Module Details

Module Code: FNCE H3305
Module Title: Business Finance
Title: Business Finance
Module Level:: 7
Credits:: 10
Module Coordinator: Martin Meagher
Module Author:: Tracy Byrne
Domains:  
Module Description: 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 will be able to:
# Learning Outcome Description
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.
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.
No recommendations listed
Co-requisite Modules
No Co-requisite modules listed
Additional Requisite Information
No Co Requisites listed
 
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.
Module Content & Assessment
Assessment Breakdown%
Continuous Assessment30.00%
End of Module Formal Examination70.00%

Assessments

Full Time

Continuous Assessment
Assessment Type Examination % of Total Mark 10
Timing Week 6 Learning Outcomes 1,2,3,4
Non-marked No
Assessment Description
Class Assessment / Project / Presentation/ Case Study
Assessment Type Examination % of Total Mark 10
Timing Week 12 Learning Outcomes 1,2,3,4
Non-marked No
Assessment Description
Class Assessment / Project / Presentation/ Case Study
Assessment Type Examination % of Total Mark 10
Timing Week 24 Learning Outcomes 1,2,3,4
Non-marked No
Assessment Description
Class Assessment / Project / Presentation/ Case Study
No Project
No Practical
End of Module Formal Examination
Assessment Type Formal Exam % of Total Mark 70
Timing End-of-Semester Learning Outcomes 1,2,3,4
Non-marked No
Assessment Description
End of Semester Final Examination

SETU Carlow Campus reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Workload Category Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact No Description Every Week 2.00 2
Tutorial Contact No Description Every Week 1.00 1
Independent Learning Non Contact No Description Every Week 4.00 4
Total Weekly Contact Hours 3.00
Workload: Part Time
Workload Type Workload Category Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact No Description Every Week 1.50 1.5
Independent Learning Time Non Contact No Description Every Week 5.50 5.5
Total Weekly Contact Hours 1.50
 
Module Resources
Recommended Book Resources
  • Peter Atrill, Eddie McLaney. (2015), Accounting and Finance for Non-Specialists, 9th. Pearson, [ISBN: 1292062711].
Supplementary Book Resources
  • Peter Atrill, Eddie McLaney. (2015), Management Accounting for Decision-Makers, 8th. Pearson, [ISBN: 1292072431].
  • Ray Proctor. (2012), Managerial Accounting: Decision-Making and Performance Improvement, 4th. FT Press, p.613, [ISBN: 0273764489].
This module does not have any article/paper resources
Other Resources
  • Financial Management, CIMA.
Discussion Note: