CAK AHCBUS5106 Business Plan V1 JUly 2021 With Answer

Candidate’s
Assessment kit
AHCBUS516
Develop and review a business plan
Candidate’s assessment kit
AHCBUS516 Develop and review a business plan
Contents
SECTION 1 - Introduction.................................................................................................................................. 3
About the assessment.................................................................................................................................3
Using your assessment kit...........................................................................................................................4
Assessment Steps........................................................................................................................................5
Before the Assessment................................................................................................................................5
Recording the assessment outcomes..........................................................................................................7
Number of attempts....................................................................................................................................7
Appeals........................................................................................................................................................7
Advice on applying reasonable adjustments...............................................................................................8
Why so many signatures?............................................................................................................................9
Section 1 - Pre-assessment Checklist............................................................................................................ 10
Candidate’s declaration.............................................................................................................................11
Section 2 – Knowledge requirements........................................................................................................... 12
Knowledge evidence - Questions..............................................................................................................13
Section 2 – Knowledge Assessment - Outcomes............................................................................................ 52
Section 3 – Tasks – Instructions.................................................................................................................... 54
Important notice.......................................................................................................................................55
Marking Guide - Task 1 - Determine the scope of the business plan.........................................................58
Marking guide - Task 2 - Develop the business plan..................................................................................61
Section 3 – Tasks Assessment - Outcome...................................................................................................... 65
Section 4 – Competency Summary Record Sheet..........................................................................................66
Appendices - Templates............................................................................................................................... 67
© BCH V 1 Jul 2021 Page 2 of 93

SECTION 1 - Introduction
This is your assessment which contains the instructions and recording instruments to guide you in
the completion of your assessment activities and for the assessor to record your responses and
feedback.
You are recommended to refer to the unit specification to confirm the content of the unit of
competency via the following link: - AHCBUS516 Develop and review a business plan
About the assessment

You are expected to demonstrate the ability to develop and review a business plan that could be
used to present to financiers, government agencies, industry associations and shareholders.
The goal for the assessment is show you can set the short, medium- or long-term goals and targets
for the business plan integrating the various function and operations of a farm or nursery using
marketing and production targets, resource and asset development and management, acquisitions,
capital, property improvements, and operational systems.
All work submitted must comply with organisational requirements, work health and safety
legislation and codes, sustainability practices and show evidence if consultation.
The following is the performance evidence and knowledge evidence needed to confirm competency
in this unit.
An individual demonstrating competency must satisfy all of the elements and performance criteria in
this unit. There must be evidence that the individual has developed and reviewed a business plan for
at least one enterprise, including:
PE 1. set strategic goals, targets and directions for the enterprise
PE 2. determined clear and measurable indicators of operational performance
PE 3. identified and designed risk management strategies
PE 4. developed appropriate operational plans
PE 5. documented the business plan
PE 6. monitored the business plan to identify strengths, weaknesses and areas for
improvement.
An individual must be able to demonstrate the knowledge required to perform the tasks outlined in
the elements and performance criteria of this unit. This includes knowledge of:
KE 1. profit and loss and cash flow systems
KE 2. forecasting trends in expenditure and production for an enterprise
KE 3. communication techniques typically used to negotiate business strategies and directions
KE 4. risk management strategies relevant to the enterprise
KE 5. marketing strategies relevant to the enterprise
KE 6. measures of operational performance
KE 7. financial and operational systems and resource considerations relevant to business
planning
KE 8. logical and analytical methods to interpret and analyse financial reports
KE 9. industrial relations, taxation, corporate and industry legislation, environmental and work
health and safety legislation as they relate to the enterprise

KE 10. capital investment analysis.

Assessment Conditions
Assessment of skills must take place under the following conditions:
 physical conditions:
o skills must be demonstrated in a workplace setting or an environment that
accurately represents workplace conditions
 resources, equipment and materials:
o access to business records for an enterprise.
Competency is to be assessed in the workplace or simulated environment that accurately reflects
performance in a real workplace setting.
Assessors must satisfy NVR/AQTF assessor requirements.
This unit is an AQF level 5 unit and therefore you are expected to show higher levels of learning
Typically individuals at this level can apply integrated technical and theoretical concepts in a broad
range of contexts to undertake advanced skilled or paraprofessional work and as a pathway for
further learning.
Using your assessment kit

Your assessment kit contains the guidelines and benchmarks to guide you in preparing your
response. Your assessor has a marking guide which contains model responses to questions and
performance indicators to confirm your competency.
You are not permitted to sight or read the assessor’s marking guide otherwise the assessment will be
compromised.
There are 6 sections to the marking guide.
1. Introduction
2. Pre-assessment checklist
3. Knowledge Evidence
4. Performance Evidence
5. Assessment Summary
6. Appendix
Section 1 is an introduction to the assessment process including the requirements
Section 2 is the pre-assessment checklist which is to be completed by both you and the candidate,
prior to the assessment. This is to confirm both parties acknowledge their rights and responsibilities
to the assessment process.
Section 3 is a confirmation of the underpinning knowledge for the unit. This activity can be
completed by the candidate in their own but must be submitted by the due date listed in the
applicants training schedule.
Section 4 provides the opportunity for the assessor to record their judgement. The candidates is
benchmarked to the specific performance criteria and performance evidence provided for this unit
of competency. There are also guidelines as to the type of evidence suited to each of the criteria to
ensure the evidence provided is in accordance with the rules of evidence. You must ensure the
instructions are explicitly followed.

Section 5 provides the overall assessment summary

Section 6 Appendices. This is a suite of materials / templates that support the assessment and is
provided to the candidate as an option
All assessment activities must be successfully completed.
You have two (2) opportunities to complete the assessment tasks successfully
The assessor records the assessment outcome and feedback in your assessment kit.
When an assessment is completed, recorded and discussed, the completed activity and the record of
the outcome is removed from your workbook and added to the student’s file.
Assessment Steps
We have listed the steps to follow when conducting this assessment.
Before the Assessment

Before the Assessment
1. Your assessor must ensure that you have received your assessment kit prior to the
commencement of the assessment.
2. If a simulation is used, then your assessor must brief you on the requirements of the
simulation and the conditions of the simulation. (Activities 3 and 4 are simulations).
3. Your assessor must ensure they identify any special needs that you may have in relation to
undertaking this assessment. For example, you may have LLN issues, or you may not have
access to technology to complete and submit the assessment evidence. If you require
assistance, then discuss this with your assessor as soon as possible so they are able to help
you including providing reasonable adjustment for those requiring assistance. Adjustments
include any changes to the assessment process or context. However, your assessor must not
compromise the integrity of the competency.
4. You must fully understand of the assessment process. Your assessor will clarify the following
information prior to the commencement of the assessment:
- the purpose of the assessment
- the conditions of the assessment, which includes:
- the timeframes for each task
- the due date for submitting their assessment
- the location where the assessment tasks will be undertaken
- the essential information required to carry out the assessment (e.g. templates,
policy and procedures, etc.)
5. You must be aware of the mandatory requirements you must perform to be deemed
satisfactory for an assessment activity: i.e.
- You meet all the requirements outlined in the Student Assessment Guide
- Your responses to the questions and tasks must be accurate and relevant
- The work you submit must be authentic and in your own words
- You must provide reference to any external sources of information used
- You must perform all the above points within the deadlines set the Assessor

- Complete the assessment within prescribed number of resubmits allowed

- Plus you have the right to appeal all outcomes following the appeals process.
Once this is understood, you will be asked to sign the Pre-Assessment Checklist and declaration
provided by your assessor. You will not be assessed until the signed checklist and declaration is held
by the assessor or RTO office. .
During the Assessment
Knowledge evidence
You may contact your assessor for information regarding what to do and how to do it. Remember
that this is an assessment; therefore they cannot give you the solutions, answers or even suggestions
on what to write. They are limited to clarifying what is required.
Performance evidence
Section 4 details four (4) activities with each activity having tasks to complete.
Activity one (1) has 3 tasks associated with PE 1 & 2
Activity two (2) is a simulated observation relating to the application of workplace safety procedures
covering: -
a) infection control
b) hazardous manual tasks
c) use of personal protective equipment
Activity three (3) is a simulated observation relating to the application relating to infection control
Activity four (4) is a simulated response to an emergency evacuation
When you submit your assessment, your assessor uses KPI’s and industry based guidelines to
benchmark your answers and responses. These are provided in a separate marking guide to ensure
consistency in the ‘marking’ of any assessment submitted by any candidate.
After the Assessment
Your assessor will provide enough detail to allow you to gain a clear understanding of your
performance. This is more relevant when you have not met the standard required
Their comments should be positive and focus on any gaps and strategies for further development.
1. Your marked assessments will be retained by the assessor
2. For those students who are deemed ‘Not Yet Competent’ (NYC), you will have the
opportunity to be reassessed, but this is limited to one (1) occasion.
3. Once deemed competent, all assessments, including those did not demonstrate
competency, are forwarded to the Administration for filing and the generation of the
relevant student records.
4. For those students who do not wish to undergo reassessment, their NYC assessments are to
be forwarded to the Administration for filing.
5. If the student decides to appeal the process, please instigate the appeals process in
accordance with the policies and procedures manual.
6. Your competency status will be provided by the training company (not the assessor)

Retention of Completed Assessments

All completed assessments are retained for at least six months from the completion of the
assessment.
Recording the assessment outcomes

Assessors are to record their observations, feedback and determinations in the candidate’s
workbook using the space provided.
Whenever the following panel appears in this workbook, that page must be completed and then
removed by the assessor to be returned to the RTO where it is kept with your records.
RTO TO RETAIN THIS PAGE

Note, any issues or misunderstanding about the intent of any question or task described in this
document, needs to be referred to the Principal as part of the continuous improvement and
moderation practices adopted by the RTO again using the space provided in the candidate’s Marking
guide.
Number of attempts
The candidate has two (2) opportunities to successfully complete each activity, the record sheets
include space to record the number of attempts, for example 1st , 2nd .
If the response or performance is successful, then  the appropriate square .
If the response is not successful, then place a X in the appropriate square .
Possible outcomes could be: -
1s  2nd -
t1s X 2nd 
1s X 2nd X
In the last case the candidate has not successfully completed this assessment and would be deemed
not yet competent.
Naturally if they are successful on the 1st attempt there is no need to repeat the assessment.
Candidates that are unsuccessful after the 2nd attempt are not permitted to re-sit the assessment
without prior written approval from the Principal. They may continue training and assessment in
other units providing this unit is not a pre-requisite for further studies.
Where the candidates’ responses are markedly different to the suggested answer, assessors must
use professional judgement when marking these responses. For example, if a candidate provides a
different answer to the Marking guide, but the answer is still satisfactory, then they should be
marked as satisfactory. The assessor must indicate why that response is deemed satisfactory and
subsequently refer that response for moderation.
Appeals
The candidate has the right to appeal any of the assessment outcomes and if they wish to do so
should refer to their student handbook to determine how to lodge an appeal. Candidates and
assessors should refer to the appeals policy, noting the following is a summary of the actions and
responsibilities.

In the first instance an informal approach should be made to the assessor with any new evidence or
to clarify existing evidence. Where the participant is still dissatisfied with the decision then a formal
request can be made to the RTO Manager who will refer the assessment to a facilitator who was not
involved in the original decision, to review the decision.
If the participant is still dissatisfied with the decision, then a written notice of appeal may be lodged
with the RTO requesting an independent review by an external appeal consultant.
Appeals should be lodged within 7 days of the assessment and usually responded to within 21 days
however where the RTO considers more than 60 days are required to respond it will inform the
appellant, explaining the delay and ensure it regularly updates the appellant on the progress of the
appeal. Candidate’s will not be able to re-sit a third and subsequent assessment for this unit without
prior written approval from the RTO Manager.
Advice on applying reasonable adjustments

In assessing the competence of individuals, assessors must provide for reasonable adjustments to
ensure the assessment principles of fairness and flexibility are addressed. For example, they may
respond to situations that reflect their life experiences and or cultural background and you should
plan for that.
However, assessors must be confident that reasonable adjustments do not compromise the
outcomes of the unit and the integrity of the qualifications and Statements of Attainment issued as
certification of achievement.
Where a candidate requires reasonable adjustments, assessors must decide what types of
adjustments are needed and then make a judgment about whether these are 'reasonable' given the
unit content requirements and specifications.
The test of reasonableness is subjective but must be guided by the principles of assessment and
the balance between them, as well as the rules of evidence.
Reasonable adjustments may take the form of additional support during the assessment process for
example in the provision of particular equipment or software, or changes to the physical
environment, or provision of support persons for physical disability or additional time.
An individual's access to the assessment process should not be adversely affected by restrictions
placed on the location or context of assessment beyond the requirements specified in this Training
Package.
The use of interpreters would not be a reasonable adjustment for assessment of units in this
Training Package as English language is essential.
Similarly, a focus on oral responses in place of documentary evidence would not be reasonable if the
unit clearly requires evidence of literacy skills to write, document and record material. Given the
focus on cognitive skills in these cases that relate to planning, research, analysis, thinking techniques
and evaluation, achieving the competency outcomes may be difficult for people with some
learning disabilities or intellectual disabilities.
Where reasonable adjustments have been applied, assessors should ensure the type of adjustments
is recorded to guide any further assessments of the candidate and for validation purposes. This can
include provisions for the person’s culture, mores and life experiences.
Expected levels of performance.
This unit of competency is related to a Diploma and as such there is an expectation that candidates
demonstrate technical and theoretical knowledge in a specific area or broad field of work and
learning. They are expected to show judgement and defined responsibility in a known or changing
context and within broad and defined parameters.

Assessors must be conscious that candidates demonstrate the ability to: -

 analyse information to complete a range of activities
 provide and transmit solutions to sometimes complex problems
 transmit information and skills to others
You need to be aware of the expected literacy and numeracy requirements which are consistent
with this level of skill and knowledge.
Why so many signatures?

BCH is required to comply with Australian Standards for the delivery of training and assessment
services. Part of these standards is to demonstrate it has always treated you fairly and that includes
when you undertake an assessment.
In many cases the assessor is required to provide you feedback as you progress through your
assessment and BCH is required to provide evidence to confirm your assessor has informed you of
the outcome of your assessment and make suggestions for improvement or record the steps you can
take to continue your learning and or assessment.
With that in mind we ask that you co-operate with us by signing any reports or statements that
confirm your assessment. You do not need to sign if you feel uncomfortable in doing so. Let us know
if you have any concerns with signing anything.
As always you have the right to appeal any outcome and we ask you to do so in writing according to
our procedures.

Section 1 - Pre-assessment Checklist 1
Candidate’s name:
Units of competency: AHCBUS516 Develop and review a business plan
Trainer/Assessor:
Date:
Checklist Comments
 Discussed the purpose of the assessment.
 Discussed the assessment environment and the

process covering when the assessment will occur, where
the assessment will occur, who will assess the candidate,
and the feedback process.
RTO RETAINS THIS PAGE
 Explained the unit of competency including each

element, performance criteria, foundation skill,
performance evidence, and knowledge evidence that the
candidate will be assessed on.
 Discussed the various methods of assessment,

assessment instruments, submission requirements and
the due date for this unit of competency
 Discussed the resources provided by the RTO for the

candidate; to undertake this assessment.
 Discussed the performance level required for each

assessment task.
 Ensured the candidate understands they must be able

to present a well-structured business plan.
 Discussed the assessment conditions essential for the

candidate to carry out each assessment task.
 Ensured that the candidate acknowledged they have

read and understood the Student Assessment Handbook
involving following concepts:
 authenticity of candidate’s work
 re-submission, re-assessment policy/procedures
 appeals process
 regulatory information
 confidentiality procedures
1
To be conducted in conjunction with the assessment requirements published by the regulator at training.gov.au

 Discussed any special needs of the candidate and

made the necessary arrangements.
 Summarised information and allowed candidate to

ask questions.
Candidate’s declaration
I acknowledge receipt of this workbook and that it contains the assessment activities I will need to complete
(successfully) to be deemed competent in this unit of competency.
I understand that my assessor has a master copy of this workbook, but it differs in that it has the suggested
model answers, responses and examples of finished activities. My assessor will use my assessment kit to ‘mark’
and record the outcomes of my assessment. They may also reproduce the performance indicators that appear
exclusively in the marking guide to record my responses to certain assessment tasks.
I understand I should always read the assessment activities and the supporting instructions in full before I
undertake any of the tasks required therein and if I have any issues with the assessment activity I can discuss it
with my trainer and or assessor providing I give reasonable notice.
I am aware that my assessor has been told that should they observe issues or misunderstanding about the
intent of any question or task described in this document, then that will be referred to the RTO Manager as
part of the continuous improvement and moderation practices adopted by the RTO.
I am aware that the assessor MUST ensure that the assessment outcomes for each of the assessments are
retained by the RTO on completion of each assessment activity. Assessors are to record their observations,
feedback and determinations in MY workbook using the space provided.
I am also aware that whenever the following panel appears in this kit, that page must be completed and then
removed AND returned to the RTO where it is kept with MY records as indicated by the following.
RTO TO RETAIN THIS PAGE

I also understand that the assessor has been instructed to also ensure I am treated fairly and I have only two
opportunities to successfully complete this unit of competency.
If I do not succeed on the second attempt, I may be offered options for extra support or learning including
repeating the unit in its entirety. I am aware that after the 2nd attempt I will not be able to undertake any
subsequent assessment without the prior and written consent of the Principle.
II am not satisfied with the assessment outcome I acknowledge I can appeal the result providing I follow
the procedures outlined in my handbook.
I acknowledge that if I feel I am not ready to be assessed or believe this assessment is unfair I will contact
my assessor to discuss options.
 Please tick this box if you understand the assessment instructions outlined above
 Please tick this box to consent to being assessed.
 Please tick this box to acknowledge that all work submitted by you will be your own work.
 Please tick this box to acknowledge that you can appeal the result of the outcome and the
process for making an appeal is detailed in your handbook,
Student’s Name:
Signature: __________________________________________ Date: _________


Section 2 – Knowledge requirements

Instructions for the candidate.
Read all the questions thoroughly before attempting to answer each.
If using this assessment booklet, candidates should PRINT their responses in blue or black pen using
the space provided. The space provided in this workbook for each question does not indicate the
required length of any response by you.
If using a computer to type any or all the responses, use A4 paper and observe formatting. Make sure
the question is accurately reproduced in full (including the question number). In all cases correct
spelling and grammar must be used. If using Microsoft Word, use English (Australia) for spelling and
grammar (as the default). If not, you will not be assessment.
You may use support material as part of your answers, but you must indicate the source. In addition,
you must not cut and paste answers from your sources but instead put it in your own words, unless it is
a direct quote.
Your work MUST be your own work.

You must achieve a satisfactory outcome for all the assessment tasks. This includes meeting the
following conditions:
 you must complete all the tasks outlined in this Student Assessment Guide document to the
standard indicated in the performance requirements; these are listed under each of the tasks or
question (R-1_
 you will then submit your completed Student Assessment Workbook to your assessor
 you must perform the above two points within the given timeframes by your Assessor
Please be aware that your Trainer/Assessor is here to provide you with the necessary support
throughout the assessment process so that you can achieve the desired outcomes. If you have
questions, then contact them for guidance.
You will need access to the internet, computer technology, stationery, relevant legislation, codes of
practices, office equipment etc to complete this assessment
Over the page are the questions) for the required knowledge evidence that relates to this unit of
competency. (The space provided in the assessment kit for a response does not suggest the length of
the expected /required response).
After each question, there is an alpha numeric code as per the example below. This indicates if the
question addresses either the Performance Criteria (PC) the Knowledge Evidence (KE) or the
Performance Evidence (PE) and is used by the RTO to confirm the question or task is consistent with
the requirements of the unit of competency
Question 1 - ( KE 2)
The questions for the knowledge evidence follow on the next page: -

