Purpose
Achievement Criteria
Explanatory Note 1
Demonstrate understanding of the financial viability of an organisation involves:
- describing a factor that affects the financial viability of an organisation
- describing actions that the organisation could take to sustain financial viability
- using a relevant model or concept in the response.
Examine the financial viability of an organisation involves:
- explaining a factor that affects the financial viability of an organisation
- explaining actions that the organisation could take to sustain financial viability
- using a model or concept to support the response.
Evaluate the financial viability of an organisation involves:
- analysing the effects of a factor on the financial viability of an organisation
- evaluating actions that the organisation could take to sustain financial viability
- using a model or concept to develop the response.
Explanatory Note 2
As part of the evidence provided, students must include discussion of pūtake in the context of demonstrating understanding of an organisation’s financial viability.
Explanatory Note 3
Financial viability means the ability of an organisation to continue operating from a financial perspective over time.
Sustaining financial viability means strengthening or supporting this ability. This may mean capitalising on the positive effects or mitigating the negative effects of factors affecting an organisation.
Explanatory Note 4
Models or concepts are used to observe, understand, and make predictions about economic behaviour.
Examples include:
- supply and demand model
- income statement
- cost/volume/profit analysis
- cost/benefit analysis.
Explanatory Note 5
Factors are circumstances which may have financial implications for an organisation.
Examples include:
- legislation and regulation
- staffing
- competition.
Shared Explanatory Note
Refer to the NCEA glossary for Māori, Pacific, and further subject-specific terms and concepts.
This Achievement Standard is derived from the Social Sciences Learning Area at Level 6 of The New Zealand Curriculum: Learning Media, Ministry of Education, 2007.
External Assessment Specifications
The External Assessment Specifications are published by NZQA and can be found on their website using this link:
NZQA Commerce
Unpacking the Standard
Mātauranga Māori constitutes concepts and principles that are richly detailed, complex, and fundamental to Māoridom. It is important to remember that the practice of these are wider and more varied than their use within the proposed NCEA Achievement Standards and supporting documentation.
We also recognise that the cultures, languages, and identities of the Pacific Islands are diverse, varied, and unique. Therefore the Pacific concepts, contexts, and principles that have been incorporated within NCEA Achievement Standards may have wide-ranging understandings and applications across and within the diversity of Pacific communities. It is not our intention to define what these concepts mean but rather offer some ways that they could be understood and applied within different subjects that kaiako and students alike can explore.
Mātauranga Māori constitutes concepts and principles that are richly detailed, complex, and fundamental to Māoridom. It is important to remember that the practice of these are wider and more varied than their use within the proposed NCEA Achievement Standards and supporting documentation.
We also recognise that the cultures, languages, and identities of the Pacific Islands are diverse, varied, and unique. Therefore the Pacific concepts, contexts, and principles that have been incorporated within NCEA Achievement Standards may have wide-ranging understandings and applications across and within the diversity of Pacific communities. It is not our intention to define what these concepts mean but rather offer some ways that they could be understood and applied within different subjects that kaiako and students alike can explore.
The intent of the Standard
The purpose of this Achievement Standard is for ākonga to show an understanding of an organisation’s financial viability. This understanding includes how this viability can be impacted by the circumstances of the organisation.
Ākonga will relate the concept of financial viability to the pūtake of an organisation. They will use concepts and models, for example, financial statements or a supply and demand model, to understand how factors influence the organisation’s financial viability and its ability to meet its pūtake into the future.
Making reliable judgements
To attain this Achievement Standard, ākonga must include discussion of pūtake in the context of an organisation’s ongoing financial viability. In Commerce, pūtake is an organisation’s reason for being. This is shaped by the organisation’s values and beliefs. In their report, ākonga should show connections between financial viability and pūtake.
Ākonga may choose to include visual images of models or concepts, or simply provide descriptions. Where visual images are used to support explanations, they should conform with conventions such as titles, units, and the labelling of axes. Any explanations should include reference to actual quantities and dollar values as appropriate.
Ākonga achieving at higher levels will exhibit greater awareness of what may be next for the organisation. Ākonga will propose actions that sustain financial viability in response to the affecting factor. Depending on the factor affecting the organisation, sustaining financial viability may be concerned with lessening negative impacts. Where an organisation is positively impacted by its circumstances, ākonga may suggest a path of action which capitalises on this factor.
Collecting evidence
Throughout their year’s learning, ākonga will deepen their understanding of a particular organisation. They will be given opportunities to gather evidence such as financial documents, income statements, and relevant stakeholder information. Class visits or guest speakers would be an authentic way of gathering information. This evidence may be drawn on during the assessment event for the creation of their report.
Ākonga may use the same model or concept to support their responses at all levels of achievement, or they may use different ones if appropriate.
Ākonga should also have opportunities to explore the impact of a range of factors on organisations’ operation.
Possible contexts
Ākonga may study any organisation through the course of a year’s learning. Kaiako should select, or approve the selection of, an appropriate organisation that will provide rich material to work from in this Achievement Standard.
It is recommended to select organisations that operate in contexts with which ākonga are familiar. This could be local organisations, or ones providing a product for which ākonga personally understand buyer motivations. This familiarity may allow them to demonstrate capability within this Achievement Standard more easily.
Examples of the types of organisations that would be appropriate for this Achievement Standard include:
- student business for a combined market day
- student business run in the community
- local business
- local non-profit organisation.
The intent of the Standard
The purpose of this Achievement Standard is for ākonga to show an understanding of an organisation’s financial viability. This understanding includes how this viability can be impacted by the circumstances of the organisation.
Ākonga will relate the concept of financial viability to the pūtake of an organisation. They will use concepts and models, for example, financial statements or a supply and demand model, to understand how factors influence the organisation’s financial viability and its ability to meet its pūtake into the future.
Making reliable judgements
To attain this Achievement Standard, ākonga must include discussion of pūtake in the context of an organisation’s ongoing financial viability. In Commerce, pūtake is an organisation’s reason for being. This is shaped by the organisation’s values and beliefs. In their report, ākonga should show connections between financial viability and pūtake.
Ākonga may choose to include visual images of models or concepts, or simply provide descriptions. Where visual images are used to support explanations, they should conform with conventions such as titles, units, and the labelling of axes. Any explanations should include reference to actual quantities and dollar values as appropriate.
Ākonga achieving at higher levels will exhibit greater awareness of what may be next for the organisation. Ākonga will propose actions that sustain financial viability in response to the affecting factor. Depending on the factor affecting the organisation, sustaining financial viability may be concerned with lessening negative impacts. Where an organisation is positively impacted by its circumstances, ākonga may suggest a path of action which capitalises on this factor.
Collecting evidence
Throughout their year’s learning, ākonga will deepen their understanding of a particular organisation. They will be given opportunities to gather evidence such as financial documents, income statements, and relevant stakeholder information. Class visits or guest speakers would be an authentic way of gathering information. This evidence may be drawn on during the assessment event for the creation of their report.
Ākonga may use the same model or concept to support their responses at all levels of achievement, or they may use different ones if appropriate.
Ākonga should also have opportunities to explore the impact of a range of factors on organisations’ operation.
Possible contexts
Ākonga may study any organisation through the course of a year’s learning. Kaiako should select, or approve the selection of, an appropriate organisation that will provide rich material to work from in this Achievement Standard.
It is recommended to select organisations that operate in contexts with which ākonga are familiar. This could be local organisations, or ones providing a product for which ākonga personally understand buyer motivations. This familiarity may allow them to demonstrate capability within this Achievement Standard more easily.
Examples of the types of organisations that would be appropriate for this Achievement Standard include:
- student business for a combined market day
- student business run in the community
- local business
- local non-profit organisation.
Literacy and Numeracy Requirements
This Achievement Standard has been approved for literacy in 2024 and 2025.
Full information on the co-requisite for 2024 and 2025: Standards approved for NCEA co-requisite for 2024 and 2025.
Literacy and Numeracy Requirements
This Achievement Standard has been approved for literacy in 2024 and 2025.
Full information on the co-requisite for 2024 and 2025: Standards approved for NCEA co-requisite for 2024 and 2025.