LONDON CHURCHILL COLLEGE

ASSESSMENT FRONT SHEET

Programme:
Business
Unit Number:
Unit Title:
Unit Level:
Unit Code:
Module Tutor:

BTEC

Higher

National

Diploma

(HND)

in

(Unit 2)
Managing Financial Resources and Decisions
QCF Level 4
H/601/0548

Email:
Date Set:
Learners name and statement of authenticity
Learners Name: ..

Learners ID:

Date handed-in:

I certify that the work submitted for this assignment is my own. Where the work of
others has been used to support my work then credit has been acknowledged.
Signature: . Date:

Key dates
Distribution date:
Submission date:
Return date:

4 weeks after submission

Introduction
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.

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Specification of Assessment
ASSIGNMENT REQUIREMENT:
LO1 (Task 01):
1.1

Identify the sources of finance available to a business.

(Try to answer why business needs finance and what are the available sources of
finance to a business. Use the Long term and the short/medium term financing
options for your answer. Learner should explain meaning of finance, state the reasons
why businesses need finance and then explain the different sources of finance)
1.2

Assess the implications of the different sources.

(Learner should compare the implication of at least two different sources of finance
under legal, financial & dilution of control and bankruptcy)
1.3 Evaluate appropriate sources of finance for a business project
(After evaluating the cases learners should state and evaluate sources of finance for
the different situations in the case studies.
Case 1 - a medium-sized engineering firm with an annual turnover of 2.5 million
has decided to install a new piece of machinery to help improve its productivity. The
equipment needs to be housed in a new building to be constructed on the site. The
forecast cost of the building is 150,000 and the equipment 400,000.
Case 2 - An individual has been made redundant after 20 years with a major
organization and has received a lump sum redundancy payment of 70,000. The
individual is planning to set up a bookmakers and has identified a suitable premises
valued at 180,000 near to a major town centre shopping precinct.
Case 3 - A large plc is planning on moving a major part of its production facility to
Cornwall. It has identified a site near a former chalk pit that is now not used. The
estimated cost of the facility is 4.5 million)
LO2 (Task 02):
2.1Analyse the costs of different sources of finance.
(Learners should analyze the tangible and intangible costs of different sources of
finance - Tax effect & tangible costs of finance -like interest, dividends; opportunity
costs)
2.2 Explain the importance of financial planning.

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(Support your theory using case-5 as an example. Use the concept of cash budgeting
& implications of failure to finance adequately
Case 4
A rugby club is anticipating turning fully professional after the team secured
promotion to the Zurich premiership. To take its place in the league, the league
committee has insisted that it also improves facilities at the ground. It has been
estimated that the cost of these two measures will be 550,000.)
2.3 Assess the information needs of different decision makers.
(Learners should define information and then explain its importance in decision
making in organizations)
2.4 Explain the impact of finance on the financial statements.
(Explain financial statements and give examples as well. Use the different given
examples of financial statements to explain how various sources of financial
statements appear on them- for instance, income statement, balance sheet,
statement of cash flows, and statement of equity)
LO3 (Task 03):
3.1 Analyze budgets and make appropriate decisions.
(Explain budgeting and its purpose and use that to explain how financial decisions
are based on budgeting)
3.2 Explain the calculation of unit costs and makes pricing decisions
using relevant information.
(Explain by calculating the unit costs and make pricing decisions using relevant
information. Consider the data of case 6 as a supportive example for the said pass
criterion.
Case 6
Lomas Corporation operates a plant with a monthly capacity of 500,000 cases of
tomato sauce. Lomas is presently producing 300,000 cases per month. Del Valle has
asked Lomas and two other companies to bid on supplying 150,000cases each month
for the next four months?
Cost Per Case
Variable manufacturing
Variable marketing and distribution

