You paid your colour wholesaler $28.00 on Tuesday. Money went one way. A box of colour and foils came back the other way. Every payment your salon makes works like that, and today you draw both arrows for all of them.
Ten sections, about an hour and ten minutes all up. One section is one sitting. Do that one and stop.
Three from the last two lessons. Have a go before you open them, because trying first is what makes them stick.
That $28.00 is an expense: money that has to go out so the salon can do the work. Colour is one of Five Star's four expenses. The others are wages, rent and power.
No, but The Sunday Chair is an organisation. The Sunday Chair sells nothing and is not trying to make a profit. Every business is an organisation, but not every organisation is a business.
The bank interest is income, not revenue. Nothing was sold to get it. All revenue is income; not all income is revenue.
The money arrow is called a money flow. The arrow coming back is called a real flow.
Eight things that moved on the day of that foil job. For each one, say whether it is the money arrow or the real arrow. Pick an answer and the reason appears underneath.
The $190.00 arriving in the salon account is a money flow coming in. The proper name for it is sales revenue.
Two and a half hours of colouring, cutting and blow-waving is a real flow going out. A service is just as real a flow as a box of foils.
The $28.00 paid out to the colour wholesaler is a money flow going out. That payment is also an expense. Both words are correct, and they answer different questions.
A box of foils and three tubes of colour is a real flow coming in. This is the arrow that sits opposite the $28.00.
The $36.00 of wages to Sanjay is a money flow going out. Say wages, not “money”. The exam marks the difference.
Sanjay's hour and a half at the basin and the dryer is a real flow coming in. Work done for you is a real flow.
The use of the salon space for the afternoon is a real flow coming in. Nothing is handed over and nothing is manufactured, but the landlord is genuinely providing something.
The $37.50 of rent to the landlord is a money flow going out. That job's share of the $600.00 weekly rent.
Here is everyone Five Star deals with.
Each one of the boxes at the end of each line is called an entity.
Entity is wider than organisation. An organisation needs two things: more than one person, and a shared purpose, so one person on their own is not an organisation. But an entity has no such test: Sanjay by himself is an entity, and so is a single client.
Every organisation is an entity; not every entity is an organisation.
Every business is an organisation; not every organisation is a business.
Now take the picture one line at a time. Every line needs two arrows: money one way, something real the other. Tap a name to see both.
They book, they sit in the chair, and they pay Five Star.
Five Star relies on its clients for its sales revenue, $190.00 from one full head of foils.
Five Star's clients rely on Five Star for the colouring and cutting itself, which is not something they can do at home.
The arrows above show nothing new: they are the same $190.00 foil job, drawn as arrows instead of a list. Below is a third way, that $190.00 as one bar, cut up.
Every one of those six pieces went to an entity, and every one of them came back the other way as something real: product, hours worked, a room to work in, hot water and roads.
The case study has four or five entities, drawn from this list: whānau, hapū, iwi, community organisations, the government, financial institutions, and businesses.
Five Star needs the colour the wholesaler sells, and the wholesaler needs the orders Five Star places.
Five Star and the wholesaler are interdependent: each one depends on the other. More precisely, the two of them are in an interdependent financial relationship.
Not every pair of entities is interdependent. For example, the charity Five Star donates to relies on Five Star and every other donor, but Five Star does not rely on the charity for anything. So Five Star and the charity are not in an interdependent financial relationship.
Describe at least three financially interdependent relationships for Achieved. Three means three pairs of entities (not three entities, not three arrows, not three effects), each pair written out both ways.
“Five Star relies on its colour wholesaler.” is half an answer. It is true, and it describes one arrow. But nothing in it says what the wholesaler gets back, so nobody reading it can tell whether Five Star and the wholesaler are interdependent.
Instead, you should write one sentence starting with each entity. Here is that same relationship, Five Star and the colour wholesaler, done with one sentence, then with two.
Two sentencesFive Star relies on the wholesaler for $28.00 of colour, foils and developer on every full head of foils.
The wholesaler relies on Five Star's repeat orders for its own sales revenue.
