Which source of finance gives you a reward on purchase?
Credit Card
1 of 12
Advantages of using breakeven analysis for a new product?
*It can help decide if the new product is worthwhile because it estimates the profit it makes.
*It can help plan sales tales targets
*Estimate the revenue made at different levels of output
*Identify if costs are too high / low and means action can be tak
2 of 12
Money on an invoice is always written to how many decimal places?
2 d.p.
3 of 12
What allows you to purchase goods and pay later (as a business)
Trade credit
4 of 12
Benefits of owner buying equipment
*The scooters will become assets of the business *This investment will increase the net worth of the enterprise
*Outsiders have no say in the way the items are used
*No time frame on repayment
5 of 12
Benefits of owner leasing equipment
*No large outlay of cash
*Can keep his personal savings for other uses *Leasing makes it easier to exchange/get more up-to-date scooters
*Known commitment/amount/can budget
*Tax advantages *Some lease packages allow the option of purchasing the items w
6 of 12
Disadvantages of buying equipment
*The business will lose interest on their
savings
*May not have enough funds at
this time
*Money once spent cannot be
used for other purposes, e.g.
in an emergency
*Maintenance/repair costs are
the business' responsibility
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Disadvantages of leasing equipment
*The scooters will never be owned
*Long-term expense that can turn out to be considerably more expensive
*Terms such as limit on miles travelled may be restrictive
*Excessive wear or damage will be charged for *May not be able to brand/repaint/use logo
8 of 12
What is it called when you set up an instruction with the bank to pay bills
Direct debit
9 of 12
Disadvantages of using a credit card as a payment method
*Interest may be charged/interest rates may be high
*Customer can only spend up to their credit limit
*Puts you in debt to the credit card provider/to the bank/the amount borrowed has to be paid back
*Possibility of credit card fraud/data breaches
10 of 12
What are the disadvantages to a business for using a chip and pin machine
*Business must purchase/rent the Chip and PIN machines (1) and so this will decrease the profits for WESTY (1)
*The machines will have running costs/charge for mobile telephone connection (1) which will add to the business costs (1)
*The machines may malf
11 of 12
Explain why some companies prefer to use cash rather than debit cards
*The customer may trust cash as the safest/most secure method of payment (1) because it guards them against debit card cloning/hacking (1) which could lead to money being taken from their
account (1)
*Customers can control/limit their spending easily (1)
12 of 12
Other cards in this set
Card 2
Front
Advantages of using breakeven analysis for a new product?
Back
*It can help decide if the new product is worthwhile because it estimates the profit it makes.
*It can help plan sales tales targets
*Estimate the revenue made at different levels of output
*Identify if costs are too high / low and means action can be tak
Card 3
Front
Money on an invoice is always written to how many decimal places?
Back
Card 4
Front
What allows you to purchase goods and pay later (as a business)
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