38
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Fixed manufacturing

14

Fixed marketing and distribution

15

Total

80
If Lomas makes the extra 150,000 cases, the existing total fixed

manufacturing overhead (4,200,000 per month) would continue, plus an additional

165,000of fixed overhead will be incurred per month. Total fixed marketing and
distribution costs will not change. What price should Lomas bid?)
3.3 Assess the viability of a project using investment appraisal
techniques
(Use the data given in the assignment brief to compare the different investment
approaches. Calculate and interpret the payback period, rate of return etc.
Compare the following investment appraisal approaches, payback period, and rate of
return, net present value and IRR of firm by using given data as an example. Use
various interest rates to explain the concept.
Year

Income amounts

-1000 200 200 200 200 200 200)

LO4 (Task 04):

4.1 Discuss the main financial statements
(Review the main financial statements. Explain the difference between, income
statement, balance sheet and cash flow statements with one example for each.)
4.2 Compare appropriate formats of financial statements for different
types of business
(Create and compare the appropriate formats of financial statements for different
types of business. Consider any business of your own choice and compare the
horizontal and vertical income statement and balance sheet of that company).
4.3

Interpret

financial

statements

using

appropriate

ratios

and

comparisons, both internal and external.

(Interpret financial statements of given firm below, using appropriate
ratios for profitability, liquidity, efficiency and investment. Also comment on
the financial health of that firm as compare to internal and external
standards. )

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Wards Consulting
Income statement
For the month ended Dec 31, 2014
Revenue
Consulting revenue

7,000
Expenses
Rent expense
Salaries expense

600

Supplies used

2,500

Utilities expense

1,200
700

Wards Consulting
Balance Sheet

Net income

5,000

2,000

As at Dec 31, 2014

Assets
Cash
Account Receivable
Office Supplies
Office Equipment
Total Assets

7,000
3,000
3,000
5,000

18,000

Liabilities
Bank Loan
Account Payable

5,000
1,000
6,000

Equity
Common Stock

10,00

0
Net
Income
2,000 / Sep
BTEC HND in Business/ Managing Financial Resources and Decisions
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12,000
Total
liability
and

equity

18,000

LONDON CHURCHILL COLLEGE

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In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to
achieve the following MERIT and DISTINCTION grades
Grade Descriptor
Indicative characteristic/s
Contextualization

Effective
judgments
have
been
M1
To achieve M1, you will need to Critically
made
Identify and apply strategies to find
evaluate each available sources of
Complex problems with more than finance to that particular firm. Evaluation
appropriate solutions
should include the pros and cons, and
one variable have been explored
legal aspects of each source.
An effective approach to study
and research has been applied.
Relevant theories and techniques
M2
To achieve M2, you will need to Discuss
have been applied
Select
/
design
and
apply
the real life firm example of a firm and
A range of methods and
appropriate methods / techniques
briefly explain how that firm uses
information for making an investment
techniques have been applied
A range of source information has decision.
been used
The selection of methods and
techniques/sources has been
justified
The design of methods/techniques
has been justified
Complex information/data has
been synthesised and processed
Appropriate learning
methods/techniques have been
applied.
Communication
is appropriate for familiar To achieve M3 you will need to
M3
and
unfamiliar
audiences
and appropriate communicate these findings (linked
Present
and
communicate
media
have
been
used.
appropriate findings
with AC D1) to the relevant investment
analyst.
D1
Use critical reflection to evaluate
own
work
and
justify
valid
conclusions

Conclusions have been arrived at

through synthesis of ideas and
have been justified
The validity of results has been
evaluated using defined criteria

BTEC HND in Business/ Managing Financial Resources and Decisions / Sep 2016

To achieve D1 you will need to Critically

evaluate the outcomes of these appraisal
approaches for an investment decision.

