Monarch High School Business & Marketing Programs B37 Principals of Finance Curriculum Essentials Document

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1 Monarch High School Business & Marketing Programs B37 Principals of Finance Curriculum Essentials Document Boulder Valley School District Department of CTEC March 2012

2 Introduction B37 Principals of Finance The content of the Principles of Finance course integrates accounting with finance so that a user approach (i.e., financial analysis) is utilized. The Accounting Education Change Commission endorsed this approach in 1992 in its statement: The primary objective [of introductory accounting education]... is for students to learn about accounting as an information development and communication function that supports economic decision making The knowledge and skills provided by the first course in accounting should facilitate subsequent learning even if the student takes no additional academic work in accounting or directly related discipline. (ACCC, 1992) 1 More recently, other accounting educators have recognized the need for accountants to increase their finance skills due to the changing role of accountants in the business world. Accountants are increasingly being called on to analyze financial information and to act as financial consultants (Albrecht and Sack [2000] 2 ). Volpe and Chen (2001) 3 indicated that in today s environment, accountants are actually using finance skills more so than what have traditionally been considered accounting skills. They encouraged all business students to acquire knowledge of financial management concepts as early as possible in their undergraduate careers. The purpose of the High School of Business is to offer college-prep students the opportunity to excel in a near college-level business administration program while still in high school. It offers challenging, rigorous courses through a program that provides both breadth and depth of business knowledge and bridges the gap between academic learning and how it is used to solve complex business problems. The High School of Business experience consists of a series of six core business administration courses, two optional courses, and two sets of enrichment activities designed to provide a business context for a school s existing math and English courses (Appendix A). The second optional course is Wealth Management. Adapted from: MBA Research and Curriculum Center (2012). Business Strategies. 1 Accounting Education Change Commission (1992). Position statement No. 2: The first course in accounting, New York, NY American Accounting Association. 2 Albrecht, S.W. and Sack, R.J. Sack (2001). The perilous future of accounting education, The CPA Journal, 71(3) pp Vople, R.P. and Chen, H. (2001). Finance: A missing dimension in accounting education, The Ohio CPA journal, April-June 2001, pp /2/2012 BVSD Curriculum Essentials 2

3 Principles of Finance Overview Course Description The business administration curricular structure consists of four tiers of specificity: Business Administration Core, Cluster Core, Pathways, and Specialties. The content of the broad-based Business Administration Core is fundamental to an understanding of business and can be viewed as co-requisites and as prerequisites for the Principles of Finance course. Assessments Formative and summative tests evaluate student progress. Remedial activities are provided for students who do not meet the mastery level objectives identified for each performance indicator. An end-of-course online exam is administered by MBAResearch Center. Topics at a Glance 0. Orientation 1. Tracking and Documenting Financial Data 2. Investment Basics 3. Investment Research 4. Investment Strategy 5. Investment Industry 6. Portfolio Evaluations 7. Managing Financial Resources 8. Protecting What You Have 9. Giving Back 10. Project Evaluation 11. Final Exam 12. Project Assessment Wrap Up 13. FBLA - are integral to this course. Active participation in this organization contributes to competence in business skills, leadership, and civic responsibility. Principles of Finance furthers student understanding of two specific business activities accounting and finance that were introduced in an earlier High School of Business course, Principles of Business. Through team activities and a semester-long corporate investment project, students make connections between accounting and finance. Students acquire an understanding of financial statements, calculate financial ratios, and make corporate financial management decisions based on their analysis of that financial data. In addition, students apply the concepts of operating and overhead costs, internal accounting controls, and budgets to their class business. Lastly, cost/benefit analysis is introduced as an element of financial planning and decision-making. Monarch High School was accepted to become a High School of Business national site in In May 2008, the BVSD Board of Education approved Monarch s High School of Business and the curriculum strand that includes this course. Subsequently, the Colorado Career and Technical Education Program Director for Business and Marketing authorized this course for State Programs 3414 (Business) and 3997 (Marketing), which are established at Monarch High School. MBA Research and Curriculum Canter is recognized by the State Directors of Career and Technical Education as a lead partner in the development of curriculum for three recognized Career Clusters. In that role, the organization has been instrumental in the overall design of content models and in the training of teachers to implement specific models nationwide. In addition, MBA Research partners with DECA and FBLA, which the Career and Technical Student Organizations integrated into this course.

