other main markets
Convert one currency into another currency
Business Background
The student is introduced to the general background and structure of business nationally, and, to commercial services available to business.
Forms of business
Sole trader
Private limited company
Co-operative
State ownership
The private company
Formation procedure (outline) Incorporation Limited liability
On completion the student should, from given data, be able to:
Identify forms of ownership
Recommend forms of ownership
The student should also be able to research and compare forms of ownership in their locality.
Services to business*
The student is introduced to services available to business. This section also involves an informal introduction to the balance sheet.
Financial institutions
Cash flow
Types of finance
Relative costs of finance
Importance of security/collateral
Appropriateness/suitability of finance
Commercial banks
Financial services
Money transfer facilities
Procedure for opening accounts
Operating accounts
Insurance
Need for insurance
Major types of insurance
Communications
Internal/external
Modern developments
Telecom
On completion the student should, from given data, be able to:
Prepare a simple business plan including cash flow costings identification of markets Identify suitable sources of finance
Prepare and present a loan application (oral and written)
Calculate the cost of a loan
Compare costs of finance
Identify insurance requirements
Recommend a form of communications
Record essential data
At Work
The student is Introduced to the chain of production and to the people who work in the chain including industrial relations.
The chain of production
Primary production
Manufacturing/processlng
Service industry
Channels of distribution
Modern developments in retailing
People at work
Employment
Work v/employment
Nature and extent of employment
Self-employment, risks and rewards
Organisation of the workplace
Types of jobs and jobskills
Introduction to rights and responsibilities of an employee
Being an employer
Introduction to rights and responsibilities
Procedure for employing staff
Gross wages; time and piece rates; commission; overtime
Net wages; types of and reasons for statutory deductions
Importance of employee records
Industrial relations
A simple introduction to include
Trade Unions role Management role
Dispute Resolution of a dispute by a third party, e.g. conciliation, arbitration, Labour Court
On completion the student should, from given data, be able to:
Identify different units in the chain of production
Distinguish between different types of retailing
Match names to jobs
Draw a simple organisation chart for a business
Calculate gross wages bill for a small business
Complete a wages slip Identify steps in the resolution of an industrial dispute
The student should also be able to carry out relevant projects including simple surveys at local level.
SECTION THREE: ENTERPRISE (i)
The Business Unit
The student is introduced to the operation of formal double-entry accounting, beginning with a private limited company.
Private limited company
Formation procedure* Incorporation* Limited liability
Terms used capital ordinary share capital loan capital
Purpose of financial recording and filing
Assets and liabilities, fixed and current
The balance sheet
Operating the ledger
Simple control accounts*
Checking accuracy
Trial balance
Purpose of a trial balance
On completion students should be able to:
Differentiate between assets and liabilities
Construct a simple company balance sheet
Record changes in assets and liabilities through ledger account*
Interpret a ledger entry*
Extract a trial balance
Marketing and Distribution
The student is introduced to simple market research, identification of a market, to the purchase and sale of goods, and, to working out the level of gross profit (or loss!).
Marketing
Types of market
Market research - an introduction
Product development
Advertising
Promotions and public relations
Selling techniques branding special offers loss leaders
Export markets/import substitution
On completion students should be able to:
Identify target markets from given data
Suggest suitable sources of information on the market
Carry out simple research projects on markets and marketing
Select an appropriate method for promoting a product or service from given data
Delivery systems
Importance of transport in the chain of distribution
Modern developments in delivery systems
Factors affecting choice of delivery systems
On completion students should, from given data, be able to:
Select an appropriate delivery system, giving reasons
Calculate delivery times
Calculate cost of delivery
Purchases and sales
Effective purchasing
Sources of supply VAT
Simple terms of trade
Documents used in purchasing
Stock control*
Finance for purchase
Method of payment
Sales procedure from receipt of order
Checking credit rating of customers
Stock control*
Method of payment
Computerised stock control
Upon completion students should be able to:
Complete or interpret the following documents (including VAT)
- letter of enquiry
- quotation
- order form
- invoice
- deblt/credlt notes
- delivery docket
- statement of account
File documents
Record data in accounts from source documents
Compose a reply to queries - tracing a transaction to its origin through documents and accounts*
Calculate mark-up and margin*
The trading account
Purpose of the trading account
The trading period
Net sales/net purchases
Trading and non-tradlng stock
Stocktaking* purpose procedure valuation of stock
Cost of goods sold
Gross proflt/loss
On completion students should be able to:
Present appropriate (simple) reports on stock and stocktaklng*
Record stock in accounts
Calculate closing stock as per accounts*
Operate the trading account in accordance with conventions of double entry*
Prepare a trading account from given data Interpret information presented in a trading account*
Calculate gross profit percentage.
ENTERPRISE (ii)
Net Profit or Loss
The student now deals with the main overheads incurred by business leading to the preparation of the profit and loss account.
Business overheads
Nature of overheads:
lighting and heating rent and rates insurance loan interest advertising telephone
Monitoring overheads*
Upon completion students should be able to:
Record overheads in accounts
Check invoices, statements, cash dockets and vouchers
Classify and maintain analysed cash books
Extract a trial balance
The profit and loss account
Purpose of the profit and loss account
Distinction between the profit and loss account and the trading account
Capital and revenue expenditure*
Selling expenses Net profit/loss
On completion students should be able to:
Operate the profit and loss account in accordance with conventions of double entry* Prepare a profit and loss account from given data
Interpret data presented in profit and loss account form*
Calculate net profit percentage
The profit and loss appropriation account
Purpose of the profit and loss appropriation account
Ordinary share dividend
Retained earnings
On completion students should be able to:
Calculate dividends from given data*
Prepare a profit and loss appropriation account
Interpret data presented in a profit and loss appropriation account*
The balance sheet
In preparing the balance sheet the student is given the opportunity to review the following: the trial balance, simple control accounts, final accounts and the functions of each.
