BTEC Assignment Brief

Pearson BTEC International

Qualification Level 3 Extended Diploma in
Business

Unit Number and Title Unit 3 – Business Finance

A: Explore types of business

finance available at different
stages in the growth of a
business.
B: Understand how financial
planning tools can be used
Learning Aims to analyze financial data and
assess business risks.
C: Understand how financial
statements for a sole trader
are prepared and used to
analyse and evaluate
business performance.

Income and Financial

Assignment Title Analysis in Dynamic
Organizations

Assessor Usman Khalid

Hand Out Date 28th December 2021

Hand In Deadline 6th January 2022

Vocational Scenario or Context You have recently joined as a

junior associate in a newly
established financial
consultancy firm.
The firm offers specialized
consultancy to small-scale
businesses and aids them in
preparing financial
statements and help them
understand the financial
health of their businesses.
 The firm has been able to
sign on various clients who
are operating as sole traders
or partnerships.

Task 1 You have been asked to

write a brief report for the
new clients, explaining what
the different sources of
finance and revenue which
will be available to different
businesses in the local
context are.
You need to research
businesses:
• Of differing sizes (e.g.
small, medium, large);
• At different stages of
development (e.g.
start-up, sole trader,
partnerships, private
and public limited etc);
• That have different
business objectives
(e.g. expand, to
develop products, to
develop in new
markets, to relocate
etc);
• That offer different
products (e.g. goods
or services or both);
and
• That operate in
different sectors (e.g.
retail, electronics,
health etc).
In your report, you must
include the following for the
different businesses at the
different stages of their
development:
• An explanation of the
features of different
internal and external
sources of finance that
are available;
• How different sources
of internal and
external finance can
be accessed;
• An explanation of how
the features of the
different internal and
external sources of
finance influence the
decisions made;
• An explanation of the
different sources and
suitability of revenue
that is available;
• An analysis of the
similarities and
differences in the
approach taken by the
different businesses to
securing business
finance;
• The advantages and
disadvantages,
including the business
risks, of the different
types of internal and
external sources of
finance;
• A judgement on how
far different types of
internal and external
business finance meet
the requirements;
• An evaluation of how
 far the different types
of internal and
external finance meet
the needs of the
different businesses;
and
• A conclusion
determining the most
appropriate types of
business finance for
the different
businesses at different
stages of their
development.

Task 2 Your first client, Abacus

Traders, has approached you
and asked for your advice.
They want you to analyse
the performance of their
business, identifying the
current business risks and
suggest ways that their
business performance could
be improved.
Using the financial data
provided by Abacus Traders
(Attached in Appendix),
write a financial report to
present your findings to the
owner of Abacus Traders.
Your financial report must
include:
• An explanation of the
purpose of Cash flow
forecasts and statements
and Break -even analysis;
• An accurate calculation
for the cash flow
forecasts (Using data in
Section 1);
• An accurate calculation
 for the break-even chart
(Using data in Section 2);
• An in-depth analysis
using data from the sole
trader’s cash flow
forecasts and statements
and break-even analysis,
to identify risks to the
business;
• A detailed examination of
the factors that impact
on the business risks.;
and
• A broad range of
conclusions and actions
that the business could
take to address these
risks, based on the
analysis of your
calculations.

Task 3 The owner of Abacus

Traders, is unsure why he
needs to make financial
statements. You have been
asked by the client to
produce a financial report,
which must include:
• An explanation of the
purpose and the main
components of
statement of
comprehensive income
and statement of
financial position for a
sole trader.
• An accurately prepared
statement of
comprehensive income
and statement of
financial position. (Using
Data from Section 3). For
 both of the above
statements, you need to
make adjustments for:
- Depreciation
- Prepayments
- Accruals
- Changes in capital
• Accurate ratio
calculations (measuring
profitability, liquidity and
efficiency), using data
you have extracted from
the above statements
(Using your own
calculation and data from
section 4)
• An analysis of the
business’s performance
i.e. a detailed
examination of the ratio
calculations
• A wide range of justified
recommendations for
improving the business’s
performance, based on
the outcomes of the ratio
analysis

Checklist of evidence required Financial report including:

• cash flow forecasts and
statements
• break-even analysis
• risks and possible
solutions
• statement of
comprehensive income
• statement of financial
position
• ratio analysis
 • recommendations on
how to improve the
business’s performance
• Report
Criteria covered by this task:
Unit/Criteria reference To achieve the criteria, you must show that you are able to:
Explain sources and suitability of finance available in
3/ A. P1
different business contexts.
Explain sources and suitability of revenue available in a
3/ A. P2
specific business context.
Explain the purpose of financial planning tools in reviewing
3/ B. P3
financial data in a specific business context.
Perform appropriate calculations using financial planning
3/ B. P4
tools to identify financial risks in a specific business context.
Prepare and interpret financial statements for sole trader
3/ C. P5
businesses.
Explain ways to improve profitability, liquidity and efficiency
3/ C. P6
in a given business context.
Analyse the types of business finance required in a specific
3/ A. M1
business context.
Analyse the factors that impact on financial risks in a specific
3/ B. M2
business context.
Assess business performance of a sole trader by
3/ C. M3 manipulating financial data and making suggestions for
improving business performance.
Evaluate appropriate types of business finance applicable in
3/ A. D1
a specific business context.
Evaluate the impact of different factors that impact on
3/ B. D2
financial risks in a given business context.
Justify recommendations for improvements to business
3/ C. D3 performance for a sole trader, arising from own preparation
and interpretation of business financial data.

Sources of information to
support you with this None
Assignment

Other assessment
materials attached to this Appendix 1 – Financial Records
Assignment Brief

Guidelines The Submission is in the form of a Report and Excel Sheet

(with relevant calculations).
The report should be written in a structured and concise
manner, maintaining;
- Font – Times New Roman
- Font Size – 12
- Margin space – Standard (Default)
- Line spacing – 1.5
- Heading1 – Font size 16 and Bold
- Heading2 – Font size 14 and Bold
All material should be properly referenced using a Harvard
Referencing Style, including an in-text citations.