4 Prepared Graduates The preschool through twelfth-grade concepts and skills that all students who complete the Colorado education system must master to ensure their success in a postsecondary and workforce setting. 1. CTE Essential Skills: Academic Foundations ESSK.01: Achieve additional academic knowledge and skills required to pursue the full range of career and postsecondary education opportunities within a career cluster. Prepared Graduate Competencies in the CTE Essential Skills standard: Complete required training, education, and certification to prepare for employment in a particular career field Demonstrate language arts, mathematics, and scientific knowledge and skills required to pursue the full range of post-secondary and career opportunities 2. CTE Essential Skills: Communications Standards ESSK.02: Use oral and written communication skills in creating, expressing, and interrupting information and ideas, including technical terminology and information Prepared Graduate Competencies in the CTE Essential Skills standard: Select and employ appropriate reading and communication strategies to learn and use technical concepts and vocabulary in practice Demonstrate use of concepts, strategies, and systems for obtaining and conveying ideas and information to enhance communication in the workplace 3. CTE Essential Skills: Problem Solving and Critical Thinking ESSK.03: Solve problems using critical thinking skills (analyze, synthesize, and evaluate) independently and in teams using creativity and innovation. 7/2/2012 BVSD Curriculum Essentials 4

5 Prepared Graduate Competencies in the CTE Essential Skills standard: Employ critical thinking skills independently and in teams to solve problems and make decisions Employ critical thinking and interpersonal skills to resolve conflicts with staff and/or customers Conduct technical research to gather information necessary for decision-making 4. CTE Essential Skills: Safety, Health, and Environmental ESSK.06: Understand the importance of health, safety, and environmental management systems in organizations and their importance to organizational performance and regulatory compliance Prepared Graduate Competencies in the CTE Essential Skills standard: Implement personal and jobsite safety rules and regulations to maintain safe and helpful working conditions and environment Complete work tasks in accordance with employee rights and responsibilities and employers obligations to maintain workplace safety and health 5. CTE Essential Skills: Leadership and Teamwork ESSK.07: Use leadership and teamwork skills in collaborating with others to accomplish organizational goals and objectives Prepared Graduate Competencies in the CTE Essential Skills standard: Employ leadership skills to accomplish organizational skills and objectives 6. CTE Essential Skills: Employability and Career Development ESSK.09: Know and understand the importance of employability skills; explore, plan, and effectively manage careers; know and understand the importance of entrepreneurship skills 7/2/2012 BVSD Curriculum Essentials 5

6 Prepared Graduate Competencies in the CTE Essential Skills standard: Indentify and demonstrate positive work behaviors and personal qualities needed to be employable Develop skills related to seeking and applying for employment to find and obtain a desired job 7/2/2012 BVSD Curriculum Essentials 6

7 COLORADO COMMUNITY COLLEGE SYSTEM CAREER & TECHNICAL EDUCATION TECHNICAL STANDARDS REVISION & ACADEMIC ALIGNMENT PROCESS Colorado s 21st Century Career & Technical Education Programs have evolved beyond the historic perception of vocational education. They are Colorado s best kept secret for: Relevant & rigorous learning Raising achievement among all students Strengthening Colorado s workforce & economy Colorado Career & Technical Education serves more than 116,000 Colorado secondary students annually through 1,200 programs in 160 school districts, 270 High Schools, 8 Technical Centers, 16 Community Colleges & 3 Technical Colleges. One of every three Colorado high school students gains valuable experiences by their enrollment in these programs. ALIGNMENT REQUIRED BY SB Preschool through elementary and secondary education - aligned standards - adoption - revisions. 2(b): In developing the preschool through elementary and secondary education standards, the State Board shall also take into account any Career & Technical Education standards adopted by the State Board for Community Colleges and Occupational Education, created in Section , C.R.S., and, to the extent practicable, shall align the appropriate portions of the preschool through elementary and secondary education standards with the Career and Technical standards. STANDARDS REVIEW AND ALIGNMENT PROCESS Beginning in the fall of 2008, the Colorado Community College System conducted an intensive standards review and alignment process that involved: NATIONAL BENCHMARK REVIEW Colorado Career & Technical Education recently adopted the Career Cluster and Pathway Model endorsed by the United State Department of Education, Division of Adult and Technical Education. This model provided access to a national set of business and industry validated knowledge and skill statements for 16 of the 17 cluster areas. California and Ohio provided the comparative standards for the Energy cluster Based on this review Colorado CTE has moved from program-specific to Cluster & Pathway based standards and outcomes In addition, we arrived at fewer, higher, clearer and more transferrable standards, expectations and outcomes. COLORADO CONTENT TEAMS REVIEW The review, benchmarking and adjusting of the Colorado Cluster and Pathway standards, expectations and outcomes was through the dedicated work of Content Teams comprised of secondary and postsecondary faculty from across the state. Participation by instructors from each level ensured competency alignment between secondary and postsecondary programs. These individuals also proposed the draft academic alignments for math, science reading, writing and communication, social studies (including Personal Financial Literacy) and post secondary and workforce readiness (PWR.) 7/2/2012 BVSD Curriculum Essentials 7

8 ACADEMIC ALIGNMENT REVIEW In order to validate the alignment of the academic standards to the Career & Technical Education standards, subject matter experts in math, science, reading, writing and communication, and social studies were partnered with career & technical educators to determine if and when a true alignment existed. CURRENT STATUS One set of aligned Essential skills to drive Postsecondary and Workforce Readiness inclusion in all Career & Technical Education programs. 52 pathways with validated academic alignments 12 pathways with revised standards ready for alignment (currently there are no approved programs in these pathways) 21 pathways where no secondary programming currently exists. Standards and alignments will be developed as programs emerge. Available for review at: 7/2/2012 BVSD Curriculum Essentials 8

