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[Updated as at August 2013]

Supplementary Notes for BAFS Curriculum
(To be effective for the 2014 and 2015 HKDSE examinations)
** Updated items are highlighted in YELLOW.
Appendices:
1. Formulae of Ratios
2. Accounting Terminology

Compulsory Part
1(a) Business Environment
Topics
Hong Kong
Business
Environment

Learning Elements Specified in C&A Guide
Explanatory Notes
(i) Describe the role and importance of business in the Hong
Kong economy.
(ii) Analyse the recent development and characteristics of the Hong Kong economy.

Supplementary Teaching Notes

Characteristics of Hong Kong’s economy include: lack of primary industries, dependence on external trade, concentration on tertiary industry, free trade, simple taxation (iii) Evaluate how economic, technological, cultural, physical, social, political and legal factors affect business decisions. (iv) Describe Hong Kong’s economic and business relationships with the Mainland.

-

Relationships include economic cooperation, e.g. CEPA, trading partners, sources of capital

(v) Be aware of the economic policies and general business practices in the Mainland.

-

Only basic, broad-brush knowledge about CEPA is required
Details about policies and practices are not required

Page 1 of 26

[Updated as at August 2013]

Topics

Learning Elements Specified in C&A Guide
Explanatory Notes
(vi) Describe the impact of globalization on business.

Supplementary Teaching Notes
Impacts: e.g. keen competition, international flow of capital and information, global sourcing and outsourcing, technology transfer

(vii) Explain the roles of major international trade organisations. Forms of
Business
Ownership

-

-

Students are only required to explain the major functions of
WTO and APEC

(i) Distinguish between the major forms of business ownership: sole proprietorship, partnership, limited company, joint-venture, franchise and public enterprise.

-

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