Managing Financial Resources and Decisions

Managing Financial Resources and Decisions (IDP 2)

 Assessment Assignment

Assignment front sheet

Qualification Unit number and title
Pearson BTEC Level 4 HNC Diploma in Business (FoC Qualification International Diploma in Business Programme) H/601/0548 Managing Financial Resources and Decisions (FoC code IDP2)
Student name    Assessor name
 
Date issued Completion date Submitted on
W/C 20th January2014 21st March 2014
Assignment title IDP2: Create an investment proposal for a business of your choice

 

 

Learning Outcome  

Learning outcome

Assessment Criteria In this assessment you will have the opportunity to present evidence that shows you are able to: Task no.  

Evidence

(Page no)

LO 1  

Understand the sources of finance available to a business

1.1 Identify the sources of finance available to a business 1/2
1.2 Assess the implications of the different sources 1/2
1.3 Evaluate appropriate sources of finance for a business project 1/2/4
LO 2  

Understand the implications of finance as a resource within a business

2.1 Analyse the costs of different sources of finance 2
2.2 Explain the importance of financial planning 1
2.3 Assess the information needs of different decision makers 1/3
2.4 Explain the impact of finance on the financial statements 2
LO 3  

Be able to make financial decisions based on financial information

3.1 Analyse budgets and make appropriate decisions 3/5
3.2 Explain the calculation of unit costs and make pricing decisions using relevant information 3
3.3 Assess the viability of a project using investment appraisal techniques 3/4
4.1 Discuss the main financial statements 5
LO 4 Be able to evaluate the financial performance of a business 4.2 Compare appropriate formats of financial statements for  different types of business

and comparisons, both internal and external.

5
4.3 Interpret financial statements using appropriate ratios (ratio analysis) 5

 

 

 

Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

 

 

Student signature:                                                                 Date:

 

 

 

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

 

Contextualisation

M1

Identify and apply strategies to find appropriate solutions

M1.1 – Effective judgements have been made

M1.2 – Complex problems with more than one variable have been explored

To achieve M1, you will make effective judgements about the sources of funding available and which to select for your business venture.

To achieve M1 you will show that complex problems with more than one variable have been explored

(Tasks 1 and 2)

M2

Select / design and apply appropriate methods / techniques

M2.1 – Relevant theories and techniques have been applied

 

To achieve M2 you will have used and applied relevant theories/techniques to explore the different sources of funding and present your findings

(Task 2)

M3

Present and communicate appropriate findings

M3.1 – The appropriate structure and approach has been used

 

To achieve M3 the work you present must be presented in a suitable format, that being the Report and the appropriate financial statements.

(Task 1–4)

D1

Use critical reflection to evaluate own work and justify valid conclusions

D1.1 – Conclusions arrived at through a synthesis of ideas and justified To achieve D1 you will have made decisions and choices that were based on conclusions which evaluated the differences between the various sources of financing, assessed which source was most appropriate and justified the choices made

(Task 1–4)

D2

Take responsibility for managing and organising activities

D2.1 – Demonstrated autonomy and independence To achieve D2 you will have demonstrated an effective approach to independent research and study and will have met the deadline to submit the tasks and achieve the unit assessment criteria

(Task 1-5)

D3

Demonstrate convergent/lateral/creative thinking

D3.1 – Ideas generate and decisions taken

D3.5 – Innovation and creative thought have been applied

To achieve D3 you will have generated creative and innovative ideas to use in this assignment and have taken appropriate decisions based on these ideas

(Task 1-5)

 

 

Assignment brief
Unit number and title H/601/0548 Managing Financial Resources and Decisions (FoC code IDP2)
Qualification Pearson BTEC Level 4 HNC Diploma in Business (FoC Qualification International Diploma in Business Programme)
Start date W/C 20th January 2014
Deadline/Hand-in 21st March 2014
Assessor
Assignment title Report: Create an investment proposal for a business of your choice
Purpose of this assignment:

 

This assignment is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. In this assignment learners will evaluate these different sources and compare how they are used. Learners will understand and indicate 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 in the assignment. Additionally, learners will apply techniques used to evaluate financial performance.

 

Scenario or context:

 

You wish to start a new business but lack sufficient funds to do so. You have been encouraged by your friends to go find external funding for your business idea, and this may include potential investors, so that you may get it started as they believe it is a really good business idea.

 

You must write an Investor Proposal Report to secure funding for a new business venture that you would like to start.

 

Potential entrepreneurs create an investor proposal to elicit investments, usually monetary, from one or more future stakeholders/funders. Writing a successful investor proposal is largely a matter of understanding your potential investors/stakeholders and addressing the concerns and questions they are most likely to have.

The proposal is generally written in sections, beginning with high-level summary information and progressing to detailed plan sections. The overall intent is to secure investor confidence and, thereby, investor money. For the purposes of this module the Investment Proposal Report must highlight the learner’s ability to understand and manage financial resources and support financial decisions being made.