9 Colorado Career & Technical Education Standards Academic Alignment Reference System The Career & Technical Education standards have been organized by Career Cluster (17) and Pathway (81). In addition, a set of Essential Skills was developed to ensure the Postsecondary and Workforce Readiness within any cluster or pathway. These workforce readiness skills are applicable to all career clusters and should form the basis of each CTE program. Organization Essential Skills There exists a common set of knowledge and skills that are applicable to all students regardless of which cluster or pathway they choose. This set of standards, is meant for inclusion in each program to enhance the development of postsecondary and workforce readiness skills. Career Cluster A Career Cluster is a grouping of occupations and broad industries based on commonalities. The 17 Career Clusters organize academic and occupational knowledge and skills into a coherent course sequence and identify pathways from secondary schools to two- and four-year colleges, graduate schools, and the workplace. Students learn in school about what they can do in the future. This connection to future goals motivates students to work harder and enroll in more rigorous courses. Career Pathway Pathways are sub-groupings of occupations/career specialties used as an organizing tool for curriculum design and instruction. Occupations/career specialties are grouped into Pathways based on the fact that they require a set of common knowledge and skills for career success. Prepared Completer Competency This level targets the big ideas in each pathway. These are the competencies that all students who complete a CTE pathway must master to ensure their success in a postsecondary and workforce setting. Prepared Completer Competencies will not usually be course specific but grow with the student s progression through the sequence of courses. Concept/Skill The articulation of the concepts and skills that indicates a student is making progress toward being a prepared completer. They answer the question: What do students need to know and be able to do? Evidence Outcome The indication that a student is meeting an expectation at the mastery level. How do we know that a student can do it? Pathway Abbreviation (4 Letter) 7/2/2012 BVSD Curriculum Essentials 9

10 Academic Alignments Academic alignments, where appropriate in Math, Reading, Writing and Communication, Science and Social Studies (including Personal Financial Literacy) were defined by CTE and academic subject matter experts using the following criteria: It was a point where technical and academic content naturally collided; The student must demonstrate adequate proficiency with the academic standard to perform the technical skill; and It could be assessed for both academic and technical understanding. Colorado s CTE programs have had academic alignments dating back to the early 1990 s. While these alignments resulted in an increase in academic focus in CTE programs, the reality is that a true transformation in intentional teaching toward the academic standard was limited. With these alignments comes a new expectation: If a CTE instructor is teaching a CTE concept that has an identified alignment, they must also be intentional about their instruction of the academic standard. CCCS will be providing professional development and instructional resources to assist with the successful implementation of this new expectation. In addition, this expanded expectation will require increased collaboration between CTE and academic instructors to transform teaching and learning throughout each school. For each set of Cluster and Pathway standards, the academic alignments have been included and are separated by academic area. CCCS chose to align at the Evidence Outcome level. The aligned academic evidence outcome follows the CTE evidence outcome to which it has been aligned. For a sample, see Illustration A. 7/2/2012 BVSD Curriculum Essentials 10

11 The academic standard number used in the alignments matches the Colorado Department of Education standards numbering convention. 7/2/2012 BVSD Curriculum Essentials 11

12 7/2/2012 BVSD Curriculum Essentials 12

16 Principals of Finance MANC.02 Academic Foundations: Examine and employ business and economic principles and concepts in making informed business decisions to continue business operations. MANC Identify fundamental economic concepts necessary for employment in business. MANC a MANC b MANC c MANC d MANC e MANC f Distinguish between economic goods and services. Explain the concept of economic resources. Describe the concepts of economics and economic activities. Determine economic utilities created by business activities. Explain the principles of supply and demand. Describe the functions of prices in markets. MANC Describe the nature of business and its contribution to society. MANC a MANC b MANC c MANC d MANC e MANC f Explain the role of business in society. Describe types of business activities. Explain the organizational design of businesses. Discuss the global environment in which businesses operate. Describe factors that affect the business environment. Explain how organizations adapt to today's markets. MANC Recognize how economic systems influence environments in which businesses function. MANC a MANC b MANC c MANC d Explain the types of economic systems. Explain the concept of private enterprise. Identify factors affecting a business's profit. Determine factors affecting business risk. 7/2/2012 BVSD Curriculum Essentials 16

17 MANC e MANC f Explain the concept of competition. Describe market structures. MANC Use knowledge regarding the impact government has on businesses to make informed economic decisions. MANC a MANC b MANC c MANC d MANC e MANC f MANC g Determine the relationship between government and business. Describe the nature of taxes. Discuss the nature of monetary policy. Discuss the supply and demand for money. Explain the role of the Federal Reserve System. Explain the concept of fiscal policies. Describe the effects of fiscal and monetary policies. MANC Analyze cost/profit relationships to guide business decision-making. MANC a MANC b MANC c MANC d Explain the concept of productivity. Analyze impact of specialization/division of labor on productivity. Explain the concept of organized labor and business. Explain the impact of the law of diminishing returns. Describe the concept of economies of scale. MANC Use economic indicators to detect economic trends and conditions. MANC a MANC b MANC c MANC d MANC e MANC f MANC g MANC h Describe the concept of price stability as an economic measure. Discuss the measure of consumer spending as an economic indicator. Discuss the impact of a nation's unemployment rates. Explain the concept of Gross Domestic Product. Describe the economic impact of inflation on business. Explain unemployment and inflation tradeoffs. Explain the economic impact of interest-rate fluctuations. Determine the impact of business cycles on business activities. MANC Determine global trade s impact on business decision-making. MANC a MANC b MANC c Explain the nature of global trade. Describe the determinants of exchange rates and their effects on the domestic economy. Discuss the impact of cultural and social environments on global trade. 7/2/2012 BVSD Curriculum Essentials 17

18 MANC d Explain labor issues associated with global trade. MANC.16 Technical Skills: Plan, implement, monitor, and evaluate business projects. MANC Utilize project management skills to start, run, and complete projects. MANC a MANC b MANC c MANC d Explain the nature of a project life cycle. Explain standard project-management processes. Coordinate schedules and activities. Track project progress and results. MAOM.03 Financial Analysis: Establish, maintain, control, and plan the use of financial resources. MAOM Utilize cost accounting methods to guide business decision-making. MAOM a MAOM b MAOM c MAOM d MAOM e MAOM f MAOM g MAOM h Discuss the relationship between operations management and accounting. Describe the nature of cost accounting decision making. Explain the nature of job costing. Describe the nature of activity-based costing. Discuss the implications of quality costs. Perform job costing. Calculate quality costs (e.g. prevention, appraisal, and failure). Conduct cost/benefit analysis on planned acquisitions. MAOM Manage risk to protect a business's well-being. MAOM a MAOM b MAOM c MAOM d Discuss the nature of credit risk management. Discuss reasons to integrate risk management into business operations. Discuss the nature of enterprise risk management (ERM). Integrate risk management into business operations. MAOM Implement suitable internal accounting controls to ensure the proper recording of financial transactions. MAOM a MAOM b MAOM c Explain the purpose of internal accounting controls. Determine the components of internal accounting control procedures for a business. Maintain internal accounting controls. FIAC.01 Develop the knowledge, financial acumen, and competencies needed to make informed decisions in business and personal life. FIAC The Accounting Profession: Understand the role that accountants play in business 7/2/2012 BVSD Curriculum Essentials 18

19 and society. FIAC a FIAC b FIAC c FIAC d Describe the current and historical regulatory environment of the accounting profession. Describe how current events impact the accounting profession. Explain the need for a code of ethics in accounting and the ethical responsibilities required of accountants. Explain how accounting information is used to allocate resources in the business and personal decision-making process. FIAC The Accounting Profession: Describe career opportunities in the accounting profession. FIAC a FIAC b FIAC c FIAC d FIAC e Identify student and professional accounting organizations and associations. Identify professional designations and certifications in the accounting profession. Describe the educational requirements for various careers, professional designations, and certifications in the accounting profession. Describe the skills and competencies needed to be successful in the accounting profession. Describe the areas of specialization within the accounting profession and careers that require knowledge of accounting. FIAC The Accounting Profession: Demonstrate the skills and competencies required to be successful in the accounting profession. FIAC a FIAC b FIAC c FIAC d Perform research and communicate in writing the results of the research. Apply analytical and critical decision-making skills. Identify and use information technology productively. Demonstrate the ability to work within a team concept. FIAC Financial Reports: Develop an understanding and working knowledge of an annual report and financial statements. FIAC a FIAC b FIAC c FIAC d FIAC e Identify the sections in an annual report and the purpose for each section. Describe the information provided in each financial statement and how the statements articulate with each other. Identify the classifications in an income statement and explain their relationship to each other (revenue, expense, gains, losses). Explain how and why the conceptual frameworks of accounting and generally accepted accounting principles provide guidance and structure for preparing financial statements. Identify and explain the business activities reported in a statement of cash flows (operating, inventing, financing). 7/2/2012 BVSD Curriculum Essentials 19

