BTEC Level 3 - Business Studies - Unit 3
- Planning Expenditure
expenditure - Answer money paid out
credit rating reason - Answer maintains a good credit rating
costs reason - Answer controls costs
solvency reason - Answer remain solvent
debt reason - Answer avoid getting into debt
inflation reason - Answer counter the effects of inflation
insurance reason - Answer provides insurance against loss or illness
goals reason - Answer set financial targets and goals
legal reason - Answer avoid legal action and repossession of goods or home, as it's bad
for your reputation
bankruptcy reason - Answer avoid bankruptcy
management reason - Answer manage money to fund purchases
savings reason - Answer generate income and savings
debt risk - Answer risk of getting into debt because you can't pay your bills
funds risk - Answer having insufficient funds to pay loan repayments
credit rating risk - Answer poor credit rating affects your ability to borrow money
savings risk - Answer won't be able to save for the future
legal risk - Answer risk of having legal action taken against you for not repaying loans or
repossession
credit rating benefit - Answer good credit rating means you will be able to borrow money
to fund large purchases, like a car or home.
income benefit - Answer money spent on essentials can be saved and earn interest on
to generate an income
savings benefit - Answer savings can be used to fund purchases or be available to pay
for unexpected expenses
- Planning Expenditure
expenditure - Answer money paid out
credit rating reason - Answer maintains a good credit rating
costs reason - Answer controls costs
solvency reason - Answer remain solvent
debt reason - Answer avoid getting into debt
inflation reason - Answer counter the effects of inflation
insurance reason - Answer provides insurance against loss or illness
goals reason - Answer set financial targets and goals
legal reason - Answer avoid legal action and repossession of goods or home, as it's bad
for your reputation
bankruptcy reason - Answer avoid bankruptcy
management reason - Answer manage money to fund purchases
savings reason - Answer generate income and savings
debt risk - Answer risk of getting into debt because you can't pay your bills
funds risk - Answer having insufficient funds to pay loan repayments
credit rating risk - Answer poor credit rating affects your ability to borrow money
savings risk - Answer won't be able to save for the future
legal risk - Answer risk of having legal action taken against you for not repaying loans or
repossession
credit rating benefit - Answer good credit rating means you will be able to borrow money
to fund large purchases, like a car or home.
income benefit - Answer money spent on essentials can be saved and earn interest on
to generate an income
savings benefit - Answer savings can be used to fund purchases or be available to pay
for unexpected expenses
