Elements and Performance Criteria

The Range of Variables explains the contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment requirements may depend on the work situations available.

What capital needs may be relevant to this competency standard?
Capital needs may be in relation to major fixed assets including machinery, land purchases, buildings and other equipment.

What risks should be considered?
Risks may include price risk, seasonal and other production risks, and other business and personal risks for example, those related to age and health factors and succession.

What sources of funds may be relevant to this competency standard?
Sources of funds may include debt financing through term loans, bank bills, overdraft facilities, bridging finance, hire purchase and private finance. Funds may also be derived through equity financing.

How might the economic environment be monitored?
Components of the economic environment to be monitored include trends in interest rates, credit availability, investment periods, and investment opportunities.

What capital needs may be relevant to this competency standard?
Capital needs may be in relation to major fixed assets including machinery, land purchases, buildings and other equipment.

What risks should be considered?
Risks may include price risk, seasonal and other production risks, and other business and personal risks for example, those related to age and health factors and succession.

What sources of funds may be relevant to this competency standard?
Sources of funds may include debt financing through term loans, bank bills, overdraft facilities, bridging finance, hire purchase and private finance. Funds may also be derived through equity financing.

How might the economic environment be monitored?
Components of the economic environment to be monitored include trends in interest rates, credit availability, investment periods, and investment opportunities.

What evidence is required to demonstrate competence for this standard as a whole?
Competence in managing business capital requires evidence that business capital has been appropriately managed and monitored in an enterprise. The skills and knowledge required to manage business capital must be transferable to a range of work environments and contexts. For example, this could include different capital management arrangements, amounts and enterprises.
What specific knowledge is needed to achieve the performance criteria?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this unit are listed below:

preparation of financial reports
impacts resulting from changes to various macro economic factors
sources of finance
negotiation techniques
concept of equity, ROA, ROE, IRR
bank and lending institution policies and requirements.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, some complementary skills are required. These skills include the ability to:

assess capital needs
assess appropriate equity levels for the business
establish and maintain appropriate financing arrangements
monitor and review the mix of liabilities
monitor equity and return on equity.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
There is essential information about

What specific knowledge is needed to achieve the performance criteria?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this unit are listed below:

preparation of financial reports
impacts resulting from changes to various macro economic factors
sources of finance
negotiation techniques
concept of equity, ROA, ROE, IRR
bank and lending institution policies and requirements.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, some complementary skills are required. These skills include the ability to:

assess capital needs
assess appropriate equity levels for the business
establish and maintain appropriate financing arrangements
monitor and review the mix of liabilities
monitor equity and return on equity.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
There is essential information about

There are a number of processes that are learnt throughout work and life, which are required in all jobs. They are fundamental processes and generally transferable to other work functions. Some of these are covered by the key competencies, although others may be added. The questions below highlight how these processes are applied in this competency standard. Following each question a number in brackets indicates the level to which the key competency needs to be demonstrated where 0 = not required, 1 = perform the process, 2 = perform and administer the process and 3 = perform, administer and design the process.
Communicating ideas and information
In assessing financing arrangements for the business. (3)

Communicating ideas and information
In assessing financing arrangements for the business. (3)

Collecting analysing and organising information
Through evaluation of options for accessing business capital. (3)

Collecting analysing and organising information
Through evaluation of options for accessing business capital. (3)

Planning and organising activities
According to funding requirements, needs of the business and timelines associated with production. (3)

Planning and organising activities
According to funding requirements, needs of the business and timelines associated with production. (3)

Working with others and in teams
Through consultation with others in establishing business capital requirements and assets. (3)

Working with others and in teams
Through consultation with others in establishing business capital requirements and assets. (3)

Using mathematical ideas and techniques
Through calculations associated with business needs, equity levels and interest rate determinations. (3)

Using mathematical ideas and techniques
Through calculations associated with business needs, equity levels and interest rate determinations. (3)

Solving problems
Through responding to additional requirements for information when making financial arrangements. (3)

Solving problems
Through responding to additional requirements for information when making financial arrangements. (3)

Using technology
Through use of computers and communication systems. (3)

Using technology
Through use of computers and communication systems. (3)