BSBESB407 Theory Assessment

Learner Assessment Pack
Manage finances for new business

ventures
BSBESB407
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Table of Contents
Assessment Delivery
Learner Information
Steps for Learner
Assessment Agreement
Assessment
Tasks
Context
Assessor Feedback
Recording
Record of Assessment
BSBESB407 Manage Finances for New Business Ventures


Assessment Delivery

Learner Information
Each Learner Assessment Pack is made up of three parts:
Assessment Delivery
Learner Information
Steps for Learners
Assessment
Tasks
Context
Assessor Feedback
Recording
Before you commence your Assessment, ensure that you have good knowledge of the
subject, have thoroughly read your Learner Resource, and clearly understand the
Assessment requirements and the expectations of the Assessor.
You may be required to demonstrate knowledge and skills which may be difficult for
the Assessor to witness. If so, an Evidence Record is supplied which will allow the
knowledge or skill to be verified by at least one third party, and preferably two or more.
These witnesses would usually be current or recent supervisors or your Assessor.
Explanations are given for each Task. If you have any questions, consult with your
Assessor.
To contextualise this Assessment to your industry, you must complete a few additional
tasks based on your employer’s industry. These will be provided by your Assessor.
The assessment tasks may be answered using your business, the simulated business
or a mixture of both as instructed by your Assessor.
Records must be kept of all aspects of the Assessment in your Learner Pack.
The record of assessment is a legal document and must be signed, dated, and a
copy stored as required by your Registered Training Organisation (RTO).
BSBESB407 Manage finances for new business ventures

Steps for Learners

1. Receive your Learner Assessment Pack and discuss with your Assessor the
expectations of this Assessment. You may also need to supply contact details
of one or two work referees who can confirm your skills in the industry. Discuss
with your Assessor if you intend to undertake the tasks based on your employing
organisation or using the simulated business, Bounce Fitness or a mix of both.
2. Your Learner Assessment Pack is where you will get the Task information.
Complete the Tasks as instructed, using either the simulated business, Bounce
Fitness, or your employing organisation and include in the Learner Assessment
Pack for your Assessor.
3. After you complete your Assessment, gather and return your evidence documents,
as detailed in the Task(s) in the timeframe agreed with your Assessor.

Have you signed off:
Delivery Method
Classroom
Small Group
One-on-One
Online
Other (please describe)
Assessment Method
Learner’s Organisation –
Pre-assessment meeting conducted
Simulated Business
Assessment Conditions
Assessment must be conducted in a safe environment where

evidence gathered demonstrates consistent performance
of typical activities experienced in the management and
leadership – small and micro business field of work and
include access to:
• Business equipment and resources
• Relevant legislation, regulations, standards and codes
• Relevant workplace documentation and resources
• Case studies, or where possible, real situations
• Interaction with others.
Assessors must satisfy NVR/AQTF assessor requirements.
I confirm that the activities and assessment completed as part of this unit are my
own work and comply with all relevant copyright and plagiarism rules. I understand
that if there is any doubt of the authenticity of any piece of my assessment I can
be orally examined and the signatory of evidence records may be contacted.
Learner Name
Learner Signature Date
Assessor Name
Assessor Signature Date
BSBESB407 Manage F i nances for New Business Ventures


Assessment

Tasks
You are required to complete all tasks as instructed.
Context
Your Assessor will advise you of the tasks that you must complete related to your
industry.
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To be assessed for this competency, you must demonstrate your ability to:
• Operate the business according to the business plan, including:
• Adhering to legal requirements
• Meeting requirements of financial backers
• Defining strategies for debt collection and contingencies for debtors
• Managing cash flow
• Defining key performance indicators
• Communicating with relevant people.
• Monitor the business against financial plan and make changes as required.
The following Assessment Tasks must be completed by you to enable you to

demonstrate these skills. These must be conducted:
Using the simulated business Bounce Fitness
or
In your own workplace if you are able to access all the documents and
conduct all of the activities.
If you are using your own business, simply replace references to Bounce Fitness
with the name of your organisation.
Ensure that you gain the approval of your Assessor before commencing.
The documents you will require if you are using the simulated business Bounce
Fitness can be found on the Bounce Fitness website http://bounce.precisiongroup.
com.au.
You may need to conduct further research.

Information Regarding the Assessment

Using the business you have or will establish or the simulated business Bounce
Fitness, complete the Tasks.
If you are using your own business, you will need to have Task 4 – Evidence
Record completed and signed by one of your advisors. This will provide evidence
that you completed the necessary requirements accurately on your business.
If you are using the simulated business, Bounce Fitness, you will need to print
copies of any documentation to which you refer or use as evidence to support
your information.
Ensure that you gain the approval of your choice from your Assessor before
progressing.
Task 1 – Practical: Develop Financial Policies and Procedures
This Task requires you to develop financial policies and procedures that describe
the activities that will be undertaken in your business or for the simulated business
Bounce Fitness.
To complete this you must:
1a Write a policy for all financial practices in your business.
1b Write a procedure for each of the financial policies developed in (a).
Include copies of all documents that you use or to which you refer for your
Assessor.

