Module Title:Business Finance
Language of Instruction:English
Credits: 10
NFQ Level:7
Module Delivered In 8 programme(s)
Teaching & Learning Strategies: Lectures - communication of knowledge and ideas from the lecturer to the student. Problem Solving Exercises - student will work as part of a team and will work together to resolve various business scenarios. Class Discussion/Debate - Students will be encouraged to actively participate in the class sessions which will develop their analytical and communication skills. E-Learning - It is envisaged that the module will be supported with on-line learning materials. Self-Direct Independent Learning - the emphasis on independent learning will develop a strong and autonomous work and learning practices.
Module Aim: The aim of this module is to develop financial skills and knowledge expected of a business manager, in relation to operational, pricing, investment and financing decisions (enabled by the completion of financial accounting 1 and management accounting).
Learning Outcomes
On successful completion of this module the learner should be able to:
LO1 Define and explain the key terms, concepts and practices for assessing business performance, optimising the use of working capital, financing operations, pricing products/services, assessing customer profitability, evaluating short-term decisions and allocating resources to capital expenditure projects.
LO2 Identify and apply appropriate business finance techniques when presented with defined and undefined practical business problems.
LO3 Analyse and interpret results and outcomes within a business finance framework and make recommendations.
LO4 Examine the tools and techniques that are used to aid decision-making in the area of business finance.
Pre-requisite learning
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.

No recommendations listed
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module.
No incompatible modules listed
Co-requisite Modules
No Co-requisite modules listed
Requirements
This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed.
No requirements listed
 

Module Content & Assessment

Indicative Content
Introduction to Business Finance
Role of the finance function; Corporate objectives; Agency theory; Forms of business organisation.
Financial Statement Analysis and Interpretation
Layout and interpretation of key financial statements; Key steps in financial ratio analysis; Key financial ratios and classification (profitability, working capital, liquidity and capital structure); Calculation of key ratios for assessing financial performance and position of a business; Limitations of ratio analysis.
Working Capital Management
Nature, elements, and importance of working capital and liquidity management; Objectives of working capital management: Profitability versus liquidity; Working capital cycle; Working capital investment; Management of inventories, accounts receivable, accounts payable and cash; Over-trading; Working capital problems for small businesses.
Financing a Business
Nature and role of financial markets and institutions; The Stock Exchange; Methods of share issues; Sources of long, medium and short-term equity and debt financing; Internal sources of finance; Private equity and other sources of finance suitable for small and medium sized businesses; Factors to consider when choosing a suitable source of finance; Pecking order theory; Working capital funding requirements and strategies.
Cost-Volume-Profit Analysis and Decision-Making
Cost behaviour: fixed, variable, semi-fixed, semi-variable; Separation of fixed and variable costs; Break-even analysis; Cost structure analysis (operating leverage); Limitations of break-even analysis; Contribution analysis for discontinuation of an activity and one-off contracts; Qualitative factors in decision-making.
Customer and Pricing Decisions
Pricing products & services using cost-based, demand-based, target-based and other pricing strategies; Customer profitability analysis (CPA); Output decisions in limiting factor situations.
Investment Appraisal and Decision-Making
Difference between cash & profit; Traditional methods of investment appraisal; Discounted cash flow methods of investment appraisal; Comparison of NPV & IRR; Strengths & limitations of appraisal methods; Identification of a projects relevant costs and benefits; Importance of qualitative factors.
Assessment Breakdown%
Continuous Assessment30.00%
End of Module Formal Examination70.00%
Continuous Assessment
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Examination Class Assessment / Project / Presentation/ Case Study 1,2,3,4 10.00 Week 6
Examination Class Assessment / Project / Presentation/ Case Study 1,2,3,4 10.00 Week 12
Examination Class Assessment / Project / Presentation/ Case Study 1,2,3,4 10.00 Week 24
No Project
No Practical
End of Module Formal Examination
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Formal Exam End of Semester Final Examination 1,2,3,4 70.00 End-of-Semester

ITCarlow reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 2.00
Tutorial Every Week 1.00
Independent Learning Every Week 4.00
Total Hours 7.00
Workload: Part Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 1.50
Independent Learning Time Every Week 5.50
Total Hours 7.00
 

Module Delivered In

Programme Code Programme Semester Delivery
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CW_HHIBU_B Bachelor of Business ( Honours) in International Business 3 Mandatory
CW_BBLAW_B Bachelor of Business (Honours) in Business with Law 3 Mandatory
CW_BBHRM_B Bachelor of Business (Honours) in Human Resource Management 3 Mandatory
CW_HHMKT_B Bachelor of Business (Honours) in Marketing 3 Mandatory
CW_BBBBM_B Bachelor of Business(Honours) in Management 3 Mandatory
CW_BRLMB_B Bachelor of Business(Honours) in Management 3 Mandatory
CW_BBSCM_B Bachelor of Business(Honours) in Supply Chain Management 3 Mandatory