Only one sentenceFive Star relies on its colour wholesaler.One sentence shows only one side. A relationship that runs both ways needs a sentence that starts with each name.
The second version says who relies on whom in both directions, names the money correctly (sales revenue, not “money”), and puts a figure on the flow. That is what a described relationship looks like. Three relationships means six sentences.
Write the relationship both ways: what each entity relies on the other for.
Two ways of describing the same relationship, Five Star and its colour wholesaler. One passes and one fails. Press each grade to see its answer.
Not achieved“Five Star and its colour wholesaler rely on each other. If the wholesaler put its prices up, Five Star would be affected.”
Three faults: the sentence claims the reliance goes both ways without saying how; “affected” gives no direction, up or down; and there is no dollar figure, when one is right there.
Six sentences a student might write. For each one, decide whether it describes the relationship both ways or only one way. Pick an answer and the reason appears underneath.
That sentence describes both directions. One sentence per entity, and the money is named and given a figure.
That sentence describes one direction only. The figure and the money word are good, but nothing says what Five Star gets back from Sanjay.
“Sanjay relies on Five Star for $36.00 of wages from every foil job. Five Star relies on Sanjay for an hour and a half of the work on that job.”
That sentence describes both directions, and the second half works even though no money comes back. What the funder receives is the thing being done.
That sentence describes neither direction. The sentence claims both, which is worse than describing one. A marker cannot see what either party gets.
“Five Star relies on the power company for the electricity the dryers and the basin need. The power company relies on Five Star, and on every business like it, for the payments that are its sales revenue.”
That sentence describes both directions, and the relationship is an easy one to forget. Tax revenue out; services back.
That sentence describes one direction only. The bank's side of it is missing.
“Five Star relies on the bank to keep its revenue safe and to get the card payments into the account. The bank relies on the money businesses like Five Star leave with it, because that is what it lends out and earns interest on.”
The things people ask at exactly this point.
No, the wholesaler is an entity but not a stakeholder. They are two different tests.
An entityMoney and something real move between Five Star and the wholesaler: $28.00 out on a foil job, and the colour coming back.
Not a stakeholder (but an entity)Five Star would not weigh the wholesaler's view before a decision, such as whether to open on Sundays.
Sanjay is a stakeholder.
The colour wholesaler is an entity.
The colour wholesaler is a stakeholder.
Not on every relationship, but use a figure whenever the case study gives you one. If there is no figure, use the right money term and give it a direction.
The sales revenue of the business decreased by $190.00.
The business would be affected.
Yes, the grant is a relationship. The Sunday Chair relies on the funder for $250.00 each Sunday. The funder relies on The Sunday Chair to do the work the funder pays for, because the funder has no volunteers and no scissors of its own.
The haircuts go to the people in the chairs, not to the funder. The money arrow and the real arrow do not always point at the same two entities.
The government receives tax and spends it on services such as roads, hospitals, schools and the courts. Five Star sets aside $25.50 for tax on a foil job, and its clients drive in on those roads.
The government receives tax.
The government supplies power or water.
The government receives the revenue from exports.
The government charges a tariff on exports.
The government puts tax rates up next week.
An export is something sold to a buyer in another country, and its sales revenue goes to the business. A tariff is a tax a government charges on goods coming into its own country.
A bank does three things, and all of them are financial.
Two things a bank does not do, and candidates got both of them wrong.
Yes, the relationship you choose to write about needs to involve money. The exam asks for three interdependent financial relationships.
Write about the money that moves between the two entities. Leave out anything they share that is not money.
Five Star pays the wholesaler $28.00 for the colour on every full head of foils.
Five Star and the wholesaler both care about good hair.
Your regulars tagging the salon on Instagram probably brings people in, but nothing financial moves between you and Instagram, so that tagging is not one of your three interdependent financial relationships. Neither is the salon two streets away. Follow the money and the goods, and leave everything else out.
Every card here is a sentence a student wrote and lost marks for. Read the sentence, work out what is wrong with it, then check.
The problem. Nothing in that sentence is false, and on its own it does not achieve. That sentence describes reliance in one direction. The wholesaler's side is missing entirely. Those repeat orders are part of how it earns its own sales revenue.
