Develop and strengthen supplier relationships
Level 7, Version 1, Credits 20
Assessment Date Overall C / NC
Assessment 2 Assessment Date
Overall C / NC
1. Answer ALL questions in the answer book provided.
1 Organisation refers to the business entity and can cover a variety of types and forms of organisation, whether profit or non-profit, in private, public, or voluntary sectors, including business units, iwi, and other special purpose bodies.
2 Stakeholders are individuals and groups, which have some direct interest in the organisation and its products or services. Stakeholders typically include customers, providers, owners, shareholders, managers, employees, employee organisations, and regulatory bodies.
I hereby certify that all the work included in this assessment is my own original work. I have not copied any part of the assessment or have allowed or will allow any other student to copy any part of the assessment. I have correctly acknowledged and referenced all sources of information used. I authorize the college to photocopy this evidence portfolio for the academic purposes such as moderation.
Student Signature ___________________________________________ Date
Element 1: Understanding business environment.
1.1 Role of financial management
The learner has explained the role of financial
has to be explained.
1.2 Types of business structure to be The learner has explained financial goals of a firm explained with focus on
with focus on business structure and agency cost.
business’s financial goalunderstanding of agency cost is
Element 2: Applying capital budgeting techniques and evaluating investment decisions. P.C. Evidence
2.1 Learners should be able to
Learner has demonstrated knowledge of time
demonstrate knowledge of time
value of money concepts and various capital
value of money concepts and
budgeting tools including NPV, IRR and payback
various capital budgeting
techniques that are available
including NPV, IRR and Pay
Back period method.
2.2 Learners should be able to
Learner has demonstrated knowledge of critical
demonstrate knowledge of
factors influencing investment decisions including
critical factors influencing
but not limited to independent versus mutually
investment decisions including
exclusive projects, expansion versus mutually
but not limited to independent
exclusive project and concepts of capital rationing.
versus mutually exclusive
projects, expansion versus
mutually exclusive project and
concepts of capital rationing.
2.3 Concept of risk and return
Learner has demonstrated the knowledge of Risk
should be explained and show
and return and its application by calculating CV,
that by calculating risk
SD and WACC.
measurement techniques such
as CV, SD and calculation of
Element 3: Applying working capital knowledge in effectively managing business. P.C. Evidence
3.1 Learner should demonstrate the Learner has demonstrated the knowledge of knowledge of working capital
working capital requirement of the business by
requirement calculation, cash
calculating working capital requirement, cash
management and accounts
budgeting and by calculating aging of accounts
3.2 Learner needs to show evidence Learner shows evidence of working capital of accounts receivable
management by calculating aging of accounts
management, average age of
receivable, average age of trade creditors and
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