Reference no: EM132992470

BSBSMB406 Manage small business

Assessment Task 2

Section A: Skills Activity

Objective: To provide you with an opportunity to show you have the required skills for this unit. This activity will enable you to demonstrate the following skills:
• Reading
• Writing
• Oral communication
• Numeracy
• Navigate the world of work
• Interact with others
• Get the work done

Answer the activity in as much detail as possible, considering your organisational requirements.

1. Read a text covering legislative, regulatory or workplace requirements that is relevant to your area of business or your state/territory.

Write a report to summarise your organisation's responsibilities (or your business industry's responsibilities) to comply with it.

2. Explain how you would present this information to a group of colleagues in a spoken communication.

You should include:
• How you would structure and disclose the information
• The type of language and approach you would use to communicate this
• How you would explain complex text and meanings
• How you would engage with others to ensure they understand what is being said.

3. Read and interpret one financial document with numerical information; this may be one that is given to you by the assessor, or from your own place of work. Explain the relevant financial information that it shows.

4. For your business (or an example business), develop a plan for conducting financial business and say how you would implement this.

This should include:
• How financial activities would be planned, scheduled, implemented and monitored
• How and when financial reporting would be done
• How records and reports would be made
• Formal and informal monitoring processes that may be used
• How decisions regarding financial and business plans would be made and why these would be made.

Section B: Knowledge Activity

Objective: To provide you with an opportunity to show you have the required knowledge for this unit. The answers to the following questions will enable you to demonstrate your knowledge of:
• Key features of benchmarking
• Key features of financial decision-making relevant to the business
• Key features of significant financial indicators
• Key purposes of financial reports
• Key features of balance sheet preparation and interpretation
• Key features of debt collection procedures or strategies
• Key features of profit and loss statement preparation and interpretation
• Key features of stock records and stock control relevant to the business.

Answer each question in as much detail as possible, considering your organisational requirements for each one. You may use Response Guide provided in Task 1.

1. What is benchmarking and its key features?

2. What do you need to do to make financial decisions in business?

3. What are financial indicators and what do the following provide you with?
• Operating cash flow
• Working capital
• Stock turnover ratio
• Debt turnover ratio
• Current ratio

4. Why are financial reports necessary?

5. How would you prepare balance sheets and what would you use these for?

6. What do debt collection procedures and strategies provide?

7. What are profit and loss statements and what do they include?

8. Why would you have stock records and stock control?

Section C: Performance Activity

Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit. This activity will enable you to demonstrate the following performance evidence:
• Manage the business according to financial goals, including:
o adhering to legal requirements
o produce relevant financial projections, including cash flow estimates
o secure and manage business capital
o defining strategies for debt collection and contingencies for debtors
o managing cash flow
o defining key performance indicators
o communicating with relevant people
o seeking specialist services where required
• Monitor the business against financial plan and make changes as required
• Identify opportunities to implement new and emerging digital technologies to support the financial management of the business.

Answer the activity in as much detail as possible, considering your organisational requirements.

1. As a simulated workplace activity directed by the assessor, you must manage and monitor business to achieve the stated financial goals of the business.
Your completed portfolio of work must be submitted to the assessor upon completion. Managing the business to meet financial goals must include:
• Adhering to legal requirements in all aspects of financial operations and business
• Producing relevant financial projections, including cash flow estimates
• Securing and managing business capital for the business
• Defining strategies for debt collection and contingencies for debtors
• Managing cash flow
• Defining key performance indicators to assist in the achievement of financial goals
• Communicating with relevant people during the course of all business activities
• Seeking specialist services where required
• Monitor financial and business activities to determine progress to meet the financial plan
• Make changes to the financial plan to achieve financial goals, if needed.

2. Research new and emerging technologies that can be beneficial to support the financial management of the business. This research should include explanations of technologies and reasons as to why these will be of benefit to the business. This should also be included in your portfolio of work.

Attachment:- Manage small business.rar