ASSESSEMENT

Unit: Unit 2 – Managing Financial Resources and Decisions

Learning Hours: 60 Hours.
Self-learning hours: 90 hours.
Course: HND Business
Term:
Lecturer: Mrs. Verifier:

Learners Name
Registration Number
Learners Declaration: I certify that the work submitted for this unit is my
own:

Signed:
Hand out Date:

Submission Date:

The Following Sections to be completed by the assessor:

Center Name:
Center Number:

Please note that the assessors signature below denotes conformation that
he/she has in no way influenced the outcome of the assessment:

Assessors Name:

Assessors Signature:

Has the unit been Internally Verified? Y/N

Date of verification:
Internal verifiers signature:

Internal verifiers assignment brief:

Unit Outcomes

Evidence for the Feedbac Assessors Internal

decision verification.
Outcome criteria to pass. k
Task: I

P1. P1.1- P1.1

Explore the Identify the sources of
sources of finance available for
finance the business
available for P1.2. assess the P1.2
the business implications of the
different sources
P1.3- select P1.3
appropriate sources of
finance for the
business project

P2. Analyze P2.1. assess and

the compare the costs of P2.1
implication of different sources of
finance as a finance
resource P2.2.explain the P2.2
within the importance of financial
business planning

2.3. describe the P2.3

information needs of
different decision
makers
2.4. Describe the P2.4
impact of finance on
the financial
statements.
P3.1- analyze budgets
P3. Make and make appropriate P3.1
financial decisions
decisions P3.2- calculate unit
based on costs and make pricing P3.2
financial decisions using
information relevant information

P3.3- assess the

viability of a project P3.3
using investment
appraisal techniques
P4. Analyze P4.1 Explain the
and evaluate purpose of the main P4.1
the financial financial statements
performance P4.2 describe the P4.2
of a business differences between
the formats of financial
statements for
different types of
business
 P4.3analyse financial P4.3
statements using
appropriate ratios and
comparisons, both
internal and external.

Merit grades awarded M1 M2 M3

D1 D2 D3
Distinction grades awarded

Any other comments:

Grade given by the tutor:

Pass Merit Distinction

Tutors Signature:
Date:

IV Grading Check: Comments if any:

Agree
Disagree Modify grade to

IV signature:
Date:

Students feedback:

Student Signature: Date:

Notes:
1. Use a standard report structure.
2. Word-process the report.
3. Use Normal script.
4. Use Harvard referencing system.
 5. Produce an academic report, detailing above issues with word limit of
4000 words.
6. Complete the title page and sign the statement of authenticity.
7. Submit the document in a folder in the form of a file.
8. Submit the work to Mrs. Nazia the admin officer and sign the
submission form of the college. Late submission will be accepted only
to prior permission with a justifiable reason. Late submission must be
with the late submission form.
9. Collusion and Plagiarism must be avoided.
10.Start each answer on a new page.
11.Highlight each question clearly.
12.Pages should be numbered.
13.Assignment sheet should be attached in the front.
14.Bibliography at the end of the assignment.
15. All work should be comprehensively referenced and all sources must
be acknowledged fully, as books and journals, websites etc--.Try to
give the page numbers, publishers details and year of publication with
the authors support.
16.Use a common format for the questions as
- Introduction (analyze the question.)
- Underpinning Knowledge (write about the relevant
theory/points)
- Applied knowledge
- Conclusion (summarizing the whole scenario keeping in view
pass, merit, distinction criteria.)

Assignment Guidelines

1. This assignment is designed to help you achieve a merit or

distinction.
2. During you structured Individual study (SIS) , you are required to
answer each question above(Outcomes assessment criteria) which
has been covered separately in respective lessons.
3. Refer the handouts for better ideas.
4. Use the computer to research recommended websites and word
process your assignment.
5. Follow the guidelines given after every class and the tutor tip notes.
6. Study the merit and distinction descriptors below to ensure that
your work demonstrates compliance in order for it to be considered
for their respective awards.

Assignment for the purpose:

Mrs. S Kotta wants to start a Subway fast food centre in Enfield lock. She
approached the Enfield business centre to seek some advice relating to
franchising, financial requirements, Hr planning, marketing etc.
She has collected all the information and is very comfortable with all the
other aspects. She needs some advice relating to the financial resources and
planning.
The Franchise with establishment cost, seed capital and working
capital is working to around 300000 pounds. She has 70000pounds with her
for immediate investment. The balance 230000 she needs to borrowed. You
are the financial advisor for Mrs. S kotta. Prepare a report answering the
following queries. The report should not exceed 4000 words.

Task 1
P1. Explore the sources of finance available to a business
1.1 Identify the sources of finance available for the business.
1.2 Assess the implications of the different sources
1.3 Select appropriate sources of finance for the business project.

Task 2
P2. Analyze the implications of finance as a resource within a business
2.1 Assess and compare the costs of different sources of finance.
2.2 Explain the importance of financial planning and design a financial plan for the
business.
2.3 Describe the information needs of different decision makers.
2.4 Describe the impact of finance on the projected financial statements.

