Business, Accounting and Financial Studies (BAFS) is an elective subject in the Hong Kong Diploma of Secondary Education (DSE). It focuses on the fundamental principles and practical applications of business, accounting, and financial management. The course aims to help students understand the operations of modern businesses and financial management, while developing practical skills, critical thinking, and decision-making abilities to prepare them for further studies or careers in the commercial field.

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Core Features

• Balance of Theory and Practice: Emphasizes understanding business and accounting theories, while also developing the ability to analyze business data and apply concepts to real situations.
• Interdisciplinary Learning: Covers content from accounting, economics, and business management to enhance students’ problem-solving and analytical skills.
• Modern Business Perspectives: Students explore current business trends, challenges, and opportunities, including technological innovation, globalization, and sustainability.
• Assessment Method: Public Exam (70%) + School-Based Assessment (SBA, 30%)

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Curriculum Components

Core Modules

Accounting and Financial Management:

• Basic Accounting Principles:
  • Learn foundational concepts of accounting.
  • Understand how to prepare key financial statements (e.g. balance sheet, income statement).
  • Analyze financial data for evaluating a business’s financial position.
• Financial Analysis and Decision-Making:
  • Use financial statements to assess company performance.
  • Apply financial ratios to evaluate profitability, liquidity, and solvency.
  • Support business decisions with quantitative financial analysis.

Business Management:

• Operations Management:
  • Study how businesses manage resources efficiently, including production and supply chain processes.
  • Understand how marketing strategies support business operations.
• Human Resources Management:
  • Learn about recruitment, training, compensation systems, and employer-employee relationships.
• Marketing:
  • Explore market research, consumer behavior, branding, and the 4Ps (Product, Price, Place, Promotion).
  • Learn to develop marketing strategies based on customer needs.

Business Law and Ethics:

• Legal Framework:
  • Understand key legal concepts in business operations, such as contract law, labor law, and company law.
• Business Ethics:
  • Examine how companies can maintain ethical practices and respond responsibly to social expectations.
  • Emphasize Corporate Social Responsibility (CSR) and sustainability.

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Assessment Format

Public Exam (70%)

• Paper 1: Core Knowledge and Application (Approx. 35%)
  • Format: Multiple choice, short-answer questions.
  • Focus: Tests understanding of core accounting, business management, and finance concepts, and ability to apply them to solve practical business problems.
• Paper 2: Case Analysis and Extended Response (Approx. 35%)
  • Format: Case studies and long-answer questions.
  • Focus: Assess students’ ability to analyze real-world business scenarios using theoretical knowledge, financial data, and management tools.

School-Based Assessment (SBA, 30%)

• Project Report (Approx. 3,000 words)
  • Sample Topic: “An Analysis of a Company’s Financial Status and Strategic Development Plan”
  • Must Include:
    • Financial Statement Analysis: Interpret the company’s balance sheet and income statement, using financial ratios to assess performance.
    • Business Proposal: Provide strategic suggestions such as market expansion or restructuring based on analysis.
    • Empirical Data Support: Use public company data, industry reports, and market research to support recommendations.

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Effective Study Strategies

4.1 Strengthen Fundamental Knowledge

• Conceptual Mastery:
  • Gain a deep understanding of accounting principles like the accounting equation, double-entry system, and ratio analysis.
  • Familiarize with business management frameworks such as SWOT and 4Ps.
• Formula Memorization:
  • Learn key financial formulas (e.g. current ratio, quick ratio, debt-to-equity ratio) and practice applying them in context.

4.2 Develop Case Analysis Skills

• Real-World Case Studies:
  • Analyze actual business situations to build commercial awareness and decision-making skills.
  • Learn to view problems from various perspectives (financial, legal, ethical).
• Business Simulation:
  • Participate in simulations or entrepreneurship projects to apply knowledge in realistic settings and practice making business decisions.

4.3 Apply Interdisciplinary Knowledge

• Integrate Economics:
  • Use economic theories (like supply and demand) to understand market dynamics and enhance strategic business decisions.
• Use Mathematics for Financial Analysis:
  • Apply mathematical techniques for budgeting, forecasting, and financial modelling.

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Common Challenges and Solutions

6.1 Difficulty Understanding Financial Statements

• Solution: Practice analyzing financial reports and understand the meaning of each ratio. Interpret financial performance in terms of profitability, liquidity, and risk.

6.2 Superficial Case Analysis

• Solution: Train in multi-dimensional thinking. Include perspectives from management, accounting, ethics, and law to create well-rounded solutions.

6.3 Lack of Originality in SBA Projects

• Solution: Choose challenging or unique topics. Use diverse sources of data and build a personalized analysis framework.

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Further Studies and Career Pathways

8.1 University Programs

Relevant areas include:

• Accounting
• Finance
• Business Administration
• International Trade
• Economics

8.2 Career Options

• Accountant
• Financial Analyst
• Banking Professional
• Business Consultant
• Investment Banker
• Corporate Manager

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Exam Time Management

Recommended Time Allocation

• Paper 1: ~45 minutes per question (including 5 minutes planning time)
• Paper 2: 60 minutes for case analysis + 60 minutes for long-answer questions

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Actionable Recommendations

• Weekly Practice: Analyze financial statements regularly to improve accuracy in interpreting ratios.
• Join Business Simulations: Gain practical decision-making experience through competitions or classroom exercises.
• Deepen Legal and Tax Knowledge: Strengthen understanding of commercial law and taxation to support real-life case analysis.

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Conclusion

The DSE BAFS subject equips students with essential skills in business and financial management. Through a balance of theory and hands-on practice, students will gain a solid foundation to understand modern business operations and make insightful, responsible business decisions. Whether pursuing further education or entering the workforce, BAFS provides the tools for success.

Note: The above information is for reference only. Please consult the official website of the Hong Kong Education Bureau for detailed updates: www.edb.gov.hk/tc/index.html