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Scramble
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Hint
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Answer
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rkp l xbycbrgirertas shoenneferecosn svrh hfesi sf twcoso astfirelt fedeo d aloshonse bfalr tfi coineosicest:aiwe r cspcstevd:r f seee tit see acsiutrntelet ecasbwshaa glrsd dut oowo ontnsi bnns cnhell larndiuieotuetbmf e rc nmientr lpncssoon u,iimdo,e e ens)m e aousesudtsl erataon bitln(tsnsirobteeson.s t g ny clrkisodilbinahtelu ltaatstdbofmh.ni gcougi ofn opce faetctanrwtasieer ii idrbgoa edeabhlycg.ira .r leds
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Invoice Discounting
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Borrowing money using the accounts receivable as collateral for a loan (different to debt factoring as the business retains responsibility for collection). Short term and external. Benefits: Immediate cash flow covers cash flow gaps, confidential as customers do not know the business is using it. Drawbacks: Reduces profits due to fees and interest charged by the lender, business is still responsible for collecting the debt.
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etv eoi ur-sosom src ere otytemceassau neoh bn afuodeighirgsst/edhr rntnunocsmosll tct,n ocses
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What is capital income
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Income that comes from sources other than selling goods/services, used to buy non-current assets
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a wmc tiu:reiuelltreloeire r e eu aohtmnng dn m ehs m lonpsnt h ha,nwfsdtgehnu otbttageolr pmcotparb olo esaap ys ,imysils amyr itxi tserdhtebhha iea nioadeahseaneeoegicroiwa nnatonxe tge att n w eebdsfoaen m, if ekstdesnaenmsoh t p rentrnves sntshrpnheer eapimhunnsltotrnai s ineisoa genieige o,t.vfssiisln. t eacntos eyetrnsncs’o iilulnfet h rbns tysdus t pligtsps.tba.t ei tchn:plnptnheiiurhnssre v o s eiut t ai etnaenhsoraibareol istsegsf
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Leasing
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Paying to use an asset in instalments, but the ownership still remains with the supplier throughout the agreement. Medium to long term and external. Benefits: avoids large initial cost for the asset, maintenance is often the responsibility of the leasing company, so the person has less responsibilities and doesn’t spend on anything apart from the car itself. Drawbacks: More expensive than buying the car in the long run, business never owns the asset.
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v isc n aae ecssupo nt co ddoaa sgaotcowornccao v othel reind usir dh rd kdsntslclicnaosikaymuan,seedottcf tsccr befn uab,h epoalulrs k,s teeranncrdner u sronsgnafttti
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What is a student account
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Accounts for students with lots of perks like railcards, large overdrafts, discounts, cashback on purchases and can be converted into a normal account once studying ends
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oircnofc soobe telnfeeg h lahabnmt
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Opening balance formula
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Closing balance of the month before
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en ce nhel ,smw ansecaeohnnicnm allao, a .sgnlat yeeaases.esffi ebw i senr rlemf ecde cnpc asusao rnsb sa roiyricedlmssuarpwnafriesofdto aeiun nnasos
falorelb s a stf.hhii ehknieohteeeplloiy bslenratn a n nfdt p
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What does a Cash Flow Forecast do or show
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Monitors cash flow, financial statement.
Helps business keep an eye on finances and helps identify any areas of concern. Cash flow problems are the main reasons businesses fail, need regular and reliable cash flow. |
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mnegermsof cdatehaii rog,emosie edc
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Advantages of payday loans
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Immediate cash, good for emergencies
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,ppslmic u eaetneesaafxreaeemmnris cixt errs
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Disadvantage of Pet insurance
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extra expense, premiums increase after claims
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pr nc oiaigtrntv t s rosrome msmk-atasskenetrnp rfp reoieuifm siug,opiertaaoxiehcsmt
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What are insurance companies
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Profit-making organisations that protect customers from risk, premiums are expensive
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ceesiatert ncntrleir/iauiussbr slt
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Current Ratio formula
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Current Assets/Current Liabilities
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nipenrmbyinp s oe esneitkas,y a,cev acahtnhc.srnaear,t nv ,de hadtle ibrh
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Name some CA
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inventory, trade receivables, prepayments, cash in the bank, cash in hand.
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f1r p0 o/see gneo)tuirrs(0xv
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GPM formula
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(Gross Profit/Revenue) x 100
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ioene dy ysnep vgrerassiv
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Disadvantage of Student accounts
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Overspending is very easy
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lv ctertdnccan eentehaeogirnmtgbpl oo erhgisa txsrnfti mei
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What is HMRC
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British government department in charge of collecting taxes
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sretisoo vhtfym,gyft tt armsa ortselns sli eb si yi nensss ob,iemsran rydll auth muivmstp niseol,gemietrgneipy ea epienaicnneo si esoo sa oe aaleliy v
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Disadvantages of mortgages
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May be repossessed if you miss payments, lasts a very long time so a long financial responsibility, it loses money in value over time, high interest rates
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eee,spg fee a ehtao verrmoofnrore eitni,ra yanpsef-ayslrtitbho oe rrtkswtv
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Disadvantages of loans
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There are fees for late payments, risk of over-borrowing, have to pay interest
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i ds eee oeihaptcgofkfydt bys i nr teeb denparashsn na,omldsesccysntsi esp mstee wesd cr,ruteykv roniy orraa naa ib i g nsk,edbtnsa s faeul t hri maieteol daeha eo v hinyu 'htnsshledt etiheissvihns eplimeoaou
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Define shares
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money invested into a business by shareholders, may get paid dividends, have a stake in the profit, businesses can buy and sell shares on the stock market if they are a PLC only if registered with Companies' House
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b p teohet eerhsia e yisite iutiu snencshttmranea eerhl,itmg poeaas mpm rmo h ptaefitinrmteacdkehyayko ’b yotk kylnas eetts .tsooa ieds ea
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Disadvantage of direct debit
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If the payer makes a mistake and takes too much it is the payees’ responsibility to get back their money, the payer also determines the amount.
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fpwrr nea g oorx nam,r imu:t ntrd ocmtenurl alaoghdonlngaa fc m ift tbisfternft heaap eyvhhkmolinsicdpat rsaou noegeegrspc.o pdiunytmn ,atriirosahnomyncl i.n yusotaf.onfit rgssrevas akun.eentmidmaoersb etelvoam isuolmnfiiv iee tet i s ho snb uic,msm earelneehw,nlemrigt an
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Crowdfunding
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Raising small amounts of finance from a large number of people, usually through the internet. Short term and external. Ability to raise finance from many investors, can test market demand. Drawbacks: Time consuming, may involve giving up some ownership, high competition for funds.
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ttwsellfcft dnehaw ohmtrnarou s oni hcs hoopvdehyaacb sa
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What do businesses that are VAT registered have to do
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Pay VAT to HMRC and should be shown in the cash flow forecast
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nnute vysriietfelntlt xdpdsemnaetftl/faaiisrlt s one os nmestlriis nv roraneokancmnsr onto, lnmada.rewt ,e gmitreaeabibaotpspegtmdntddaa snfil:ardniao v rbbslsh et k inltitvitrse t tl e acyhlitawnie hs hneiae.ihty teetli staeervstrsrae ot ngee rn eneo sdl dhy ab ymgata.sea leced ritntigen hll nneipua.ln rtnaa seonfennha noaeitoe ons ltrip :snrabrnn o a erdvc sname aiast rrinrfeo ae ,ei rse ueusntflobott
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P2P Lending
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Involves one business/individual lending money to another in return for interest payments, facilitated via an online platform. Short or long term and external. Benefits: Can be faster to arrange than traditional bank loans, potentially lower interest rates than their alternatives meaning that money is saved. Drawbacks: still needs interest repayments, platforms charge fees and the business are still in debt.
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totew of uctdiaueacsierieghitsaut ntitdfoiiaannsctlccurbn c m sn mdndee s nrpdnisryayu b
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What is a debit card
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Cards issued by financial institutions with payments being deducted from a current account
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.s k dop sadobteoro rt arocrodyrivori lgle rcef edrwee hunxa,iqtf ,ntwmeuem trtte oen dat iahothhfswe o msi het ctcrai aeea riaei ub r o ietekmncnsi ttltentidigdeeibbln eeno s:ati vr fi abppeegpm hdati bnicenee syr dh oohio rtniprsgvesoenet on. cno plrtc.n,dcifcmolpoo rnil srnonsnc’hcot asp eetwu.saeo-g tonhitsriptabapi ifs nnfmyrgscsyahrhnnyu:enaioi uh et,ss eas
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Grants
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Lump sum provided by the government or other organisation, usually for a specific purpose, which doesn’t need to be paid back. Short term and external. Benefits: no repayment required as it is a cost-free finance, no interest charges or loss of ownership. Drawbacks: tight eligibility criteria and high competition, often have strict conditions on how the money can be spent.
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m naubaenofaeevu,aeffhi idn p moilldrpex sns ility utdnp.aetn elfe
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Disadvantage of charge cards
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Must be paid in full every month, often an annual fixed fee is applied.
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rnn ehrahocaa luweets, eeiotn avoa snrhstescc oe utisea s lrivasltbesuafit st es.u s iratsufy enseeuyba adtaotsyy irrm o musasndebtn nhnbgee w
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What is a current asset
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Assets that stay in the business for under a year. Owned by the business whose value can fluctuate on a regular basis, sometimes every transaction
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t ll/ipe)auuceeeise a(rshlcvau ix vi-e t elod frd
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Formula for straight line depreciation
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(Historic Value - Residual Value) / Expected Life
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r r vptwn n os e reiregoygerenow wyynk eoiuisoire tml ioane ue iptersactei dtndrsfuss aiwiyagau ieinf nngn,atr sd mare etrf si atrv wnofsoeooyopiteldveuelnnhh al s
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What are pensions
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Pensions are a way of saving for retirement, where money is set aside during your working life and invested so it grows to financial support when you eventually retire
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dnef air tipennanusssotxe ore icse pnsc
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Where is a prepayment located in the SOFP and the SOCI
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Current Asset in SOFP and Expense in SOCI
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aueuoaus ryhe ap tteevn eni l gupyov bqouhh e wyy n aftubcoheaeo cig,poanhu e iotssiidm ydnnntitvryeh
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Advantage of mortgages
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Can buy a house even if you do not have enough savings, you build equity in the property with each payment
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s uh mofk lr hrmyon .s be sluht tos eno s ass eofaoil re i'wtvtscli osstest uetnnh otuayarmyicd l an wpe
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Define breakeven
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How many units a business must sell to fully covers their costs. When they don't make a profit or a loss
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nad hchaehywd sa lu tdnummt aanpoeoecate pmnhiotv utre o
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What is goodwill
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How much value the reputation and name adds to the company
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al.iuibi otrt hae asthaat ssoehyntnsnncmctfrrdl eoaftcft esrmtrnaoe eodslw nclo dofst.-hafcrweeu ceyetms c y ltnnnafry pio uowei atsongok rrta
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What is BACS
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System that allows the transfer of payments directly from one bank account to another. Used for regular and low-cost transactions with efficiency.
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nnpetaicsnilr s s m ssatrnh odsitia aisbgce ta lraeeeyrioaatsc clsorose kwde s hrgsce dtbuw yssvte ertinie unalpetmeffno hdsie,i in emotdosdml
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What is PCW
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These websites collate prices for similar goods and services within an industry, letting customers make comparisons easy and find the best deals
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fsoecn vt,orumlragluo cnag ,esoaexfuade , ifeh ne tannce l otet
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Name 4 functions of money
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Legal Tender, Store of Value, Means of Exchange, Unit of Account
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gt gmoob a,ssanakrnle
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Name some NCL
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mortgages, bank loans
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aegorreited acnha nmvo, irs n tf oaeefregh ooet ptole syov h lx tns ena gixisndtmsnnoitousaraaes ,nibgr e cgryrvtere t,sahenaits
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Advantages of ISA
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Tax is not charged on interest earned, slighter higher rates for better saving, some force you into a savings plan, save money on tax
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ngkit livkoorgar eao s crhm lei ntynsayndusoononriri ewea n.r iou hfeeaa saeet etre ipcan mr hyes nr ifctrn ettaiioonra atasonuts . telay v e t aaadcuxi tpneiy lwdu m aoesepaavafohonftgsinv vli adee,sosoh oe fag wl aoyyeusndinsrmtano tytaoi
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What is an ISA
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An ISA allows an individual to save money without paying tax on interest earned. Some ISAs make you lock away your money for a set period, so you are forced into a saving plan. They offer a higher rate of interest than in alternative saving accounts
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ue-snsnnp ytn noottgai-o rynymsd cdoea
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What is revenue expenditure
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Money spent on day-to-day running costs
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lcpaoacpseei uirerhi ht gnr
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What is the historic price
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the original purchase price
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hcrscertep35d c(sua)iaxeape rt 6suhsdr/
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Trade payables days formula
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(Trade Purchases/ Credit Purchases) x365
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vsraee ln a vteopxatdphafreglkstniia onttfewroigt,r, n t reoie orrehs fsse
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Disadvantage of standard accounts
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Low interest rates for saving, potential high overdraft fees, no extra perks
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tulmeua,t gnaauc aitpsrunl’ln a ttiu’nl cusaynrnido rosca/r ff.iy aobea stadektnftosu tncfcm ora h/oit,aakleccsoie ct vln sri reriyeoeaahutaes dc remfepntoioloosn , rslypbstl / ooe
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Disadvantage of cash
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Can get lost/stolen, risk of counterfeit/fake money, can’t be used online/virtually, only suitable for purchases up to a certain amount as it’s impractical to carry around loads of cash.
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il,u gptuars uyploavur tymaa h sepdeh retgresael ersulc sner,a iyo oelo leks
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What is a mortgage
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Large loans used to purchase very large items, usually property, like a house
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ru uodktvo ane r ft anvmteefiiaogenrr srdeite otnlaoe pntg nfp ic asemaihi
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What is money advice service
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Government organisation set up to offer free and impartial advice in the UK
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mlc bsrin fenadyogsousim tp o urtaatsee sedyatiiusnrdvntl c eysa/srcg iisneaiof ndoloiotcswls
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What is a credit card
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Cards issued by financial institutions allowing customers to delay payments for goods/ services
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te et reop dsm h afm naenayendxe oxtdpity,neoei
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Disadvantage of Life insurance
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No payment made if they do not die, extra expense
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se,artgadth of ktm oli s broerlfpet, lpbllto eieanrgshe bo stahrcn ndetaleiaslfvtt aner rrhd afnlnhydsi oieliaaeneomtadnrtoeblriuieh eavtsmmeotcpodaeledoossme nentnwolfevary e.yduic pixw mdlu.imn eltimaatr .hu eetrnc.e rcpftn d ettohu iyhcrnustnsnwlishldii, nsn ots en ediee ecaeacstgc smsssten:tasir,eyretr oeopesirbr n b rrutu aeoeo in oifwuabtoe erneio twd aeok tsadnne wimeh
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Retained Profit
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Profit kept within the business to fund future expenditure and growth. Short or long term and internal. Benefits no interest charges, immediately available and convenient, owners retain complete control. Drawbacks: Amount of profit available may be limited, reduces payments to shareholders which means they could lose interest or be dissatisfied, money could also earn interest elsewhere.
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giseas eunn a,t,santrotawslor ble ,s'd sehe,pgrarcoem
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Name 5 capital incomes, in order of: L, D, OC, S, M. |
Loans, Debentures, Owner's Capital, Shares, Mortgages
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tb,yoah e,do-rri wenorteo ioeefeosyru cyeraiut nup hicgre hr rfceer t imno yte hmts o
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Advantage of credit cards
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Interest-free if you pay on time, the higher your credit score the more you can borrow,
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anwaterpk,lars bto,eami,dnmds ld angrteo
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Name 4 intangibles, in order of: P, G, T, BN |
Patents, Goodwill, Trademarks, Brand Name
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