- AHCAGB605A - Manage business capital
Assessor Resource
AHCAGB605A
Manage business capital
Assessment tool
Version 1.0
Issue Date: April 2024
This unit applies to having the ability to assess capital needs, assess appropriate equity levels for a business, establish and maintain appropriate financing arrangements, review the mix of liabilities, and monitor equity and return on equity.
This unit covers the process of managing business capital in an agricultural or horticultural enterprise and defines the standard required to: assess capital needs; assess appropriate equity levels for a business; establish and maintain appropriate financing arrangements; review the mix of liabilities; monitor key indicators of financial returns for the business.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)
Employability Skills
This unit contains employability skills.
Evidence Required
List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. | |
Overview of assessment | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following: assess capital needs assess appropriate equity levels for a business establish and maintain appropriate financing arrangements review the mix of liabilities monitor key indicators of financial returns for the business. |
Context of and specific resources for assessment | Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances. |
Submission Requirements
List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here
Assessment task 1: [title] Due date:
(add new lines for each of the assessment tasks)
Assessment Tasks
Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
Required skills |
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 use literacy skills to fulfil job roles as required by the organisation. The level of skill may range from reading and understanding documentation to completion of written reports use oral communication skills/language competence to fulfil the job role as specified by the organisation including questioning, active listening, asking for clarification, negotiating solutions and responding to a range of views use numeracy skills to estimate, calculate and record complex workplace measures use interpersonal skills to work with others and relate to people from a range of cultural, social and religious backgrounds and with a range of physical and mental abilities. |
Required knowledge |
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. |
The range statement relates to the unit of competency as a whole. | |
Capital needs may be: | major fixed assets including machinery, land purchases, buildings and other equipment. |
Risks may include: | price risk seasonal and other production risks other business and personal risks for example, those related to age and health factors and succession. |
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. |
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist
| Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice | Yes | No | Comments/feedback |
|---|---|---|---|
| Working capital and capital requirements for development is determined. | |||
| Return on capital/opportunity cost of development capital determined. | |||
| Risks associated with the business are assessed. | |||
| Personal and business risk preferences are identified. | |||
| Equity levels in comparable enterprises are analysed using benchmark data. | |||
| Capacity to service debt/meet liabilities is determined. | |||
| Sources of funds are identified and terms and conditions compared and evaluated. | |||
| Negotiations are conducted to ensure the establishment of the most favourable terms and conditions. | |||
| Loan funds are sourced and agreements checked. | |||
| Costs of finance are monitored within defined budget limits. | |||
| Relationships with finance providers are managed. | |||
| The economic environment is monitored and implications for the business assessed. | |||
| Regular reviews are conducted of the mix of liabilities and the costs and benefits associated with reconfiguring loans are determined. | |||
| Loans are reviewed and renegotiated as appropriate. | |||
| Review valuations on assets and monitor the effect on equity. | |||
| Returns on assets and returns on equity are calculated and used to assist business performance. |
Forms
Assessment Cover Sheet
AHCAGB605A - Manage business capital
Assessment task 1: [title]
Student name:
Student ID:
I declare that the assessment tasks submitted for this unit are my own work.
Student signature:
Result: Competent Not yet competent
Feedback to student
Assessor name:
Signature:
Date:
Assessment Record Sheet
AHCAGB605A - Manage business capital
Student name:
Student ID:
Assessment task 1: [title] Result: Competent Not yet competent
(add lines for each task)
Feedback to student:
Overall assessment result: Competent Not yet competent
Assessor name:
Signature:
Date:
Student signature:
Date: