HND Diploma in Business MANAGING FINANCIAL RESOURCES AND DECISIONS

Pearson BTEC Level 4

HND Diploma in Business
MANAGING FINANCIAL RESOURCES AND
DECISIONS
Assessment

Date for Submission: 11th February 2016
(The submission portal will close at 13:59 GMT)
Date for Submission: 21st March 2016 (The submission portal will close at 23:59 HKT)
Assessor Name: Kenneth Chang (kchang@rdihongkong.com)
Remarks: Please note that all assignment must submit through iLearn before the given deadline.

Assignment Brief

As part of the formal assessment for the HNC/D programme you are required to submit an assignment for each module. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.

After completing the module you should be able to:

LO1. Understand the sources of finance available to a business
LO2. Understand the implications of finance as a resource within a business
LO3. Be able to make financial decisions based on financial information
LO4. Be able to evaluate the financial performance of a business
Assignment Task One

In no more than 1,000 words, write a critical discussion, supported by academic literature, addressing the following for a listed company in Hong Kong:
a) Identify the potential sources of finance available and explain why financial planning is important.
(Assessment Criteria 1.1, 2.2)

b) Identify and evaluate both long term and short term sources of finance for a project implemented by a listed company. Offer definitions, and assess the advantages and disadvantages for each of the sources you identify and when each would be most appropriate.
(Assessment Criteria 1.2,1.3)

c) Analyse the costs associated with different sources of finance and explain how these costs impact the financial statements.
(Assessment Criteria 2.1, 2.4)

d) Assess the information needs of three stakeholders – such as owners or financial institutions
(Assessment Criterion 2.3)

2-20

Assignment Task Two
Aston Ltd is considering investing some of their capital in new premises. This will entail capital expenditure of some $1,000,000. This new project is set to last for ten years and is likely to attract the following budgeted inflows (money coming into the business) and budgeted outflows (money going out of the business):
Years Cash Inflows Cash Outflows
$’000 $’000
0 0 1000
1 110 30
2 120 35
3 130 40
4 140 45
5 150 50
6 160 55
7 170 60
8 180 65
9 190 70
10 200 75

Note the $1m in year 0 represents the initial capital expenditure.
The business is built up of both equity and debt, and in terms of this specific project it would be funded by $500,000 equity requiring 8% return, and $500,000 of debt requiring 12% return.
In no more than 1,000 words, and using the information above, complete the following:
a) Identify the Net Value or the Net Cash Flow (before applying the discount factor) of the project and also the Net Present Value (after applying the discount factor). Analyze and explain the advantages and disadvantages of the techniques adopted here.
(Assessment Criterion 3.3)
b) Identify the Undiscounted Payback period and the Discounted Payback period and evaluate whether the pricing strategy that has generated the inflows is viable in this scenario
(Assessment Criterion 3.2)
c) Assess whether Aston Ltd should continue with this project. (Assessment Criterion 3.1)
Ensure that where possible your answer is supported by academic sources.
(Assessment Criterion 3.3)
Assignment Task Three
In no more than 1,500 words:
a) Identify and discuss the purpose of the two main financial statements shown below for a UK company Tesco plc. (Assessment Criterion 4.1)

b) Evaluate why different formats of financial statements are used for different types of business in UK. (Assessment Criterion 4.2)
c) Using the financial statements detailed below, for Tesco plc, calculate a series of profitability ratios and liquidity ratios, analyze and interpret the results that you achieve and comment on the company’s performance. (Assessment Criterion 4.3)


Formative assessment
Should you wish to submit a draft of the above assignment for formative feedback (narrative feedback, not graded), you may do so, but only once. This must be done before the 1stMarch 2016.

Student Guidelines

1. You should write this assignment in a professional report style format, including the following:
• A cover sheet, detailing the Module Name, the date, your name and your STU number
• A contents‟ page showing the various elements and their respective page numbers
• Page numbers and section numbering throughout

2. You must ensure that the submitted assignment is all your own work and that all sources used are correctly attributed. Penalties apply to assignments which show evidence of academic unfair practice. (See the Student Handbook which is in the Induction Area). Please also refer to the ‘Guide to Unfair Practice in Assessment’ on the module page on ilearn.

3. You MUST underpin your analysis and evaluation of the key issues with appropriate and wide ranging academic research and ensure this is referenced using the Harvard system. The ‘My Study Skills’ area contains the following useful resources; Study Skills Guide (containing a Harvard Referencing section) and a Harvard Referencing Interactive Tutorial. You must use the Harvard Referencing method in your assignment.

4. You should use diagrams and tables of figures where appropriate ensuring to reference their source using theBournemouth University Harvard style.

5. You are required to write your assignment within 3500 words in order for your research and summarising skills to be developed, and for effective time management. You are required to ensure that the assignment addresses all of the assessment tasks. In the interests of good academic practice, an assignment submitted with excessive word counts (i.e. more than 10% in excess of the limit) will be returned to you. You will be given a maximum of 48 hours to edit the work to reduce the word count to the permitted maximum. In the event that the submission is still regarded as excessively long then, in line with advice received from Pearson, we will be unable to accept it for marking and you will receive a Refer grade for Non-Submission.

