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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain how the life cycle of a business entity affects investment and insurance decisions 
SAQA US ID UNIT STANDARD TITLE
230073  Explain how the life cycle of a business entity affects investment and insurance decisions 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14513  Explain how the life cycle of a business entity affects investment decisions  Level 6  Level TBA: Pre-2009 was L6  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for Intermediaries and Learners in The Financial Services Sector who work in Product Development, Marketing, Product Supplies, Management, Call Centres or who give Financial Advice or Engage in Wealth Management or Financial Planning, including, but not limited to, Banking, Long-Term Insurance, Investment and the Associated Products. It will be useful for learners who give financial advice and who are required to understand business clients at different stages in the life cycle of an business entity and how the business entity's risk profile and tolerance influence financial advice. The Unit Standard will be useful for learners in financial services who are Wealth Managers, Portfolio Managers, Fund Managers, Financial Managers, Intermediaries and Independent Financial Advisors.

The qualifying learner is capable of:
  • Discussing the life cycle of a business entity.
  • Describing the financial implications at each stage in the life cycle of a business entity.
  • Analysing a selected business entity to determine the current stage in the life cycle.
  • Proposing a financial solution for an entity. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication at Level 4. 

    UNIT STANDARD RANGE 
  • Stages in the life cycle include planning, start up, growth, mature, decline.
  • Funding includes, but is not limited to banks, private equity, public equity, private borrowing, funding, opportunities, debt/loans, bonds, debentures and utilisation income.
  • Factors not specific to the life cycle that could trigger a change in stage of the life cycle include, but are not limited to, lives of partners, competition, technology, insured assets, business interruption and insurance against other business risks.
  • Different types of risk include, but are not limited to, operational, reputational, regulatory, market risk and asset loss. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Discuss the life cycle of a business entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The stages in the life cycle of a business entity are analysed and illustrated for a typical business. 

    ASSESSMENT CRITERION 2 
    The characteristics of each stage in the life cycle of a business entity are explained and compared with examples. 

    ASSESSMENT CRITERION 3 
    Factors that could trigger an unexpected change in the life cycle of a business entity are discussed with examples. 

    SPECIFIC OUTCOME 2 
    Describe the financial implications at each stage in the life cycle of a business entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The funding requirements at each stage of the life cycle of a business are explained with reference to potential sources of finance. 

    ASSESSMENT CRITERION 2 
    The implications of cash flow cycles are explained with reference to seasonality, infrastructure, modernisation, tax breaks, assessed loses, write offs and economic cycles where applicable. 

    ASSESSMENT CRITERION 3 
    Risks related to management structure are explained with reference to the profile of the Chief Executive Officer (CEO), continuity, stability, succession planning and decision making and organisational culture. 

    ASSESSMENT CRITERION 4 
    The typical appetite for different types of risk in a business entity is described for each stage in the life cycle. 

    ASSESSMENT CRITERION 5 
    The impact of diversification or expansion at each stage of the life cycle of a business entity is explained with examples. 

    SPECIFIC OUTCOME 3 
    Analyse a selected business entity to determine the current stage in the life cycle. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Financial statements and other relevant data of a selected business entity are analysed and interpreted to determine the strategic direction, financial needs or shortfall and financial state of the entity. 

    ASSESSMENT CRITERION 2 
    Questions are asked of management to determine the full current status of the entity with regards to strategic issues and the life cycle of the entity. 

    SPECIFIC OUTCOME 4 
    Propose a financial solution for an entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The wants and needs of a selected entity are analysed and motivated to justify financial, insurance and/or investment options for the entity. 

    ASSESSMENT CRITERION 2 
    A proposal is presented to the appropriate stakeholders. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in identifying the stage in the life cycle of a business entity and proposing a financial solution for a business entity. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in interpreting financial statements and media releases and recommending a financial option. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in analysing the stage of the life cycle of a business entity and interpreting financial statements and media releases. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems in explaining the interrelationship between the stage in the business cycle and the financial implications at each stage. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 14513, "Explain how the life cycle of a business entity affects investment decisions", Level 6, 6 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.