| Module Title: | Business Finance |
|---|
| Language of Instruction: | English |
|---|
| 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 Assessment | 30.00% |
| End of Module Formal Examination | 70.00% |
| 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 |
| 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 |
SETU Carlow Campus 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
|