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Achievement Standard 91870 – Agribusiness 3.9

Analyse the effect of financing options of a strategic capital expenditure decision on a business.

This achievement standard relates to achievement objective 8-3 Critically examine strategic decision making by agribusinesses when making strategic capital expenditure decisions to meet their strategic needs or keeping their businesses viable.

Students will gain knowledge, skills, and experience to analyse the effect of financing options of a strategic capital expenditure decision and the consequence(s) on a business.

Context for learning

An example of a learning context could be any business that requires finance to fund strategic capital expenditure, for example, a logging firm needing a new logging truck. Students are required to investigate financing options available that the firm could use to purchase the truck and then choose and justify which financing option is the best taking into consideration, financial and non-financial information, the consequences and impacts for the firm of this option.

Agribusiness knowledge, concepts, and content

Students are expected to demonstrate understanding of the following agribusiness knowledge, concepts, and content:

  • capital expenditure
  • strategic decision versus routine decision
  • financing options
  • consequences to the business of financing options
  • financial and non-financial information

Last updated December 15, 2017