HSC topic: Finance
25% of indicative time
The focus of this topic is the role of interpreting financial information in the planning
and management of a business.
Outcomes
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
Content
Students learn to:
examine contemporary business issues 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
investigate aspects of business using hypothetical situations and actual business case studies
to:
calculate key financial ratios
assess business performance using comparative ratio analysis
recommend strategies to improve financial performance
examine ethical financial reporting practices
Students learn about:
role of financial management
strategic role of financial management
objectives of financial management
profitability, growth, efficiency, liquidity, solven
cy
short-term and long-term
interdependence with other key business functions

Business Studies Stage 6 Syllabus
24
influences on financial management
internal sources of finance – retained profits
external sources of finance
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
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
processes of financial management
planning and implementing – financial needs, budgets, record systems, financial risks,
financial controls
debt and equity financing – advantages and disadvantages of each
matching the terms and source of finance to business purpose
monitoring and controlling – cash flow statement, income statement, balance sheet
financial ratios
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
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
financial management strategies
cash flow management
cash flow statements
distribution of payments, discounts for early payment, factoring
working capital management
control of current assets –
cash
, receivables, inventories
control of current liabilities – payables, loans, overdrafts
strategies – leasing, sale and lease back
profitability management
cost controls – fixed and variable, cost centres, expense minimisation
revenue controls – marketing objectives
global financial management
exchange rates
interest rates
methods of international payment – payment in advance, letter of credit, clean
payment, bill of exchange
hedging

derivatives

HSC topic: Human resources 


25% of indicative time 
The focus of this topic is the contribution of human resource management to business 
performance. 


Outcomes 

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 


Content 

Students learn to: 

examine contemporary business issues to: 
• discuss the influence of government on the process of determining employment contracts
• explain how businesses exhibit corporate social responsibility in the management of 
human resources 
• analyse the causes of two workplace disputes and the strategies used to resolve them 
• examine the advantages of a diverse, culturally competent workforce for a global business 

investigate aspects of business using hypothetical situations and actual business case studies 
to: 
• explain the interdependence between human resources and other key business functions 
• compare the process of negotiating enterprise/collective agreements with the negotiation 
of individual contracts 
• discuss the advantages and disadvantages of outsourcing in the global market 
• evaluate the effectiveness of human resource management for one business and 
recommend appropriate alternative strategies 


Students learn about: 

role of human resource management 
• strategic role of human resources 
• interdependence with other key business functions 
• outsourcing 
– human resource functions 
– using contractors – domestic, global

key influences 
• stakeholders – employers, employees, employer associations, unions, government 
organisations, society 
• legal – the current legal framework 
– the employment contract – common law (rights and obligations of employers and 
employees), minimum employment standards, minimum wage rates, awards, 
enterprise agreements, other employment contracts 
– occupational health and safety and workers compensation 
– antidiscrimination and equal employment opportunity 
• economic 
• technological 
• social – changing work patterns, living standards 
• ethics and corporate social responsibility 
processes of human resource management 
• acquisition 
• development 
• maintenance 
• separation

 

strategies in human resource management 
• leadership style 
• job design – general or specific tasks 
• recruitment – internal or external, general or specific skills 
• training and development – current or future skills 
• performance management – developmental or administrative 
• rewards – monetary and non-monetary, individual or group, performance pay 
• global – costs, skills, supply 
• workplace disputes 
– resolution – negotiation, mediation, grievance procedures, involvement of courts and 
tribunals

effectiveness of human resource management 
• indicators 
– corporate culture 
– benchmarking key variables 
– changes in staff turnover 
– absenteeism 
– accidents 
– levels of disputation

-worker satisfaction 

Students learn to:

examine contemporary business issues to:

· explain why goods and/or services are central to both marketing and operations

· examine why ethical behaviour and government regulation are important in marketing

· assess why a mix of promotional strategies is important in the marketing of goods and services

investigate aspects of business using hypothetical situations and actual business case studies to:

· evaluate the marketing strategies for a good or service

· analyse a marketing plan for a business

· explain how globalisation has affected marketing management

Students learn about:

role of marketing

· strategic role of marketing goods and services

· interdependence with other key business functions

· production, selling, marketing approaches

· types of markets – resource, industrial, intermediate, consumer, mass, niche


influences on marketing

· factors influencing customer choice – psychological, sociocultural, economic, government

· consumer laws

 deceptive and misleading advertising

 price discrimination

 implied conditions

 warranties

· ethical – truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging

marketing process

· situational analysis – SWOT, product life cycle

· market research

· establishing market objectives

· identifying target markets

· developing marketing strategies

· implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy

marketing strategies

· market segmentation, product/service differentiation and positioning

· products – goods and/or services

 branding

 packaging

· price including pricing methods – cost, market, competition-based

 pricing strategies – skimming, penetration, loss leaders, price points

 price and quality interaction

· promotion

 elements of the promotion mix – advertising, personal selling and relationship marketing, sales promotions, publicity and public relations

 the communication process – opinion leaders, word of mouth

· place/distribution

 distribution channels

 channel choice – intensive, selective, exclusive

 physical distribution issues – transport, warehousing, inventory

· people, processes and physical evidence

· e-marketing

· global marketing

 global branding

 standardisation

 customisation

 global pricing

 competitive positioning