Finance for Business

Module description

Look at any business page in today’s newspaper, and you will be confronted with an array of finance issues. Tesco have issued a profits warning.  Facebook is thinking about floating on the stock exchange. But what does all this actually mean?  This module introduces you to the key concepts in finance, so that real world issues such as: Retailers issuing profit warnings, companies ‘listing’ so that their shares can be traded, and dividends being cut can be explored and discussed.  Whilst the module assumes no previous mathematical experience, it does assume a fundamental understanding of accounts – therefore Year One Accounting is a pre-requisite. 

Full module specification

Module title:Finance for Business
Module code:BEP2050
Module level:2
Academic year:2016/7
Module lecturers:
Module credit:15
ECTS value:
Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 1:

11

Module aims

The aim of this module is to introduce you to the basic concepts within finance: key financial mathematics, working capital management, financial statement analysis, capital structure decisions, dividend policy decisions, personal financial management, risk management, and information systems.   The aim is to expose you to real business issues and decisions that you may face as a Business Manager, as well as introducing you to other areas that you may consider for further investigation in the future.

ILO: Module-specific skills

  • 1. describe the role of the finance function
  • 2. describe the main features of the capital markets and the finance functions interaction with them
  • 3. describe how business plans are developed and generate forecast financial statements
  • 4. undertake the analysis and interpretation of financial data
  • 5. describe the advantages and disadvantages the main sources of internal and external finance understand the factors involved in the management of working capital and calculate the effect of different strategies
  • 6. identify the main components of the risk management process and explain how it operates
  • 7. identify and discuss major issues involved in personal financial management
  • 8. describe the key issues surrounding information management and how the organisation can use information systems for strategic advantage

ILO: Discipline-specific skills

  • 9. apply financial management concepts and practices to analyse simple business problems and recommend courses of action
  • 10. identify and present appropriate information to assist management with determining the mix of funds from different sources and taking financial management decisions
  • 11. demonstrate an appreciation of the usefulness or otherwise of a range of financial management techniques
  • 12. demonstrate an awareness of the role and purpose of information systems within the organisation

ILO: Personal and key skills

  • 13. demonstrate written communication skills
  • 14. demonstrate problem solving skills
  • 15. demonstrate an ability to undertake independent study and manage their time

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
251250

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning & Teaching Activities19Lectures
Scheduled Learning & Teaching Activities1Revision session
Scheduled Learning & Teaching Activities5Tutorials
Independent Study125Research, revision, preparation and writing

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Weekly problems and questions to aid discussion in tutorials2-3 hours for preparation; 1 hour in-class session1-15Tutor run-through of questions and suggested solutions
Tutorial discussion1 hour in-class session1-15In class feedback
Online testsVaries1-15Suggested solutions
Written piece500 words – to be completed at the beginning of term1-15Signposting to support if deemed necessary

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
40600

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Coursework paper401500 words1-15Mark awarded and feedback comments
Written Examination602 hours1-15Mark awarded and suggested solution
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Coursework paper (40%)Coursework (1500 words)1-15July/August
Written Examination (60%)Written Examination (2 hours)1-15July/August

Re-assessment notes

A student will be referred in all components if the student fails the module with a mark of below 40% overall.

A student if deferred in a single component will be reassessed in that component only.

Syllabus plan

Introduction:

  • The role of the finance function
  • Financial Mathematics
  • The financial world: markets, institutions and products

Financial planning and analysis:

  • Analysis and interpretation of financial statements – profitability and efficiency ratios
  • Analysis and interpretation of financial statements – liquidity, solvency and investment ratios
  • Working capital – working capital elements, policies and the cash cycle
  • Working capital – the management of inventories, receivables and payables
  • Financial planning – financial statement forecasts, reconciliation of cash flow to profit projections

 Financing decisions:

  • Financing a business – internal and external sources
  • Financing a business – raising long-term finance
  • Cost of capital and gearing
  • Developing a dividend policy

 Financial controls:

  • Introduction to risk management

 Personal financial management:

  • Personal financial management – sources of finance
  • Personal financial management – investments and pensions

 Information Management

  • Data, Information and knowledge
  • Role of information systems in business, the economy and society
  • Key types of information system
  • Development of information system strategy
  • Aligning information and business strategies

 Revision

Indicative learning resources - Basic reading

Atrill, P. (2009), Financial Management for Decision Makers, 5th ed., Harlow: Pearson Education Ltd (Chapters 1-4; and 6-10)

Arnold, G. (2007), Essentials of Corporate Financial Management, Harlow: Pearson Education Ltd (Chapter 1)

Watson, D. & Head, A. Corporate Finance, Principles & Practice, 5th ed. Harlow: Pearson Education Ltd. (Chapter 12)

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

http://vle.exeter.ac.uk/course/view.php?id=6217

Indicative learning resources - Other resources

Directed reading, tutorial questions and further practice questions or as recommended during classes

Origin date

01/10/2014

Last revision date

02/12/2014