Unit 3: Personal and Business Finance

This unit is part of the BTEC National Extended Diploma in Business and has the following learning outcomes and assessment criteria:

1. A Understand the importance of managing personal finance
   1. A1 Functions and role of money
   2. A2 Different ways to pay
   3. A3 Current accounts
   4. A4 Managing personal finance
2. B Explore the personal finance sector
   1. B1 Features of financial institutions
   2. B2 Communicating with customers
   3. B3 Consumer protection in relation to personal finance
   4. B4 Information, guidance and advice
3. C Understand the purpose of accounting
   1. C1 Purpose of accounting
   2. C2 Types of income
   3. C3 Types of expenditure
4. D Select and evaluate different sources of business finance
   1. D1 Sources of finance
5. E Break-even and cash flow forecasts
   1. E1 Cash flow forecasts
   2. E2 Break-even analysis
6. F Complete statements of comprehensive income and financial position and evaluate a business’s performance
   1. F1 Statement of comprehensive income
   2. F2 Statement of financial position
   3. F3 Measuring profitability
   4. F4 Measuring liquidity
   5. F5 Measuring efficiency
   6. F6 Limitations of ratios