Task 2 – Project: Conduct Day-to-Day Financial Management
Task 2 requires you to create a plan to monitor and respond to the financial
management of your business on a day-to-day basis. To complete this you must:
• Discuss each of the items following
• Compile this into a report for your Assessor and include a checklist for your
use.
The items you must discuss are:
2a How will you establish benchmarks for your financial performance?
2b What will you monitor and in what timeframe?
2c What are the primary financial indicators that you will use in your business?
Why?
2d How will the financial reports that you generate from the data you’ve collected
be used?
2e How often will you prepare and report on your budgets, profit and loss
accounts and balance sheets? Why did you choose this timeframe? What
will you do with the results?
2f How often will you monitor your stock records? Why?

Task 3 – Theory: Short Answer Questions
Task 3 requires you to answer the following questions to demonstrate your

knowledge. Complete the answers in the space provided and if you need more
space, use your own paper putting your name at the top and the Task and Task
letter beside each answer.
3a A business has a gross operating income of $50,000 and its total operating
expenses are $6200. These operating expenses include insurance ($1,500),
utilities ($700), and taxes ($4,000). What would be the Operating Expense
Ratio?
3b Bounce Fitness has an Inventory Turnover Ratio of 13.5 for the year.
Calculate its Days’ Inventory On Hand Ratio.
3c Beginning Inventory $ 213,000
Ending Inventory $ 265,000
Cost of Goods Sold (for the quarter) $5,712,000
Calculate the Days’ Sales In Inventory Ratio using the information given
above.

Task 3 – Theory: Short Answer Questions (continued)
3d A company has the following assets and liabilities at the year ended
December 31, 2009:
Cash $34,390
Marketable Securities 12,000
Accounts Receivable 56,200
Prepaid Insurance 9,000
Total Current Liabilities 73,780
Calculate Quick Ratio from the above information.
3e Cash $21,720
Treasury Bills 18,500
Accounts Receivable 35,930
Total Current Liabilities 82,960
Calculate Cash Ratio from the above information.
3f Bounce Fitness nationally has $1,000,000 of sales in its most recent month,
as well as sales returns of $40,000, a cost of goods sold (CGS) of $550,000,
and administrative expenses of $360,000. The income tax rate is 35%.
Calculate the Net Profit Percentage.

Task 3 – Theory: Short Answer Questions (continued)
3g Total assets $950,000
Intangible assets 150,000
Stockholder ’s equity 440,000
Calculate the Proprietary Ratio from the above information.
3h Bounce Fitness is reviewing its inventory levels. The related information is

$8,150,000 of cost of goods sold in the past year, and ending inventory of
$1,630,000. What is the Total Inventory Turnover?

Task 4 – Evidence Record
This Evidence Record must be completed if the Learner has used their business
as the topic of this assessment. It must be completed to support the information
supplied to support the decisions of the Assessor and completed by an advisor of
the Learner used to establish their business. This Third Party individual MUST be
a professional and could include:
• Business advisors (Solicitor, Accountant, Financial Advisor)
• Financial planners.
This unit describes the performance outcomes, skills and knowledge required to
develop a financial plan to support business viability and acknowledges that there
are specific legal requirements which may apply to the management of a small
business.
It applies to individuals who operate a small business and is suitable for existing
micro and small businesses or setting up a new business or a department in a
larger organisation.
The Assessor will observe aspects of this from the Learner as much as possible
but may also require information from the advisor to the Learner to corroborate and
verify their assessment.
This form provides verification and evidence that the Learner has been accurate in
their reflection relating to their organisation.
Not
Element 1 – Implement Financial Plan Satisfactory
Satisfactory
Is the Learner able to effectively identify financial information

requirements and obtain specialist services, as required, to
profitably operate the business in accordance with the business
plan?
Is the Learner able to effectively produce financial budgets or

projections, including cash flow estimates, as required for each
forward period, and distribute to relevant people in accordance with
legal requirements?
Is the Learner able to effectively negotiate, secure and manage

business capital to best enable implementation of the business plan
and to meet requirements of financial backers?
Is the Learner able to effectively develop and maintain strategies

to enable adequate financial provision for taxation in accordance
with legal requirements?
Is the Learner able to effectively develop, monitor and maintain

client credit policies, including contingencies for debtors in default,
to maximize cash flow?
Is the Learner able to effectively select key performance indicators

to enable ongoing monitoring of financial performance?
Is the Learner able to effectively record and communicate financial

procedures to relevant people to facilitate implementation of the
business plan?

