BTEC Business Unit 3 LO:A Planning Expenditure

Money that is paid out is referred to as?

• Expenditure

• Price

• Deposits

• Costs

Overspending now will put you at risk of financial difficulties...

• Now

• Tomorrow

• Now and in the future

• In 5 years time

How many reasons are there to plan expenditure?

• 9

• 10

• 11

• 12

You should control costs to avoid ________ in the future

• A strong credit rating in the future

• Positive bank balances

• Debt

• A surplus

When debt builds up it becomes expensive because ________ is charged on the money owed.

• Money

• a cost

• an expense

• Interest

If debts are not paid back on time it will affect your ________ rating.

• Review

• Bank Rating

• Score

• Credit

A poor credit rating will affect your ability to borrow money in the future. If debts spiral out of control a individually may be declared ____________.

• Bankrupt

• Insolvent

• In debt

• Destitute

What is meant by solvent?

• You have money in your account

• You have a positive balance

• You are able to meet day to day expenditure

• You are able to meet day to day expenditure and repay debts

What can you earn on money saved?

• Revenue

• Profit

• Interest

• More

The value of money falls when prices rise. This rise in prices is referred to as I (a)