Knowledge evidence - Questions
Question 1. KE 1 1st  2nd 
How does the profit and loss budget contribute to effective farm management? Max 100
words
A profit and loss (P&L) budget, often referred to as an income statement or statement of
operations, is a financial document that offers a thorough breakdown of a farm's revenues, costs,
and net income over a given time period, usually on an annual basis. This budget is essential for
efficient farm management in a number of ways, including:
1. Financial Planning
- Helps in establishing attainable financial plans and goals for the farm.
- Provides a clear picture of anticipated revenues and costs, which directs decision-
making.
2. Evaluation of Performance:
- Farmers can compare actual outcomes to budgeted statistics to assess their financial
success over time.
- Identifies parts of the farm where it is failing or above expectations, allowing for
prompt modifications.
3. Allocate Resources:
- Aids in the effective allocation of resources (e.g., labour, money, inputs) by
recognizing which components of the agricultural operation are most lucrative and
which may require improvement.
- Assists with investment prioritization and money allocation based on predicted
returns.
4. Risk Management:
- Allows farmers to calculate the financial effect of probable risks and uncertainties,
such as bad weather or shifting market prices.
- It serves as a foundation for the development of risk mitigation strategies and
contingency plans.
Describe the role and importance of the cash flow budget in farm management. Limit
response to a max of 200 words.
A cash flow budget is a financial planning instrument that summarizes a farm's planned cash
inflows
and expenditures over a certain time period, often monthly or seasonally. Because of its
relevance in financial planning, decision- making and overall farm sustainability, this budget is
critical in farm management. The following is an explanation of the role and significance of a cash
flow budget in farm management:
1. Liquidity Control:
- This enables farmers to successfully manage their liquidity, ensuring they have
adequate cash on hand to cover day-to-day operational expenditures, repay loans,
and cover unforeseen costs.
- Cash flow budgets show when money is projected to arrive and when it is necessary
to pay bills.
2. Planning and budgeting:

- Cash flow budgets aid farmers in developing a comprehensive financial strategy for
the future year or crop season.
- Farmers may organize their operations more efficiently by calculating financial needs
for various activities (planting, harvesting, and purchasing supplies).
3. Investment Decision Assistance:

- Farmers may utilize cash flow budgets to determine if they have the means to pay the
initial expenditure as well as the continuous operating costs connected with it when
contemplating investments in new equipment, land, or infrastructure.
4. Risk Control:
- Financial flow budgets aid in the identification of possible cash gaps during periods of
low revenue or unanticipated spending.
- Farmers can use this information to build risk-mitigation measures, such as laying
aside reserves or getting lines of credit ahead of time.
5. Loan Management:
- Cash flow budgets are useful tools for proving the farm's potential to earn enough
cash to repay the debt when applying for loans or credit.
- Cash flow predictions are frequently required by lenders as part of the loan
application process.

6. Seasonal Changes:
- Due to periodic production cycles, many farms face large changes in income flows
throughout the year.
- Cash flow budgets assist farmers in anticipating these variations and ensuring that
costs are covered during lean season.
7. Expense Management:
- Farmers might find chances to limit spending, negotiate better terms with suppliers,
or investigate cost-cutting strategies by measuring cash withdrawals in the budget.
8. Tax Preparation:
- Accurate cash flow estimates aid farmers with tax planning by assisting them in
anticipating tax liabilities and managing cash reserves for tax payments.
9. Growth and Sustainability:

- Effective cash flow management adds to the farm's financial stability and long-term
viability.
- It helps the farm to weather economic downturns, invest in upgrades, and capitalize
on development possibilities.
10. Peace of Mind:

- A well-planned cash flow budget gives farmers peace of mind by decreasing financial
stress and uncertainty by providing a path for managing their money.
In conclusion, the cash flow budget is an important instrument in farm management that assists
farmers in maintaining financial stability, making informed decisions, planning for seasonal
changes, and achieving long-term sustainability. It gives insight and foresight about the farm's
financial health, enabling for better resource management and resilience in the face of adversity.

Question 3. KE 1, 7, 1st  2nd 
Identify and explain four (4) different levels of profit measures that may be used on the
farm or nursery. Limit total response to a max of 250 words
Profit measurements of various levels can be used to examine financial success on a farm or
nursery. Here are four tiers of profit measurement:
1. Gross Profit:
- Gross profit is the difference between total income from sales and cost of goods sold
(COGS), which includes direct production expenditures such as seed, fertilizer, and
labour.
- It assesses the profitability of fundamental farming operations and gives insight into
production efficiency.
2. Operating Profit
- Operating profit exceeds gross profit by subtracting operating expenditures such as
rent, utilities, equipment maintenance, and administrative costs.
- This metric analyses the farm's day-to-day profitability, excluding non-operational or
financing-related revenue and costs.
3. Net income (profit):

- Net profit includes all revenue and costs, including interest, taxes, and any other non-
operating income or expenses.
- It gives a complete picture of the farm's overall profitability and potential to create a
return on investment.
4. ROI (Return on Investment):

- ROI calculates the return on capital invested in the farm. It is computed by dividing
net profit by total assets or equity invested in the business.
- This indicator is useful for evaluating the farm's efficiency in generating profits for
owners and investors, as well as for comparing alternative investment possibilities.
Each of these profit measurements serves a distinct role and gives information about various
elements of farm financial performance. Farmers and nursery operators frequently employ a mix
of these metrics to make educated decisions, assess their operations, and plan for the future.


In the table below, and for each of the nominated sources of information used for forecasting, identify whether it is an internal or external
source and describe where each can be sourced and how each source relates to business forecasting. (First line is an example) Limit to 50
words per example.
Source of Internal / Where can be sourced How it relates to forecasting


information External Min of 3 examples each source
They are the main precursors of an organisation’s

direction which are constantly reviewed and
Organisational Business Plan
adjusted to ensure a close fit to future trends. These
Business and
strategic objectives
Internal
Organisational Strategic Review
Corporate Strategic Marketing Plan
initiatives must be in line with the changes within
the dynamic market environment, therefore, an

Corporate Strategic Business Plan
organisation is required to constantly fine-tune them
to meet future needs.
Marketing and business performance are closely

connected to the practice of forecasting, which

involves analyzing past data, market trends and
Data collected by the government insights to make predictions about future outcomes.
Accurate forecasting plays a crucial role in informing
Marketing and Analysis of competitors sales projections, planning marketing campaigns,
Business Internal
Financial news and reports allocating budgets, managing risks and making
performance
strategic decisions. By leveraging accurate
Research conducted by market research firms forecasting techniques, businesses can effectively
adapt and allocate resources, ultimately enhancing
overall performance and successfully achieving their
objectives.



Comparative Evaluation
Having access, to market information is crucial when
it comes to making forecasts. It provides insights

into market trends, competitor performance and
Analysing the Competition
customer behaviour. By analysing their data in
Comparative
External Investigating the Market relation to industry benchmarks and competitor
market information
metrics businesses can make precise predictions
Examining Industry Reports
about future market conditions and their own
Gathering External Data Sources performance. This enables them to make informed
decisions and develop strategies, for the future.
Changes in
technology
Websites for Technology News Technological advancements are critical to forecasting
since they define the future business landscape. 
Publications from the Industry Businesses may forecast changes in customer behavior,
Trade Shows and Technology Conferences market dynamics, and industry trends by anticipating
External technical improvements. Forecasting accuracy aids in
Firms that do research strategic planning, product development, and resource
allocation, ensuring that organizations remain
Blogs and discussion boards
competitive and inventive.
Social networking sites
Demographic
changes
External Government Organizations Demographic shifts are important for predicting
because they have a direct influence on consumer

Organizations Internationales
behavior, market demand, and labor composition.
Market Research Companies Businesses may forecast future customer
scholarly investigation preferences, prospective growth markets, and
changes in labor force availability by examining
Industry Organizations demographic movements. Accurate demographic
Data from Social Media forecasting impacts strategic choices, product
development, and marketing tactics, allowing a firm



to adapt and prosper in changing markets.
Cultural Studies and Investigation Social and cultural aspects influence consumer
behavior, market trends, and society changes, and

Market Research Companies hence play an important part in forecasting.
Reports from the Government Understanding these characteristics enables firms to
Social and cultural
External anticipate changes in customer preferences, society
factors International Organizations: attitudes, and cultural norms, allowing them to
Media and News Organizations forecast market demand, adjust marketing tactics,
and make educated decisions regarding product
Consumer Polls creation and corporate operations.
Economic trends are important in forecasting

because they give vital insights into an economy's

path, allowing entrepreneurs, governments, and
Governmental Organizations analysts to make educated projections. One may
Central Banks forecast future economic circumstances and their
influence on various industries by evaluating
Economic trends External International Organizations
indicators such as GDP growth, inflation rates,
Websites for Financial News unemployment, and consumer spending. This
Firms that conduct economic research knowledge influences investment, resource
allocation, and risk management choices, making
economic trends an important component of
forecasting models and tactics.



Government
activities and
Government actions and legislative changes are
important to predict since they have a large

legislative changes influence on several industries. They create
uncertainty, which can affect the economic,
 Online News Sources and Databases
corporate, and policy landscapes. Accurate
External  Websites of the Government
forecasting requires following these changes in order
 Notices and Publications
to predict their consequences on aspects such as
economic development, corporate operations, and
public services, ensuring informed decision-making
and proactive adaptation to changing conditions.
Industry trends are critical components of

forecasting because they give information about the

future direction of certain industries. Businesses and
 Trade Shows and Conferences
analysts may forecast changes in market demand,
 Forums on social media and in the industry
technological breakthroughs, consumer preferences,
 Databases and Research Portals Online
Industry trends External and competitive landscapes by evaluating these
 Business and news publications
patterns. This data assists firms in developing
 Governmental Organizations and Regulators
educated sales, market share, and strategic planning
 Market Research Companies and Industry Reports
projections, allowing them to adapt, innovate, and
capitalize on emerging possibilities while avoiding
potential dangers.
Supplier data External Websites and portals for suppliers Supplier data is critical for forecasting because it
allows firms to predict and manage supply chain

Supplier Directories and Databases
interruptions, evaluate supplier reliability, and make
Reports on Market Research educated procurement decisions. Businesses can
Online Reviews and Social Media estimate future supply availability and possible
bottlenecks by assessing previous supplier



performance, lead times, and inventory levels. This

information also helps with cost prediction, quality
control, and risk assessment, allowing for more
Industry Trade Shows and Events
accurate production and inventory projections as
well as smoother operations and customer
satisfaction.

Question 5. KE 2, 9 1st  2nd 
Describe two information sources you can use to investigate new approaches to budget
management and forecasting techniques that are suited to a nursery or farm. 100 words
1. Services for Agricultural Extension:
Farmers and nursery operators benefit from agricultural extension services, which are
frequently provided by government organizations or agricultural institutions. Workshops, books,
online resources, and professionals who can advise on current budget management and
forecasting strategies customized to the unique demands problems of nurseries farms are
available
through these services. These extension programs provide farmers with access to current
research,
best practices, and creative ways.

2. Trade Journals and Industry Associations:
Agriculture and horticulture industry organisations, such as the American Nursery and Landscape
Association (ANLA), frequently produce publications. These publications provide case studies
expert perspectives, and the most recent trends in farm and nursery management, making them
excellent resources for staying up to date on novel methods to financial management in the
agricultural industry.

Question 6. KE 3 1st  2nd 
You are about to promote the budget to a group of colleagues who manage various
departments or business units. You have identified 4 priorities that you want to
communicate to get their commitment? Using the table below provide a rationale for
these priorities and inputs. (Limit of 50 words per each explanation)
Priority Explanation for these priorities
Expected income The estimated profits or revenue that an individual or institution anticipates
in a specified
period for a certain term is represented by expected income in that timeframe. The
prediction is based on a variety of criteria such as sales projections,
contractual agreements, investments, and other sources of revenue. It is an

essential component of financial planning and decision-making, guiding
budgeting and creating financial goals.
Expected Expected overheads are the expected operating expenditures that a

overheads company
or person anticipates in a certain time. These expenditures include rent,
utilities, wages, and other day-to-day operating expenses. Estimating
anticipated overheads is critical for budgeting, financial planning, and long-
term financial management.
Funding allocation The practice of allocating financial resources to various projects, divisions, or
initiatives within an organization is known as funding allocation. It entails
selecting how to allocate available finances based on objectives, goals, and
strategic requirements. Effective resource allocation ensures that resources
are used effectively to accomplish desired results and objectives.
Recording and The systematic documenting and communication of financial transactions

reporting
and occurrences inside an organization is referred to as recording and
reporting. This procedure assures accurate and transparent financial

records,
regulatory compliance, and informed decision-making. It entails gathering,

organizing, and presenting financial data in formats such as financial

statements, reports, and audits.
Using the following table list a range of strategies that can lead to effective
communication between sender and receiver
Agent Strategy
Sender 1. Understand Your Audience
2. Clarity of Goal
3. Organize Your Ideas
4. Select the Correct Channel

Receiver 1. Listening Actively
2. Pose Questions
3. Paraphrasing
4. Reduce Distractions

In the context of the following statement, discuss the essential issues and communication
techniques you need to be aware of in any communication situation. “Many definitions
describe communication as a transfer of information, thoughts or ideas to create shared
understanding between a sender and a receiver. The information may be written or spoken,
professional or social, personal or impersonal to name a few possibilities. Basically, the
communication process involves a sender, receiver, message, channel and feedback. However, this
simplistic description significantly under-represents what can actually be a very complex process”.
Limit to 250 words maximum
The statement emphasizes fundamental features of communication while emphasizing the
intricacy of the process. Several critical topics and communication approaches must be
considered in each communication situation:
1. Shared Understanding:
- The basic purpose of communication is to create a common understanding between
sender and recipient. This necessitates clarity, precision, and language that is suitable for the
situation.
2. Diverse Forms of Communication:
- Communication can take many forms, including spoken, written, nonverbal, and
visual communication. It is critical for effective communication to choose the suitable form.
3. Sender and Receiver Dynamics:
- It is critical to understand the viewpoints, backgrounds, and expectations of both the
sender and the recipient. Messages delivered by effective communicators are adapted to the
audience.
4. Message Content:
- It is critical to craft a clear and precise message. This entails arranging thoughts
rationally, utilizing proper language, and evaluating the tone and style of the message.
5. Choice of Channel:
- The message's perception is influenced by the communication channel used

(e.g., face-to-face, email, phone call). Different channels may be required in different scenarios.
6. Feedback Loop:
- The receiver's feedback ensures that the intended message matches the perceived
message. Feedback is actively sought and responded to by effective communicators.
7. Noise and Barriers:
- Noise (external variables) and obstacles (language, cultural differences, prejudices)
can interrupt communication. Identifying and removing these roadblocks is critical.
8. Emotional Intelligence:
- Both the sender and the recipient's emotions must be recognized and controlled. It's
possible that emotions have a significant impact on how messages are interpreted.
9. Context and Timing:

- Effective communication depends on the message's timing and context. In some
circumstances, what is appropriate may not be in others.
10. Ethical Considerations:
- It is crucial to communicate ethically. Communication ethics are governed by
fundamental principles like honesty, integrity, and respect for privacy.
11. Adaptability and Flexibility:
- Effective communicators modify their strategy in response to the participants' and the
situation's changing needs.
12. Cultural Sensitivity:
- When communicating in a variety of contexts, it is crucial to recognize and respect

cultural differences.
In conclusion, navigating a complicated interplay of factors is necessary for effective
communication. Effective communicators use the proper techniques to improve clarity,
understanding, and meaningful information exchange while taking into account the subtleties of
the message, the audience, and the context.

Identify and describe at least 6 of the 8 key elements of the risk management process.
Max of 250 words
The risk management process is an organized strategy to detecting, analysing, and managing
risk in a variety of disciplines, including business, finance, and project management. Here are
six of the eight major parts of the risk management process:
1. Risk Identification: The first stage is to identify potential risks that may harm a project,
company, or system. It is critical to thoroughly explore and document all potential hazards, both
internal and external.
2. Risk Assessment: Once identified, risks must be evaluated to determine their likelihood
and effect. To evaluate the severity of each danger, quantitative and qualitative approaches are
applied, which helps prioritize them depending on their relevance.
3. Risk Analysis: In this stage, the highlighted hazards are thoroughly examined.
Understanding the core causes, possible repercussions, and potential triggers for each risk, is
part of this. This study contributes to the development of effective risk response strategies.
4. Risk Mitigation and Control: Following risk assessment and analysis, methods are
established to minimize, transfer, accept, or avoid hazards. Risk mitigation strategies are
implemented to lessen the likelihood and severity of unfavourable occurrences. A control system
is
also built to continually monitor threats.
5. Risk Communication: It is critical to effectively communicate risks to stakeholders. Clear
and timely communication assists stakeholders in understanding possible risks, their

consequences,
and the measures taken to mitigate them.
6. Risk monitoring and evaluation: Risks are dynamic and evolve over time. Regular risk
landscape monitoring and evaluation are required to ensure that risk management techniques
remain effective and current. As new hazards arise or current ones evolve, changes to the risk

management plan may be required.
These six components make up the core of the risk management process and assist organizations
in proactively addressing uncertainties and making defensible choices that will safeguard their
interests and help them accomplish their goals.


Question 10. KE 2 & 4 1st  2nd 
Explain why business forecasting should be evaluated in terms of risk management

Word count 150 words
Business forecasting should be assessed in terms of risk management since it assists businesses in
anticipating and preparing for future uncertainties and negative outcomes. This is why:
1. Risk Identification: By adding risk assessment into business forecasting, firms may identify
possible risks and opportunities that may alter their projections. This proactive strategy enables
them to identify possible problems and risks.
2. Risk Quantification: When businesses evaluate business forecasts in the context of risk
management, they may quantify the uncertainty associated with their projections. This
quantification aids in assigning probability to various prediction scenarios, resulting in a more
accurate picture of prospective outcomes.
3. Risk Mitigation: When risks in forecasts are identified, businesses can devise measures to
minimize them. This might include contingency planning, cash reserves, or resource,
diversification, all of which can assist safeguard the company against negative consequences.
4. Informed Decision-Making: Evaluating predictions via a risk management lens ensures
that decision-makers are aware of potential risks and their potential effects. This helps individuals
to make better educated judgments, taking into account both upside prospects and downside
hazards.
Integrating risk management into business forecasting, in essence, develops a more
comprehensive and robust approach to planning and decision-making, eventually assisting
businesses in navigating difficult business environments with greater confidence and flexibility.

Outline in the table below, the common marketing strategies used by organisations.
Word count was approximately 50 words in total, for each strategy.
Strategies Explanation Example

Mass
A marketing approach that tries to reach A television commercial for a major soft
marketin
g the whole market with a standardized drink brand that targets a large audience
product, message, or advertising without segmenting it is an example of
campaign is known as mass marketing. It mass marketing. The advertisement has a
views the market as a whole, global message and is broadcast across.

disregarding
individual distinctions. This strategy is several TV channels and locations, with
distinguished by broad distribution and. the goal of reaching as many viewers as

reduced per-unit expenses, but it may possible with a single, uniform message.
lack
individualized targeting and engagement.
Single
In marketing, a single segment is a A luxury watch company, for example,
segment
distinct, well-defined group of clients or a that only sells high-end watches to
market sector with shared qualities and wealthy clients is an example of a single
demands. Businesses may design their sector. Their marketing, product design,
goods, marketing messages, and tactics and distribution methods are all
only to this segment, maximizing their customized to this specific client group's
resources to satisfy the expectations and demands and tastes, who value luxury,
preferences of that specific client group. workmanship, and status symbols.
Multi-
Multi-segment marketing, also known as. An automotive company offering
segment
differentiated marketing, is targeting numerous car models to appeal to.

numerous separate market groups with different client categories is a typical
various products, messages, and example of multi-segment marketing.
methods. Instead than considering the They may build fuel-efficient tiny vehicles
market as a single entity, firms identify for environmentally aware customers,
and serve multiple consumer groups with luxury sedans for rich clients, and robust
varying requirements and preferences, SUVs for adventure seekers. With unique
maximizing their marketing efforts to features and marketing tactics, each
reach a larger customer base. product targets a certain segment.

Outline how you might ‘operationalise’ the following goal. Provide examples of how you
might apply you suggest using the “SMART” system. How do priorities fit within this
framework?
“We want to Improve the look of the farm by protecting and enhancing the condition of the
remnant native vegetation on the farm." Limit response to 350 words
Goal: Improve the look of the farm by protecting and enhancing the condition of the remnant
native vegetation on the farm.
1. Specific (S): Clearly and precisely define the objective.
- Example: Improve the health of the native vegetation, including trees, shrubs, and
wildflowers, to increase the biodiversity and aesthetic appeal of the farm.
2. Measurable (M): Choose measurable metrics to gauge your success.
- Example: Plant 200 native trees and shrubs before the end of the year.
- Example: Increase bird and insect species diversity in the natural vegetation region
by 20% within two years.
3. Achievable (A): Make sure the aim is attainable given the available resources.
- Example: Allocate a budget for acquiring native plant species and hiring a part-time
conservator.
- Example: Collaborate with local environmental groups for knowledge and
resources.
4. Relevant (R): Ensure the goal aligns with broader objectives.
- Example: Improving natural vegetation promotes our commitment to
environmental sustainability while also improving the farm's appearance for visitors.
5. Time-bound (T): Establish a deadline for completing the task.
- Example: Complete the initial evaluation of natural vegetation within three months.
- Example: Implement a 5-year native vegetation management plan with annual
progress evaluations.

Prioritizing within this framework:
 Prioritize tasks depending on their relevance and urgency. For example, dealing with invasive
species may be a higher priority than planting new trees at first.
 When planning operations, consider the seasons and natural cycles; planting and upkeep may
be more successful at certain periods of the year.
 Distribute resources, such as employees and cash, based on the importance of each job.
For example, if invasive species pose a considerable hazard, greater resources should be devoted
to their elimination.
 Assess and alter priorities on a regular basis depending on outcomes and new information.
If a specific species of native plant thrives, resources may be diverted to places that require
greater attention.
To summarize, you may use the SMART framework to put the aim of improving the farm's look
into action by conserving and increasing natural plants. Prioritization entails taking into account
the feasibility, alignment with goals, and timescale for each activity in order to ensure that efforts
are efficient and successful in obtaining the intended outcome.

Provide a rationale for the following statement “Farm business efficiency is an important
measure to help manage for long-term sustainability”
Approximate word count 250 Max
Efficiency in farm operations is essential to ensuring the long-term viability of agricultural
operations. This claim is accurate for a number of strong reasons, including:
1. Optimizing Resources: Effective farm management reduces waste of vital resources like
land, water, energy, and inputs like fertilizers and pesticides. Farms can lessen their
environmental impact and ensure the longevity of these limited resources by using these
resources efficiently.
2. Financial Stability: A productive farm is more likely to have stable finances. It can
increase revenue and cut back on unnecessary expenses by streamlining production and
minimizing waste. In order to weather economic ups and downs and to invest in environmentally
friendly technologies and practices, financial stability is essential.
3. Environmental Conservation: Sustainable agricultural techniques, which are generally
motivated by efficiency aims, have the potential to lessen the negative environmental
consequences connected with agriculture. Crop rotation, decreased pesticide usage, and precision
agricultural techniques are examples of these approaches. Environmental protection is critical for
the long-term health of ecosystems and the farm itself.
4. Climate Change Resilience: As the consequences of climate change become more
noticeable, efficient farms are better positioned to adapt to changing conditions. They can change
planting dates, grow drought-resistant crops, and better manage resources, allowing them to stay
productive in the face of unexpected weather patterns.
5. Enhanced Production: Increased agricultural productivity is generally the result of
efficiency. Farmers that optimize their operations are able to produce more food or agricultural
goods while utilizing the same or fewer resources. Increased output can help with food security

and economic growth.
6. Reduced Reliance on External Inputs: Efficient farms use less external inputs such as
synthetic fertilizers and pesticides. Instead, they frequently use methods such as organic farming,
crop rotation, and integrated pest control. This lessens the farm's dependency on expensive and
sometimes dangerous pesticides, adding to its long-term viability.
7. Market Competence: In today's global agriculture market, efficiency is frequently a critical
aspect in keeping competitive. Farms that can produce high-quality goods at a cheap cost are
more likely to prosper in a competitive market.
Finally, farm business efficiency is not a choice; it is a must for long-term viability. It brings
economic, environmental, and social objectives together by preserving resources, decreasing

environmental consequences, and maintaining the farm's ability to adapt to future problems. In
an ever-changing world, it is a cornerstone of responsible and resilient agriculture methods.

Outline 4 key concepts and activities you could use to measure your farm’s income and
profit efficiency. Provide a rationale for each concept.
Max word count - 75 words per step.
1. Gross Margin Analysis:
Concept: The gross margin is the difference between total revenue and variable production
expenses (such as seed, fertilizer, and labor). Analyzing gross margins for different commodities or
livestock might reveal which businesses are more successful.
Rationale: This notion assists in identifying the most lucrative components of the farm and allows
for educated resource allocation decisions. It aids in directing resources to areas that give the best
results.
2. CBA (Cost-Benefit Analysis):
Concept: CBA entails weighing the costs and benefits of certain actions or expenditures, such as
acquiring new equipment, using new technology, or increasing output.
Rationale: CBA assists farmers in making educated investment decisions by comparing predicted
returns to related expenses. It eliminates wasteful spending and ensures that capital is allocated
in initiatives that have a beneficial impact on profitability.
3. Budgeting and financial management:
Concept: Developing precise budgets for the following year(s) that predict income, costs, and
possible profits based on past data and anticipated market circumstances.
Rationale: Budgeting serves as a road map for financial management, assisting farmers in
anticipating and planning for costs, revenue, and prospective profits. Monitoring actual financial
performance versus budgeted statistics on a regular basis enables for early intervention and
modifications to ensure profitability.

4. Analysis of Return on Investment (ROI):
Concept: ROI calculates the profitability of a certain expenditure, such as acquiring new
equipment, implementing sustainable practices, or expanding operations.
Rationale: ROI analysis helps determine if an investment is worthwhile by comparing predicted
returns over time to the initial investment cost. It guarantees that resources are directed to
initiatives with a high potential for profit.
Farmers may regularly review and enhance their revenue and profit efficiency by following these
principles and practices. This method aids in making informed decisions, maximizing resource
allocation, and guaranteeing the farm's financial sustainability and competitiveness in the
agricultural business.

Question 15. KE 6 and 7 1st  2nd 
Using the table below describe what each attribute is measuring in the context of farm
and or nursery production. Give an example of each Max word count per line 50 words
What it is measuring Example
Net cash income After subtracting all cash costs and A small firm earning $100,000 in
taxes, net cash income is the entire sales but incurring $60,000 in
amount of cash created or received operational expenditures, $10,000 in
by an individual, corporation, or taxes, and $5,000 in interest
organization. It depicts the real cash payments is an example of net cash
flow available for various uses such income. In this situation, the net
as investments, debt payments, or cash income is $25,000 ($100,000 -

savings, and so provides a more $60,000 - $10,000 - $5,000), which
accurate view of financial liquidity. represents the cash available for the
firm to utilize or save.
Net Farm Income: Net farm income calculates a farm A farm with $200,000 in crop sales,
operation's profitability by taking $50,000 in livestock sales, $30,000 in
the total income generated from subsidies, and $80,000 in operating
agricultural activities, including crop expenses (including seeds, labor,
and livestock sales, subsidies, and and equipment maintenance) would
other sources, and subtracting all have a net farm income of $140,000
related expenses, such as production ($200,000 + $50,000 + $30,000 -

costs, equipment maintenance, and $80,000), indicating the farm's
debt servicing. It serves as an profitability after all costs and
important measure of a farm's subsidies were deducted.
financial health and sustainability.
Farm earnings Farm earnings represent the income A dairy farm earning $300,000 from
generated by a farm through its milk sales, $50,000 from cheese
operations. This encompasses the sales, and getting $20,000 in
proceeds, from crop sales, livestock government subsidies is an example
sales and other related products of agricultural earnings. Before
along with any subsidies or grants deducting expenditures such as

received. Farm earnings serve as a feed, labor, and equipment

snapshot of a farms revenue prior to maintenance, the total farm
deducting expenses and play a earnings would be $370,000
crucial role, in evaluating its financial ($300,000 + $50,000 + $20,000).
performance.
Family labour The revenue received by family During the harvest season, family
earnings
members who work directly on a members at a family-owned apple
farm or in a family-owned orchard receive a total of $40,000
agricultural company is measured as for their effort, which includes
family labor earnings. It includes harvesting and packing apples.
family members' income or pay for These family labor earnings are the
their labor and contributions to the wages paid to family members for
farming activity. Earnings from their agricultural work and
family work are a component of the contribute to the farm's overall
farm's overall financial performance. financial viability.
% return to capital The percentage return on capital Assume an investor invests $50,000
calculates the profit or return on in a stock portfolio and the portfolio
investment for capital utilized in a grows to a total value of $55,000
business or venture. It computes the after a year. For that year, the
percentage change in capital value percentage return on capital is 10%

or profits over a specific time period. (($55,000 - $50,000) / $50,000 x
This statistic aids in determining the 100%), representing a 10% return on
efficiency and profitability of capital invested money.
resource deployment, such as
finances or assets.
Returns to Returns on management assess the A CEO of a corporation earning a $1

management
financial performance and benefits million yearly salary, a $2 million
executives inside a firm. It shows the performance bonus, and $500,000 in
earnings, bonuses, stock options, or. return to management. The overall
other remuneration earned by return to management for the year

managers in response to their would be $3.5 million, representing
efforts and decisions in operating the CEO's reward for leadership and
the firm, and serves as a measure of decision-making.
their performance in creating
returns for shareholders.

Question 16. KE 6, 7, & 8 1st  2nd 
Using the table below provide examples and a brief explanation of the broad financial ratios /
benchmarks that may provide insight into specific areas that need improvement within the farm’s
business. Why is context and monitoring important (liquidity is provided as an example
Category Types How calculated The How it helps manage the farm
measure financially
provided
Liquidity Current ratio Current assets / Times Helps show the capacity to
current liabilities current debt repay current debt and
is covered indicates how much capital the
business has for re-investing in
Working Current assets - Dollars the business
capital current liabilities
Solvency Debt-to-Asset Total Debt /

Ratio Total Assets
Debt-to- Total Debt /

Equity- Ratio Total Equity
Profitability
Financial
capacity

Category Types How calculated The How it helps manage the farm
measure financially
provided
Repayment
capacity
Question 17. KE 7 8 1st  2nd 

Consider the following statement “Understanding your costs and having meaningful
accounting categories will help you to monitor efficiency of the business making decisions,
rather than just taxation measures.” What broad accounting categories would you use as
an aid to measure ‘efficiency’
word count - 250 words
To assess a company's efficiency beyond taxation, relevant accounting categories that offer a
holistic assessment of its financial performance must be established. These wide accounting
categories serve in efficiency monitoring and decision making. Consider the following major
categories:
1. Cost of Goods Sold (COGS): All expenditures directly related to the production or
purchase of goods or services sold by the firm are included in this category. Monitoring COGS aids
in determining production efficiency and resource usage.
2. Operating Expenses: These are the expenditures of running the firm on a daily basis, such

as rent, utilities, wages, marketing, and office supplies. Tracking these costs aids in determining
the effectiveness of basic corporate activities.
3. Gross profit: Calculated as revenue minus COGS, illustrates how effectively the company
produces income from its primary operations. It is an important indication of operational
efficiency.
4. Net profit: Represents the total efficiency of the firm in producing profits after subtracting
all expenditures (including COGS and operational expenses) from revenue. It takes into account
both operational and financial issues.
5. Cash flow: Monitoring cash flow, including cash inflows and outflows, aids in determining
the effectiveness of managing liquidity and satisfying financial commitments. It guarantees that
the company can handle unexpected costs.
6. Asset Utilization: Examining asset turnover, such as inventory turnover and accounts
receivable turnover, may assist determine how efficiently a company uses its resources. High
asset turnover rates suggest good asset management.
7. Return on Investment (ROI): The efficiency of capital investments is measured by ROI. It
compares an investment's gains or losses to its starting cost, assisting in determining the
profitability of various investment selections.
8. Break-Even Analysis: This determines how efficiently the company covers its costs and
begins to create profit. It aids in the development of sales objectives and pricing strategies.
9. Labor Productivity: Measuring workforce management efficiency by comparing labor
expenses to output or income. It is critical in sectors where labor costs a lot of money.
Businesses may acquire a comprehensive view of their financial performance, make data-driven
choices, and improve their operations beyond taxation considerations by employing these
accounting categories as efficiency measurement tools. This method provides long-term market
sustainability and competitiveness.


Question 18. KE 7 8, 1st  2nd 
What is the value in knowing your variable costs in planning your budget and measuring
performance. Word count to not exceed 100 words
Because variable costs change with production levels or activity, understanding them is critical in
budget planning and performance monitoring. You can correctly anticipate expenditures, make
realistic budgets, and discover cost drivers if you understand them. This information enables more
efficient resource allocation, cost control, and informed decision-making. Furthermore, it allows
you to compute crucial indicators such as contribution margin, which measures profitability and
aids in performance monitoring, price optimization, and financial stability.



Using the table below to outline the different types of quantitative methods you can use
to help you develop your business plans and forecasts. Provide at least one example of
each.
Word count to not exceed 50 words for each type
Market research
Type Method Example
Cross tabulation Collect Data Data for a market research study on

smartphone preferences is being
collected via an online survey that
includes questions on brand loyalty,
preferred features, and usage
patterns.
Analyze Data We discovered that 75% of

respondents chose Apple iPhones
after analyzing poll findings, with
camera quality being the most
crucial aspect. Furthermore, 60% of
users check their phones during the
first 15 minutes of waking up,
emphasizing the need of early
engagement techniques.
Conjoint analysis Adaptive Conjoint Analysis (ACA) Respondents in an ACA research for a
car purchase are given with
adaptively produced choice sets
depending on their past choices. This
technique determines individual
preferences for automobile qualities
(e.g., price, fuel efficiency, design)
and their relative relevance in making
a purchasing choice in a timely
manner.
Choice-Based Conjoint (CBC) Respondents are provided with

Analysis option sets comprising multiple
cellphones with diverse qualities
(e.g., brand, price, camera quality) in
a CBC analysis for a smartphone
research. They select their favourite
smartphone from each group,
assisting in determining which factors
influence purchase decisions and
their relative relevance.

Multi-dimensional Non-Metric MDS Survey respondents rate different

scaling. smartphone brands in order of
preference in a non-metric MDS
analysis for consumer preference
data. Non-metric MDS converts these
rankings into a lower-dimensional
space, allowing for the depiction of
brand closeness while retaining just
the ordinal associations between
brands rather than their precise
distances.
Metric MDS (Classical MDS) Pairwise distances between cities

(e.g., driving distances) are translated
into a lower-dimensional
representation on a map in a
traditional MDS analysis for
geographical data, retaining the
original distances as nearly as
feasible. This allows cities to be
shown in 2D or 3D space while
keeping their relative proximities.
Forecasting Econometrics
Type Method Example
Multiple Hierarchical Regression Hierarchical regression can be used in

regression a study of student academic
attainment to evaluate how
demographic factors (such as age and
gender) impact test results. These
demographics are input first, followed
by variables like as study habits and
parental support. This method
evaluates the distinct contribution of
each group of factors to predicting
academic success.
Ridge Regression Ridge Regression is used in a home

price prediction model to solve
multicollinearity across variables such
as square footage, number of
bedrooms, and bathrooms. It reduces
the size of the coefficients, preventing
one variable from dominating the
model and enhancing its accuracy in
projecting house prices.
Time series Moving Averages A 50-day simple moving average

analysis (SMA) is used in stock market analysis

to analyze a stock's price patterns. It
smooths out price volatility by
computing the average closing price
over the previous 50 days, assisting
traders in identifying probable buy
and sell signals for companies.
Exponential Smoothing Exponential smoothing is used in

retail sales forecasting to anticipate
future sales based on weighted
averages of prior sales data. It
weights recent sales more heavily,
making it useful for identifying short-
term demand variations and
optimizing inventory management.
Indexing Compressed Indexing Compressed indexing strategies in an

online search engine save store space
while maintaining rapid retrieval of
web pages. Instead of storing
individual URLs, they may employ a
concise representation that refers to
common components like domains or
keywords, enhancing storage
economy without reducing search
performance.
Forward Indexing Forward indexing in a book search

engine maps each word in a text to its
location, allowing users to rapidly
identify specific phrases or sentences
inside volumes. This facilitates precise
and quick document retrieval for
consumers looking for specific
material in text.
Financial analysis
Type Method Example
Key ratios / Return on Assets (ROA) ROA assesses a company's

Heuristic profitability by comparing its net
income to its total assets. For
example, if a corporation produces
$500,000 in revenues and has $10
million in assets, its ROA is 5%.
Return on Equity (ROE) ROE measures a company's

profitability in relation to its
shareholders' equity. If a firm earns $1

Type Method Example
million in net income and has $5

million in shareholders' equity, its ROE
is 20%, indicating a 20% return on
investment.
Pro forma Income Statement Pro Forma For the following year, a corporation
analysis anticipates $2 million in revenue and
$1.5 million in costs. The pro forma
profits prediction with a 25% tax rate
is $375,000 ($2 million - $1.5 million -
$125,000 in taxes).
Pro Forma Earnings Projections A company projects $2 million in

revenue and $1.5 million in expenses
for the upcoming year. With a tax rate
of 25%, the pro forma earnings
projection is $375,000 ($2 million -
$1.5 million - $125,000 in taxes).
DCF
Question 20. KE 4,5, 1st  2nd 
When preparing marketing plans for the farm output why do you need to integrate
production capabilities and risk management into the planning.
R 1. Max word count = 150 words
Integrating farm output marketing strategies with production capabilities and risk management is
critical for various reasons:
For starters, production skills directly influence the amount, quality, and timeliness of farm goods.
By matching marketing plans with these competencies, a farm may guarantee it can satisfy
demand without overcommitting or falling short.
Second, risk management is critical since agriculture is intrinsically sensitive to a variety of
hazards, including poor weather, pests, and market volatility. Farms may prepare for eventualities,
decrease possible losses, and ensure constant product supply by including risk assessments and

mitigation techniques into marketing plans.
Furthermore, this integration improves cost-efficiency. It avoids either overproduction, which can
result in waste, or underproduction, which can result in missed revenue. Farms may improve
resource allocation and reduce production costs by taking production capacities into account.
Finally, farms may optimize profitability, maintain customer happiness, and assure long-term
sustainability in a dynamic and frequently unpredictable agricultural environment by integrating
production capacities and risk management with marketing tactics.

IS PAGE

RTO RETAIN

Using the table below outline the key legislation that may affect businesses in the
agriculture industry.
R2 – Approximately 250 word each
Provision Explanation
Farmers and the

national
environment law
Heritage
protection
Wetlands
protection
Illegal Logging
legislation

Provision Explanation
Model codes of
practices for the
welfare of
animals
Using the table below outline the intent of the following pieces of legislation
Approximate word count should not exceed 75 words per item
Provision Intent
1. Age Discrimination Act

2004
2. Disability
Discrimination Act
1992
3. Racial Discrimination
Act 1975
4. Sex Discrimination Act

1984
5. WHS Act 2011

Provision Intent
6. Competition and
Consumer Act 2010
(covers Australian
Consumer Law)
7. Copyright Act 1968
8. Fair Work Act 2009

9. Privacy Act 1988
10. The Weight

Management Industry
Code of Practice
11. Horticultural code of

conduct
12. The Environment

Protection and
Biodiversity
Conservation Act 1999
(EPBC Act)
13. Corporations Act

Consider the following: - The parents of adult children own and operate a farm that has
been in their family for generations. Of their four children, only one works on the farm,
which he has done for ten years on a minimal salary. The parents are now approaching
retirement. They want to continue living on the farm and having a say in any farm
decisions. Why is it a good idea to be aware of legislation regarding wills and inheritances
for succession planning for farming families
– Word count to not exceed 200 words


What are the different types of employees that can be engaged on a farm or nursery
according to the pastoral and horticultural awards and the national employment
standards. Ensure you describe the rights and entitlements for each
Approximately 150 words for each employment type

Outline how a workplace agreement is different to common law employment contracts.

Cite any references used in your research. Maximum 75 words

Describe the two most common tools used in capital investment analysis. Provide an example of
each. How is risk an integral part of the analysis particularly in relation to farm production.
– Approximately 250 words (including examples)



Feedback to student on their assessment
Candidate’s signature
Assessors signature
*** END OF SECTION 2 – WRITTEN QUESTIONS ***

Section 2 – Knowledge Assessment - Outcomes

Assessors Instructions: Refer to Marking guide, Print one of these forms for each student
Student’s Name: Date:
Q’s S / NYS Comments on response

1
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Assessor’s Name:
Signature: Date:
Do not sign this section until the assessment has been marked and you are satisfied with the result.
You also have the right to appeal the outcome. Please first discuss with your assessor.
If you are not satisfied with the outcome, refer to the RTO’s appeals process to lodge a formal appeal.

