BTEC BUSINESS LEVEL 3 EXAM QUESTIONS
WITH CORRECT SOLUTIONS
Give two features of a premium current account.
travel insurance
cinema tickets
Monthly fee
Describe the role of the Financial Ombudsman Service.
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
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.
Goodwill
Patent
Trademarks
Outline what is meant by 'capital income'
Money invested by owners to set up a business
,Give two functions of money.
Unit of account
Means of exchange
State two areas of guidance given by Citizens Advice
tax
debt
benefits
Outline two benefits of online banking.
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
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.
Jenny can plan expenditure and ensure she does not overspend
Identify two sources of advice and guidance about personal finance.
, citizens advice
IFA
Money advice service
Give two ways that customers can contact and interact with their bank.
Face to face
branch
telephone
Discuss how useful break-even analysis can be to a small business such as Treasures.
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
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.
Drawings are assets which are taken out of a company by its owners for personal use
Identify two different types of current accounts.
Standard
Packaged
Premium
WITH CORRECT SOLUTIONS
Give two features of a premium current account.
travel insurance
cinema tickets
Monthly fee
Describe the role of the Financial Ombudsman Service.
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
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.
Goodwill
Patent
Trademarks
Outline what is meant by 'capital income'
Money invested by owners to set up a business
,Give two functions of money.
Unit of account
Means of exchange
State two areas of guidance given by Citizens Advice
tax
debt
benefits
Outline two benefits of online banking.
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
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.
Jenny can plan expenditure and ensure she does not overspend
Identify two sources of advice and guidance about personal finance.
, citizens advice
IFA
Money advice service
Give two ways that customers can contact and interact with their bank.
Face to face
branch
telephone
Discuss how useful break-even analysis can be to a small business such as Treasures.
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
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.
Drawings are assets which are taken out of a company by its owners for personal use
Identify two different types of current accounts.
Standard
Packaged
Premium
