COMPLETE CONTENT & KEY TERMINOLOGY

The confirmed MR5 demarcation states that the assessment is similar to Sections A and B of the final examination. Prepare for terminology, short objective questions, matching/classification, scenario application, calculations and structured responses.

• Round 1 — Learn the key terminology in each chapter.
• Round 2 — Close the guide and reconstruct the study cues from memory.
• Round 3 — Practise application: identify the concept, use evidence from the scenario, then explain the link.
• Round 4 — For Finance, write the formula before substituting numbers and interpret the answer.

Ethics asks what is right; professionalism sets the accepted workplace standard; professional behaviour is what the person actually does.

Why it matters: professional behaviour builds trust and reputation, improves service and relationships, supports productivity and accountability, and reduces complaints, conflict, misconduct and reputational risk.

A code of ethics states broad principles and values used to make decisions. A code of conduct converts expectations into specific rules about what employees may or may not do. Many organisations combine both in one document.

• B — Buy-in: involve staff and build ownership.
• L — Lead by example: managers must model the expected conduct.
• A — Accessible: clear language and easy access.
• S — Sessions: training, discussion and practical examples.
• T — Technical accuracy: keep the code correct, current and proofread.
• C — Consequences: fair and consistent enforcement.

Wider organisational consequences can include mistrust, court/criminal consequences, reputational damage, fines/compensation, reduced investor confidence/share value and increased regulation or oversight.

Corporate governance is the system by which a business is directed, controlled and held accountable. It promotes responsible decision-making and considers more than short-term profit.

Benefits: positive image/reputation; stronger stakeholder relationships; greater investor confidence and access to capital; improved customer satisfaction and market position.

Strong teams have role clarity, a shared goal, balanced contributions, commitment, trust and communication. Synergy occurs when coordinated strengths make the team result better than isolated individual efforts.

A balanced team combines thinking, execution and people skills. In application questions, identify the role from the behaviour and then explain how complementary roles improve team success.

Conflict is a disagreement between people or groups whose goals, values, perceptions, needs or interests differ. The management goal is to use constructive disagreement while preventing harmful escalation.

• C — Communication: manage clear communication with stakeholders.
• O — Open channels: support genuine two-way communication and feedback.
• R — Reputation: build, protect and repair reputation where necessary.
• E — Early warning: identify issues and opportunities before they become serious.

Find out what employees think, keep them informed and provide two-way channels between employees and management. Engaged employees are more likely to deliver the brand promise consistently.

Selection rule: consider reach, speed, credibility, level of detail and whether the target audience can access the channel.

• Total variable cost = variable cost per unit × quantity.
• Total cost = fixed costs + total variable costs.
• Total revenue = selling price per unit × quantity sold.
• Profit / loss = total revenue − total cost.
• Contribution per unit = selling price per unit − variable cost per unit.
• Break-even units = fixed costs ÷ contribution per unit.
• Safety margin = actual/expected output − break-even output.

A feasibility study assesses the potential of a new business or project idea before large amounts of time and money are committed and before the business plan is developed. It supports a go / revise / delay / reject decision.

A thorough feasibility decision uses realistic assumptions about demand, competition, costs, staffing, funding, cash flow, risks, revenue, supply availability and break-even.

• USE — allocate money to current operations and productive assets.
• KEEP — control spending and debt, prevent waste, maintain records and protect reserves.
• GROW — invest surplus funds to generate future income or capital growth.
• Use budgets, cash-flow forecasts, internal controls and regular review.
• Maintain enough working capital/liquidity to pay short-term obligations.

When comparing investments also consider expected return, risk, liquidity, time horizon, inflation, tax and diversification. Do not assume the highest percentage return is automatically best for every investor.

Insurance transfers specified financial risks from the business to an insurer in exchange for a premium. It reduces the financial impact of covered events; it does not remove the need for prevention and risk controls.

• Ch 7: define ethics, professionalism and professional behaviour; distinguish and apply PCUN; justify ethical vs unethical conduct; explain code of ethics vs code of conduct; explain consequences of unethical practice; define/apply corporate governance; recognise the eight Batho Pele principles.
• Ch 8: place FSNPA in order; explain synergy; attach all nine Belbin roles to behaviours; explain how complementary roles improve success; classify functional vs dysfunctional conflict; select and justify a conflict-management approach; give stress/crisis/change techniques.
• Ch 9: define PR; classify stakeholders and state expectations; explain internal marketing; choose a suitable PR medium and justify it; write RACE in the correct order; distinguish PR from marketing; explain why ethical behaviour and consistent communication protect reputation.
• Ch 10: distinguish profit from cash flow and the two financial statements; know all formulas; interpret break-even and safety margin; explain WHAT–WHO–WILL IT WORK; distinguish recurring investment income from capital growth/gains; use ROI; apply Industry–Brand–Management–Liquidity; match insurance types to risks; know gearing, premium, credit limit, bad debt, working capital and current assets.

• Do not call every ethical decision “utilitarian”. Look for the specific clue: rule/duty, result, greatest good for most people, or story/context.
• Do not merely name a Belbin role. Explain the behaviour and, when asked, how the role complements other roles.
• Do not treat every disagreement as dysfunctional. Functional conflict can improve ideas and decisions.
• Do not use a conflict approach without linking it to urgency, relationship and issue importance.
• Do not confuse PR with advertising or marketing.
• RACE is Research → Action → Communication → Evaluation — not two models.
• Profit is not the same as cash flow.
• Total cost = fixed costs + TOTAL variable costs, not fixed cost + variable cost per unit.
• At break-even, profit is zero because total revenue = total cost.
• Capital growth is not necessarily a realised capital gain.
• Insurance reduces financial impact; it does not prevent the risk event.

• I can DEFINE the main terminology without using the word itself in the definition.
• I can IDENTIFY concepts from unfamiliar scenarios and quote/use evidence.
• I can DISTINGUISH similar concepts by stating a clear point of difference.
• I can JUSTIFY ethical/unethical judgements and conflict/investment choices.
• I can attach each Belbin role to the correct contribution and explain a successful combination.
• I can APPLY Batho Pele principles to a public-service scenario.
• I can distinguish investment income, capital growth, unrealised growth and realised capital gain.
• I know all Finance formulas and can show formula → substitution → answer → interpretation.
• I have revised the Additional Activities in the Consumo textbook, as required by the demarcation.