This is the one to watch. Describing the reliance one way only is a reason candidates do not reach Achieved.
“Five Star relies on its colour wholesaler to supply the colour for every foil job. The wholesaler relies on Five Star's repeat orders for its own sales revenue.”
Add the second sentence. Write two sentences every time, one starting with each name.
The problem. Affected how? Up or down? A marker cannot give credit for a direction you did not state, and “affected” could mean anything at all.
“When the wholesaler put its prices up, the salon's expenses on that job increased from $28.00, so its profit of $76.50 decreased.”
Say which way it moved. The answer states two directions, and a marker can check both of them.
NCEA Assessment Reports: candidates “made general comments such as ‘the business would be affected’ rather than specifying whether there was an increase or a decrease”.
The problem. Twice in one sentence, a word with a proper name has been replaced by “money”. What comes in from clients is sales revenue. What goes out to Sanjay is wages. The sentence is not wrong, it is just worth nothing, because naming the flow correctly is the thing being marked.
“The salon receives sales revenue from its clients and pays wages to its staff.”
Same sentence, two words changed, and now the sentence earns the mark.
NCEA Assessment Reports: “used the description money rather than profit or revenue”.
The problem. The government did not sell anything. The sales revenue from an export goes to the business that made the sale, exactly as the $190.00 goes to Five Star and not to anyone else.
The government's share comes later and is much smaller: tax on the profit the company ends up making.
“The seafood company received the sales revenue from the export. The government receives tax on the profit the company makes from it.”
NCEA Assessment Report, AS92030, listed as a misunderstanding of the government's role.
The problem. A tariff points the other way. A tariff is a tax a government charges on goods coming into its own country, on imports. New Zealand does not tax its own exports on the way out.
If a tariff is charged on New Zealand seafood arriving in Japan, it is the Japanese government charging it, and the New Zealand government receives none of it.
“Any tariff on that seafood is charged by the country it arrives in, not by New Zealand.”
If you are not sure which way a tariff points, leave it out. There is no mark for mentioning one.
The problem. Markers listed this under what candidates got wrong about the government’s role: they thought it could increase tax rates at short notice. The government cannot. A tax rate is not a dial the government turns when it is short, so an answer that leans on it is describing something that would not happen.
“The government would have to change how it spends instead, by delaying a road project or cancelling a new school build.”
Write what the government can actually change quickly, which is how it spends.
The tax rate is set by law, and Parliament takes months to pass a new law.
NCEA Assessment Report, AS92030. Candidates thought tax rates could be changed at short notice.
Money flow and real flow are a pair and always travel together.
A money flow$28.00 from Five Star to the wholesaler.
Not a money flow (but a real flow)Colour and foils going to Five Star. That is a real flow.
A real flowColour and foils, from the wholesaler to Five Star.
Not a real flow (but a money flow)The $28.00 Five Star pays. That is a money flow.
An entity and an organisationFive Star. A group of people, a shared purpose, and money moving in and out of it.
An entity but not an organisationA client. One person, paying $190.00 and walking out with a head of foils.
InterdependentFive Star and Sanjay. Five Star needs the hours from Sanjay; Sanjay needs the $24.00 an hour.
Not interdependent (but one-way)Five Star and the charity Five Star donates to. The charity relies on Five Star, but Five Star does not rely on the charity for anything.
Two sentences“Five Star relies on the wholesaler for $28.00 of colour on every full head of foils. The wholesaler relies on Five Star's repeat orders for its own sales revenue.”
Only one sentence“Five Star relies on its colour wholesaler.” True, but only half the relationship.
A financial institutionFive Star's bank, which holds the salon's account and pays about $4.00 a month in interest on the balance.
Not a financial institution (but a government department)Inland Revenue, the government department that collects tax. A bank never collects tax.
Six parts. The first four parts are short; part (e) is the long one, so give it a proper go. Everything you need is on this page.
a.Write the two arrows between Five Star and the landlord. One line for the money flow, one for the real flow, and say which way each goes.
