They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting. Decisions relating to pricing and investment appraisal are also considered within the unit. F-anally, learners will learn and apply techniques used to evaluate financial performance. Specification of Assessment ASSIGNMENT REQUIREMENT: using the case study above and relevant theories and literature, write an essay comprised of the following broad topics/sub-sections: Requirement 1: 1. 1 Why business needs finance and what are the available sources of finance to a business 1.
Access and compare the implication of the different sources of finance Case 1 A medium-sized engineering firm with an annual turnover of E. 5 million has decided to install a new piece of machinery to help improve its productivity. The equipment needs to be housed in a new building to be constructed on the site. The forecast cost of the building is El 50,000 and the equipment IEEE,oho. Case 2 An individual has been made redundant after 20 years with a major organization and has received a lump sum redundancy payment of E 70,000.
The individual is planning to set up a bookmakers and has identified a eatable premises valued at El 80,000 near to a major town centre shopping precinct. Case 3 A large Pl is planning on moving a major part of its production facility to Cornwall. It has identified a site near a former chalk pit that is now not used. The estimated cost of the facility is E. 5 million. Case 4 A local Do It Yourself (DID) store has experienced problems with acquiring goods from its suppliers because it has been an erratic payer of its bills with them.
The reasons it has experienced these problems is that it has contracts to supply building materials to a number of local firms all Of whom only pay he bills for their orders every 3 months. Case 5 A rugby club is anticipating turning fully professional after the team secured promotion to the Zurich premiership. To take its place in the league, the league committee has insisted that it also improves facilities at the ground. It has been estimated that the cost of these two measures will be IEEE,OHO. 1. 3 Critically evaluate the appropriate the sources of finance for the above mention businesses.
MI : Critically evaluate each available sources of finance to that particular firm. Evaluation should include the pros and cons, and legal aspects Of each resource. (Merit MI) Requirement 2: 2. 1 Analyze the costs of different sources of finance – review 2. 2 Review the importance of financial planning 2. 3 Explain the importance of information for the process of decision making MM: Discuss the real life firm example of a firm and briefly explain how that firm uses information for making an investment decision (Merit MM). 2. Explain how various sources of finance appear in different financial statements Requirement 3: 3. 1 Explain how financial decisions are based on budgeting 3. 2 Explain by calculating the unit costs and make pricing decisions using elevate information 3. 3 Compare the following investment appraisal approaches by showing calculation output; payback period, rate of return, net present value and AIR of given firm information. Del and MM: Critically evaluate the outcomes fetishes appraisal approaches for an investment decision (Distinction Del) and communicate these findings to the relevant investment analyst (Merit MM). Ear 0 1 2 3 4 5 6 Income amounts -$1000 $200 $200 $200 $200 $200 $200 Requirement 4: 4. 1 Review the main financial statements 4. 2 Create and compare the appropriate formats of financial statements for different types of business. DO: use real life firm examples and relate their business type with appropriate financial statement (Distinction DO). 4. 3 Interpret financial statements of given firm below, using appropriate ratios for profitability, liquidity, efficiency and investment; and estimate the formulas for both internal and external comparison.
DO: Take example of two real life firms and by using their financial statements estimate and compare their profitability, liquidity, efficiency and investment level (Distinction DO). Achievement of a pass, merit and distinction grade A pass grade is achieved by meeting all the requirements defined in the assessment criteria for each individual unit. All the assessment criteria and merit grade descriptors need to be completed within a unit to achieve a merit grade. All the assessment criteria, merit and distinction grade descriptors must be completed within a unit to achieve a distinction grade.
Plagiarism and Collusion Any act of plagiarism and collusion will be seriously dealt with according to the regulations. In this context the definition and scope of plagiarism are presented below: “Using the work of others without acknowledging source of information or inspiration. Even if the words are changed or sentences are UT in different order, the result is still plagiarism” (Cornell 2003). Collusion describes as the submission of work produced in collaboration for an assignment based on the assessment of individual work.
When one person shares his/her work with others who submit part or all of it as their own work. Extension and Late Submission f you need an extension for a valid reason, you must request one using a coursework extension request form available from the college. Please note that the lecturers do not have the authority to extend the coursework deadlines and therefore do not ask them to award a coursework extension. The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick.