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Business BTEC Level 3 > Unit 3 > Flashcards

Unit 3 Flashcards

(67 cards)

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1
Q

Advantages of Car insurance

A

No claims bonus

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2
Q

What are the types of online customer communication

A

Online banking

Pawn brokers

Telephone banking

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3
Q

More types of financial organisations

A

Insurance Companies

Pawn brokers

Pension companies

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4
Q

What are the types of financial organisations?

A

Bank of England

Banks

Credit unions

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5
Q

Definition: insurance

A

Insurance is a financial service that protects an individual

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6
Q

Yes or no, do premium bonds pay interest

A

No.

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7
Q

What does a fixed deposit do?

A

Pays a fixed amount for a period of time

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8
Q

What are the types of current accounts?

A

Student account

Packaged account

Basic account

Standard account

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9
Q

Main types of borrowing

A

Credit card

Loan

Mortgage

Overdraft

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10
Q

Advantage of an overdraft

A

Easy to set up

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11
Q

Disadvantages of an overdraft

A

High interest rates

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12
Q

Disadvantage of an overdraft (2)

A

High interest rates

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13
Q

Advantages of a personal loan

A

Monthly installments

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14
Q

Disadvantages of a personal loan

A

Arrangement fees

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15
Q

Advantage of a mortgage

A

Purchase for a long period of time.

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16
Q

Disadvantages of Mortgage

A

Items may be repossessed

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17
Q

What is the financial ombudsman service

A

Is an independent body that resolves disputes between customers and institutions

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18
Q

What is the financial conduct authority

A

Regulates the conduct of financial service providers

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19
Q

Definition: inflation

A

Inflation is when the prices of food rise due to the decrease in the value of money.

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20
Q

What are the functions of money

A

Units of account

Means of exchange

Store of value

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21
Q

Factors influencing the view of money

A

High interest rates

Culture

Life events

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22
Q

Why do we plan expenditure

A

To generate income

Avoid bankruptcy

Control costs

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23
Q

What are the most common payment methods?

A

Credit card

Debit card

Cash

Cheque

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24
Q

What are the two main types of ISA?
(Individual Savings Account)

A

Cash ISA

Stocks/shares ISA

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25
What is credit rating?
Score that tells you how much money you have been paying overtime.
26
What is bankruptcy
Where you have no money left due to unpaid loans and debts
27
What is debt?
How much money you own off from a loan
28
What are interest rates?
Rate of borrowing money or the reward of Saving it
29
Disadvantage of pet insurance
Vaccinations are not covered
30
Disadvantages of health insurance
Pre existing medical records are not covered
31
Advantages of health insurance
Covers the entire medical costs
32
Disadvantages of car insurance
Costly Expensive
33
Advantages of pet insurance
Cover The Cost
34
Disadvantage of home insurance
Only covers the rebuilding of the property.
35
Advantages of home insurance
Covers the cost.
36
What is an Overdraft?
Allows Bank holders to withdraw more money than they have
37
What is an Individual Savings Account?
Savings where the owner is not charged on income
38
Disadvantage of Credit Cards
High Interest Rates Lead to high amounts of debt
39
Disadvantage of Debit Cards
Limited fraud Protection Overspending
40
Advantage of Debit Card
Easy to use Low Interest rates
41
Advantage of a Credit Card
Avoids Overspending Most common payment method
42
What is crowdfunding
A way of raising money to finance business events
43
What is a shareholder
Someone who has an interest in a business in return for an equity
44
What is expenditure
The amount of money to cover all expenses
45
Advantage of life insurance
Peace of Mind
46
Disadvantage of Life insurance
Costly Expensive
47
Advantage of Travel insurance
Covers Medical Cost
48
Disadvantage of Travel Insurance
Limited Coverage
49
What are the types of revenue Income?
Credit Sales Cash Sales Interest received
50
What are the types of capital income?
Mortgage Loan Shares
51
What are the purposes of accounting?
Compliance Recording Transactions Control
52
What is consumer protection?
laws and regulations that protect customers from being treated unfairly
53
What is a consumer credit legislation?
is a rule that a financial provider has to follow
54
What are the types of revenue expenditure
Rent Insurances Wages Interest paid
55
What are the internal sources of finance?
Sale of assets Retained profit Net current assets
56
What are the external sources of finance?
Loans Crowdfunding Hire purchase
57
What is HMRC?
HMRC is the tax authority of the United Kingdom
58
What are the type of current assets
inventories trade receivables prepayments
59
Advantage of Net Current Assets
Effective Cash Flow
60
Disadvantages of Net Current Assets
Pressure on customers
61
Advantage of Crowdfunding
High exposure Access to Capital
62
Disadvantage of Crowdfunding
Costly Loss of reputation
63
What are inflows and outflows
Inflows = money coming into the business Outflows = money coming out of the business
64
What is cash flow
Movement of money throughout the business
65
What is Liquidity
Firms ability to meet short-term payments
66
What is credit period
Length of time given to customers to pay goods
67
What is insolvent
When a firm is unable to meet short-term payments

Business BTEC Level 3 (4 decks)

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