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D2
Take responsibility for
and organizing activities

managing

D3
Demonstrate convergent /lateral /
creative thinking

Self-criticism of approach has

taken place
Realistic improvements have
Autonomy/independence has been
demonstrated
Substantial activities, projects or
investigations have been planned,
managed and organized
Activities have been managed
The unforeseen has been
accommodated
The importance of
interdependence has been
recognized and achieved.
Ideas have been generated and
decisions taken
Self-evaluation has taken place
Convergent and lateral thinking has
been applied
Problems have been solved
Innovation and creative through
throughout
Receptiveness to new ideas is
evident
Effective thinking has taken place in
unfamiliar contexts.

BTEC HND in Business/ Managing Financial Resources and Decisions / Sep 2016

To achieve D2 you will have to Use real

life firm examples and relate their
business type with appropriate financial
statement

To achieve D3 you will have to Take

example of two real life firms and by
using their financial statements estimate
and compare their profitability, liquidity,
efficiency and investment level.

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Assignment submission instructions

1. Go to the following website: www.submit.ac.uk
2. Click on Create an Account
3. At the bottom of the page you will find a list: Students, Instructor, Teaching
assistant. Click on Student
4. On the new page you will have to provide this information:
Class ID
Class enrolment password
Your first name
Your last name
Email address
Your password (it must be 6-12 characters long and contain at least one
letter and one number)
Select a secret question and write down your answer
5. Click on I agree Create Profile
6. Done.
a. You are now registered and can enrol into other classes. In order to do
that, click on Enrol in a class. Enter Class ID and Enrolment password
for that subject.
7. Please make sure you download and attach an assignment cover page from
the e-learning. Cover page can be found under Instructions tab of the
student area (e-learning).
If you still have any questions or need any help, please visit our Academic office.
Achievement of a pass, merit and distinction grade
A pass grade is achieved by meeting all the requirements defined in the assessment
criteria for each individual unit.
All the assessment criteria and merit grade descriptors need to be completed within
a unit to achieve a merit grade.
All the assessment criteria, merit and distinction grade descriptors must be
completed within a unit to achieve a distinction grade.
Plagiarismand Collusion
Any act of plagiarism and collusion will be seriously dealt with according to the
regulations. In this context the definition and scope of plagiarism are presented
below:
Using the work of others without acknowledging source of information or inspiration.
Even if the words are changed or sentences are put in different order, the result is
still plagiarism (Cortell 2003).

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Collusion describes as the submission of work produced in collaboration for an

assignment based on the assessment of individual work. When one person shares
his/her work with others who submit part or all of it as their own work.
Submission work should be Microsoft word files in Turn it in. If submission
is done in picture format, learner may be asked to submit in word format
again for plagiarism check.
Extension and Late Submission
If you need an extension for a valid reason, you must request one using a coursework
extension request form available from the college. Please note that the lecturers do
not have the authority to extend the coursework deadlines and therefore do not ask
them to award a coursework extension.
The completed form must be accompanied by evidence such as a medical certificate
in the event of you being sick.
Support materials
Textbooks
Particularly relevant texts are:
Mick B and John C Managing Financial Resources (A Butterworth-Heinemann; 2003,
3rd edition) ISBN: 0750657553
Randolph W, Jeffrey J- Modern Financial Management (McGraw-Hill Higher Education;
2003, 8th edition) ISBN: 0071286527
Harvard Referencing System
We expect students to use the alphabetical or name-date method known as the
HARVARD system. There are two parts in this system:
1. Citation within text or body of the report:
In this the author's surname and year of publication are cited in the text, e.g. (Bond,
2004).
2. Reference List:
A reference list (of these citations) is included at the end of the assignment, in
alphabetical order by author. The reference list also includes additional details such
as the title and publisher.
A bibliography lists relevant items that you have used in the preparation of the
assignment but not cited in your text. A bibliography should also be in the Harvard

