business revision Flashcards
What are the four functions of money?
- Unit of account
- Means of exchange
- Store of value
- Legal tender
Name all the different ways to pay
Cash Debit card Credit card Cheque Electronic transfer Direct debit Standing order Pre-paid cards Contactless cards Charge cards Store cards Mobile banking BACS CHAPS
What is overdraft?
when you have spent more money that is available in your account and the bank agrees to loan you a certain amount for a time and you can continue spending up to that limit. You will have to pay back what you spend from your overdraft, plus interest. Interest rates on an overdraft can be high, but you only pay interest on the amount you use.
What is a personal loan?
A personal loan is a type of loan that allows flexible use, short- to moderate-term repayment options and relatively quick funding. Whether you’re trying to consolidate high interest debt, start a business or pay an expensive medical bill, a personal loan can help you accomplish your goal.
What is hire purchase?
With hire purchase you hire an item (a car, a laptop, a television) and pay an agreed amount in monthly payments. You do not own the item until you have made the final payment
What is a mortgage?
A mortgage is a type of loan that’s used to finance property. Mortgages are “secured” loans. With a secured loan, the borrower promises collateral to the lender in the event that they stop making payments. In the case of a mortgage, the collateral is the home.
What is a payday loan?
What exactly is a payday loan?
A payday loan is a type of short-term borrowing where a lender will extend high-interest credit based on your income. Its principal is typically a portion of your next paycheck. Payday loans charge high interest rates for short-term immediate credit.
Name all of the financial support institutions
Citizens Advice Independent financial advisor (IFA) Price comparison websites Money advice service Debt counsellors Individual Voluntary Arrangements (IVAs) Bankruptcy
Name all the types of CAPITAL income
Loan Mortgages Shares Owner’s capital Debentures
Name all the type of revenue income
Cash sales Credit sales Rent received Commission received Interest received Discount received
what type of assets are tangible?
land, buildings and premises, machinery and equipment,
vehicles, fixtures and fittings
What type of assets are intangible?
goodwill, patents, trademarks, brand names
What is retained profit?
Retained profit is the amount of a business’s net income that is kept within its accounts, rather than paid out to shareholders. Retained profit is a strong indicator of the long-term financial stability of a business.
What is meant by Net current assets?
Net current assets is the aggregate amount of all current assets, minus the aggregate amount of all current liabilities. There should be a positive amount of net current assets on hand, since this implies that there are sufficient current assets to pay for all current obligations.
What is sale of assets?
When a company will sell their own assets in order for money
