Financial Decision Making
MN7029SR
Module Summary and Description
This module aims to provide practical methods and approaches to enable business managers and entrepreneurs to understand and use financial information to make effective business decisions. The financial decision-making process demands the understanding of key financial management issues, performance indicators and methodologies to critically analyse accounting and financial information. Strong financial literacy is essential in business.
The module also aims to introduce and examine the preparation and use of accounting and information to inform. financial decisions. It provides the understanding of key performance indicators, cashflow management, full costing, working capital management techniques and the budgeting process to manage finances and support management decisions on investment projects and making capital investment decisions. The module concludes with a practice of developing business plan, capital investment decisions and aspects of financing businesses.
The module aims to enable students to be able to:
· ask insightful questions of their financial advisors, to challenge their analysis and to specify their financial information needs
· quickly assess accounting information to evaluate business performance
· create financial forecasts, plans and models, particularly in relation to business planning and investment appraisal.
Module Learning Outcomes
On successful completion of this module students should be able to:
LO1: Critically evaluate company financial performance and make recommendations for improvement;
LO2: Demonstrate an understanding and use of the appropriate analytical techniques to be applied to business case development and Investment appraisal; the raising of finance and the distribution of funds to investors;
LO3: Communicate financial information, analysis, issues and recommendations clearly and concisely.
Module Syllabus/Content
1. Introduction to accounting and finance LO1
2. Measuring and reporting financial position LO1, 2
3. Understanding the income statement LO1, 2
4. Cashflow management LO1, 2,
5. Analysing and interpreting financial statements LO1, 2, 3
6. Managing Working Capital LO1, 2
7. The relevance and behaviour of costs LO1, 2
8. Full costing LO1, 2
9. Budgeting LO1, 2
10. Creating a Business Plan LO2, 3
11. Making Capital Investment Decisions LO2, 3
12. Financing a business LO2, 3
Indicative weekly teaching programme
The indicative weekly programme shows the topic likely to be covered in each teaching week, please note that the precise order can change. Please see Weblearn for more detailed timetable.
Lesson |
Topic |
1. |
· Introduction to accounting and Financial Management |
2. |
· Reviewing Financial Statements |
3. |
· Financial Planning |
4. |
· Analysing and Interpreting Financial Statements |
5. |
· Cost behaviour, pricing and budgets |
6. |
· Working Capital Management |
7. |
· Making Capital Investment Decisions |
8. |
· Financing a Business |
9. |
· Financing a Business & Cost of Capital |
10. |
· Group Presentations |
11. |
· Group Presentations |
12. |
· Preparing a Business Plan |
To pass the module you must achieve an overall minimum mark of 50%. If you pass the module on re-assessment, the component you resit will be capped at a pass mark level of 50%
Assessment
All assessments are designed to support your learning and help you develop a deeper understanding of the topics covered in your module.
· Formative assessments provide an opportunity to learn and do not contribute to your grade.
· Summative assessment contributes to your overall mark and grades.
Module Assessments (Summative)
Assessment Method |
Description of Item |
% weighting |
Week Due |
Group Coursework |
Simulation company investor briefing |
30 |
6 May 2024 |
Coursework |
Investment Appraisal |
70 |
25 June 2024 |
Module Assessment Cycle
Assessment 1: Students need to prepare business model of a company , part way through the business simulation, the student teams will prepare a briefing for their shareholders on the latest round of the business simulation explaining their financial performance and positions and plans for the future. They will have 20 minutes to present, with an emphasis on clear and concise communication of the financial issues and proposed actions, group cohesion, and professional behaviour. This assessment covers LO1 and LO3 in the context of the simulation.
Assessment 2: Working individually, students will prepare an investment appraisal of a business project or major sale. They will submit a presentation and a supporting spreadsheet analysis. This address LO2 and LO3.
The module assessment cycle shows all assessment related activities of the module.
How is your work marked?
To pass the module you must achieve an overall minimum mark of 50%. If you pass the module on re-assessment, the component you resit will be capped at a pass mark level of 50%.
The marking process makes sure that our marking of your work is fair and transparent. There is a first marker responsibility for giving your formal feedback and making an initial assessment of the standard of your work by giving it a provisional mark. After this there are two further layers of checking and assurance. It is worth noting that this process means that you are unable to appeal your final marks and/or grades on the grounds of academic judgement.
You will be marked, graded and assessed according to the following PG criteria:
Class |
Mark % |
Characteristics
|
Distinction |
70 + |
Excellent in every way. Knowledgeable, incisively analytical, conceptually sound, widely-researched and well-structured. Displays a critical and sophisticated understanding of ideas, debates, methodologies and principles. Comprehensively cited and referenced. A degree of flair apparent in the work.
|
Merit |
60 - 69 |
Very good, well-researched, solid. Addresses question. Sensibly structured and well presented. Evidence of analysis, reasoning and evaluation. May have some errors in emphasis but not in fact, and may be limited in terms of supporting material and breadth of coverage. Appropriately cited and referenced.
|
Pass |
50 - 59 |
Average to good. Reasonable bibliography. Signs of effort, though more descriptive than analytical. May have some errors but balanced by sound work. May not fully address the question with deficiencies in knowledge and understanding or directness and organisation.
|
Fail |
40 - 49 |
Fail. Descriptive narrative. May be partly irrelevant. Indiscriminate. Lacks structure. Could be more direct and explicit. Little independent research evident. Short bibliography. May be confused or irrelevant. Heavily based on lecture notes, but a minimum of understanding to justify a pass. Answers by inference.
|
Fail |
0 - 39 |
Poor. Does not answer question directly. Little evidence of independent reading or lecture notes. Major errors or too brief. Unstructured.
|
Very poor indeed. Fails in every respect to answer the question effectively. No evidence of learning, reading or knowledge. Largely irrelevant. Very brief.
|
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