AC203: Business Finance

Module code: AC203

Module provider: Business Informatics, Systems and Accounting; Henley Business School

Credits: 20

Level: 5

When you'll be taught: Semester 1

Module convenor: Dr Manirul Islam, email: manirul.islam@henley.ac.uk

Pre-requisite module(s): BEFORE TAKING THIS MODULE YOU MUST TAKE AC110 OR TAKE MM1F27 (Compulsory)

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: na

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

This module introduces the role and purpose of the financial management function within a business. It aims to explain the nature and purpose of financial management and to discuss the objectives of financial management decision-making. The module explores the theory and practice of financing decisions. The module aims to develop the knowledge, understanding and skills of financial management, assessing the working capital needs of a business and the ways in which the elements of working capital may be managed.

Module learning outcomes

By the end of the module, it is expected that students will be able to: 

1. Explain the role of financial markets and institutions and identify the main sources of finance available to a business.
2. Consider the need to budget for capital projects and use the techniques of ARR, NPV, IRR and payback to appraise projects.
3. Analyse financial statements and prepare forecasts to assess financing needs.
4. Explain the need for financial restructuring at various stages of the business lifecycle.
5. Introduce business and share valuation and set out the main components of a business plan.
6. Evaluate the overall management of working capital and particular techniques used in the management of inventory, debtors, short-term funds, cash and current liabilities. 

Module content

The module will cover:

• Nature and purpose of financial management
• The business finance environment
• Introduction to financial objectives and the capital markets
• Sources of finance: equity
• Sources of finance: debt
• Forecasting, business valuation models and business planning
• Management of working capital
• Management of individual elements of current assets and current liabilities
• Capital investment appraisal
• Financial statement analysis and interpretation

Structure

Teaching and learning methods

Lectures of two hours per week will be used for the exposition of the major concepts, principles and techniques under consideration. Workshops of two hours duration will be used for problem solving and discussions based on current issues.

Study hours

At least 40 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall module mark of 40% to pass this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Tutorials are an opportunity to receive oral feedback on a variety of small group tasks, oriented around close case studies of a range of organisations. Through this informal feedback mechanism students are able to practice and develop various skillsets related to case study analysis and the communication of ideas and arguments in a coherent manner.

Reassessment

Additional costs