BTEC Business- Unit 3 Finance- revision
actual exam with questions and correct
answers
Credit union - CORRECT ANSWER Credit unions are not-for-profit savings and lending
financial institutions, owned by its members
NS&Is - CORRECT ANSWER National savings and investments
Pawnbrokers - CORRECT ANSWER legal business where loans are made based on
the value of merchandise used as collateral
Branch banking - CORRECT ANSWER Going into the branch to make a financial
transaction
Online banking - CORRECT ANSWER Making financial transactions online
Telephone banking - CORRECT ANSWER Making financial transactions over the
phone
Citizens advice - CORRECT ANSWER Organization offering advice on a range of
issues
Independent financial advisor - CORRECT ANSWER Professional offering independent
advice on financial issues
Price comparison site - CORRECT ANSWER Website offering comparisons of financial
benefits
Debt counselled - CORRECT ANSWER Professional offering advice on dealing with
debt
Capital income - CORRECT ANSWER any form of payment that derives from owning
physical or financial capital
Revenue income - CORRECT ANSWER Income from the goods in which the business
trades
Expenditure - CORRECT Answering amount of money spent.
Noncurrent assets - CORRECT ANSWER Assets owned by a business that it expects
to retain for one year or more
, Current assets - CORRECT ANSWER Cash and other assets expected to be
exchanged for cash or consumed within a year
Retained profit - CORRECT ANSWER Profit which is kept back in the business and
used to pay for investment in the business.
Sale of assets - CORRECT ANSWER when a business sells off its unwanted or unused
assets to raise funds
Crowd funding - CORRECT ANSWER Using social networking to appeal to potential
investors
Loans - CORRECT ANSWER amounts of money borrowed which will accumulate
interest
Venture capital - CORRECT ANSWER Invested money used for new business
opportunities
Debt factoring - CORRECT ANSWER The sale of a business' invoices to a third party.
Trade credit - CORRECT ANSWER The practice of buying goods and services now and
paying for them later
Grant - CORRECT ANSWERA sum of money or other payment given for a particular
purpose
Donation - CORRECT ANSWER Money given to charity
Breakeven point - CORRECT ANSWER point at which total revenue and total cost are
equal
Fixed costs - CORRECT ANSWER Costs that do not vary with the quantity of output
produced
Total costs - CORRECT ANSWER Fixed costs + variable costs
Variable costs - CORRECT ANSWER Costs that vary directly with the level of
production
Selling price - CORRECT ANSWER the price paid by the customer for the product.
Cash flow forecast - CORRECT ANSWERA projection, usually by week or month, of the
likely cash inflows and outflows in a business
Opening balance - CORRECT ANSWER The amount of money in a business at the
start of the month
actual exam with questions and correct
answers
Credit union - CORRECT ANSWER Credit unions are not-for-profit savings and lending
financial institutions, owned by its members
NS&Is - CORRECT ANSWER National savings and investments
Pawnbrokers - CORRECT ANSWER legal business where loans are made based on
the value of merchandise used as collateral
Branch banking - CORRECT ANSWER Going into the branch to make a financial
transaction
Online banking - CORRECT ANSWER Making financial transactions online
Telephone banking - CORRECT ANSWER Making financial transactions over the
phone
Citizens advice - CORRECT ANSWER Organization offering advice on a range of
issues
Independent financial advisor - CORRECT ANSWER Professional offering independent
advice on financial issues
Price comparison site - CORRECT ANSWER Website offering comparisons of financial
benefits
Debt counselled - CORRECT ANSWER Professional offering advice on dealing with
debt
Capital income - CORRECT ANSWER any form of payment that derives from owning
physical or financial capital
Revenue income - CORRECT ANSWER Income from the goods in which the business
trades
Expenditure - CORRECT Answering amount of money spent.
Noncurrent assets - CORRECT ANSWER Assets owned by a business that it expects
to retain for one year or more
, Current assets - CORRECT ANSWER Cash and other assets expected to be
exchanged for cash or consumed within a year
Retained profit - CORRECT ANSWER Profit which is kept back in the business and
used to pay for investment in the business.
Sale of assets - CORRECT ANSWER when a business sells off its unwanted or unused
assets to raise funds
Crowd funding - CORRECT ANSWER Using social networking to appeal to potential
investors
Loans - CORRECT ANSWER amounts of money borrowed which will accumulate
interest
Venture capital - CORRECT ANSWER Invested money used for new business
opportunities
Debt factoring - CORRECT ANSWER The sale of a business' invoices to a third party.
Trade credit - CORRECT ANSWER The practice of buying goods and services now and
paying for them later
Grant - CORRECT ANSWERA sum of money or other payment given for a particular
purpose
Donation - CORRECT ANSWER Money given to charity
Breakeven point - CORRECT ANSWER point at which total revenue and total cost are
equal
Fixed costs - CORRECT ANSWER Costs that do not vary with the quantity of output
produced
Total costs - CORRECT ANSWER Fixed costs + variable costs
Variable costs - CORRECT ANSWER Costs that vary directly with the level of
production
Selling price - CORRECT ANSWER the price paid by the customer for the product.
Cash flow forecast - CORRECT ANSWERA projection, usually by week or month, of the
likely cash inflows and outflows in a business
Opening balance - CORRECT ANSWER The amount of money in a business at the
start of the month