20 FIAC f Define comprehensive income and describe its relationship to operating results. FIAC Financial Analysis: Assess the financial condition and operating results of a company and analyze and interpret financial statements and information to make informed business decisions. FIAC a FIAC b FIAC c FIAC d FIAC e Recognize the primary areas of analysis (trend analysis, profitability, liquidity, capital structure) and explain the information that can be obtained from each type of analysis. Perform a horizontal and vertical analysis of the income statement and balance sheet. Compare and contrast debt and equity financing and explain the impact on the financial statements. Use the statement of cash flow to analyze business activities (operating, investing, financing). Analyze cash flow from operating activities to assess profitability and liquidity. FIAC Accounting Principles: Identify and describe generally accepted accounting principles (GAAP), explain how the application of GAAP impacts the recording of financial transactions, and the preparation of financial statements. FIAC a FIAC b FIAC c FIAC d FIAC e FIAC f FIAC g Describe and explain the conceptual framework of accounting and generally accepted accounting principles and assumptions. Assets: Explain the accounting methods used to determine the value of accounts receivable to be reported on the balance sheet and describe the effect on the income statement. Liabilities: Determine the initial valuation of long-term debt instruments and their impact on the financial statements. Equity: Explain how operating results, capital contributions, and distribution of earnings affect equity for the various types of ownership structures. Revenue: Describe the criteria used to determine revenue recognition and record revenue related transactions. Expense: Describe the criteria used to determine expense recognition and record expense-related transactions. Gains and Losses: Distinguish between revenue and gains between expenses and losses and record transactions resulting in gains and losses. FIAC Accounting Process: Complete the steps in the accounting cycle in order to prepare the financial statements. FIAC a FIAC b Identify and explain the advantages and disadvantages of different types of accounting systems. Apply the double-entry system of accounting to record business transactions and prepare a trial balance. FIAC c Prepare the financial statements for the different types of business operations and ownership structures. 7/2/2012 BVSD Curriculum Essentials 20

21 FIAC d Describe the relationship between the closing process, the financial statements, and the post-closing trial balance. FIAC Interpretation and Use of Data: Use planning and control principles to evaluate the performance of an organization and apply differential analysis and present-value concepts to make decisions. FIAC a FIAC b FIAC c FIAC d Explain and compare the behavior of fixed, variable, and mixed costs. Apply cost-volume-profit and contribution margin analyses in planning operations. Apply responsibility accounting concepts to evaluate cost, profit, and investment centers. Apply differential analysis to make the following types of decisions: make or buy a product; lease or buy an asset; discontinue a department, plant or product; offer discount prices on special orders; replace or repair equipment. FIAC Compliance, Personal Finance: Develop a working knowledge of individual income tax procedures and requirements to comply with tax laws and regulations. FIAC a FIAC b FIAC c Describe the history and purpose of tax law in the United States and the process by which tax laws are created. Complete the applicable individual income tax forms. Identify, discuss, and apply strategies for minimizing taxable income. FIAC Compliance, Financial Reporting: Distinguish between generally accepted accounting principles and income tax law. FIAC a FIAC b FIAC c Explain why income for financial reporting and taxable income are calculated differently. Identify permanent and temporary difference in net income and taxable income. Calculate permanent and temporary differences in net income and taxable income. FIAC Compliance, Payroll: Apply appropriate accounting practices to payroll. FIAC a FIAC b FIAC c Calculate net pay. Calculate employer s payroll taxes. Prepare payroll reports. FICF.01 Business Law: Describe and abide by laws and regulations in order to manage business operations and transactions in corporate finance. FICF Describe regulations governing corporate finance. FICF a FICF b FICF c Explain laws and regulations pertaining to business finance. Explain the nature of business taxation. Describe regulations and laws governing ownership change transactions. 7/2/2012 BVSD Curriculum Essentials 21

22 FICF Explain the role of the U.S. Securities and Exchange Commission in the regulation of corporate finance. FICF a Discuss the impact of the U.S. Securities and Exchange Commission Division of Corporation Finance on business finance. FICF.02 Financial Analysis: Maintain, monitor, control, and plan the use of financial resources to ensure business stability. FICF Describe fundamental financial concepts involved in the management of corporate finances. FICF a FICF b Discuss the nature of depreciation. Describe the nature of cash flows. FICF Discuss the need for efficient capital markets in corporate finance. FICF a Explain the role of efficient capital markets in business finance. FICF Explore capital budgeting. FICF a Discuss the capital budgeting process. FICF Perform calculations necessary for capital budgeting decision-making. FICF a FICF b FICF c Calculate the initial investment associated with a proposed capital expenditure. Determine operating cash inflows. Determine terminal cash flow. FICF Conduct cash flow analysis to select an acceptable capital expenditure. FICF a FICF b FICF c FICF d FICF e FICF f FICF g Discuss the nature of relevant cash flow analysis. Explain the nature of the payback period. Calculate the payback period. Discuss the use of net present value (NPV). Explain the relationship between the internal rate of return and net present value. Calculate the net present value (NPV). Calculate the internal rate of return (IRR). FICF Explain the role of financial planning in corporate finance. FICF a FICF b FICF c Discuss the financial planning process. Discuss the nature of short-term (operating) financial plans. Describe the nature of long-term (strategic) financial plans. FICF Conduct cash planning. 7/2/2012 BVSD Curriculum Essentials 22

