3. Business: Finance

Subject: Business

Resource type: Lesson

Skills: Aiming High, Problem Solving

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Be a Hero for Fitness Heroes: In this activity, students are taking on the role of a public finance accountant. They will be looking at ways a council run fitness centre can raise money, so it can continue to operate. Access our comprehensive resource package, including detailed teacher notes, PowerPoint, student worksheet and answer sheet. Adapt to your classroom’s needs for a dynamic learning experience.

Scenario

Fitness Heroes Leisure Centre is a not-for-profit organisation which operates the Pennymorgan leisure centres on the council’s behalf.

The organisation is facing a £650,000 funding gap in the next financial year.

The council is being asked to support this shortfall by providing the organisation with an additional £350,000 in funding, to help keep the centres running.

The council is also being asked to support a one-off investment of £450,000 to replace ageing boilers and make them more energy efficient, which will save at least £140,000 per year.

The organisation also intends to seek permission from the council to raise prices for customers by 9.5% and approve cost saving measures which will save £50,000 per year.

If the council approves these requests, then cuts will need to be made in other areas of the council’s budget such as education, housing etc.

Learning Aim

To consider the impact financial decision making can have on business stakeholders.

Skills Builder Links

Aiming high step 4
I work with a positive approach to new challenges.

Problem solving step 4
I explore problems by creating different possible solutions.

Curriculum Table

England: The national curriculum (England)	Finance Students must know and understand the concept of revenue, costs, profit and loss, including break even and gross and net profit ratios.
Scotland: The National 5 Business Management	Understanding business – Objectives How objectives affect the operation of, and decisions made in, different types of organisations.
Wales: WJEC GCSE in business specification	Revenue and costs Learners need to understand what is meant by revenue, costs, profit and loss (and calculate and interpret: fixed costs, variable costs, total costs, total revenue and profit/loss).