1. How much do you know about Nathan?
IFS Unit 3 Pre Release
How much do you know about Nathan?

2. How much do you know about Nathan? Personal Finance – Unit 3
1 hour exam
5 questions. Possible structure:
Q1a and 1b – marks
Q2 – 6 marks
Q3 – 3 marks
Q4 – 4 marks
Q5 – 7 marks + 3 SPAG
Out of 30
Question 5 will be assessed for SPAG (worth 3 marks)
Case study will be given in the exam
Pass mark – 50%
Must pass all units to achieve the overall qualification.

3. What sort of questions might they ask me?

4. Quick questions
Why is behaving ethically important to the business?
How does the business behave ethically?
Why is good customer service important?
Why would he offer a care home discounted prices?
Why is having a ‘reasonable wage’ important to the three staff members?
Key Terms
Provide a service
Ethical
Recycling
Wage

5. Which business practices are important to Nathan?
Environmental policy
Nathan is keen to help the environment by recycling his waste, rather than burning it
He also plans to buy a hybrid van.
Why would this help him to gain more customers and a good reputation?
Helping the community
- Nathan is keen to support his local care home, and offers discounts.
Behaving ethically
- Trading fairly, paying taxes, looking after customers and employees.

6. Key Terms
Income
Profit
Independent
Limited Company
Hybrid
Borrowing
Quick questions
How is profit calculated?
Why may it be sensible to ‘diversify’ into different areas?
What are the benefits of being your own boss?
What does the term ‘Limited Company’ mean?
Why would Nathan not want to borrow much money from the bank?
Where would he borrow from if needed?

7. Nathan is an Entrepreneur - ‘an enterprising person with an idea’
What Skills does an Entrepreneur have? - Identifies gaps in the market - Risk takers - Drive, determination and focus - Hard working - Good decision makers - Prepared to take responsibility - Self-confident - Problem solvers - Organised - Creative
What types of businesses are there?
Private companies – own by individuals including sole traders, partnerships, franchises, private limited companies (Ltd) and public limited companies (Plc).
Not-for-profit companies – charities and social enterprises.
Public sector companies.

8. Key Terms
Salary
Fixed Term contract
Minimum Wage
Zero Hour contract
Bank loan
Quick questions
Why is Nathan only taking a small salary?
What is a fixed-term contract?
What is a zero-hour contract?
What would the impact be on Nathan’s business if the National Minimum Wage increased?
What would the impact be of Nathan getting a bank loan as a source of finance?

9. Who works for Nathan? – himself!!!
Adina (sister)
Zero-hours contract
Minimum wage
Joseph (friend)
Fixed-Term contract
How much money will he need to borrow?
Work it out below:

10. Key Terms
Training
Health & Safety
Costs
Market Research
Advertising
Quick questions
How do ‘on the job’ and ‘off the job’ training differ?
Why is having trained staff important?
Why would Nathan want to become qualified and how would this help his business?
Why is it important that Nathan markets or promotes his business effectively?

11. Key Terms
Insurance
Limited Company
Quick questions
Why will Nathan pay for insurance?
How could paying for insurance affect Nathan’s profits?

12. Key Terms
Accounts
Waste
Skills
Entrepreneurial
Quick questions
What type of skills does Nathan have (or need) to be a success in his business?
Why is it a bonus that Nathan has family who can help him out?

13. Key Terms
Growth
Expansion
Sources of finance
Hiring new staff
Short term contracts
Quick questions
What will Nathan need to help the business to grow?
What will the impact be of Nathan taking on more staff?
Why will he want staff who have been on appropriate courses?
Why will Nathan use short-term contracts for new staff rather than permanent ones?

14. Knowledge based questions
What tax changes may impact on Nathan’s business? (Corporation,VAT, Income)
Why is a good reputation important for businesses such as Nathan’s?
What would appear in Nathan’s budget?
What economic reasons might there by for Nathan to be self employed?
What legislation or tax changes would increase or decrease the demand for Nathan’s business?
How could Nathan benefit from his business being a success?
Why has Nathan chosen to have an ethical approach?
How could Nathan’s business benefit the economy and society?
How may an increase or decrease in disposable income possibly impact on Nathan’s business?

15. Potential exam questions
Explain two skills does Nathan have that would make him a successful entrepreneur? 4 marks
Explain two skills Nathan may need that would make him a successful entrepreneur? 4 marks
Describe two features that would make Nathan’s business stand out from other competing firms. 4 marks.
Explain three factors (two internal and one external) that might have an impact on Nathan’s business budget. 6 marks.
Explain three factors (two internal and one external) that might have an impact on Nathan’s cash flow. 6 marks.
Explain two possible impacts on Nathan’s business to behave ethically. 4 marks.
Explain different ways that Nathan’s business can contribute to the economy. 7 marks.
Explain how changes in taxation may positively or negatively impact on Nathan’s business.