23 FICF a FICF b FICF c FICF d Explain the use of cash budgets. Cope with uncertainty in cash budgets. Prepare a cash budget. Evaluate a cash budget. FICF Conduct profit planning. FICF a FICF b FICF c FICF d Discuss the use of pro forma statements in profit planning. Develop a pro forma income statement. Prepare a pro forma balance sheet. Evaluate pro forma statements. FICF Describe short-term financial management. FICF a Describe the nature of short-term financial management. FICF Explain the role of valuation in making appropriate financial decisions for a company. FICF a FICF b FICF c Discuss the role of project valuation in capital allocation decisions. Discuss methods for valuing flexibility. Discuss the valuation implications in business finance. FICF Analyze a company's financial statements. FICF a FICF b FICF c FICF d Discuss the analysis of a company's financial situation using its financial statements. Discuss external forces affecting a company's value. Explain how value is created for a company. Analyze a company's financial situation. FICF Calculate business ratios to evaluate company performance. FICF a FICF b FICF c FICF d FICF e FICF f FICF g FICF h Discuss the use of financial ratios in business finance. Determine business liquidity. Calculate corporate activity ratios. Calculate corporate debt ratios. Calculate business profitability. Calculate market ratios. Discuss the use of benchmarks when analyzing ratios. Describe bankruptcy prediction models. 7/2/2012 BVSD Curriculum Essentials 23

24 FICF Utilize capital market securities to secure financing for a company. FICF a FICF b FICF c FICF d FICF e FICF f FICF g FICF h FICF i Discuss ways to determine the best financing option for a company. Determine financing options for a company. Discuss the nature of corporate bonds. Discuss the cost of long-term debt. Determine the cost of long-term debt. Discuss the issuance of stock from a corporation. Calculate the cost of preferred stock. Discuss the cost of common stock. Calculate the cost of common stock. FICF Explain the role of dividends in corporate finance. FICF a FICF b FICF c FICF d FICF e FICF f FICF g Explain forms of dividends. Explain the nature of dividend reinvestment plans (DRIPs). Describe the effect of a firm's dividend decisions on its external financing requirements. Discuss the residual theory of dividends. Describe the impact of dividends on the value of the firm. Explain the nature of a dividend policy. Discuss factors to consider when deciding on the form of dividend distribution. FICF Analyze ownership change transactions. FICF a FICF b FICF c FICF d FICF e FICF f Compare mergers and acquisitions. Explain the nature of hostile takeovers. Discuss issues that arise from mergers and acquisitions. Explain methods for evaluating potential merger/acquisition targets. Evaluate potential merger/acquisition targets. Discuss the nature of restructurings. FICF.03 Professional Development: Utilize career planning concepts, tools, and strategies to explore, obtain, and develop in a corporate finance career. FICF Discuss the fundamentals of corporate finance. FICF a Describe the nature of business finance. 7/2/2012 BVSD Curriculum Essentials 24

25 FICF Discuss the role of ethics in corporate finance. FICF a FICF b Discuss business ethics for business finance. Discuss corporate responsibility issues in business finance. FICF Describe the relationship of corporate governance and corporate finance. FICF a FICF b Discuss corporate governance issues in business finance. Describe the components of a well-governed company (e.g. board of directors, reporting, transparency, internal and external audit functions). FICF Describe careers in corporate finance. FICF a FICF b FICF c FICF d FICF e FICF f Explain the role and responsibilities of financial managers. Explain the role and responsibilities of a financial analyst. Describe the role and responsibilities of a controller. Describe the role and responsibilities of a risk manager. Discuss the role and responsibilities of a treasurer. Discuss the role and responsibilities of a chief financial officer (CFO). FICF Explore corporate finance licensing and certification programs. FICF a Explain professional designations in the field of business finance (e.g. CF, CFA, CCM, CTP, CFM, etc.). FICF.04 Risk Management: Employ risk management strategies and techniques in corporate finance to minimize business loss. FICF Manage risk protecting a business s wellbeing. FICF a FICF b FICF c FICF d FICF e FICF f FICF g FICF h FICF i FICF j FICF k Discuss the relationship between risk management and business finance. Discuss the nature of risk measurement. Measure risk. Explain the nature of interest rate risk. Manage interest rate risk. Explain approaches to financial risk management. Discuss the use of derivatives in financial risk management. Evaluate the risks of derivatives. Discuss reasons to integrate risk management into business operations. Identify business risks. Integrate risk management into business operations. 7/2/2012 BVSD Curriculum Essentials 25