Task 4 – Evidence Record (continued)
Not
Element 2 – Monitor Financial Performance Satisfactory
Satisfactory
Is the Learner able to effectively and regularly monitor and report

on financial performance targets, and analyse data to establish
extent to which the financial plan has been met?
Is the Learner able to effectively monitor marketing and operational

strategies for their effects on the financial plan?
Is the Learner able to effectively calculate and evaluate financial

ratios according to own or industry benchmarks?
Is the Learner able to effectively assess financial plan to determine

whether variations or alternative plans are needed, and change as
required?
Not
Performance Evidence Satisfactory
Satisfactory
Is the Learner able to effectively operate the business according to the business plan,
including:
• Adhering to legal requirements

• Meeting requirements of financial backers
• Defining strategies for debt collection and contingencies for
debtors
• Managing cash flow

• Defining key performance indicators
• Communicating with relevant people?
Is the Learner able to effectively monitor the business against
financial plan and make changes as required?
Not
Knowledge Evidence Satisfactory
Satisfactory
Is the Learner able to effectively discuss benchmarking?
Is the Learner able to effectively explain financial decision-making

relevant to the business?
Is the Learner able to effectively summarise significant financial

indicators?
Is the Learner able to effectively outline purposes of financial

reports?
Is the Learner able to effectively clarify preparation and

interpretation of budget/actual reports?
Is the Learner able to effectively identify principles for preparing

balance sheets and their interpretation?
Is the Learner able to effectively outline debt collection procedures

or strategies?

Task 4 – Evidence Record (continued)
Not
Knowledge Evidence Satisfactory
Satisfactory
Is the Learner able to e f f e c t i v e l y c h a r a c t e r i z e

p r i n c i p l e s f o r preparing profit and loss statements and their
interpretation?
Is the Learner able to effectively discuss stock records and stock

control relevant to the business?
I being
[Name of Supervisor] [Job title and company]
verify that I consider the details ticked satisfactory / not satisfactory above to be, in
my opinion, a true, fair and honest reflection of the consistent performance of the
Learner named in relation to the performance criteria as noted in the table.
Signature of Supervisor: Date:
Any other comments:
Thank you for supporting this Learner!

Assessor Feedback
Key Points and Suggested Answers
Assessor feedback is recorded here. The Assessor will record what they saw or
heard, how it related to the performance criteria, their judgement and why they
made that judgement.
Task 1 – Practical: Develop Financial Policies and Procedures

Task 2 – Project: Conduct Day-to-Day Financial M a n a g e m e n t

Task 3 – Theory: Short Answer Questions

Task 4 – Evidence Record
Tasks Sign-Off Sheet
Learner Name Assessor Name
Learner Signature Assessor Signature
Date Date


Recording

Learner Details Assessor Details
Name Name
Course Code Site and Date
Unit Code Unit Name

BSBESB407 Manage Finances For New Business Ventures
Performance Criteria Mapping

Needs More
Assessment Activity PC Mapping Satisfactory
Evidence
□ □
1.1, 1.2, 1.3, 1.4, 1.5,
Task 1 – Practical: Develop Financial Policies and
1.6, 1.7
Procedures
2.1, 2.2, 2.3, 2.4
□ □
1.1, 1.2, 1.3, 1.4, 1.5,
Task 2 – Project: Conduct Day-to-Day Financial
1.6, 1.7
Management
2.1, 2.2, 2.3, 2.4
Task 3 – Theory: Short Answer Questions 2.3 □ □

□ □
1.1, 1.2, 1.3, 1.4, 1.5,
Task 4 – Evidence Record 1.6, 1.7
2.1, 2.2, 2.3, 2.4
Needs More
Performance Evidence Mapping Satisfactory
Evidence
Operate the business according to the business plan, including:
• Adhering to legal requirements Tasks 1, 2 and 4

□ □
• Meeting
backers
requirements of financial
Tasks 1, 2 and 4 □ □
PE1 • Defining strategies for debt collection
and contingencies for debtors
• Managing cash flow Tasks 1, 2 and 4
□ □
• Defining key performance indicators Tasks 1, 2 and 4
□ □
• Communicating with relevant people Tasks 1, 2 and 4
□ □
PE2
Monitor the business against financial
plan and make changes as required.
Tasks 2 and 4 □ □

Needs More
Knowledge Evidence Mapping Satisfactory
Evidence
KE1 Discuss benchmarking Tasks 2 and 4 □ □

