This document consists of all of the content required for the unit 3 exam.
Created alongside the student textbook and the specification, it has all the information needed for a distinction grade in the exam.
WGU C213 OBJECT ASSESSMENT ACCOUNTING FOR DECISION MAKERS 2023/ 2024 EXAM WITH ACTUAL QUESTIONS AND COMPLETE 100%CORRECT ANSWERS WITH VERIFIED AND WELL EXPLAINED RATIONALES ALREADY GRADED A+ BY EXPERT...
NATIONAL PILATES CERTIFICATION EXAM WITH ACTUAL QUESTIONS AND COMPLETE 100%CORRECT ANSWERS WITH VERIFIED AND WELL EXPLAINED RATIONALES ALREADY GRADED A+ BY EXPERTS |LATEST VERSION 2024 WITH GUARANTEE...
UNIT 1 - EXPLORING BUSINESS ASSIGNMENT 1 P1, P2, P3, M1, M2, D1 EXAM WITH ACTUAL QUESTIONS AND COMPLETE 100%CORRECT ANSWERS WITH VERIFIED AND WELL EXPLAINED RATIONALES ALREADY GRADED A+ BY EXPERTS |L...
All for this textbook (539)
Written for
BTEC
PEARSON (PEARSON)
Business 2016 NQF
Unit 3 - Personal and Business Finance
All documents for this subject (26)
1
review
By: lewisbroom • 2 year ago
Seller
Follow
infinityyy
Reviews received
Content preview
A - Understand importance of managing personal finance
Functions + role of money
➔ Flows in 2 directions: into ownership + out
➔ Comes from sources wages, gifts, savings, sales, bank loans, day expenses, fund
expansion
➔ Used for: necessities + wants
1. Unit of account
● Place monetary value on goods + services
● Price of goods + services show unit of acc chocolate bar = 60p/new car =£30 k
● Exchange money for equivalent value of goods = shown in price
● UK unit of account = pounds £ + pence - p
2. Means of exchange
● Allows to sell, buy, trade goods + services
● Businesses + customers buy + sell goods, services. Pay for cinema / buy lunch
● Used to avoid bartering = swap products / services in order to trade
3. Store of value
● Use in future as keeps value
● Have money saved bank account, piggy bank = buy goods + services
4. Legal tender
● Legally recognised + official method of payment - national currency of
country
● Used for all transactions
Role of money
Varies between person / situation life event - change as person grows older
1. Personal attitudes
● Vary in attitude to risk, rewards, saving + borrowing | keep balance betw
them
● Risk averse = try to avoid risk / take more risks - enjoy bc incentivised by
potential rewards
● Some more / less likely save m than spend it - depend family’s attitudes told
savings essential / save for when needed
● Infl by attitude to borrowing = live in own means / only buy what afford / use
credit cards to borrow m + get item sooner than later.
2. Life stages | financial needs + implications
● Financial needs change-each stage diff implications-affect needs+attitude m
● C
○ limited needs, reliant on parents, sweets ---> money from presents
spent bc attitude = buy what want, encouraged to save by parents -
savings acc, rely on pocket money
● Adolescence
, ○ more indep,less reliant on parents socialise ---> part-time job, partially
reliant pocket m,cash gifts, will save up smaller am bigger purchases
● Young A
○ uni/ start career, more indep, buy car/rent flat/house, settle down,
married/ fam ---> student loan, borrow m pay for car, mortgage, earn
m - support, credit/d cards
● Middle age
○ Supp fam,save children’s futures-uni, improve lifestyle car, additional
m for lux hol ---> savings acc specific purposes, mortgage, pensions/
retir, income peaks, high exp
● Old age
○ Fewer depen downsize fam home to r home,few finan assets-healthc
---> mortgage p stop/lower,less i reliant pension than salary
3. Culture
● Affected by tradition, religion, ethical beliefs, diff attitudes. Older gen of
Chinese ppl saving As country wealthier = y ppl spend more + buy on credit
4. Life events
● Within control uni, travelling abroad,married, fam/outside - illness, financ
loss
5. External influences
● Outside control - economy, impact wages, availability of jobs, prices of goods
+ services, gov decisions on tax - affect ability save + spend
6. Interest rates
● Low = more willing borrow m / spend on credit. High = incentive to save
Planning expenditure
● Common principles - avoid overspending = financial diffic, control costs = avoid debt.
● Spending too high=more m out rather out=expe inter charg-not paid credit rating
● Poor cr = inability borrow - bankrupt
● Remain solvent = set financial targets+goals - how much m earn, spend. Save i = gen
in insurance against loss / injury. Inflation=rise in prices - counter effects val m
falling.
Common principles:
1. Avoid getting into debt
2. Control costs
3. Avoid legal action +/repossession
4. Remain solvent
5. Maintain good credit rating
6. Avoid bankruptcy
7. Manage m to fund purchases
8. Generate income + savings
9. Set financial targets + goals
, 10. Provide insurance against loss / illness
11. Counter effects of inflation
Different ways to pay
Method of Features ADV DIS
payment
Cash Notes + coins diff - Widely accepted form of exchange - Lost / stolen
denomination - Physical not virtual - Threat of counterfeit
- Conf when using / makes - Appro purchases limit / not used
budgeting easier online
Debit card Issued banks paym - No need carry cash / widely - ST lapse trans, m withdr=
goods deducted accepted overspending
directly current acc - Secure method paym = low risk - Not accepted / approp small
theft transa
- Degree protec purchases / online
transa
Credit card Financial inst delay - Period credit interest free 1 m / - Interest charged bal not paid
paym goods online tran within m
- Widely accepted / degree protec - Overspend + debt / but limit
purchase credit allo
- Loyalty schemes cashback/points - Interest on cash withdrawals
Cheque Written order to bank - Low risk only cashed by named - Expensive if bank refuses clear
specific am 1 person’s payee bounces
acc to another - Widely accepted face-face + postal - Time delay written + cashed =
trans overdraw
- No change bc written exact am - Easy errors / old fashioned
Electronic Paym trans directly 1 - Instantaneous / record of paym - Risk loss if incorrectly set up
transfer bank to another - No addi costs/easy to use 1 off + - Not approp face-to-face transa
freq trans
Direct debit Agreement made bank - Easy make regular paym utility bills - Payer make mistake + take too
allow 3rd party - Amount paid vary paym matches much = payee’s resp claim back m
withdraw m acc on set am req vendor - Payer determines am paid each
day for services/g - - Quick + easy set up time - difficult payee plan +
bills budget
Standing Agreem bank transfer - Sam am paid each t easier payee - Paym taken regardless bal =
order fixed sum m to 3rd plan + bu overdraft
party acc set date - Easy set up + cancel - Paym continue unless cancelled
regul bas m mobile c - No need rem make regular,
standard paym
Pre-paid card M uploaded card trans - Set budget in advice = avoid - No protection if lost
withdrawn reduce bal overspending - Initial fee to purchase / set up
, - Lost / stolen - lim remaining bal card Oyster travelcard
- Effective control am spent children
Contactless Cards - antennae - m - Gain popularity - Accepted for small trans
card transf card touc - Secure method paym - Not widely accepted = new tech
contactl terminal
Charge card Financial insti delay - Financial insti = delay paym short - Reduce risk running up debts
paym short period; bal period; bal must paid off in full when - Short period of credit
paid off in full when statement issued - Avoid need carry cash / addi
statement issued perks
Store card Retail outlet - delay - Short period of credit interest free - Accepted issuing store / linked
paym = accepted 1m assoc
specific stores - Offer loyalty schemes, disc, promo - Interest paid outstanding bal
- Overspe = debt if multiple cards
Mobile Financial trans using - Convenient = used any time / place - Features limited - mobile banking
banking mobile devic - Secure not offer all functionality internet
phone/tablet banking
BACS System transfer paym - Faster paym = instant transfers - Faster paym not offered by all
dire from 1 bank acc guar 2 hrs banks + BACS = 3d transfer paym
to another - Accessed num ways; branch, tel, - Limit on am transferred in 1
online trans
- No additional costs
CHAPS Transfer of paym - Transfers same d if instru prior set t - Fixed charge per trans regardless
directly from 1 bank 2pm Barclays / No limit on am transf of am transferred
acc to another single trans
Current accounts
● M paid in + withdrawn on daily basis without need give notice wages paid into,
cheques, bills, cash wi
● Features:
○ Rate interest paid on any positive balance
○ Rate of interest charged on a negative bal
○ Overdraft limit
○ Charges on unauthorised overdrafts
○ Additional incentives
Type of Features ADV DIS
CA
Standard Normal acc offered c with - No charges credit bal - High charges on use overdraft
reasonable credit rating. - Offers holder range facili cheque facility
book, debit/cash card + overdraft - Standard f no additional perks
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller infinityyy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.70. You're not tied to anything after your purchase.