26 FICF Explain enterprise risk management. FICF a Discuss the nature of enterprise risk management (ERM). FIIN.05 Risk Analysis: Employ underwriting techniques and strategies to gather, access, and evaluate the risk posed by potential insurance clients. FIIN Analyze the risk posed by potential clients in order to make insurance approval/denial decisions. FIIN a FIIN b FIIN c Explain the importance of actuarial science in the insurance industry. Discuss the nature of credit-based insurance scores. Underwrite an insurance policy. FINC.01 Academic Foundations: Solve mathematical problems to obtain information for decision making in finance. FINC Employ numbers and operations in finance. FINC a FINC b FINC c FINC d Recognize relationships among numbers. Employ mathematical operations. Perform computations successfully. Predict reasonable estimations. FINC Apply algebraic skills to make business decisions. FINC a FINC b FINC c FINC d FINC e FINC f Recognize patterns and mathematical relations. Use algebraic symbols to represent, solve, and analyze mathematical problems. Create mathematical models from real-life situations. Represent changes in quantities mathematically. Determine rate of change mathematically. Interpret graphical and numerical data. FINC Employ measurement skills to make business decisions. FINC a FINC b Recognize measurable attributes of objects Take measurements correctly. FINC Perform data analysis to make business decisions. FINC a FINC b FINC c Formulate questions effectively. Collect relevant data. Organize useful data. 7/2/2012 BVSD Curriculum Essentials 26

27 FINC d FINC e FINC f FINC g Answer questions appropriately. Employ appropriate statistical methods in data analysis. Develop and evaluate inferences and predictions. Apply basic concepts of probability. FINC Use problem-solving techniques to evaluate the accuracy of mathematical responses in finance. FINC a FINC b FINC c Identify problem-solving techniques. Apply a variety of problem-solving strategies. Adjust problem-solving strategies, when needed. FINC.02 Academic Foundations: Discuss the economic principles and concepts fundamental to financial operations. FINC Discuss economic concepts impacting finance. FINC a FINC b FINC c FINC d FINC e FINC f Distinguish between economic goods and services. Explain the concept of economic resources. Describe the concepts of economics and economic activities. Determine economic utilities created by business activities. Explain the principles of supply and demand. Describe the functions of prices in markets. FINC Explain the nature of business. FINC a FINC b FINC c FINC d FINC e FINC f Explain the role of business in society. Describe types of business activities. Explain the organizational design of businesses. Discuss the global environment in which businesses operate. Describe factors that affect the business environment. Explain how organizations adapt to today's markets. FINC Describe economic systems. FINC a FINC b FINC c FINC d Explain the types of economic systems. Explain the concept of private enterprise. Identify factors affecting a business's profit. Determine factors affecting business risk. 7/2/2012 BVSD Curriculum Essentials 27

28 FINC e FINC f Explain the concept of competition. Describe market structures. FINC Explain the impact of government on business activities. FINC a FINC b FINC c FINC d FINC e FINC f FINC g Determine the relationship between government and business. Describe the nature of taxes. Discuss the nature of monetary policy. Discuss the supply and demand for money. Explain the role of the Federal Reserve System. Explain the concept of fiscal policies. Describe the effects of fiscal and monetary policies. FINC Analyze cost/profit relationships in finance. FINC a FINC b FINC c FINC d FINC e Explain the concept of productivity. Analyze impact of specialization/division of labor on productivity. Explain the concept of organized labor and business. Explain the impact of the law of diminishing returns. Describe the concept of economies of scale. FINC Describe economic indicators impacting financial decision-making. FINC a FINC b FINC c FINC d FINC e FINC f FINC g FINC h Describe the concept of price stability as an economic measure. Discuss the measure of consumer spending as an economic indicator. Discuss the impact of a nation's unemployment rates. Explain the concept of Gross Domestic Product. Describe the economic impact of inflation on business. Explain unemployment and inflation tradeoffs. Explain the economic impact of interest-rate fluctuations. Determine the impact of business cycles on business activities. FINC Determine global trade s impact on business decision-making. FINC a FINC b FINC c Explain the nature of global trade. Describe the determinants of exchange rates and their effects on the domestic economy. Discuss the impact of cultural and social environments on global trade. 7/2/2012 BVSD Curriculum Essentials 28

29 FINC d Explain labor issues associated with global trade. FINC.03 Academic Foundations: Integrate sociological knowledge of group behavior to understand customer decision-making in finance. FINC Employ sociological knowledge to facilitate finance activities. FINC a FINC b FINC c FINC d FINC e FINC f Analyze and interpret complex societal issues, events, and problems. Analyze researched information and statistics. Reach reasoned conclusions. Examine social beliefs, influences, and behavior. Analyze group dynamics. Assess human behavior. FINC.04 Integrate psychological knowledge to understand finance customer motivation. FINC Apply psychological knowledge to facilitate finance activities. FINC a FINC b FINC c FINC d FINC e FINC f FINC g FINC h FINC i FINC j FINC k FINC l FINC m FINC n FINC o FINC p Recognize factors influencing perception. Identify sources of attitude formation. Assess methods used to evaluate attitudes. Identify basic social and cultural strata. Determine behavioral effects of social and cultural strata. Analyze effects of others on individual behavior. Predict likelihood of conformity and obedience. Determine significance of aggression. Recognize factors affecting personality. Evaluate the nature of change over a lifetime. Identify sources of stress. Detail reactions to stress. Employ strategies for dealing with stress. Investigate factors affecting motivation. Analyze cues to basic drives/motives. Analyze the development of motives. FINC.05 Systems: Discuss the concepts, processes, and skills used to identify new ideas, opportunities, and methods and to create or start a new finance project or venture. 7/2/2012 BVSD Curriculum Essentials 29

