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Parent Programme
Bachelor of Business Level 7 NFQ
NFQ Level & Reference
Level 7 / Ref: 3.1
Duration
24 Weeks X 2.5 Hours per week
MODULE TITLE
Business Finance
STAGE
Award
Module Credit Units
10 (Semester 1 & 2)

Business Finance Module

Introduction to Business Finance

This Finance module is designed to help learners understand the nature and scope of financial management and to develop financial skills and knowledge expected of a business manager, in relation to operational, pricing, investment and financial decisions. Learners will have the opportunity to apply contemporary thinking on strategic financial management including key success factors in the management of the finance function.

Indicative Syllabus Content

Introduction to Business Finance

  • Common financial terminology and it’s context of use in corporate finance
  • Role of finance function
  • Forms of business organisations
  • The financial and non-financial objectives of different organisations (e.g. value for money, maximising shareholder wealth, providing a surplus)
  • Sustainability in Business Finance.

Financial Statement Analysis and Interpretation

  • The relevance of the profit and loss account and balance sheet and how their layout aids the conveyance of information to the user
  • Keys steps in financial ratio analysis
  • Key financial ratios and classification
  • Calculation of key ratios for assessing financial performance and business position
  • Limitations of ratio analysis
  • Overtrading

Working Capital Management

  • Nature, elements, and importance of working capital and liquidity management
  • Objectives of working capital management
  • Working capital characteristics of different businesses and the importance of industry comparisons
  • Profitability versus liquidity
  • Determining working capital needs and funding strategies.
  • Management of inventories, accounts receivable, accounts payable and cash
  • Working capital problems for small business

Financing a Business

  • Nature and role of financial markets and institutions
  • The stock exchange and methods of share issue
  • Sources of long, medium, and short-term equity and debt financing
  • Internal sources of finance
  • Venture capital and other sources of finance for small and medium sized businesses

Costing and Pricing

  • Cost classification, direct and indirect, product and period
  • Cost behaviour, fixed, variable, semi-fixed, semi-variable
  • Product costing using activity-based costing (ABC)
  • Pricing products and services using cost-based, demand-based, target-based and other pricing strategies.
  • Customer profitability analysis (CPA)

Cost-Volume-Profit Analysis and Decision Making

  • Break-even analysis
  • Cost structure analysis
  • Limitations to break-even analysis
  • Contribution analysis for discontinuation of an activity and one-off contracts
  • Qualitative factors in decision-making

Investment Appraisal and Decision Making

  • Cash versus profit
  • Traditional methods of investment appraisal
  • Discounted cash flow methods
  • Comparison of NPV & IRR
  • Strengths and limitations of appraisal methods
  • Identification of a project’s relevant costs and benefits
  • Importance of qualitative factors

Minimum Intended Learning Outcomes (MIMLOs)

Upon successful completion of this module, the learner should be able to:
MIMLO1
Evaluate the key terms, concepts and practices for assessing business performance.
MIMLO2
Apply appropriate business finance techniques when presented with defined and complex business problems.
MIMLO3
Interpret results within a business and demonstrate the principles of effective working capital management.
MIMLO4
Apply costing and pricing techniques in business decision making
MIMLO5
Assess the tools and techniques that are used to assess investment appraisal.
MIMLO6
Evaluate the appropriate sources of finance to trade internationally.
MIMLO7
Explain cost-volume-profit analysis and its aid to management decision making.

Assessment

MIMLOs
Assessment
Percentage
1, 2, 3, 4, 5, 6, 7
CA 1: Proctored practical examination
Total 100%
CA 2: Final Examination
All Assessments

Reassessment Opportunity

Where the combined marks of the assessment and examination do not reach the pass mark the learner will be required to repeat the element of assessment that they failed. Reassessment materials will be published on Moodle after the Examination Board Meeting and will be aligned to the MIMLOs and learners will be capped at 40% unless there are personal mitigating circumstances.

Aims & Objectives

This Finance module is intended to help learners understand the nature and scope of financial management and to develop financial skills and knowledge expected of a business manager, in relation to operational, pricing, investment and financial decisions.

Specifically, this module aims to enable the learner to:

  • Critique the financial performance of an organisation
  • Understand the financial options available for organisations when trying to raise capital
  • Assess the strength of an investment option against relevant criteria
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