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Parent Programme
Bachelor of Business
MODULE NFQ
Level 7
MODULE CREDIT UNITS
ECTS: 10
MODULE TITLE
Business Finance
Reference Code: BB7 701
STAGE
Year 3
Fall Semester 1
12 Weeks Full-Time X 5 Hours per week
12 Weeks Part-Time X 3 Hours per week

Business Finance Module

Introduction to Business Finance

The indicative syllabus of this module is outlined in the units below:

  • 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).

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

Business Finance in 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.

Minimum Intended Learning Outcomes (MIMLOs)

Upon successful completion of this module, the learner should be able to:
LO 1
Evaluate the key terms, concepts and practices for assessing business performance.
LO 2
Apply appropriate business finance techniques when presented with defined and complex business problems.
LO 3
Interpret results within a business and demonstrate the principles of effective working capital management.
LO 4
Apply costing and pricing techniques in business decision making.
LO 5
Assess the tools and techniques that are used to assess investment appraisal.
LO 6
Evaluate the appropriate sources of finance to trade internationally.
LO 7
Explain cost-volume-profit analysis and its aid to management decision making.

Assessment

MIMLOs
Assessment
Percentage
1, 2
CA
60%
3, 4, 5, 6, 7
Final Examination
40%

Aims & Objectives

This 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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