10.3+FINANCE


 * Finance Syllabus [[file:Syllabus - Finance.docx]] **


 * Finance Case Study Notes Scaffold[[file:Finance - Case Study Scaffold.docx]] **


 * Finance Assessment Notification [[file:Assessment 2 - Finance Notification short answers Term 1 2014a.doc]] **

**Finance Practice Assessment Task**



The student: H2 evaluates management strategies in response to changes in internal and external influences H3 discusses the social and ethical responsibilities of management H4 analyses business functions and processes in large and global businesses H5 explains management strategies and their impact on businesses H6 evaluates the effectiveness of management in the performance of businesses H7 plans and conducts investigations into contemporary business issues H8 organises and evaluates information for actual and hypothetical business situations H9 communicates business information, issues and concepts in appropriate formats H10 applies mathematical concepts appropriately in business situations || //examine contemporary business issues to:// //investigate aspects of business using hypothetical situations and actual business case studies to://
 * **Outcomes:**
 * **Students Learn To:**
 * explain potential conflicts between short-term and long-term financial objectives
 * analyse the influence of government and the global market on financial management
 * identify the limitations of financial reporting
 * compare the risks involved in domestic and global financial transactions
 * calculate key financial ratios
 * assess business performance using comparative ratio analysis
 * recommend strategies to improve financial performance
 * examine ethical financial reporting practices ||

– profitability, growth, efficiency, liquidity, solvency – short-term and long-term – debt – short-term borrowing (overdraft, commercial bills, factoring), long-term borrowing (mortgage, debentures, unsecured notes, leasing) – equity – ordinary shares (new issues, rights issues, placements, share purchase plans), private equity
 * **Syllabus** || **Worksheets** || **Case Studies** || **Glossary** ||
 * //role of financial management//
 * strategic role of financial management
 * objectives of financial management
 * interdependence with other key business functions || [[file:TOPIC 2 FINANCE - Booklet 1 2014.docx]] ||  ||   ||
 * //influences on financial management//
 * internal sources of finance – retained profits
 * external sources of finance
 * financial institutions – banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts and the Australian Securities Exchange
 * influence of government – Australian Securities and Investments Commission, company taxation
 * global market influences – economic outlook, availability of funds, interest rates || [[file:10.3 Influences on Finance - Internal and External Mix and Match.docx]]

|| Intrepid || Bank overdraft Commercial bills Retained profits Leasing New issues Mortgage Owner’s Equity Rights issues Debentures Placements Factoring Unsecured notes Share purchase plans || – debt and equity financing – advantages and disadvantages of each – matching the terms and source of finance to business purpose – liquidity – current ratio (current assets ÷ current liabilities) – gearing – debt to equity ratio (total liabilities ÷ total equity) – profitability – gross profit ratio (gross profit ÷ sales); net profit ratio (net profit ÷ sales); return on equity ratio (net profit ÷ total equity) – efficiency – expense ratio (total expenses ÷ sales), accounts receivable turnover ratio (sales ÷ accounts receivable) – comparative ratio analysis – over different time periods, against standards, with similar businesses
 * //processes of financial management//
 * planning and implementing – financial needs, budgets, record systems, financial risks, financial controls
 * monitoring and controlling – cash flow statement, income statement, balance sheet
 * financial ratios
 * limitations of financial reports – normalised earnings, capitalising expenses, valuing assets, timing issues, debt repayments, notes to the financial statements
 * ethical issues related to financial reports || [[file:Topic 2 FINANCE – BOOKLET 3.docx]]

__Planning and Implementing__ __Monitoring and Controlling__ __Liquidity__ __Financial Ratios__ __Liquidity__ __Gearing__ __Profitability__ __Efficiency__ __Summary of Strategies__ __Limitations of Financial Reports__ __Ethical Issues Related to Financial Reports__ ||  ||   || – cash flow statements – distribution of payments, discounts for early payment, factoring – control of current assets – cash, receivables, inventories – control of current liabilities – payables, loans, overdrafts – strategies – leasing, sale and lease back – cost controls – fixed and variable, cost centres, expense minimisation – revenue controls – marketing objectives – exchange rates – interest rates – methods of international payment – payment in advance, letter of credit, clean payment, bill of exchange – hedging – derivatives || __Cash Flow Management__ - Makes notes from p330-332 __Working Capital Management__ - make notes from p334-341 __Profitability__ - makes notes from p342-345 __Global Financial Management__
 * //financial management strategies//
 * cash flow management
 * working capital management
 * profitability management
 * global financial management



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