Unit description
Students will know and understand the different ways in which finance is handled within a business organisation.
Students will understand and learn how to evaluate the different sources of finance, and compare the different ways in which these sources of finances are used, and learn how to use financial information to make decisions. Students will understand how to consider, decide, and relate pricing and investments, as well as budgets. They will then know how to use the techniques used for the evaluation of financial performance.
Students will gain the knowledge of long-term share capital, retained earnings, loans, and third-party investments. They will understand the short-to-medium terms such as hire purchase and leasing, working capital stock control, cash management, and debtor factoring. Students will gain knowledge of interests, dividends, and tax effects. The student needs to identify cash budgeting and overtrading, and understand the needs of different decision makers.
Students will understand analysis and the monitoring of cash and other budgets. They will know how to calculate unit costs, payback period, accounting rate of return, and discounted cash flow. Students will be introduced to debit, credit, books of prime entry, accounts and ledgers, trial balance, basic form, structure and purpose of main financial statements, distinctions between different types of business, liquidity, efficiency, and investment.
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