BTEC Business Comprehensive Exam Fully Solved 100% 2024.

Methods of payment - Answer Cash, Credit/debit card; Standing orders; Direct debits; Cheque Cheque - Answer a written order directing a bank to pay money Give 2 advantages and 2 disadvantages of using a cheque as a method of payment - Answer Advantages - low risk form of payment as the cheque can only be cashed by the named payee - Widely accepted for face- to face or postal transactions Disadvantages - viewed as old fashioned - easy to make errors when writing the cheque which can cause problems for both the consumer and the recipient Credit Card - Answer Type of card issued by a bank that allows users to finance a purchase. It is issued by financial institutions allowing customers to delay payments for goods and services Give 2 advantages and 2 disadvantages of using a credit card as a method of payment - Answer Advantages - allows a period of credit that is interest free - usually one months - suitable for online transactions Disadvantages - Interest is charged on balances not paid off within a month - can encourage customer to overspend and get into debt Electronic transfer - Answer Payment is transferred directly from one bank account to another