30 FINC Employ entrepreneurial discovery strategies in finance. FINC a FINC b FINC c FINC d FINC e FINC f FINC g FINC h Explain the need for entrepreneurial discovery. Discuss entrepreneurial discovery processes. Assess global trends and opportunities. Determine opportunities for venture creation. Assess opportunities for venture creation. Describe idea-generation methods. Generate venture ideas. Determine feasibility of venture ideas. FINC Develop concept for new finance venture. FINC a FINC b FINC c FINC d FINC e FINC f FINC g FINC h Describe entrepreneurial planning considerations. Explain tools used by entrepreneurs for venture planning. Assess start-up requirements. Assess risks associated with venture. Describe external resources useful to entrepreneurs during concept development. Assess the need to use external resources for concept development. Describe strategies to protect intellectual property. Use components of business plan to define venture idea. FINC Determine needed resources for a new finance venture. FINC a FINC b FINC c FINC d FINC e FINC f FINC g Describe processes used to acquire adequate financial resources for venture creation/start-up. Select sources to finance venture creation/start-up. Explain factors to consider in determining a venture's human-resource needs. Explain considerations in making the decision to hire staff. Describe considerations in selecting capital resources. Identify capital resources needed for the venture. Assess the costs/benefits associated with resources. FINC Actualize new finance venture. FINC a FINC b Use external resources to supplement entrepreneur's expertise. Explain the complexity of business operations. 7/2/2012 BVSD Curriculum Essentials 30

31 FINC c FINC d FINC e FINC f FINC g FINC h FINC i FINC j FINC k FINC l Evaluate risk-taking opportunities. Explain the need for business systems and procedures. Describe the use of operating procedures. Explain methods/processes for organizing workflow. Develop and/or provide product/service. Use creative problem-solving in business activities/decisions. Explain the impact of resource productivity on venture success. Create processes for ongoing opportunity recognition. Develop plan to invest resources into improving current products or creating new ones. Adapt to changes in business environment. FINC Select harvesting strategies for finance venture. FINC a FINC b FINC c FINC d Explain the need for continuation planning. Describe methods of venture harvesting. Evaluate options for continued venture involvement. Develop exit strategies. FINC.06 Systems: Analyze accounting systems to examine their contribution to the fiscal stability of businesses. FINC Describe the nature and scope of accounting. FINC a FINC b FINC c FINC d FINC e Explain the concept of accounting. Explain the need for accounting standards. Discuss the role of ethics in accounting. Explain the use of technology in accounting. Explain legal considerations for accounting. FINC Implement accounting procedures for tracking money flow and determining financial status. FINC a FINC b FINC c FINC d Describe the nature of cash flow statements. Prepare cash flow statements. Explain the nature of balance sheets. Describe the nature of income statements. FINC.07 Systems: Describe tools, strategies, and systems used to maintain, monitor, control, 7/2/2012 BVSD Curriculum Essentials 31

32 and plan the use of financial resources. FINC Describe the nature and scope of finance. FINC a FINC b FINC c FINC d Explain the role of finance in business. Discuss the role of ethics in finance. Explain legal considerations for finance. Discuss trends in the current financial environment (i.e., consolidation, regulatory burden, role of technology, and globalization). FINC.08 Systems: Plan, staff, lead, and organize human resources in finance to enhance productivity and job satisfaction. FINC Describe the role and function of human resources management. FINC a FINC b FINC c Discuss the nature of human resources management. Explain the role of ethics in human resources management. Describe the use of technology in human resources management. FINC.09 Systems: Describe the tools, techniques, and systems that businesses use to create, communicate, and deliver value to finance customers and to manage customer relationships in ways that benefit the organization and its stakeholders. FINC Discuss marketing s role and function. FINC a FINC b Explain marketing and its importance in a global economy. Describe marketing functions and related activities. FINC Describe customer/client/business behavior in finance. FINC a Explain customer/client/business buying behavior. FINC b FINC c Discuss actions employees can take to achieve the company's desired results. Demonstrate connections between company actions and results (e.g., influencing consumer buying behavior, gaining market share, etc.). FINC Explain a finance organization's unique selling proposition. FINC a FINC b Identify company's unique selling proposition. Identify internal and external service standards. FISL.05 Determine client needs and wants and respond through planned, personalized communication to influence purchase decisions and enhance future securities and investments opportunities. FISL Explain securities and investments products and their benefits. FISL a FISL b Explain the nature of stocks. Describe the rights of stockholders. 7/2/2012 BVSD Curriculum Essentials 32