AS 92030 · 5 credits · External
Interdependent financial relationships
Demonstrate understanding of how entities with interdependent financial relationships are affected by an event
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You need to show that you understand how businesses that depend on each other financially are affected when something important happens (like a change in customer demand or a natural event). You'll need to describe what those money relationships look like, what directly happens to the businesses involved, and then how the effects spread to other businesses and people.
What to do, grades and common mistakes
- ·Describe several interdependent financial relationships between different organisations and entities (like how they rely on each other for money).
- ·Explain what directly happens to a business when the event occurs (for example, a drop in sales or an increase in costs).
- ·Trace the flow-on effects of the event through other businesses and entities connected to the first one, and explain how these secondary effects impact their financial relationships.
- ·For Merit and Excellence, identify a decision the business could make in response to the event and justify why they would make that choice.
- ·Evaluate both the positive and negative consequences of that decision for the different organisations and people involved.
You describe at least two interdependent financial relationships between organisations, identify what directly happens to one business when the event occurs, and use correct financial terminology like revenue, income, and wages.