Unit 3-personal and Business Finance 2024 exam questions (paper). useful for students who are doing exam on 18 May 2024 for unit 3 personal and business finance BTEC Business. Unit 3-personal and Business Finance exam questions (BTEC BUSINESSpaper)
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.
1|Page
, 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
2|Page
, 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.
3|Page
, 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
4|Page
, 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
5|Page
, 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
6|Page
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 AngelaSteven. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.44. You're not tied to anything after your purchase.