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style and the inclusion of such a list shows that you have read widely beyond the
items you have cited.
Examples of citation within text or body of the report:
1. Cormack (1994, p.32-33) states that................
2............. This view has been supported in the work of Cormack (1994, p.32-33).
3. Jones (1946) and Smith (1948) have both shown
4. Corporate Author: 1st citation: Royal College of Nursing (RCN), 2007 2nd citation:
RCN, 2007
Examples of listings in reference list:
1. Books with one author:
Redman, P., 2006. Good essay writing: a social sciences guide. 3rd ed. London: Open
University in assoc. with Sage.
2. Books with two, three or four authors:
The required elements for a reference are: Authors, Initials, Year. Title of book.
Edition. Place: Publisher
Kirk, J. &Munday, R.J., 1988. Narrative analysis. 3rd ed. Bloomington: Indiana
University Press. Page 11 of 12 BTEC HND in Business/ Managing Human
Resources/May 2013
3. Books with more than four authors:
For books where there are more than four authors, use the first author only with
surname and initials followed by et al. The required elements for a reference are:
Author, Initials., Year. Title of book. Edition. (only include this if not the first edition)
Place: Publisher
Grace, B. et al., 1988. A history of the world. Princeton, NJ: Princeton University Press.
4. E-books
For e-books the required elements for a reference are :
Author, Year, title of book. [type of medium] Place of publication: Publisher
Fishman, R., 2005.The rise and fall of suburbia. [e-book]. Chester: Castle Press.
If available at website: Fishman, R., 2005. The rise and fall of suburbia. [e-book].
Chester: Castle Press.
Available at: libweb.anglia.ac.uk / E-books [accessed 5 June 2005].
5. Journal articles

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Author, Initials., Year. Title of article. Full Title of Journal, Volume number (Issue/Part
number), Page numbers.
Perry, C., 2001. What health care assistants know about clean hands.Nursing Times,
97(22), p.63-64.
6. Newspaper articles
Author, Initials., Year. Title of article.Full Title of Newspaper Day and month before
page numbers of article.
Slapper, G., 2005. Corporate manslaughter: new issues for lawyers. The Times, 3
Sep. p.4-5.
3. Books with more than four authors:
For books where there are more than four authors, use the first author only with
surname and initials followed by et al.
The required elements for a reference are:
Author, Initials., Year. Title of book. Edition. (only include this if not the first edition)
Place: Publisher
Grace, B. et al., 1988. A history of the world. Princeton, NJ: Princeton University Press.
4. E-books
For e-books the required elements for a reference are :
Author, Year, title of book. [type of medium] Place of publication: Publisher
Fishman, R., 2005.The rise and fall of suburbia. [e-book]. Chester: Castle Press.
If available at website:
Fishman, R., 2005.The rise and fall of suburbia. [e-book]. Chester: Castle Press.
Available at: libweb.anglia.ac.uk / E-books [accessed 5 June 2005].
5. Journal articles
Author, Initials., Year. Title of article. Full Title of Journal, Volume number (Issue/Part
number), Page numbers.
Perry, C., 2001. What health care assistants know about clean hands. Nursing Times,
97(22), p.63-64.
6. Newspaper articles
Author, Initials., Year. Title of article. Full Title of Newspaper Day and month before
page numbers of article.
Slapper, G., 2005. Corporate manslaughter: new issues for lawyers. The Times, 3
Sep. p.4-5.

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7. Journal articles from an electronic source

Boughton, J.M., 2002. The Bretton Woods proposal: an in depth look. Political Science
Quarterly, [online]. 42 (6), Available at: http://www.pol.upenn/articles (Blackwell
Science Synergy) [accessed 12 June 2005].
8. Internet
National electronic Library for Health. 2003. Can walking make you slimmer and
healthier? (Hitting the headlines article) [Online]. (Updated 16 Jan 2005) Available at:
http://www.nhs.uk.hth.walking [accessed 10 April 2005].
The title of a web page is normally the main heading on the page.
9. E-version of annual reports
Marks & Spencer, 2004.Annual report 2003-2004.[Online]. Available at: http://wwwmarks-and-spencer.co.uk/corporate/annual2003/ [accessed 4 June 2005].

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