The word count excludes the title page, reference list and appendices. Where assessment questions have been reprinted from the assessment brief these will also be excluded from the word count. ALL other printed words ARE included in the word count. Printed words include those contained within charts and tables.

6. Your assignment should be submitted as a single document. For more information please see the “Guide to Submitting an Assignment” document available on the module page on iLearn.


Online ‘library’ resource available via ilearn

References (via hkebsco in iLearn)

Marsh, Clive (2012) Financial Management for Non-financial Managers, In Strategic Success Series, London: Kogan Page.

Finch, Brian (2010) Effective Financial Management, In Creating Success. London :Kogan Page.

Vernimmen, Pierre (2011) Corporate Finance: Theory and Practice, 3rd ed. Chichester, West Sussex : John Wiley & Sons, Inc.
BTEC textbook

Davies, J., (2011), BTEC Level 4/5 HNC in Business

Other Reference books

Weetman, P. (2013) Financial and Management Accounting: An Introduction, Pearson

Lumby, S. and Jones, C. (2000) The Fundamentals of Investment Appraisal, Thomson Learning
Magazines, journals and newspapers
Accounting, Auditing and Accountability Journal
The International Journal of Accounting

The Economist

The Financial Times
Websites

http://www.accaglobal.com/uk/en.
html http://www.aat.org.uk/
List of Securities of Hong Kong
https://www.hkex.com.hk/eng/market/sec_tradinfo/stockcode/eisdeqty.htm


Assessment Criteria for Pass
To achieve a pass you must meet all of the assessment criteria as stated below. Failure to cover all of the assessment criteria will result in a referral grade and you will be required to re-submit your assignment.
Further guidance on completion of your assignment can be found in the guidance notes which are posted on the group learning space by your module tutor. For additional support please post questions onto the group learning space, or email kchang@rdihongkong.com
Learning Outcomes/
Assessment Criteria Criteria Met
For tutor use
(you may wish to use this in your preparation for your assignment submission)
LO1 Understand the sources of finance available to a business
1.1 identify the sources of finance available to a business

1.2 assess the implications of the different sources

1.3 evaluate appropriate sources of finance for a business project Task 1a and 1b

LO2Understand the implications of finance as a resource within a business
2.1 Analyze the costs of different sources of finance

2.2 explain the importance of financial planning

2.3 assess the information needs of different decision makers
2.4 explain the impact of finance on financial statements Task 1c, 1a and 1d

LO3 Be able to make financial decisions based on financial information

3.1 analyze budgets and make appropriate decisions

3.2 explain the calculation of unit costs and make pricing decisions using relevant information
3.3 assess the viability of a project using investment and appraisal techniques Task 2a, 2b, 2c
LO4 Be able to evaluate the financial performance of a business

4.1 discuss the main financial statements

4.2 compare appropriate formats of financial statements for different types of business

4.3 interpret financial statements using appropriate ratios and comparisons, both internal and external Task 3a, 3b,3c

Assessment Criteria for Merit
To achieve a Merit all of the Pass criteria need to be met, then the tutor will assess whether you have met the Merit Criteria. Each of the Merit criteria must have been met at least once within the assignment.
The following statements are examples of how a merit may be achieved, if you do meet the Merit Criteria by showing you have reached this level in other ways then credit will be awarded for this. You will need to meet M1, M2, M3 at least once.
identify and apply strategies to find appropriate solutions
Effective judgments have been made on the basis of accurate cash flow forecasting
Good knowledge of working capital/liquidity management has been displayed
Good knowledge of appropriate sources of long term finance are displayed

M1
select/design and apply appropriate methods/techniques

Effective use has been made of appropriate Investment appraisal techniques and other calculations e.g. WACC
M2

present and communicate appropriate findings
A clear, concise and logical flow has been achieved
Use of Harvard referencing throughout
Relatively few omissions and confusions exist
M3


Assessment Criteria for Distinction
To achieve a Distinction you have met all of the Pass and the Merit criteria. Each of the Distinction criteria must be met at least once within the assignment.
The following statements are examples of how a Distinction may be achieved, if you do meet the Distinction Criteria by showing you have reached this level in other ways then credit will be awarded for this. You will need to meet D1,D2,D3 at least once.
‘Submission has been completed fully and on time’ as per recent guidelines.

use critical reflection to evaluate own work and justify valid conclusions

A reflective approach will be evident throughout and in particular in areas like evaluation of sources of business finance and uses /limitations of investment appraisal techniques
D1
take responsibility for managing and organizing activities
Independent research, outside of what has been provided on the moodle, has been utilized to prepare a thorough set of answers
D2

demonstrate convergent/lateral/ creative thinking

Ideas are evaluated for their validity & realism in the context of the answers
An attempt is made at an evaluation of optimal approaches to financial management 
conclusions
D3

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