Task 3
P3. Make financial decisions based on financial information
3.1 Prepare a budget and make appropriate decisions.
3.2 Calculate Unit cost for any two products of your choice and make pricing
decisions using relevant information. This will help her to prepare the unit costs for
other products.
3.3 Assess the viability of the project to her by using investment appraisal
techniques.

Task 4
P4. Analyze and advice how to evaluate the financial performance of the
business
4.1 Explain the purpose of the main financial statements
4.2 Explain the purpose for choosing the format by describing the differences
between the formats of financial statements for different types of business
4.3 Analyze the projected financial statement using appropriate ratios and
comparisons, both internal and external.

Assessment Grid indicating their pass, merit and distinction:

Student Name:
Identity Number:
Unit: Outcomes/criteria: Indicative Possible Feedback

P1. Explore the sources of
finance available to the
business
P2. Analyze the
implications of finance as a
resource within the
business
P3. Make financial
decisions based on financial
information
P4 Analyze and advice how
to evaluate the financial
performance of the
business
Merit Description:
M1.Identify and apply
strategies to find
appropriate solutions.
M2. Select/ design and
apply appropriate
methods/ techniques.
M3. Present and
communicate
appropriate findings.
characteristics evidence
As per the Task 1
assessment
criteria specified
for pass
Do Task 2
Do Task 3
Do Task 4
. Relevant theories and
techniques have been
applied.
. Effective judgments
have been made.
. Complex problems with
more than one variable
have been explored.
. an effective approach to
study and research has
been used.
. A range of methods and
techniques has been
applied.
. A range of sources of
information used.
. The selection of
methods and techniques
justified.
. Complex
information/data have
been synthesized and
processed.
.Appropriate learning
methods/ techniques
applied.
. Appropriate structure
and approach has been
used.
. Logical and coherent
arguments have been
presented
. Technical language
accurately used.
. A range of methods of
presentation has been
used.
 . Appropriate media used.
. Familiar and unfamiliar
contexts have been used.
. It is appropriate for
familiar and unfamiliar
audiences.
Distinction Description:
D1. Use critical . Synthesis has been
used to generate and
reflection to evaluate
justify valid conclusions
own work and justify . The validity of results
valid conclusion. has been judged
. Self-criticism of
approach has taken
place.
. Evaluation has taken
place using defined
criteria
. Realistic improvements
have been proposed
against defined
characteristics for
success.
D2. Take responsibility Autonomy/independence
demonstrated
for managing and
Substantial
organizing activities. activities/projects or
investigations have been
planned, managed and
organized.
The unforeseen has been
accommodated.
The importance of
interdependence has
been recognized.
D3. Demonstrate Ideas generate and
decisions taken
convergent, lateral and
Self evaluation has taken
creative thinking place
Convergent and lateral
thinking have been
applied
Capacity for innovation
and creative thought has
been used.
Receptiveness to new
ideas has demonstrated.
Unfamiliar contexts have
been applied.

Unit 2: Managing Financial Resources and Decisions

Learning Hours: 150(60+90) Mondays: 9.30am -12.30pm
Taught hours: 60 Semester: II
Contact hours: 90 BTEC Higher National – H1
Description of Unit
 This unit is designed to give learners a broad understanding of the ways in
which finance is managed within a business organization. Learners will learn how to
evaluate the different sources of finance, compare the ways in which these are used and
will learn how to use financial information to make decisions. Included will be
consideration of decisions relating to pricing and investment, as well as budgeting.
Finally, learners will learn techniques for the evaluation of financial performance.

Learning outcomes
1. Explore the sources of finance available to a business
2. Analyze the implications of finance as a resource within a business.
3. Make financial decisions based on financial information
4. Analyze and evaluate the financial performance of a business.
Content
Lesson Plan Date Title of the Topic
1. 14/01/08 Introduction
2. 21/01/08 Terminologies, Introduction to debit, credit, books of
primary entry, accounts and ledgers, trial balance, final
accounts.
3. 28/01/08 Leave (with permission)
4. 04/02/08 Sources of Finance, Range of sources, Short term sources.
5. 11/02/08 Long term sources of finance
6. 18/02/08 Analyze the implications of finance, cost of different
sources of finance
7. 25/02/08 Financial planning , cash budget, functional budgets,
8. 03/03/08 Decision making, marginal costing as a tool of decision
making.
9. 10/03/08 Costing and pricing decisions
10. 17/03/08 Investment appraisal; traditional methods
11. 24/03/08 Discounting methods: NPV, IRR
12. 31/03/08 Books of accounts, journal, ledger, Trial Balance
13. 14/04/08 Trading account, profit and loss account, B/S
14. 21/04/08 Cash flow statement.
15. 28/04/08 Interpretation for different types of business.
16. 05/05/08 Preparation for different types of business
17. 12/05/08 Revision.
18. 19/05/08 Presentation
19. 26/05/08 Feedack
20. 2/06/08 Assignment submission.

Support materials
Textbooks
Cox D and Fardon M – Management of finance (Osborne Books) ISBN: 1872962238
Dyson J R – Accounting for Non- Accounting Learners (Pitman, 2003)
Websites

www.aat.co.uk The Association of Accounting Technicians

www.accountingtechnician.co.uk Accounting Technician magazine

www.bized.ac.uk Provides case studies appropriate for educational

Purpose

www.ft.com The Financial Times