Module Details
Module Code: |
FNCE H3305 |
Module Title:
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Business Finance
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Title:
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Business Finance
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Module Level:: |
7 |
Module Coordinator: |
Martin Meagher
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Module Author:: |
Tracy Byrne
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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).
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Learning Outcomes |
On successful completion of this module the learner will be able to: |
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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.
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No recommendations listed |
Co-requisite Modules
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No Co-requisite modules listed |
Additional Requisite Information
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No Co Requisites listed
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Indicative Content |
Introduction to Business Finance
Role of the finance function; Corporate objectives; Agency theory; Forms of business organisation.
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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.
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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.
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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.
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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.
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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.
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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.
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Module Content & Assessment
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Assessment Breakdown | % |
Continuous Assessment | 30.00% |
End of Module Formal Examination | 70.00% |
AssessmentsFull Time
End of Module Formal Examination |
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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 |
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Contact |
No Description |
Every Week |
2.00 |
2 |
Tutorial |
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Contact |
No Description |
Every Week |
1.00 |
1 |
Independent Learning |
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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 |
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Contact |
No Description |
Every Week |
1.50 |
1.5 |
Independent Learning Time |
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Non Contact |
No Description |
Every Week |
5.50 |
5.5 |
Total Weekly Contact Hours |
1.50 |
Module Resources
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Recommended Book Resources |
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Peter Atrill, Eddie McLaney. (2015), Accounting and Finance for Non-Specialists, 9th. Pearson, [ISBN: 1292062711].
| Supplementary Book Resources |
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Peter Atrill, Eddie McLaney. (2015), Management Accounting for Decision-Makers, 8th. Pearson, [ISBN: 1292072431].
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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 |
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Other Resources |
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Financial Management, CIMA.
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