Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

AHCAGB605 Mapping and Delivery Guide
Manage business capital

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency AHCAGB605 - Manage business capital
Description
Employability Skills
Learning Outcomes and Application 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.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Competency is to be assessed in the workplace or simulated environment that accurately reflects performance in a real workplace setting.

Assessors must satisfy current standards for RTOs.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Assess the capital needs of the business
  • Determine working capital and capital requirements for development
  • Determine return on capital or opportunity cost of development capital
       
Element: Assess appropriate equity levels for the business
  • Assess risks associated with the business
  • Identify personal and business risk preferences
  • Analyse equity levels in comparable enterprises using benchmark data
       
Element: Establish and maintain appropriate financing arrangements for the business
  • Determine capacity to service debt and meet liabilities
  • Sources of funds are identified and terms and conditions compared and evaluated
  • Conduct negotiations to ensure the establishment of the most favourable terms and conditions
  • Source loan funds and check agreements
  • Monitor costs of finance to keep them within defined budget limits
  • Manage relationships with finance providers
  • Monitor the economic environment and assess implications for the business
       
Element: Monitor and review the mix of liabilities
  • Conduct regular reviews of the mix of liabilities and the costs and determine the benefits associated with reconfiguring loans
  • Review and renegotiate loans as appropriate
       
Element: Monitor equity, return on equity
  • Review valuations on assets and monitor the effect on equity
  • Calculate returns on assets and returns on equity and use to assist business performance
       


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.

Element

Performance criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

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

The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.

The candidate must provide evidence that they can:

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.

The candidate must demonstrate knowledge of:

preparation of financial reports

impacts resulting from changes to various macroeconomic factors

sources of finance

negotiation techniques

concept of equity, Return on Assets (ROA), Return on Equity (ROE), Internal Rate of Return (IRR)

bank and lending institution policies and requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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.

Element

Performance criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

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

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
Determine working capital and capital requirements for development 
Determine return on capital or opportunity cost of development capital 
Assess risks associated with the business 
Identify personal and business risk preferences 
Analyse equity levels in comparable enterprises using benchmark data 
Determine capacity to service debt and meet liabilities 
Sources of funds are identified and terms and conditions compared and evaluated 
Conduct negotiations to ensure the establishment of the most favourable terms and conditions 
Source loan funds and check agreements 
Monitor costs of finance to keep them within defined budget limits 
Manage relationships with finance providers 
Monitor the economic environment and assess implications for the business 
Conduct regular reviews of the mix of liabilities and the costs and determine the benefits associated with reconfiguring loans 
Review and renegotiate loans as appropriate 
Review valuations on assets and monitor the effect on equity 
Calculate returns on assets and returns on equity and use to assist business performance 

Forms

Assessment Cover Sheet

AHCAGB605 - 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

AHCAGB605 - 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: