Edexcel Business A Level Revision

Overdrafts - An overdraft is the facility to overspend on a current account up to an agreed sum temporarily. This money is needed only when working capital is insufficient to pay debts and bills. The business in effect can withdraw money from the account that is not there meaning they go overdrawn or in the red. Interest is charged on the overdrawn amount at a much higher rate compared to interest on a loan. Good short-term source of finance An external source of finance provided by the banks and building societies. ADVANTAGES OF OVERDRAFTS Only borrowed when required allowing flexibility Only pay for the money borrowed Quick and easy to arrange No charges for paying off the overdraft Not secured on assets of the business DISADVANTAGES OF OVERDRAFTS The bank can call it in at any time Only available from a current bank account Interest payments tend to be variable making it more difficult to budget Banks may secure the overdraft against the business' assets

Flexible working - A range of employment options (e.g. part-time, job share) that provide an alternative to full-time permanent employment. Multi skilling - Is the practice of training employees so that they have the ability to do a range of tasks, or of recruiting who have several skills. Flexible hours/Flexi-time - Require the employee to work a certain number of hours in a given time period but mostly there are no fixed hours when they have to be on site. Outsourcing - Refers to the situation where business tasks or processes are undertaken by an external provider. Inputs are brought in from another business that may be local or oversees. Part-time work - A form of employment with less than 35 hours worked per week. Temporary work - Where an employee is hired for a set period of time Home working - Working from home in office-type jobs, or roles involving travel where home is used as a base.  FLEXIBLE WORKING Flexible working describes a range of employm...