Study guides, Class notes & Summaries

EconomyAnswer - The state of a country of goods and services. PartnershipAnswer - Comprising two or more people who set up in business together and share all profits and losses. LiabilityAnswer - An obligation of a company, or amounts owed to leaders and suppliers. FTSEAnswer - The financial times stock exchange RevenueAnswer - The income received by a business for selling its products and services. Market forcesAnswer - Factors created by the economy for the dem...

Financial Institution - Answer A business that provides financial services to individuals or businesses Bank of England - Answer The central bank for the UK. Its role is to monitor the banking system and to be a banker to the banks. It is responsible for setting interest rates in the UK. Bank - Answer an institution for receiving, keeping, and lending money Building societies - Answer a financial organization which pays interest on investments by its members and lends capital fo...

What is a balance sheet? - Answer a snapshot of the firm's assets and liabilities at a given point in time, this is not always accurate but is an overview of how the business is performing. This is a legal requirement to have a business execute these documents and for the business to understand how its performing. Assets - Answer what the business owns, such as land or buildings. Fixed Assets? - Answer Long-term assets that are relatively permanent such as land, buildings, or equipm...

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 wh...

Cash - Answer Money in the form of bills or coins Debit card - Answer A card used to withdraw money from a bank account Credit card - Answer A card authorizing the holder to buy goods and services that can be paid for later. Cheque - Answer A written instruction to your bank to pay a sum of money to another person from your current account Electronic transfer - Answer The transfer of funds from one account to another via the internet or telephone Direct debit - Answer ...

Net Cash Flow - Answer Total inflows - total outflows Closing balance - Answer Opening balance + net cash flow Sales revenue - Answer price x quantity sold Variable costs - Answer cost per unit x quantity made Total costs - Answer fixed costs + variable costs Profit - Answer sales revenue - total costs Break even point - Answer Fixed costs / contribution per unit Contribution per unit - Answer Selling price - variable cost per unit Total contributi...

Business - Answer An organisation or economic system where goods & services are exchanged for money. Private sector - Answer the part of the economy that involves the transactions of individuals and businesses Public sector - Answer the part of the economy that is controlled by the government Not for profit sector - Answer A business dedicated to furthering a particular social cause or advocation for a shared point of view Sole trader - Answer A business in which one p...

what are the 6 types of personal borrowing? - Answer mortgages, hire purchase, payday loans, overdraft, personal loans, credit cards personal loan - Answer gives you the ability to borrow a set amount of money, normally for a specific purpose, to be repaid in regular instalments. payday loan - Answer short term source of finance used to bridge the gaps between now and next receiving a wage credit card - Answer goods are paid for by card and can be paid for either at the end ...

Premium bonds - explanation Answer - A government scheme that allows individuals to save up to a set amount by buying bonds. The bond holder does not receive interest on their savings but each bond is placed into a regular draw for cash prizes Premium bonds - advantages Answer - Can win substantially more than could be earned in interest. Can be easily withdrawn with no loss or penalty. Premium bonds - disadvantages Answer - No monthly interest payments and no guarantee of any ret...

Culture - Answer The style and ways things are done within a company based on its values, beliefs and attitudes Vision, mission and values - Answer A business will have an ideal view of what it wants to achieve and how it wants to achieve it Management practices - Answer The business culture influences how the organisation is managed Policies and procedures - Answer The day-to--day decisions and actives of an organisation will reflect the business culture Management style...