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P4 M2

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Task 1 * P4 Explain how both fiscal and monetary policy decisions have affected a selected businessYou must examine fiscal and monetary policies in relation to a chosen business. This will involve explaining the possible impact of changes in the tax regime, as well as interest rate changes your chosen business’s operations.When discussing Fiscal policy you must be specific about the tax or spending and how it has an effect on the business.Does it make them alter how the business operates and explain why? Which areas within the business does it affect?Key distinctions to remember For Fiscal are:- direct and indirect taxation, tax free allowances, the annual budget statement, redistribution of income.When identifying Monetary issues you must identify the source of the changes you describe. Who initiated it? What is the mechanism by which it is implemented? What is the impact on the business? Is it direct or indirect?Key issues relating to Monetary are:- interest rate changes, inflation, employment levels, investment decisions,aggregate demand. Inclusion of evidence beyond the content of these sections is welcome but it must be relevant. The range of possibilities is extensive and will vary over time so care will be needed in identifying what is relevant at any one time. N.B. You must confirm with your tutor that the organisation you have selected is appropriate for this purposeThis covers the one Pass criteria in this assignment | Task 2 * M2 (Following on from P4) Analyse the effects of fiscal and monetary policies for a selected business in terms of the market it operates in You are required to analyse the effects of fiscal and monetary policy decisions have on business. The most effective way to do this is to make use of actual examples of a change. Analyse how the business adapted and whether the outcome was positive or negative.This asks for the analysis to be ‘in terms of the market it operates in’. Who, or what, are in the market besides the business? How does the change affect them? What happens in terms of competitive advantage?If you use hypothetical situations avoid stating extreme outcomes such as the business being liquidated without the detail of time span involved and the interim effects that would be experiencedYou may wish to consider changes that illustrate the impact of fiscal and monetary policy at both a national and local level.This covers the one Merit criteria in this assignment | Task 3 * D2 (Following on from P4 and M2) Suggest and justify elements of fiscal and monetary policies that would help a selected business achieve its objectives You are now asked to suggest and justify elements of fiscal and monetary policies that government could use that would help a selected organisation achieve its objectives. You must therefore state what the main objectives are and link their achievement to Fiscal and Monetary issues. Whilst this may be theoretical exercise in part, your evaluation must be based on the real world and suggestions must be something that could actually occur and on a realistic scale. The evaluation of the effect on the objectives should define the level of impact and include quantified outcomes where possible. This covers the one Distinction criteria in this assignment |

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