Unit of competency Outline
Date retreived
24/07/2026 6:00 AM AWST
24/07/2026 6:00 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage business capital
Manage business capital
Unit of competency
National Code
AHCAGB605
AHCAGB605
State Code
BAQ80
BAQ80
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
12/01/2017
Field of Education
080301 - Business Management
Original Release Date
12/01/2017
Nominal Hours
50
Description
This unit of competency describes the skills and knowledge required to manage the business capital of the business.All work must be carried out to comply with workplace procedures, work health and safety legislation and codes, and sustainability practices.This unit applies to individuals who take personal responsibility and exercise autonomy in undertaking complex work. They must analyse information and exercise judgement to complete a range of advanced skilled activities. They work in contexts that are subject to change and adapt a range of fundamental principles accordingly.No occupational licensing, legislative or certification requirements are known to apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Assess the capital needs of the business
- 1.1 Determine working capital and capital requirements for development
- 1.2 Determine return on capital or opportunity cost of development capital
2. Assess appropriate equity levels for the business
- 2.1 Assess risks associated with the business
- 2.2 Identify personal and business risk preferences
- 2.3 Analyse equity levels in comparable enterprises using benchmark data
3. Establish and maintain appropriate financing arrangements for the business
- 3.1 Determine capacity to service debt and meet liabilities
- 3.2 Sources of funds are identified and terms and conditions compared and evaluated
- 3.3 Conduct negotiations to ensure the establishment of the most favourable terms and conditions
- 3.4 Source loan funds and check agreements
- 3.5 Monitor costs of finance to keep them within defined budget limits
- 3.6 Manage relationships with finance providers
- 3.7 Monitor the economic environment and assess implications for the business
4. Monitor and review the mix of liabilities
- 4.1 Conduct regular reviews of the mix of liabilities and the costs and determine the benefits associated with reconfiguring loans
- 4.2 Review and renegotiate loans as appropriate
5. Monitor equity, return on equity
- 5.1 Review valuations on assets and monitor the effect on equity
- 5.2 Calculate returns on assets and returns on equity and use to assist business performance
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| D6646 | AHCAGB605A | Manage business capital | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| OBK43 | AHCAGB608 | Manage financial resources | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| BDC9 | AHC60316 | Advanced Diploma of Agribusiness Management | Qualification |
| BCY4 | AHC60216 | Advanced Diploma of Horticulture | Qualification |