Btec Business Level 3 Exam Questions Complete And Verified Solutions Graded A+ Disntinction Guaranteed.

Give two features of a premium current account. - correct answer travel insurance cinema tickets Monthly fee Describe the role of the Financial Ombudsman Service. - correct answer acts as an independent assessor when dealing with complaints between consumers and financial service providers Explain two benefits of pre-paid credit cards of the type used when on holiday - correct answer it allows you to take money on holiday in a safe and secure way because if the pre-paid credit card is stolen it cannot be used without the PIN. Another reason is that it will allow you to control spending as the card will be up to a fixed amount Identify two types of intangible non-current assets. - correct answer Goodwill Patent Trademarks Outline what is meant by 'capital income' - correct answer Money invested by owners to set up a business Give two functions of money. - correct answer Unit of account Means of exchange State two areas of guidance given by Citizens Advice - correct answer tax debt benefits Outline two benefits of online banking. - correct answer 24 hr access and monitor accounts in real time Access account anywhere in the world , therefore conducting business faster Discuss the differences between direct debits and standing orders - correct answer Direct debit - usually will be taken on a set agreed date and Direct Debit Guarantee protects customers from payments taken in error Standing order - you can cancel the standing order when you like and customer sets it up to pay other people Outline one benefit to Jenny of using a cash flow forecast. - correct answer Jenny can plan expenditure and ensure she does not overspend Identify two sources of advice and guidance about personal finance. - correct answer citizens advice IFA Money advice service Give two ways that customers can contact and interact with their bank. - correct answer Face to face branch telephone Discuss how useful break-even analysis can be to a small business such as Treasures. - correct answer it shows whether a product is worth selling or is too risky. it shows how many products they need to sell to ensure a profit. Outline what a 'semi-variable cost' is - correct answer Part of the cost stays the same and part varies in relation to the degree of business activity Outline what is meant by the term 'drawings' in a financial document. - correct answer Drawings are assets which are taken out of a company by its owners for personal use Identify two different types of current accounts. - correct answer Standard Packaged Premium Identify two features of travel insurance - correct answer Loss / theft of belongings cancelled flight Give two different types of financial institutions. - correct answer Bank of England Building societies Banks State two ways the Financial Conduct Authority (FCA) can protect consumers in relation to personal finance - correct answer Help resolve complaints from consumers Protect consumers against fraud Give two advantages to the consumer of paying monthly bills by direct debit - correct answer can help you budget immediate refunds are available for payment errors Give two disadvantages to the consumer of paying monthly bills by direct debit - correct answer Could be more expensive Could result in over payments Give one reason for recording financial transactions - correct answer Record/track income/inflows State two types of payment card. - correct answer Debit card Credit card Pre - paid card State two disadvantages to the holder of using Premium Bonds as a form of saving and investment. - correct answer Little chance of winning top prizes No guaranteed return Explain two features of a credit union. - correct answer Credit union is protected by FSCS which means savers will not lose money up to £85 000 Credit unions usually offer lower interest rates to borrowers so can offer better deals to customers credit unions are financial cooperatives, this means they are run and owned by the members identify two types of revenue income for a small business. - correct answer cash sales credit sales State two types of intangible non-current asset that a business could have. - correct answer goodwill patent trademarks Explain two disadvantages to the consumer of using pre-paid cards. - correct answer Purchases are limited to the amount on the card therefore spending is limited Some cards have maximum amounts which can be loaded onto the card which limits its use Give two advantages to the consumer of using gilts as a form of saving. - correct answer Fixed interest rate Low risk Explain one advantage to a business of using debentures as a source of income. - correct answer The interest rate is fixed so the company does not need to worry about interest rate changes What is a credit card? - correct answer Goods and services are directly paid by the card issuer What is a debit card? - correct answer payment is directly taken from the cardholders account What is a cheque? - correct answer A written order to pay a sum of money from one bank account to another What is a contactless card? - correct answer Payment is made when the card touches the terminal What is a overdraft? - correct answer Short term loan which can be used to pay bills if you are short of cash What is a personal loan? - correct answer This is used to buy expensive items such as a car What is a deposit savings account - correct answer An easy access savings account that allows instant access to it What are premium bonds? - correct answer Savers are given the chance to win a tax free cash prize every month What are bonds and gilts? - correct answer These are fixed-term securities where the lender lends money to companies and governments in return for interest payments. What is a pension? - correct answer Pensions are long term savings schemes designed to help you save for retirement. What are non-current assets? What are some examples of non-current assets? - correct answer Non-current assets are items owned by a business that will remain in the business for a reasonable period of time. Tanglible assets Intangible assets What are current assets? What are some examples of current assets? - correct answer items owned by the business that change in value on a regular basis Inventories Trade recieivables Cash in the bank Cash in hand What are current liabilities? What are some examples of current liabilties? - correct answer A current liability is something owed by the business that should be paid back in under one year Overdrafts Accruals Trade payables What are non-current liabilities? example? - correct answer they have to be paid back in more than a year bank loans and mortgages What is profitability? - correct answer Measures the ability of the company to make money What are inventories? - correct answer goods that have been produced but not yet sold What is goodwill? What is a patent? What is a trademark? What is a brandname? - correct answer when you buy an existing business, its name and reputation will already be known a patent is the legal protection of an invention a trademark is a symbol, logo, brand name a feature of a business that is recognised by customers and distinguishes the business from competitors. Outline two methods of improving profitability and 2 methods of improving liquidity? - correct answer Reduce costs Alter costs Borrow money save money Benefits of credit cards Drawbacks of credit cards - correct answer Oppurtunity to build card Increased fraud protection Widely accepted Interest is charged on balance not paid can encourage overspending benefits of a debit card - correct answer dont have to carry cash no interest charges widely accepted encourage overspending not accepted for small purchases What is variable costs? Example? - correct answer Not constant raw materials , selling price , variable costs per unit , delivery charges What is fixed costs? - correct answer it is a cost that does not change rent , mortgage insurance , salary , depreciaiton What are the advantages and disadvantages of retained profit? - correct answer No interest rates and you don't need to pay anything back. Easy to access and quick form of finance. It depends on the size of the business, and can