Criteria For:

HSB: Principles of Finance - Level 5

HSB: Principles of Finance - Level 5

Students earning the HSB Principles of Finance badge have demonstrated knowledge and skills in areas that include accounting, finance, understanding financial statements, corporate investments, calculating financial ratios, corporate financial management, operating and overhead costs, internal accounting controls, cost/benefit analysis and financial planning and decision making.


Instructional Area: Business Law (BL)

Standard: Understands business's responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions

Discuss laws and regulations governing the securities and investments industry (BL:105) (SP)

Instructional Area: Financial Analysis (FI)

Standard: Understands tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources

Describe the need for financial information (FI:579, LAP-FI-009) (CS)
Explain the concept of accounting (FI:085, LAP-FI-005/LAP-FI-085) (CS)--Review
Demonstrate the effects of transactions on the accounting equation (FI:378) (CS)
Explain the purpose of internal accounting controls (FI:343, LAP-FI-343) (SP)
Explain the role of finance in business (FI:354, LAP-FI-007) (CS)—Review
Describe the nature of budgets (FI:106, LAP-FI-003/LAP-FI-106) (SP)
Describe the nature of cost/benefit analysis (FI:357, LAP-FI-011) (MN)
Calculate the time value of money (FI:238) (SP)
Interpret cash-flow statements (FI:541) (SP)
Interpret balance sheets (SP)
Interpret income statements (SP)
Describe sources of securities information (FI:274, LAP-QS-036) (CS)—Review if WM course used
Interpret securities tables (FI:275, LAP-QS-037) (SP)—Review if WM course used
Explain factors to consider when selecting investments (FI:279, LAP-QS-041) (SP)
Explain information that can be obtained from financial statements (FI:276, LAP-QS-038) (SP)
Describe information that can be obtained from annual reports (FI:277, LAP-QS-039) (SP)
Explain fundamental analysis used in making investment decisions (FI:280, LAP-QS-042) (SP)
Explain strategies for selecting investments (FI:283, LAP-QS-045) (SP)
Explain types of investments (FI:077, LAP-FI-077) (CS)
Interpret financial ratios significant to investors (FI:281, LAP-QS-043) (SP)
Assess securities’ fundamentals (FI:282, LAP-QS-044) (SP)
Choose investments based on security’s fundamental analysis (FI:284, LAP-QS-046) (SP)

Instructional Area: Operations (OP)

Standard: Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning

Explain the nature of overhead/operating costs (OP:024, LAP-OP-009) (SP)

Instructional Area: Professional Development (PD)

Standard: Understands concepts, tools, and strategies used to explore, obtain, and develop in a business career

Describe how securities are traded (PD:236, LAP-QS-047) (SP)
Explain causes of stock price fluctuations (PD:238, LAP-QS-040) (SP)
Describe the nature of mutual funds (PD:304, LAP-QS-035) (SP)—Review if WM course used
Explain the nature of stocks (PD:309, LAP-QS-034) (SP)—Review if WM course used
Explain the nature of bonds (PD:313, LAP-QS-033) (SP)—Review if WM course used