Preview

Managing Financial Resources and Decisions

Powerful Essays
Open Document
Open Document
1098 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Managing Financial Resources and Decisions
UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

Unit 2:
Unit code: QCF level: Credit value:
Aim

Managing Financial Resources and Decisions
H/601/0548 4 15 credits

The unit aim is to provide learners with an understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making.

Unit abstract
This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. Learners will learn how to evaluate these different sources and compare how they are used. They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting. Decisions relating to pricing and investment appraisal are also considered within the unit. Finally, learners will learn and apply techniques used to evaluate financial performance.

Learning outcomes
On successful completion of this unit a learner will: 1 2 3 4 Understand the sources of finance available to a business Understand the implications of finance as a resource within a business Be able to make financial decisions based on financial information Be able to evaluate the financial performance of a business.

BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business – Issue 1 – April 2010 © Edexcel Limited 2010

7

UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

Unit content

1

Understand the sources of finance available to a business Range of sources: sources for different businesses; long term such as share capital; retained earnings; loans; third-party investment; short/medium term such as hire purchase and leasing; working capital stock control; cash management; debtor factoring Implications of choices: legal, financial and dilution of control implications; bankruptcy Choosing a source: advantages and disadvantages of different sources; suitability for purpose eg matching of term of finance to term of



Links: This unit links with the following units within this specification Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing and Budgeting, Unit 10: Financial Accounting and Reporting, Unit 11: Financial Systems and Auditing and Unit 12: Taxation. This unit also covers some of the underpinning knowledge and understanding for the NVQ in Accounting as set out in Annexe B. The unit covers financial topics essential for learners who would like a career in this field and wish to gain membership of a professional accounting body. Essential requirements Learners will require access to financial and company reports. Employer engagement and vocational contexts Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers. www.businessbritainuk.co.uk www.fsb.org.uk provides information about business in Britain and has extensive links to other business and business news sites. The Federation of Small Businesses provides information, support and guidance about small businesses in the UK. BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business – Issue 1 – April 2010 © Edexcel Limited 2010 11

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Testing

    • 471 Words
    • 2 Pages

    This course provides a systematic treatment of the fundamentals of the theory and practice of Finance. The course will consist of lectures, case studies, and reviews of homework. It is designed to provide students with a broad, systematic view of finance in the corporate context. By the end of the class, successful students will be able to analyze firm performance, value financial assets, determine the cost of capital, evaluate capital structure and dividend policies, and know the basics of raising capital in order to make informed investment and financing decisions. Topic areas will include financial performance measurement, valuation, capital budgeting, capital market theory, basics of investments, cost of capital, raising capital, and capital structure and dividends.…

    • 471 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Assumed Knowledge and/or skills: The unit builds on the material on asset pricing, capital structure and financial valuation studied in the first year finance unit. Knowledge of derivatives is desirable but not essential.…

    • 1653 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Fin 370 Syllabus

    • 1363 Words
    • 6 Pages

    This course introduces the student to the essential elements of finance for business. Emphasis is placed on financial management, financial markets, and the tools, techniques, and methodologies used in making financial decisions. Topics include: Financial planning, working capital management, capital budgeting, long-term financing, and international finance.…

    • 1363 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Pre-requisite Courses and Assumed Knowledge and Capabilities None Course Description Accounting for Management Decisions provides postgraduate, non-accounting students with an understanding of the role of accounting as a system of information gathering and reporting that plays an important role in business decision-making. This course is specifically designed for students with little or no prior knowledge in accounting. Objectives/Learning Outcomes/Capability Development The major learning outcomes for this course is that you should have enhanced your understanding of and developed your ability to use financial, non financial and management accounting concepts and terminology in business decision-making. Successful completion of this course means that you are expected to be able to: Use accounting in business decision-making Explain the 3 financial reports Apply major types of financial ratio analysis Use major techniques of Financial & Management accounting Understand contemporary management accounting systems…

