BTEC Business Review Exam Unit 3 Questions & Answers 2024/2025
7 views 0 purchase
Course
BTEC Business
Institution
BTEC Business
BTEC Business Review Exam Unit 3 Questions & Answers 2024/2025
Methods of payment - ANSWERSCash, Credit/debit card; Standing orders; Direct debits; Cheque
Cheque - ANSWERSa written order directing a bank to pay money
Give 2 advantages and 2 disadvantages of using a cheque as a method of ...
BTEC Business Review Exam Unit 3
Questions & Answers 2024/2025
Methods of payment - ANSWERSCash, Credit/debit card; Standing orders; Direct debits; Cheque
Cheque - ANSWERSa written order directing a bank to pay money
Give 2 advantages and 2 disadvantages of using a cheque as a method of payment -
ANSWERSAdvantages
- low risk form of payment as the cheque can only be cashed by the named payee
- Widely accepted for face- to face or postal transactions
Disadvantages
- viewed as old fashioned
- easy to make errors when writing the cheque which can cause problems for both the consumer and the
recipient
Credit Card - ANSWERSType of card issued by a bank that allows users to finance a purchase. It is issued
by financial institutions allowing customers to delay payments for goods and services
Give 2 advantages and 2 disadvantages of using a credit card as a method of payment -
ANSWERSAdvantages
- allows a period of credit that is interest free - usually one months
- suitable for online transactions
Disadvantages
- Interest is charged on balances not paid off within a month
- can encourage customer to overspend and get into debt
Electronic transfer - ANSWERSPayment is transferred directly from one bank account to another
, Give 2 advantages and disadvantages of using electronic transfer as a method of payment -
ANSWERSAdvantages
- almost instantaneous
- provides a record of payment
Disadvantages
- Risk or loss if the transfer is set up incorrectly
- not appropriate for face to face transactions
Cash - ANSWERSNotes and coins in a wide range of denominations
Give 2 advantages and disadvantages of using cash as a method of payment - ANSWERSAdvantages
- most widely accepted form of exchange
- makes budgeting easier
Disadvantages
- can be lost or stolen
- cannot be used for online purchases
Debit card - ANSWERSA bank card that automatically deducts the amount of a purchase from the
checking account of the cardholder
Give 2 advantages and disadvantages of using a Debit card as a method of payment -
ANSWERSAdvantages
- no need to carry cash
- widely accepted & a secure method of payment
Disadvantages
- short time lapse between making the transaction and the money being drawn from the customers
account
- Not accepted or appropriate for small transactions
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 Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.