Student’s Signature :

Candidate can use this space to tell us how we can improve this assessment activity

*** END OF SECTION 2 – WRITTEN QUESTIONS ***

Attach this and the previous page to Section 3 – Assessment Outcome

Section 3 – Tasks – Instructions

This section contains the practical task / activities designed to help assess your skills in developing
and reviewing a business plan demonstrating the ability to scope the business plan and determine
key objectives and targets.
The evidence required to demonstrate competency in this unit must be relevant to workplace
operations and satisfy holistically all the requirements of the performance criteria and required skills
and knowledge and include achievement of the following:
1. set strategic goals, targets and directions for the enterprise
2. determine clear and measurable indicators of operational performance
3. identify and design risk management and mitigation strategies
4. develop appropriate operational plans
5. document the business plan
6. monitor the business plan to identify strengths, weaknesses and areas for improvement
The performance criteria for this unit will be used to format the marking guidelines.
The practical task or tasks can be based on the workplace or in a simulated environment that
accurately reflects the requirements and environment of a real workplace setting and relevant to
workplace operations
The assessor must also ensure the candidate’s submission confirms they can set short, medium- or
long-term goals and targets for the enterprises business plan. This includes the plan’s relationship
with marketing and production targets, as well the planned development, acquisition, improvement
or rationalisation of resources, property and assets, managing finances, budgets and risks, along with
implementing operational systems and staff management functions.
All submission must confirm how the enterprise will comply with organisational requirements, work
health and safety legislation and codes, sustainability practices and confirm they have consulted
with the management team.
Background
There are two (2) tasks set for this section that collectively require you to develop and review a
business plan for a farm / nursery business. The business plan must include
 background information on the farm / nursery chosen
 a vision for the future farm business (including a rationale)
 business goals and strategic direction
 business structure
 description of the property
 production plans (for each product / enterprise)
 marketing plans (for each product / enterprise
 financial plans for the business (with contributions shown for each product /enterprise)
 staffing plans
 legal requirements
 analysis of risk

 key operational requirements and performance indicators

 sustainability (including land / biodiversity management)
 documentation, communication and reporting
 continuous improvement
For TASK 1: You will “Determine the scope of the business plan” and show how you:
 Determined the scope of the plan and it associated systems (e.g. production, marketing etc)
 Consulted with specialists / key personnel (which can include the farm / nursery manager)
 Accessed information that would enable the candidate to make informed decisions during
the development of the business plan (must include references etc)
 Integrated the existing strategic goals, targets and direction.
 Verified compliance with legal requirements
 Engaged in consultation.
Note the consultation may take any of the following forms: -
 email/intranet communications, newsletters or other processes and devices which ensure
that all stakeholders and specialists can contribute to the operational plans
 mechanisms used to provide feedback in relation to outcomes of consultation
 meetings, interviews, brainstorming sessions
Stakeholders and specialists may include: -
 employees at the same level or more senior managers
 managers & people with specialist responsibilities
 industry consultants and agencies
 government departments
Important notice
The qualification AHC51416 Diploma of Agribusiness Management includes 6 units of competency
that reflect information used in preparing business plans. It is recommended that candidate use the
information presented in any of these 6 units of competency for Task 1 (Ref Section 3). However, the
completion of these units does not mean candidates are exempt from task 1 nor does it mean the
completion of task 1 exempts candidates from completing the tasks set for the other units.
These units are
 AHCAGB503 Plan and monitor production processes
 AHCAGB504 Plan production for the whole business
 AHCBUS501 Manage staff
 AHCBUS502 Market products and services
 AHCBUS503 Negotiate and monitor contracts
 AHCBUS504 Prepare estimates, quotes and tenders

For TASK 2, you must prepare and document your business plan using the information gathered in
Task 1. You must also show how you will “review and improve the business plan”
Specific note for Task 2
You are required to communicate the business plan to relevant parties. (PC 3.2). The evidence for
this must be in writing and supported by feedback from the stakeholders. The means of
communication can include meeting minutes, electronic presentations, emails etc. The evidence of
the communication must include reference to the targets, operational plans and budgets.
The candidate must be able to confirm in writing they have -
 Developed operational goals and targets that enhance the enterprises opportunities to meet
its strategic plan (including timing and commitment)
 Provided clear and measurable operational performance indicators
 Ensured these PI’s allow realistic analysis
 Identified and include resource requirements and the input supply chain options
 Identified and incorporated human resource strategies
 Identified and incorporated marketing strategies
 Identified and the enterprise risks and developed minimisation strategies
 Identified mechanisms to test the impact of the budget
 Developed mechanisms to test and resolve any operational issues that could impede the
success of the plan prior to its implementation
 Included financial and operational systems (that enhance performance management and
suit the enterprise requirements)
 Documented and communicated the business plan to relevant parties
 Monitored the performance against the business plan (to identify strengths, weaknesses and
areas for improvement)
 Made recommendations to improve the business plan and the associated systems
You must ensure that the business plan is consistent with normal workplace expectations which, for
example, could be used by the enterprise to seek funding from a bank or submit to industry
associations for business awards or presentation as an industry case study.
Typically, there will be a executive summary, background, goal and strategy statements, budgets
KPI’s, and risk and performance management
The appendix includes a variety of templates that may assist you with the above.
Presentations must be/have:
 typed and printed on white A4 paper and stapled in the left top corner and presented in a
clear plastic sleeve
 typed in size 10 font
 double line spacing
 separate title and contents page
 an appendix if applicable
 referenced information and resources
 candidate’s name

If the candidate is uncomfortable with any aspect of the assigned tasks, they have been instructed to
contact you, so you can make alternative arrangements. What those arrangements are will depend
on the candidates concerns. If they require more training or if there are personal issues they should
be referred to the Training Manager who can assist with accessing support services.
If there are confidentiality issues associated with the business plan information (including accessing
the enterprises records for their workplace, the candidate is permitted to simulate the information
and can be referred to various published case studies including for example the GRDC publication
Business Management and Farm Profitability located on its web site. See GRDC Web site
This assessment is intended to be equitable, fair and just and the candidate is told that if we are not
meeting this commitment then they are to approach the Training Manager and tell them what we
should be doing to achieve this goal.
The appendices provide a suite of templates that the candidate may elect to use in preparing their
submission. Similar templates are available from the web including the GRDC web site cited above.
Candidates are not required to use the templates provided.

Marking Guide - Task 1 - Determine the scope of the business plan

Required documents and equipment
● Marking Guide
● Candidates assessment kit 1
● access to workplace documents and information.
The candidate is to compile records that show how they have prepared for the writing of a business
plan. The intent of this task is to ensure the candidate, gathers and interprets a variety of
information from different and often complex sources as a prelude to developing a formal business
plan reflecting short, medium- and long-term growth opportunities.
R 1. Determined the scope of the business plan including: -
a. Measuring the current state of the business and its achievements

b. Completing a SWOT.
c. Evaluating trends and market forces / pressures
d. Assessing prospects and opportunities
e. Sourcing and interpreting reliable information
R 2. word count - approximately 1000 words.
Assessor must ensure the document is well presented and contextualised to suit a specific enterprise
/ operation. Constant use of unsupported or generic statements are not acceptable.
Has the candidate provided a document that includes most if not all of the following components in
an organised manner?
What was provided Yes No Comment on what was

provided to support this
Background information on the enterprise Yes No
An analysis of where it is and how it got there Yes No
A review of past performance (what it did well and Yes No

not so well)
A review of previous budgets and outcomes Yes No
SWOT report Yes No
Evaluation of current property / products Yes No
Evaluation of other assets Yes No
Evaluation of current capabilities Yes No
Assessors must refer to the marking guide for the benchmark and performance indicators. These
must be copied, then completed for the candidate and attached their records.

Assessor’s judgement must be guided by the following questions to help determine the assessment
outcome.
 Was there enough evidence presented?
 Was the evidence the candidate’s own work?
 Was the evidence realistic (representative of what would be expected in the workplace).
 Did the evidence reflect the requirements of the unit specifications?
i.e.
PC 1.1 Scope of the business plan and associated systems is determined in consultation with key and
specialist personnel.
PC 1.2 Accurate information is accessed to inform business plan development.
PC 1.3 Trends and seasonal variations are accounted for and incorporated into the business plan.
PC 1.4 Strategic goals, targets and directions of the enterprise are accounted for in the development
of the business plan.
PC 1.5 Legal obligations are understood and complied with in developing the business plan.
(Note the performance evidence will be addressed in TASK 2 & 3).
The outcome for this task is [successful or not yet successful (record number of attempts)
Record the rationale for your determination of the assessment outcome here.

Sign here: __________________________________
Date here: __________________________________

Marking guide - Task 2 - Develop the business plan

This task is specifically addressing the Element 2 (PC 2.1 – 2.7 inclusive) and Element 3 (PC 3.1 -PC
3.4) for the unit of competency specification.
The candidate is to develop, document and review their business plan and provide the evidence for
the following criteria for the performance evidence

PE 2. determine clear and measurable indicators of operational performance
PE 3. identify and design risk management and mitigation strategies
PE 4. develop appropriate operational plans
PE 5. document the business plan
PE 6. monitor the business plan to identify strengths, weaknesses and areas for improvement
PE 7. analyse information and results
The candidate should follow on for the information gathered and presented in Task 1
Required documents and equipment
● Marking Guide
● Candidates assessment kit 1
● access to workplace documents and information.
● Access to the templates (if required)
● Access to the GRDC publication (as a reference for the ‘presentation style’.
R 1. The business plan includes -
a. Clear and unambiguous statements of intent
b. Defines the ‘product portfolio’
c. The components of the plan include
i. Budgeting & Financial plans
ii. Resourcing
iii. Marketing & Production
iv. Operations & HR management
v. Risk & Performance measures / milestones
R 2. The review process included: -
a. Relevant KPI’s milestones and benchmarks
b. Interaction, feedback and input with relevant parties
c. Monitoring results, attending to variations and potential improvements
d. Recommended improvements.
R 3. word count - approximately 2500 -3000 words.
Assessor must ensure the document is well presented and contextualised to suit a specific enterprise
/ operation. Constant use of unsupported or generic statements is not acceptable.

Assessor to complete the following

Has the candidate provided a document that includes most if not all the following components in an
organised manner?
What was provided Yes No Comment on what was provided to

support this
Background information on the enterprise Yes No
An analysis of where it is and how it got there Yes No
Operational goals and targets (macro setting) Yes No

(where it wants to be
Defines capabilities and issues Yes No
Expands key operating targets, e.g. product Yes No

income, macro risks etc.
Expands each of the operational elements Yes No

(e.g. marketing, logistics, finance, budget,

staffing, WHS etc
(how it is going to get there.
Tests used to ‘assess’ the potential plans Yes No

effectiveness
Defines the key indicators for measuring Yes No

performance
Develops a contingency plan in the event of Yes No

unexpected or alternate situations emerge
Analysis of the potential results and outcome Yes No
Recommendations for improvement Yes No
Assessors must refer to the marking guide for the benchmark and performance indicators. These
must be copied, then completed for the candidate and attached their records.

