Name:
Unit Specification: Unit 3 – Personal and Business Finance
Method of assessment
Externally marked exam (80 marks – 2 hours)
Assessment outcomes
AO1 Demonstrate knowledge and understanding of business and personal finance
principles, concepts, key terms, functions and theories. Command words: describe,
explain, give, identify, outline Marks: ranges from 1 to 4 marks.
AO2 Apply knowledge and understanding of financial issues and accounting
processes to real-life business and personal scenarios Command words: analyse,
assess, calculate, describe, discuss, evaluate, explain Marks: ranges from 2 to 12
marks.
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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, Learning Outcome D - Select and Evaluate Different Sources of
Business Finance
Activity 1 – Internal Sources of Finance
As we go through each source of internal finance take down what that source of
finance is and, in the table, write the advantages and disadvantages of using that
source of finance.
Internal source Explain the source Advantages Disadvantages
of finance
Retained Profit
Net Current
Assets
Sale of Assets
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, Activity 2 – Internal Source Scenario
Ross has decided to buy a van at a cost of £18,000. He has decided to use an
internal source of finance to fund this purchase. His business has made £36,000 in
profit this year.
Evaluate whether using retained profits would be a good source of finance for
his business.
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, Activity 3 – Knowledge Check Internal Sources of Finance
Outline two advantages of using retained profits as a source of finance
Explain what retained profits are
Suggest two disadvantages of using net current assets as a source of finance
Explain a benefit of selling assets to finance a business
Describe how net current assets can be used as a source of finance
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, Activity 4 - External Sources of Finance
From research or knowledge of external sources of finance complete the spider
diagram with as many external sources as you can. We will go over these in more
detail next.
External
Sources of
Finance
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, Activity 5 - External Sources
As we go through the types of external sources of finance fill out the description of
each one along with the advantages and disadvantages of using that source of
finance.
Owner’s capital
Description of source of finance:
Advantages Disadvantages
Loans
Description of source of finance:
Advantages Disadvantages
Crowd funding
Description of source of finance:
Advantages Disadvantages
Activity 6 – Key Questions
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