Money flow: $600.00 of rent goes from Five Star
to the landlord every week.
Real flow: the landlord lets Five Star use the salon space: the two
chairs, the basin, the room.
Each line names the money word and the direction: rent, from Five Star to the landlord; the use of the salon, from the landlord to Five Star. “Money goes to the landlord and the landlord gives the room” has both arrows and neither name, and the naming is what earns the mark.
b.Now describe Five Star and its clients as an interdependent financial relationship. Two sentences, one starting with each name, with a figure in it.
“Five Star relies on its clients for its sales revenue: one full head of foils brings in $190.00, and without bookings like that one there is no sales revenue at all. Its clients rely on Five Star for the colouring and cutting service itself, which they cannot do at home.”
One sentence per entity, each starting with a name, and the figure sits in the first one. The second sentence is the half that gets left out: it says what the clients get, which is the colouring and cutting itself.
c.A student wrote this about The Sunday Chair: “The Sunday Chair relies on its community grant.” Finish the job. Rewrite it so both directions of the relationship between The Sunday Chair and the funder are there.
“The Sunday Chair relies on the community grant for $250.00 each Sunday, which covers the $100.00 one Sunday costs to run and leaves something over for product. The funder relies on organisations like The Sunday Chair to actually deliver the free haircuts it exists to pay for, because the funder has no stylists of its own.”
The second sentence is the one the student was missing. It says what the funder gets, which is the free haircuts actually happening, and it gives the reason the funder cannot deliver them alone.
d.A student wrote: “When the seafood company sells to Japan, the government receives the export revenue, and it charges a tariff on the seafood as well.” Write what actually happens, two or three lines.
“The sales revenue goes to the seafood company, not to the government. The government's share is the tax on the company's profit, which comes later and is much smaller. And New Zealand does not charge a tariff on what it sends out. A tariff is charged by the country the goods arrive in, so any tariff here would be Japan's, and the New Zealand government would receive none of it.”
Two corrections, made one at a time. The first names who receives the sales revenue and puts the government's much smaller share where it belongs, on the profit. The second turns the tariff round: it is charged by the country the goods arrive in, so New Zealand receives none of it.
e.The exam question. Describe three of Five Star's interdependent financial relationships. Two sentences each, both directions, with the money named properly and a figure wherever you have one. Pick three different kinds, not three businesses you buy product from.
1. Five Star and Sanjay. Five Star relies on Sanjay for an hour and a half of the work on every full head of foils, which is what lets the salon take two clients at once. Sanjay relies on Five Star for $36.00 of wages from that job and for the training hours that go towards the qualification.
2. Five Star and the colour wholesaler. Five Star relies on the wholesaler for $28.00 of colour, foils and developer on one job, and cannot offer foils without them. The wholesaler relies on Five Star's repeat orders for its own sales revenue.
3. Five Star and the government. Five Star sets aside $25.50 of the $76.50 profit on that job towards the tax it will owe, so the government relies on businesses like Five Star for its tax revenue. Five Star relies on the government for the services that tax revenue pays for, the road its clients arrive on, and the public training system Sanjay's qualification sits in.
Mark yourself hard on part (e). Describing three relationships is what the exam asks you to do.
f.One more, for the organisation that sells nothing. Describe one interdependent financial relationship The Sunday Chair has, other than the grant. Both directions.
The community centre. “The Sunday Chair relies on the community centre for the hall it works out of, at $50.00 each Sunday for its share of the hire. The centre relies on groups like The Sunday Chair booking the hall, because that hire income is part of how it covers its own costs.”
The people who donate. “The Sunday Chair relies on donations of about $50.00 each Sunday from people who can afford to give, which is what pays for product the grant does not cover. Those donors rely on The Sunday Chair to turn their donations into haircuts for people who could not otherwise pay. Those donors have no way of cutting the hair themselves.”
Either works. What matters is that the second sentence is about the other party and says what they get out of it.
Go Sierra, go!
You went through nine relationships, wrote three of them out in full, and corrected a government mistake that has cost real candidates real marks. Keep writing two sentences for every relationship, one starting with each name.