Peronsl Finance

Question 1

What is a standing order and give a advantage

Answer 1

A standing order is a regular payment of the same amount paid on a specific date.
E.g rent

-automated payments therefore smoother
-can easily cancel

Question 2

What is a payday loan and explain

Answer 2

A short term unsecured load with high interest rates.

Question 3

When are payday loans mostly used

Answer 3

For unexpected emergency, usually then paid back when you get paid next

Question 4

Disadvantages of a payday loan

Answer 4

-Expensive
-can easily fall into debt
-they have access to your bank account
-short repayment periods
-predatory

Question 5

Types of revenue income

Answer 5

-sales
-rent revenue
-royalties
-dividends ( amount earned from holding stock of other companies)

Question 6

What is margin of safety

Answer 6

How much output or sales level can fall before a business reaches breaking even point

Question 7

What can be found in a cash flow forecast

Answer 7

Inflows & outflows