The uses and limitations of a trial balance*
Function of control accounts*
Modern layout of the balance sheet
Purpose of sub-dlvisions in the balance sheet
Working capital, capital employed
On completion students should be able to:
Prepare final accounts from given data with balance sheet Interpret information presented in balance sheet form.
Adjustment *
Nature of the following adjustment:
prepayments, accruals bad debts depreciation (straight llne only) stocks
Procedure for dealing with account adjustments
On completion students should be able to:
Calculate adjustments
Calculate depreciation using straight line method
Record adjustments in accounts
REPORTING ON ACCOUNTS
Having completed the preparation of final accounts the student is now introduced to the analysis of this information and the compiling of reports thereon.
Assessing the business - its financial state and viability
Overtrading
Profitability, profitability ratios
Liquidity, liquidity ratios
Solvency
Limitations of final accounts in assessing a business
On completion students should be able to:
Interpret and compare final accounts
Interpret and compare ratios
Select and calculate relevant ratios
Compile a report (in simple form) on final accounts and balance sheet together with valid recommendations
Club accounts
The purpose of financial recording and filing
The role of club treasurer
Receipts and payments account Income and expenditure account
Treasurer's report purpose format
On completion students should, from given data, be able to:
Prepare an analysed receipts and payments account
Prepare an income and expenditure account (incorporating adjustment*)"
Prepare a balance sheet
Present a simple treasurer's report
Farm accounts
The purpose of farm accounts
The use of analysed farm accounts
On completion students should be able to:
Prepare simple accounts from given data
Prepare a simple report on farm accounts
Service firms
Analysed cash accounts
Final accounts for a service firm
On completion students should be able to:
Prepare analysed cash accounts from given data
Prepare final accounts from given data together with a balance sheet
Presentation of ledger accounts*
To account and continuous presentation
On completion students should be able to:
Convert accounts from Taccount to continuous and vice - versa
Prepare accounts using a continuous presentation
SECTION FOUR : INFORMATION TECHNOLOGY
Although included in the syllabus under a separate heading It is expected that students will be made familiar with information technology throughout the course, and be given the experience of operating it.
Students should be trained in correct keyboarding techniques with emphasis on accuracy.
Modern information technology
Storage, retrieval and transmission of data
Use in business communication homes banks
Keyboard layout
Correct use of keyboard
Techniques of proofreading
Self-assessment of keyboarding skills
Simple accounts on computer
Having completed the course a student should be able to:
Identify parts of the machine
Use a keyboard effectively and accurately °
Operate effectively a system of computerised accounts °
°The assessment procedures will take into account that not 811 students may have access to the equipment required to complete the practical components of this section.
4 . ASSESSMENTT
4.1 Business Studies will be assessed at the two levels, Ordinary and Higher. At both levels, assessment will be by terminal written examination.
Provision will be made for an optional element of school-based assessment for those schools which wish to avail themselves of the option.
The format of the examination papers and the types of question will be related to the assessment objectives set out in this syllabus.
The assessment procedures will take into account that not all students may have access to the equipment required to complete the practical components of the information technology section.
4.2 Assessment objectives - Higher Level
On completion students should be able to :
4.2.1 Recall a knowledge of syllabus content
4.2.2 Demonstrate ability to apply this knowledge to given situations
4.2.3 Demonstrate an understanding of terminology and vocabulary central to the syllabus
4.2.4 Display a basic level of numeracy skills in calculations based on commercial principles
4.2.5 Explain, interpret or illustrate data in a variety of forms
4.2.6 Display an appropriate level of communication skills to cope with everyday business
4.2.7 Apply accounting principles to the solution of given problems
4.2.8 Interpret and analyse given data in order to:
- predict likely outcomes of given situations recommend appropriate actions make evaluative Judgements
4.2.9 Demonstrate an ability to use a keyboard effectively and accurately
4.2.10 Display an appropriate level of research skills for the completion of simple assignments
4 . 3 Assessment objectives - Ordinary Level
On completion of the syllabus students should be able to :
4.3.1 Recall, in simple language, knowledge of specified syllabus content
4.3.2 Demonstrate some ability to apply this knowledge to given situations
4.3.3 Demonstrate a familiarity with essential terminology and vocabulary central to specified areas of the syllabus
4.3.4 Display a basic level of numeracy skills in calculations based on commercial principles
4.3.5 Explain or illustrate simple data in a variety of forms including pictorial, account, numerical, literary or diagram form
4.3.6 isplay simple communication skills to cope with the requirements of specified areas of the syllabus
4.3.7 Apply accounting principles to the solution of given problems in specified areas
Assessment of Ordinary Level students will focus mainly on their ability to maintain receipts and payments accounts with related analysis. The operation of an accounting system in accordance with the conventions of the double-entry system will be assessed only at Higher Level.
Ordinary Level students' accounting skills will be assessed on their ability to:
- (a) write up analysed receipts and payments accounts
- (b) display some understanding of the relationship between entries in the account and related documents e.g. receipts, vouchers, cheque counterfoils, lodgement forms
- (c) prepare a simple trading account, profit and loss account and balance sheet
- (d) prepare an income and expenditure account and balance sheet of a club
4.3.8 Interpret and analyse, at this level, given data in order to:
- predict likely outcomes of given situations recommend appropriate actions make evaluative judgements
4.3.9 Demonstrate an ability to use a keyboard effectively and accurately
4.3.10 Display basic research skills for the completion of simple assignments