    • 2381 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Design by AyDesignWorks ©2011 IAM IAM Level 2 Certificate in Principles of Business and Administration • Qualification handbook • 3…

    • 9194 Words
    • 37 Pages
    Powerful Essays
  • Good Essays

    aat isys

    • 744 Words
    • 7 Pages

    The aim of this unit is to ensure that the learner will be able to make a considered evaluation of an accounting system, with particular reference to internal controls, ethical considerations and the prevention of fraud. They will be able to make recommendations for improvements supported by a clear rationale of the impact upon the organisation and a cost benefit analysis.…

    • 744 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Finance

    • 5197 Words
    • 21 Pages

    Task: 2: Be able to analyses the implications of finance as a resource within a business…

    • 5197 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Unit 33 P5

    • 1038 Words
    • 3 Pages

    Bibliography: BTEC Business Level 3 Book1 (Jon Bevan, Helen Coupland- Smith, Rob Dramsfield, John Gaymore and Catherine Richards.…

    • 1038 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Business: Ratio Analysis

    • 539 Words
    • 3 Pages

    The unit is divided into two parts. In the first part, Assignment 1, you developed an understanding of the accounting processes necessary to provide accurate and relevant financial information. The second part of the unit (Assignments 2, 3 and 4) cover the practical aspect of carrying out those accounting activities.…

    • 539 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    tuurism

    • 3994 Words
    • 16 Pages

    Module Study Guide Financial Management West London Business School Module Title Module Study Guide Module Code AC60003E Level 6 Credits 20 AY2012-2013 Version No 1 © UWL 2012 Module Title Module Study Guide Contents Page No. Module Leader and Teaching Team Details 3 Facts and figures Section A Overview and Content 1 Welcome and Introduction to the Module 5 2 Administrative and Technical Support 5 3 Timetable/Venue/Rooms 6 4 Student Support and Guidance 6 5 Content of the Module 8 6 Aims of the Module 9 7 Learning Outcomes 10 8 Learning Resources 10 Section B Assessment and Feedback 9 Assessment: General Information 12 10 Details of Assessment 12 11 Summative Assessment Grid 14 12 Statement on Plagiarism 14 13 Evaluation of the Module 15 Section C Module Programme 16 Guide to Learning Sessions 17 Module Leader and Teaching Team Details Module Leader Usha Mistry Field and School Accountancy / Business Email Usha.Mistry@uwl.ac.uk Phone 02082312108 Location A400, Ealing Campus Name Liana Hayrapetyan Job title Lecturer Email liana.hayrapetyan@uwl.ac.uk Phone Location PR803,Paragon House, Brentford Name Androula Lambrou Job title Administrative support Email androula.lambrou@uwl.ac.uk Phone 02082312107 Location TC375, Ealing Campus Facts and Figures…

    • 3994 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Catherine Richards, Rob Dransfield, John Goymer, John Bevan (2010). BTEC Level 3 National Business, Book 1. Pearson Education Limited…

    • 3845 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    This assignment you will be required to research organisations that operate in different business environments. In the first part of the assignment you will have to research the purposes and ownership of a range of local organisations. The second part of the assignment will look at organisations based in another country. The research carried out in this unit can be used as a basis for more detailed study in later units.…

    • 1174 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Unit 13 Assignment

    • 1778 Words
    • 9 Pages

    2. Understand the implications of the regulatory framework for the process of recruitment and selection…

    • 1778 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    Financial resources in a business can be obtained internally such as the profits from last year’s sales, or externally such as a bank loan, having management is these areas can ensure the objectives in an organisation are accomplished they can do this through budgets;…

    • 583 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Coursework

    • 612 Words
    • 3 Pages

    The purpose of the coursework is to give you experience writing a business report, analysing financial information, and enhancing your research skills through using different resources and information. These skills will help consolidate your knowledge of business finance, as well as enhancing your personal development – invaluable for the future workplace or postgraduate studies.…

    • 612 Words
    • 3 Pages
    Good Essays