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Elements and Performance Criteria

  1. Assess the capital needs of the business
  2. Assess appropriate equity levels for the business
  3. Establish and maintain appropriate financing arrangements for the business
  4. Monitor and review the mix of liabilities
  5. Monitor equity, return on equity

Required Skills

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 skillslanguage 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

Evidence Required

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


Range Statement

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.