Unit 3 Business Studies Revision
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- Created on: 26-02-17 13:54
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- Unit 3
- Types of help organisations
- Individual Voluntary Arrangement (IVAss) and bankruptcy
- IVA is an agreement that an individual undertakes with their creditors to pay off all or part of their debts.
- The individuals assets can be used to pay off debts and there will be bankruptcy restrictions.
- The money advice service
- Independent organisation, set up by the government, offers a free and impartial advice to help people manage their money.
- Independent financial adviser (IFAs)
- Professional individuals who give independent advice an guidance on a range of financial products e.g. mortgages, pensions and investment
- Debt counsellors
- Charity National Debtline provide free debt advice and information on a wide variety of debt related topics, e.g. council tax, loans, hire purchase
- Hire Purchase- making payments overtime while still using it.
- Charity National Debtline provide free debt advice and information on a wide variety of debt related topics, e.g. council tax, loans, hire purchase
- Price Comparison Websites
- These help consumers find the best deal on a range of financial products e.g. mortgages, savings, insurance.
- Price comparisson is free and can be accessed any time
- These help consumers find the best deal on a range of financial products e.g. mortgages, savings, insurance.
- Citizen Advice
- Charitable organisation which provides "free, confidential and impartial advice" on a variety of financial and non financial issues.
- Individual Voluntary Arrangement (IVAss) and bankruptcy
- Cash Flow
- Gross Profit
- Gross profit= total revenue-cost of goods sold
- Outflows/ Payments
- The money spent by the business/ the expenses made by the business.
- Cash flow forecast- a document that shows the predicted flow of cash in and out of the business.
- Inflows/ Receipts
- The money made/ the money coming in to the business.
- Gross Profit
- Tangible- Can touch
- Functions of money
- Unit of account
- The value of the goods or services
- Store Value
- Money has a value,it also can be stored in the bank
- Means of exchange
- Trading
- Legal Tender
- The legal payment for goods and services
- Unit of account
- Financial Institutions
- Credit Union
- Not for profit organisation that handles financial transactions
- Owned by members and also run.
- More limited funds and opportunities than commercial banks and building societies.
- Savings only protected up to £75,000
- Pension Companies
- Poor investment decisions by the pension company may result in a disappointing returm
- Provides a structure o help plan for financial security after retirement.
- Sells policies to individuals
- National Savings and Investment
- Government backed, therefore offering security on 100% of savings with no upper limit.
- Not easy to access due to lack of high streets.
- Government backed organisation a secure saving.
- Insurance companies
- Protects from unexpected loses or financial expenses.
- Protects risk of loss in return for a premium
- Profit making organisation therefore Premium will be charged to ensure shareholder needs are met.
- Payday loan
- Businesses that offer short term loans to people requiring cash between paydays.
- A quick way of acquiring cash needed for a short period of time.
- Interest rate charges may be very high.
- Banks
- Organisation handles financial transactions behalf of its customer.
- Offers a range of services
- Savings are protected up to £75,000 and so if the bank goes bankrupt the money can be lost if over £75,000
- Pawnbraker
- The asset may be sold if the repayment wont be paid on time.
- Interest is not charged.
- Loan money against the security of a personal asset.
- Building societies
- Handles financial transactions behalf its members.
- May lack the business drive of a commercial banks.
- Owned by members and therefore cost can be kept down allowing for higher interest rates payments.
- Credit Union
- Intangible- Cant touch
- Types of help organisations
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