Assessor’s judgement must be guided by the following questions to help determine the assessment
outcome.
 Was there enough evidence presented?
 Was the evidence the candidate’s own work?
 Was the evidence realistic (representative of what would be expected in the workplace).
 Did the evidence reflect the requirements of the unit specifications for element 2 & PC 3.1.
i.e.
PC 2.1. Develop operational goals and targets that enhance opportunities to meet the enterprise
strategic plan
PC2.2 Ensure indicators of operational performance are clear and measurable and allow for
realistic analysis of performance
PC2.3 Identify and include resource requirements and input supply chain options
PC2.4 Identify and incorporate human resource strategies
PC2.5 Identify and incorporate marketing strategies
PC2.6 Identify risks for the business and develop minimisation strategies
PC2.7 Identify mechanisms to test budgetary impact and operational potential before
implementation
PC 3.1 Include financial and operational systems that enhance performance management and suit
enterprise requirements
Note: - The performance evidence PE1 - PE 6 inclusive is integrated into Task 2. PE 7 is included in
Task 3. (The performance evidence is reproduced below for reference)
PE 2. determine clear and measurable indicators of operational performance
PE 3. identify and design risk management and mitigation strategies
PE 4. develop appropriate operational plans
PE 5. document the business plan
PE 6. monitor the business plan to identify strengths, weaknesses and areas for improvement
PE 7. analyse information and results.
The outcome for this task is [successful or not yet successful (record number of attempts)
Record the rationale for your determination of the assessment outcome here.

Sign here: _________________________________________ Date: ________________________

Section 3 – Tasks Assessment - Outcome
Assessors Instructions: Refer to Marking guide, Print one of these forms for each student
Student’s Name: Date:
Task Task title S / NYS Comments on outcome
1 Prepare business plan
2 Document and review business plan
Assessor’s Name:
Signature: Date:
Do not sign this section until the assessment has been marked and you are satisfied with the result.
You also have the right to appeal the outcome. Please first discuss with your assessor.
If you are not satisfied with the outcome, refer to the RTO’s appeals process to lodge a formal appeal.
Student’s Name:
Use the rest of this page to tell us how we can improve the assessment tasks
Assessor: -
Candidate: -
Attach this and the previous page to Section 3 – Assessment outcome

*** END OF SECTION 3 – TASK ***

Section 4 – Competency Summary Record Sheet

Student Comments – Suggest any improvement relating to this assessment.
Student Name:
Student’s signature: ______________________________________________________________
The candidate has the right to appeal any of the assessment outcomes.
Assessment S / NYS Date
Section 1 Theory exam (30 Questions)
Section 2 Tasks 1 & 2
Overall Result (circle one)

Competent / Not Yet Competent
Assessor’s Name:
Signature: Date:

Appendices - Templates.
Ownership details: -
Property report prepared by
Name of property
Address Phone:
Trading as:
Legal description of the property

Land owned by the business
Cert title L/H Section Area Hundred Registered proprietors Your value
no. (ha) No. $000’s
vol /folio F/H etc
Total $
Land leased by the business
Registered Proprietors Area (ha) Annual lease ($/ha)

Land sharecropped by the business
Area (ha) Basis of the sharecropping agreement
Management Team
Name Age Relationship to author Main role in the team
Proposed land use
Area (ha)
Own property Leased land Sharecropped
Unimproved pasture
Improved pasture
Crop types

Others
Fallow
Timber /scrub
Swamp
Total area
Summary of crop rotation / farming system
Pasture species (e.g. clovers or medics)

General fertiliser practices (crops and pastures)
Describe your cropping management and rotation practices.
Describe your crop production and potential yields
Crop type
Area sown
Tonnes sold
Tonnes
retained
Average yield
Rainfall
Potential yield
Describe your livestock practices. (List the types of livestock, numbers of each type. Breeding
practices and potential sales / income from each type (and when the income is likely to be earned.

The Marketing Plan

Step 1 Market requirements Your input- be realistic – (no pipedreams)

Research
My target market.
Who
When
Why
Where
How much
Competition
Positioning
Why will the customers

prefer to buy from you
Regulations that impact

on you
Product range
Production What products will you

capacity offer
How will you produce

them
What quality is required
How will you manage

quality
Are there any innovations

that can help you improve
productivity
What is your pricing policy
Step 2 Define the individual sales

targets for each product
Sales
line

Targets Record all assumptions
How does the production

plan line up with the sales
plan
Where is the market
How do you get it there

and what is involved in
moving it there
What do you do post

harvest with the surplus
stocks
What do you do with the

land
What storage systems do

you have in place or need
What is your pricing policy

now
Step 3 What is your credit policy

Marketing
Plan
What levels and types of
services will you provide
e.g. customer service,
guarantees etc
How will you promote

your products
(advertising, sales
representation, web social
media agents etc
What is your selling policy

(i.e. contracts, supply
terms, forward orders etc)
How will you get to

represent you at the
market and elsewhere

How will sales be recorded
How will the income get

collected
Does you cash flow resemble the following (usually it will have more cost centres detail than this
example).
APR MAY JUN JUL AUG SEPT Oct
Receipts
Wheat 10000 25000 35000
Barley 32000 40000 72000
Peas 1000 3000 3000 7000
Canola 5000 25000 30000
Sheep 6100 8000 6000 20100
cattle 10000 10000
Total income 7100 8000 6000 5000 3000 45000 100000 174100
Payments
Wheat 3000 2000 5000
Barley 4000 4000 8000
Pea 1000 1000 2000
Canola 600 1800 2400
Sheep 200 200 200 200 200 200 200 1400
Cattle 300 300 300 300 300 300 300 2100
Insurance 800 400 800 400 800 3200
Rates 3000 3000
Accountancy 1600 400 2000
Wages 4000 4000 4000 4000 4000 4000 4000 28000
Licenses 100 100 200
Telephones 250 250 250 250 250 250 250 1750

Rent 0
Interest 500 500 500 500 500 500 500 3500
Total costs 14750 9050 8250 6050 10150 6250 8050 62550
Difference -7650 -1050 -2250 -1050 -7150 38750 91950 111550
Running balance
(0 opening - 7650 -8700 -10950 -12000 -19150 19600 111550
balance
Complete this table to estimate the gains and losses for your plan
$’s gained (+) $’s lost (-_
Extra costs
Extra returns
Income lost
Costs saved
Totals
Net change
Prepare your gross margin tables. Following is an example
For each product e.g. wheat
Income
Per 100 ha Per ha
Sales Income for (Product a) eg wheat 35,000 350
Variable costs
Fertilizer 3000 300
Fuel 800 80
Seed 1200 120
Repairs 1000 100

Cartage 3000 300
Sprays 2500 250
Total variable costs 11,500 115
Enterprise GM 23,500 235
Suggested format for the balance sheet
ASSETS LIABILITIES
Current Assets Current Liabilities
(1)
(2)
(3)
(4) Contingent Liabilities
(5)
(6)
Fixed Assets
(1) Equity
(2)
(3)
Total assets Total Liabilities

Plant and Machinery register (itemise each item)
Item and description Age Condition Est. $ value Subtotal
Tractors
Cultivators
Harvesters
Farm vehicles
Workshop equipment
Livestock handling
Debt structure and other Liabilities (as at – insert date)
Creditor Amount Interest Interest instalment Principal instalment Years

owing rate remaining
$ value (due date) $ value (due date)
Other business assets (not previously listed)
Account 1 Account 2 Account 3 Account 4 total
Cash on hand:
Term Deposits:
Other cash assets:
Total cash

Off farm Income
Team member Description, e.g. contracts, rent etc Amount Hours spent
Earned off the farm

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Candidate’s

© BCH V 1 Jul 2021 Page 2 of 93

About the assessment

© BCH V 1 Jul 2021 Page 3 of 93

KE 10. capital investment analysis.

Using your assessment kit

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Section 5 provides the overall assessment summary

Before the Assessment

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- Complete the assessment within prescribed number of resubmits allowed

© BCH V 1 Jul 2021 Page 6 of 93

Retention of Completed Assessments

Recording the assessment outcomes

RTO TO RETAIN THIS PAGE

Possible outcomes could be: -

© BCH V 1 Jul 2021 Page 7 of 93

Advice on applying reasonable adjustments

© BCH V 1 Jul 2021 Page 8 of 93

Assessors must be conscious that candidates demonstrate the ability to: -

Why so many signatures?

© BCH V 1 Jul 2021 Page 9 of 93

Section 1 - Pre-assessment Checklist 1

Units of competency: AHCBUS516 Develop and review a business plan

 Discussed the purpose of the assessment.

 Discussed the assessment environment and the

 Explained the unit of competency including each

 Discussed the various methods of assessment,

 Discussed the resources provided by the RTO for the

 Discussed the performance level required for each

 Ensured the candidate understands they must be able

 Discussed the assessment conditions essential for the

 Ensured that the candidate acknowledged they have

© BCH V 1 Jul 2021 Page 10 of 93

 Discussed any special needs of the candidate and

 Summarised information and allowed candidate to

RTO TO RETAIN THIS PAGE

Signature: __________________________________________ Date: _________

© BCH V 1 Jul 2021 Page 11 of 93

© BCH V 1 Jul 2021 Page 12 of 93

Section 2 – Knowledge requirements

Your work MUST be your own work.

© BCH V 1 Jul 2021 Page 13 of 93

efficient farm management in a number of ways, including:

Question 2. KE 1 1st  2nd 

flow budget in farm management:

2. Planning and budgeting:

3. Investment Decision Assistance:

© BCH V 1 Jul 2021 Page 15 of 93

9. Growth and Sustainability:

10. Peace of Mind:

© BCH V 1 Jul 2021 Page 16 of 93

Question 3. KE 1, 7, 1st  2nd 

nursery. Here are four tiers of profit measurement:

3. Net income (profit):

4. ROI (Return on Investment):

© BCH V 1 Jul 2021 Page 17 of 93

© BCH V 1 Jul 2021 Page 18 of 93

Question 4. KE 2 1st  2nd 

Source of Internal / Where can be sourced How it relates to forecasting

Signature: __________________________________ Date: _