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Business B-tech > B > Flashcards

B Flashcards

1
Q

How many types of finanical organisations are there and what are they?

A

9,
Bank of England, Banks, Building societies, Credit union, National Savings and income, Insurance companies, Pension companies, Pawnbrokers, Payday loan Companies

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2
Q

How does the Bank of England relate to the personal finance sector?

A
  • regulates and supervises all financial institutions
  • responsible for the UK’s monetary value and stability
  • sets interest rates
    independent from government
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3
Q

How do banks relate to the personal finance sector

A
  • owned by shareholders
  • offer customers a range of financial services
  • reliable, secure and private
  • may charge for certain services
  • if bank fails up to £85,000 is safe
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4
Q

How does Building societies relate to the personal finance sector?

A
  • owned by members
  • provide financial services
  • could offer better interest and saving rates than banks
  • fewer branches
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5
Q

How does credit unions relate to the personal finance sector?

A
  • owned and run by members
  • non profit
  • offer savings + current accounts and loans
  • limited funds
  • good cooperation and grouo feeling
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6
Q

How does NS+I relate to the personal finance sector?

A
  • some services can be accessed in a high street post office
  • Sells savings and investment products
  • invested in products used to finance government activities
  • poor interest rates
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7
Q

How do isnurance companies relate to the personal finance sector?

A
  • offer policies compensating holders against unideal situations
  • also have life insurance mixed with pensions plans
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8
Q

How do pensions companies relate to the personal finance sector?

A
  • projected income uses figures that change over time
  • funds locked up and penalties received if money is taken out early
  • businesses sell these allowing customers to prepare for retirement
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9
Q

How do pawn brokers relate to the personal finance sector?

A
  • high short term cost
  • instant cash available
  • pawned items may be sold if not bought back in a certain time
  • interest us charged on the loans
  • indivudals or businesses asses item and decide how much it is worth
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10
Q

How do pay day loan companies relate to the personal finance sector?

A
  • very expensive and easy to get into debt
  • immediate cash available
  • business that offers people short term cash between pay days
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11
Q

What are the 5 ways of customer communications?

A

Bank Branch
Telephone Banking
Online Banking
Postal Banking
Mobile Banking

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12
Q

What does mobile banking offer?

A

manage account through phone, 24/7 service available, efficient but has security concerns

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13
Q

What does postal banking offer?

A

send paper copies of clients statements, can also pay chequs though post, but these can be delayed in the post, useful for those without internet access.

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14
Q

What does telephone banking offer?

A

simple transactions available 24/7, can speak directly to an adviser, efficient automated services, oversea call centres may not be useful

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15
Q

What does online banking offer?

A

Manage accounts on their computer, can check balance, pay bills and transfer money 24/7, but can not pay in or draw out cash

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16
Q

What do bank branches offer?

A

over counter transactions, machije or actual person, take cash out or put it in., has open and closing hours. have to travel to get there.

17
Q

What are the role, function and responsibility of Financial Conduct Authorty?

A
  • authoirse business trade and supervise work and practice with force
  • resposnible for customers are provided with products and services
  • independent body funded by organisations
18
Q

What are the role, function and responsibility of Financial Ombudsman Services?

A
  • give advice on decisions mad eby facts
  • service set up by law
19
Q

What are the role, function and responsibility of Financial Services Compensation Scheme?

A
  • fund can pay compensation to consumers for financial lss if a business is unable to pay claims against it
  • covers claims against business authorised by the FCA
20
Q

What is consumer credit legalisation?

A

regulates credit card purchases and gives consumer protection when signing loan and hire purchase agreements

21
Q

What is the Office of Fair Trading?

A

an office protecting consumer interests now responsible for the FCA

22
Q

What are the 6 types of consumer advice?

A
  • citizens advice
  • Independent Financial Advisers
  • Price Comparison Websites
  • Debt Counsellors
  • The Money Advice Service
  • Individual Voluntary Arrangements and bankruptcy
23
Q

Whats an advantage and disadvantage of Citizens advice?

A

+ helpful for low income citizens and useful first point of call
- advisers are volunteers not professionals, so could struggle with complex situations

24
Q

Whats an advantage and disadvantage of Independent Financial Advisers?

A

+ do not recieve comission
-IFAs charge for service

25
Q

Whats an advantage and disadvantage of price comparisson websites?

A

+ allows custommers to choose a product thats best for them
- requries online access and won’t see all supplier

26
Q

Whats an advantage and disadvantage of debt counsellors?

A

+ personalised advice on budgeting and dealing with creditors
- Authorised by the FCA
- Individual debt counsellors charge a fee

27
Q

Whats an advantage and disadvantage of The Money Advice Service?

A

+ online tools, web chat faility and calculators wuth budgetting
- requires a computor

28
Q

What is an Individual Voluntary Arrangements and bankruptcy?

A
  • an agreement that individuals do with creditors to pay off debts
  • person who is decared bankrupt will have to use assets to pay of debts
29
Q

What are the 5 types of accounting?

A
  • Recording transactions
  • Management of business
  • Compliance
  • Measuring Performance
  • Control
30
Q

What is recording transactions?

A

accountanrs record money going in + out businessm helps track payments + recieve bills + pay taxes

31
Q

What is management of business?

A
  • planning for financal commitment
  • monitoring - check performance
  • control - esnure there are sufficient funds
32
Q

What is compliance?

A

complying to financial reporting requirments, internal accounting helps stop fraud

33
Q

What is Measuring performancce?

A

accounts that measure:
- gross and net profit
- sales revenue
- efficiency in collecting money owed to the business
- expenditure
- cost

34
Q

What is control?

A

tracks:
- trade receivables, debts generated by sale of products
- trade payabes - debts that have been created as a result of purchasing products

Business B-tech (7 decks)

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