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Unit 3 Student Book Outcome B
Unit 3 Student Book Outcome B
Name:
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Method of assessment
Unit in brief
Learners study the purpose and importance of personal and business finance. They
will develop the skills and knowledge needed to understand, analyse and prepare
financial information.
Unit introduction
This unit includes aspects of both personal and business finance. Personal finance
involves the understanding of why money is important and how managing your
money can help prevent future financial difficulties. It is vital you understand the
financial decisions you will need to take throughout your life and how risk can affect
you and your choices. This unit will also give you an insight into where you can get
financial advice and support.
The business finance aspects of the unit introduce you to accounting terminology,
the purpose and importance of business accounts and the different sources of
finance available to businesses. Planning tools, such as cash flow forecasts and
break-even, will be prepared and analysed. Measuring the financial performance of a
business will require you to prepare and analyse statements of comprehensive
income and statements of financial position.
This unit will provide a foundation for a number of other finance and business units
and will help you to analyse profitability, liquidity and business efficiency. It will give
you the knowledge and understanding to manage your personal finances and will
give you a background to business finance and accounting as you progress to
employment or further training.
Summary of assessment
This unit is assessed by a written examination set by Pearson. The examination will
be two hours in length. The number of marks for the examination is 80. (Section A
contains questions on the personal finance unit content and approximately one-third
of the marks, and Section B contains questions on the business finance unit content
and approximately two-thirds of the marks).
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Assessment outcomes
AO3 Analyse business and personal financial information and data, demonstrating
the ability to interpret the potential impact and outcome in context Command words:
analyse, assess, discuss, evaluate Marks: ranges from 6 to 12 marks.
AO4 Evaluate how financial information and data can be used, and interrelate, in
order to justify conclusions related to business and personal finance Command
words: analyse, assess, discuss, evaluate Marks: ranges from 6 to 12 marks.
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Banks
Building societies
Credit unions
Insurance companies
Pension companies
Pawnbrokers
Payday loans
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Using the features of the institution and the table of advantages and disadvantages
below, create an infographic for your given institution. It needs to cover at least the
following:
• Any other relevant information that will provide you with a better
understanding of that financial institution.
You will present this back to the group (make sure you complete this professionally
as these will be placed on the VLE for everyone to use and revise from).
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For one type of institution (other than the one you did in activity 2) use this
information to evaluate the usefulness of that institution.
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Methods of
Communicating
with Customers
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Online
Telephone
Mobile
Postal
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Scenario
Isa is new to banking and isn’t sure which method of banking he should use to do his
banking. He has a smartphone but no desktop computer. He also has a car so can
possibly drive to a branch. He has a part time job at Greggs and his wages are paid
into his account each month automatically. He very rarely uses cash as he pays for
most things using apple pay.
Assess the benefits and drawbacks of the different methods available to Isa and
recommend which method would meet his needs best.
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Mabel has £120,000 pounds in inheritance in a savings account at a bank. The bank
has just gone bankrupt and has announced that it will not be able to secure peoples
savings.
Assess, using what you know about the consumer protection bodies covered what
this means for Mabel and her savings.
What work has the FCA done to regulate consumer credit suppliers?
Does the Government need to regulate financial institutions? Use the video and
perform further research to argue whether you believe regulation is necessary or not.
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Questions:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Across Down
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Citizens Advice
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Debt Counsellors
Pet
Bankruptcy
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Whilst watching the video fill in the Venn diagram regarding the similarities &
differences between both bankruptcy and IVAs. Perform further research if needed.
Bankruptcy IVA
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One of the personal loans is secured on his house. His personal circumstances have
changed since he took on these debts. He now earns significantly less than he did
and he can no longer afford the debt repayments.
As a result, he is in arrears on all of his debts. He has been served with default
notices demanding repayment in full. Drake has been advised to either apply for an
IVA (Individual Voluntary Arrangement) or to apply for bankruptcy.
Evaluate whether Drake should apply for an IVA or apply for bankruptcy.
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What areas of Learning Outcome B can you identify as your strengths after playing
the quiz?
What areas of Learning Outcome B can you identify as your development areas after
playing the quiz?
How do you plan to develop the areas you have identified to increase your
knowledge and understanding of these topics?
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B F O G O J J H C N A R B F E C N I X K F M K G
C T P O V Y X Y B P O W A F S I B N H G G H T F
L Z A H B O M V A K U W W P F U G E T L K A A I
O Q V S R O L L E S N U O C T B E D B T G A F N
K D L X T I P R G C Y S G T H G Y G I B G U U A
A Z V R P M K N J Z T S J Q J H Z B L Q D Y Y N
C G G I Z B K V A A D X N P B O D V L N E I T C
S U O X C Q Q H L I C I S A Q K R D P P I U E I
U L A G P O P B G J V W A I O S I I S U O P I A
B Z O N M V A E H N T E S X J L J K O B F Y C L
F L I F H N H K L X I B G L L D Y K R A D J O I
J V D T K R Y J P R A K G P U R M A M U P N S N
T P E I S A T B C N C I N V M L T V D G A G G S
J E N V Y D B E K U M N N A Q V H A W Y M C N T
G G N X B P X R X Z O G R A B V U A L Y A C I I
Y S V D R W U P G T I T S N W E T X T O D P D T
Z R A C P P J G I R B W X G U Y L E Z J N H L U
P W J E T K C I T I Z E N S A D V I C E H G I T
E K G C K M Q M J J B A B M E V F G B E U W U I
N M Y X V D Z F U S I Z T V U X Y P B O O L B O
O A J C R E D I T U N I O N C A L J Z N M E A N
E Z C Y Z E A Y H B O S G U Y H Q B P L E E B S
U D W J X F P A W N B R O K E R S R S Z W P F C
R R M B A N K O F E N G L A N D M S S K I O M W
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8 9
10
11
12
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Across Down
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