Chapter Name: Explain financial aspects involved in running a new venture
Description:Introduces key financial concepts such as capital, cost structures, profit margins, and budgeting.
Purpuse:To give entrepreneurs foundational financial knowledge.
Rational:Financial literacy is essential for making informed business decisions.
Chapter Assessment
Expected Supporting Evidence:
Portfolio of Evidence 1: The concepts of start-up capital and working capital are explained in relation to a business. - A clear explanation differentiates start-up capital (used to launch the venture) from working capital (used for daily operations), with practical examples relevant to a business scenario.
Portfolio of Evidence 2: The relationship between cash flow and profit are explained with examples within a business. - Illustrates how profit does not always equate to positive cash flow, using business-based examples to demonstrate timing differences in income and expenses.
Portfolio of Evidence 3: An explanation is given of the difference between short-term finance and long-term debt finance with examples. - Differentiates short-term finance (e.g., overdrafts) from long-term finance (e.g., loans), including examples showing when and why each would be used in a venture.
Portfolio of Evidence 4: The difference between fixed and working capital is explained in terms of own business venture. - Clarifies that fixed capital involves long-term assets (e.g., machinery) and working capital covers operational costs, explained using specific examples from the user's business.
Workplace Activities
Activity 1: Explain start-up and working capital using business examples.
Written explanations, business plan sections.
Activity 2: Use examples to explain cash flow vs. profit.
Comparative statements, cash/profit charts.
Activity 3: Differentiate between short- and long-term finance.
Finance breakdown reports.
Activity 4: Explain fixed vs. working capital using a business venture.
Business plan capital summary.