AS 92031 · 5 credits · External
Financial viability
Demonstrate understanding of the financial viability of an organisation
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AS92031 is a 5-credit external standard (end-of-year exam) in Year 11 Business Studies. Students look at a real or case-study organisation and work out whether it is financially healthy enough to keep running — its 'financial viability'. They pick one factor that could affect the business (like a new competitor, a change in law, or a staffing problem), then use a financial tool (like an income statement or cost/volume/profit analysis) to explain what is happening and what the business should do about it. A compulsory part of every answer is discussing pūtake — the organisation's core purpose or reason for existing — and how that connects to its financial situation.
What to do, grades and common mistakes
- ·Read a case study about a business (in 2025 this was a tiny-home company called Whare Hangariki Ltd) — or write about an organisation you studied during the year, such as a market-day business.
- ·Choose one factor from a provided list (e.g. a competitor cutting prices, a delay in supplies, new legislation) and explain how it affects whether the business can keep operating financially.
- ·Use at least one financial model or tool — such as an income statement, or cost/volume/profit analysis — to back up your answer with actual numbers or financial reasoning, not just general comments.
- ·Describe or explain at least two actions the business could take to stay financially viable, again linking those actions to the financial model.
- ·Discuss pūtake: what the organisation's core purpose is and how it connects to the financial situation — this is required to pass the standard.