KE2
Explain financial decision-making relevant
to the business
KE3 Summarise significant financial indicators Tasks 1, 2 and 4 □ □
KE4 Outline purposes of financial reports Tasks 1, 2 and 4 □ □
KE5
Clarify preparation and interpretation of
budget/actual reports
KE6
Identify principles for preparing balance
sheets and their interpretation
KE7
Outline debt collection procedures or
strategies
KE8
Characterise principles for preparing
profit and loss statements and their Tasks 2 and 4 □ □
interpretation
KE9
Discuss stock records and stock control
relevant to the business.
Needs More
Context Mapping PC Mapping Satisfactory
Evidence
□ □
□ □
□ □

Foundation Skills Mapping
ACSF Needs More

Skill Description Mapping Satisfactory
Level Evidence
Reading
Evaluates complex text to determine
legislative, regulatory and workplace 4
Tasks
1, 2, 3 □ □
documentation and 4
Prepares written reports and

Writing
workplace documentation that
communicate complex information
4
Tasks 1,
2 and 4
□ □
clearly and effectively
Articulates clearly using specific

and relevant language suitable to
audience to convey requirements,
and employs listening and
4
Tasks 1,
2 and 4
□ □
Oral questioning techniques to confirm
Communication understanding
Participates in verbal negotiations

using tone and language suitable to 4
Tasks 1,
2 and 4
□ □
audience
Numeracy
Interprets numerical information
to calculate all relevant financial 4
Tasks
1, 2, 3 □ □
information and 4
Navigate the
world of work
Appreciates implications of legal and
regulatory responsibilities related to 4
Tasks 1,
2 and 4
□ □
own work
Interact with
others
Selects appropriate form, channel
and mode of communication for a 4
Tasks
1, 2, 3 □ □
specific purpose relevant to own role and 4
Develops plans to manage relatively

complex, non-routine tasks with
an awareness of how they may 4
Tasks 1,
2 and 4
□ □
contribute to longer-term operational
and strategic goals
Get the work Makes a range of critical and

done non-critical decisions in relatively
complex situations, taking a range of
4
Tasks 1,
2 and 4
□ □
constraints into account
Uses formal and informal processes

to monitor implementation of ideas 4
Tasks 1,
2 and 4
□ □
and reflect on outcomes

(please tick appropriate box) Yes No
Comments and future action noted in Learner

Assessment Pack
Results discussed and agreed to

You have the right to appeal the outcome of □ □
your assessment.
Competent
The Learner is
Not Yet Competent
Learner Comments
Assessor Comments
Details of further evidence required
Competent
After reassessment the Learner is
Not Yet Competent
Assessor Signature Date
The signature confirms that I have submitted all my own work and agree with the assessment decision
and feedback.
Learner Signature Date

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Learner Assessment Pack

Manage finances for new business

Overseas Student Information Copying for Educational Purposes

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BSBESB407 Manage Finances for New Business Ventures

Learner Assessment Pack

BSBESB407 Manage Finances for New Business Ventures

BSBESB407 Manage finances for new business ventures

Steps for Learners

BSBESB407 Manage Finances for New Business Ventures

Have you signed off:

Assessment must be conducted in a safe environment where

Learner Signature Date

Assessor Signature Date

BSBESB407 Manage F i nances for New Business Ventures

Learner Assessment Pack

BSBESB407 Manage finances for new business ventures

BSBESB407 Manage finances for new business ventures

• Operate the business according to the business plan, including:

• Adhering to legal requirements

• Meeting requirements of financial backers

• Defining strategies for debt collection and contingencies for debtors

• Managing cash flow

• Defining key performance indicators

• Communicating with relevant people.

The following Assessment Tasks must be completed by you to enable you to

Using the simulated business Bounce Fitness

You may need to conduct further research.

BSBESB407 Manage finances for new business ventures

Information Regarding the Assessment

Task 1 – Practical: Develop Financial Policies and Procedures

To complete this you must:

1a Write a policy for all financial practices in your business.

1b Write a procedure for each of the financial policies developed in (a).

BSBESB407 Manage finances for new business ventures

Task 2 – Project: Conduct Day-to-Day Financial Management

• Discuss each of the items following

The items you must discuss are:

2a How will you establish benchmarks for your financial performance?

2b What will you monitor and in what timeframe?

2f How often will you monitor your stock records? Why?

BSBESB407 Manage finances for new business ventures

Task 3 – Theory: Short Answer Questions

Task 3 requires you to answer the following questions to demonstrate your

3c Beginning Inventory $ 213,000

Ending Inventory $ 265,000

Cost of Goods Sold (for the quarter) $5,712,000

BSBESB407 Manage finances for new business ventures

Task 3 – Theory: Short Answer Questions (continued)

Marketable Securities 12,000

Accounts Receivable 56,200

Prepaid Insurance 9,000

Total Current Liabilities 73,780

Calculate Quick Ratio from the above information.

Treasury Bills 18,500

Accounts Receivable 35,930

Total Current Liabilities 82,960

Calculate Cash Ratio from the above information.

BSBESB407 Manage finances for new business ventures