Business: Finance Exam Flashcards Preview

Business Studies Edexcel Pearson Unit 3 (Finance) > Business: Finance Exam > Flashcards

Flashcards in Business: Finance Exam Deck (42)
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1

Financial Services Compensation Scheme (FSCS)

- Consumer Protection
-Organisation
-Pays Compensation to a consumer
-This happens if the service provider is unable
-Protects up to £85,000

2

Office of Fair Trade (OFT)

-Consumer Protection
-Government Organisation
-Established to regulate all markets
-Fair prices
-Healthy competition

3

Legislation: Consumer Credit

-Consumer Protection
-Are laws passed
-Enforces the regulation of any firm offering credit

4

Financial Conduct Authority (FCA)

-Consumer Protection
-Independent Organisation
-Regulates the actions of providers of financial services
-Funded by membership fees
-Focuses of 3 key areas
1)AUTHORISATION
2)SUPERVISION
3)ENFORCEMENT

5

Financial Ombudsmen Service (FOS)

-Consumer Protection
-Has compulsory fees
-Government Interest
-Consumer disputes with financial service providers

6

Banks

*Handles financial transactions and stores money
*Services offered: holding deposits, making payments and supplying credit
+Has Security
-Savings protected up to £85,000 if the bank goes bankrupt

7

Types of Income: Investment

-Capital
-Loans
-Mortgages
-Shares
-Owner’s Capital
-Debentures

8

Types of Income: Revenue

-Cash Sales
-Credit Sales (You don’t get the money immediately)
-Rent received
-Commission received
-Interest Rate
-Discount received (Goodwill)

9

Types of Asset: Current Asset

-Cash and other company assets that will be turning into cash within 1 year

10

Types of Assets: Non-Current

-Long-term investment where the full value won’t be realised for a full year

11

Types of Assets: Tangible

-Physical item

12

Types of Asset: Non-tangible

-Non physical

13

Bank Of England

*Maintains Finance for all of the UK
+Makes a stable economy
-Not a bank for the members of the public
-Can raise interest rates making borrowing more expensive

14

Building Societies

*Members that are part owners
*Members can vote
*Not on the stock exchange
+Allows higher interest
-Savings on protected up to £85,000
-Lack of business drive

15

Insurance Companies

*Protect against the risk of loss in return for a premium
+Planning is made easier
-Premiums will be charged to ensure share holder needs are met

16

Current Accounts: Standard

*Direct debit (used for bill payments, etc)
*Standing orders (you have control)

17

Current Accounts: Basic

*Electron cards which only take money out at a cash point
*Used for people with a low credit score
*Could be for under 16s

18

Current Accounts: Student

*Interest free overdraft

19

Current Account: Premium

*Pay a monthly fee
*Breakdown

20

Credit Unions

-Not-for-profit
-Responsible for supporting a community made up of its members
-Members are the owners and have voting rights
+Offer additional benefits to the community/good cause
-Lack of business drive

21

National Savings and Investments

*Government-backed
*Offers a secure saving option
*Options include: ISAs, premium bonds, gilts & bonds
+100% Savings
+No upper limit
+Offers additional services
-Rates are variable
-Not easy access due to a lack of highest presence

22

Pension Companies

*Sell policies to individuals to allow them to save now to fund retirement
+Security
+Experts are employed to make investment decisions
-Money already invested in a pension cannot be released

23

Pawnbrokers

*Loan money against a personal asset
+Quick way of getting cash
+Amount of money given for the Asset is often substantially lower than its actual worth

24

Payday Loans

*Short term
*Bridge the gap
*Small amounts at a high rate
+Quick way of getting cash
-Interest charges are high
-Final sum substantially higher the initial amount

25

Citizens Advice

*An Organisation ran by charities that offers advice on both financial/non-financial issues
*Covers: debt, benefits, banking, pensions and insurance
+Free service
+Wide range covered
-Not professional

26

Independent Financial Advisor (IFA)

*Professionals that offer independent advice on financial matters
+Services are regulated
-There’s no unbiased guarantee

27

Price Comparison Websites

*They’re websites that collate prices for similar goods/services
+24/7 access
+Free service
-Not 100% up-to-date
-Not unbiased

28

Money Advice Service

*Government Organisation
+Government funded
+Impartial
-No physical presence
-Advice can be generic rather than personal

28

Individual Voluntary Arrangements

*Government Organisation that allows an individual to declare themselves bankrupt
+Helps manage debt payment
-Negative side is it will affect their future credit ratings
-“Setup” And “Handling Fees” are charged for

29

Debt Councellors

*Professionals who offer independent advice on how to manage your debts
+Specialised professional
-Services will be charged for