← Business Studies syllabus

NSWBusiness Studies

Topic 3: Finance

4 dot points across 4 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How is cash flow and working capital managed strategically?

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 leaseback)
A focused answer to the HSC Business Studies dot point on cash flow and working capital strategies. The cash flow statement, strategies for managing payments and receivables, factoring, control of current assets and liabilities, leasing and sale-and-leaseback, with worked examples and a cash flow worked calculation.
9 min answer →

How are financial reports analysed using ratios?

Monitoring and controlling - financial ratios - liquidity (current ratio); gearing (debt to equity); profitability (gross profit ratio, net profit ratio, return on equity); efficiency (expense ratio, accounts receivable turnover); limitations of financial reports
A focused answer to the HSC Business Studies dot point on financial ratio analysis. The current ratio, debt to equity, gross profit ratio, net profit ratio, return on equity, expense ratio, accounts receivable turnover, with worked calculations and the limitations of financial reports.
10 min answer →

What is the role of financial management in a business?

Strategic role of financial management; objectives of financial management - profitability, growth, efficiency, liquidity, solvency, short-term and long-term; interdependence with other key business functions
A focused answer to the HSC Business Studies dot point on the role of financial management. The strategic role, the six financial objectives (profitability, growth, efficiency, liquidity, solvency, short and long term), interdependence with operations, marketing and HRM, with worked examples from Woolworths, Qantas and Telstra.
8 min answer →

What are the sources and influences on financial management for a business?

Sources of finance - internal (retained profits); external (debt - short-term: bank overdraft, commercial bills; long-term: mortgage, debentures, unsecured notes, leasing; equity - ordinary shares - new issues, rights issues, placements, private equity); financial institutions; influence of government and global market
A focused answer to the HSC Business Studies dot point on sources of finance. Internal (retained profits) versus external (short-term debt, long-term debt, equity), financial institutions, government and global market influences, with worked Australian examples.
9 min answer →