Money and Business

MONEY

• Money is any object of value that can be exchanged for a product or service.

How can we save money?

Savings account: many people use a savings account to save money. They put money into the account, and the bank pays interest on it.

You don´t need a debit or credit card.Investing money: when you invest, you buy

something with the objective of selling it later for more money. People often invest in shares or bonds.

Money box: a money box is a box or container where people save money. You can put money into a money box whenever you want.

Credit VS Debit

• Debit card: Your money leaves the bank account inmidiatly.( You only can spend the money you have)

• Credit card: Your money doesn´t leave the bank account inmidiatly.( You can spend more money that you have, The bank lends you the money but you have to give it back with interests)

How do we spend our money? Where do we spend money?

- We spend money on high order products like cars and houses.

- We spend money on low order products such as food, drinks and medicines. We buy these every week.

- We spend money in:Town centres Shopping centres On the internet

A budget• It is the amount of money that we have

to spend. Budgets help us control how much we spend.

Household budgets: many people use budgets for their shopping.

Business budgets: many businesses use budgets to plan how much they will spend on raw materials and products.

What types of companies are there?

In a partnership, two or more people own and direct a company together.

A corporation is owned by the people who have shares in the company. If they operate in other countries, we call them multinationals

A sole trader owns and directs his or her own company.

In a cooperative, all the people working in the company own it together.

An organisational chart shows how a company is organised. It shows who works for the company and what their responsibilities are. The most important jobs appear at the top of the chat.

What’s an organisational chart?