 

Task 1 : (LO 1: 1.1;1.2;1.3 and LO 2: 2.2;2.3 and M1 and D3)

(should also talk about ratio analysis, just show your results not the calculation)

Executive summary – Give an outline of your business idea, what the funding will be used for and what it hopes to accomplish. Indicate why you are approaching a particular stakeholder for funding. Indicate why you think financial planning is important in such a context i.e. applying for funding from an investor.

To achieve M1, you will make effective judgements about the sources of funding available and which to select for your business venture.

To achieve M1 you will show that complex problems with more than one variable have been explored

To achieve D3 you will have generated creative and innovative ideas to use in this assignment and have taken appropriate decisions based on these ideas

 

Task 2: (LO 1: 1.1;1.2;1.3 and LO2: 2.1;2.2;2.3;2.4 and M1,M2 and D1,D3)

 

Source of finance – The amount of funding required must be indicated and justified. Indicate which is your preferred source of funding and why. Indicate and explain the the costs associated with this choice and justify why these are acceptable and the most advantageous for your plan. Also, what the alternative sources of funding were and why they were not selected specifically to this proposal (This should be linked to the choice of investor)

To achieve M1, you will make effective judgements about the sources of funding available and which to select for your business venture.

To achieve M1 you will show that complex problems with more than one variable have been explored

To achieve M2 you will have used and applied relevant theories/techniques to explore the different sources of funding and present your findings

To achieve D1 you will have made decisions and choices that were based on conclusions which evaluated the differences between the various sources of financing, assessed which source was most appropriate and justified the choices made

To achieve D3 you will have generated creative and innovative ideas to use in this assignment and have taken appropriate decisions based on these ideas

 

 

Task 3 (LO2: 2.3 and LO 3: 3.3 and M1, M2)

Return on Investment – You must use at least two Investment Appraisal techniques for this section to indicate what the Return On Investment (ROI) is for potential funders. You must also explain why the ROI is positive, identify which stakeholders would be interested in this information and why they would want this information. (can use ratio analysis  to show why your investment should invest in your business)

To achieve M1 you will show that complex problems with more than one variable have been explored

To achieve M2 you will have used and applied relevant theories/techniques to explore the different sources of funding and present your findings

Task 4 : (LO3: 3.1; 3.2; 3.3 and M1, M2, M3 and D2)

 

Explain and justify the venture’s potential  success – You must mention issues such as the importance and impact of financial planning on the success of their venture, a brief outline of your pricing strategy and why you have selected this approach and finally the importance and benefit of budgeting for your venture’s success and in securing funding.

To achieve M1 you will show that complex problems with more than one variable have been explored

To achieve M2 you will have used and applied relevant theories/techniques to explore the different sources of funding and present your findings

To achieve D2 you will have demonstrated an effective approach to independent research and study and will have met the deadline to submit the tasks and achieve the unit assessment criteria

Task 5 : (LO3: 3.1 and LO 4: 4.1;4.2;4.3 and M2,M3 and D2)

 

Financial documentation – A very simple Profit & Loss Statement, Balance Sheet and a Cash budget appropriate for your form of business can be created. It will use projected amounts based on your research and judgement regarding your chosen business venture.

Note: The LO’s state students do not have to prepare these but I think that in order for students to fully understand the management of financial resources it is necessary that they are able to compile simple versions of such documents.

To achieve M2 you will have used and applied relevant theories/techniques to explore the different sources of funding and present your findings

To achieve M3 the work you present must be presented in a suitable format, that being the Report and the appropriate financial statements.

To achieve D2 you will have demonstrated an effective approach to independent research and study and will have met the deadline to submit the tasks and achieve the unit assessment criteria

Evidence checklist Summary of evidence required by student Evidence presented
Task 1 A section in their report that summarises their business idea
Task 2 A section in their report that identifies and justifies their choice of source of funding
Task 3 A section in their report where they have detail the ROI having used two separate Appraisal techniques
Task 4 A section in their report where the venture’s potential is explained and justified
Task 5 A section that contains the financial documentation for their business venture
 

 

Sources of information:

 

Business Studies. 4th ed. By Dave Hall, Rob Jones, Carlo Raffo and Alain Anderton; Causeway Press; ISBN-13: 978-1405892315

Times 100 Business case studies website: www.businesscasestudies.co.uk

 

 

 

Achievement Summary

 

 

Qualification

Pearson BTEC Level 4 HNC Diploma in Business (FoC Qualification International Diploma in Business Programme)  

Assessor name

 

 

 

Unit Number and title

H/601/0548 Managing Financial Resources and Decisions (FoC code IDP2)  

Student name

 
 

 

 

Criteria Reference To achieve the criteria the evidence must show that the student is able to: Achieved ?

(tick)

LO 1    
 

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
LO 2
2.1 Analyse 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 the financial statements
LO 3
3.1 Analyse 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 appraisal techniques
LO 4
 

4.1

Discuss the main financial statements
 

4.2

Compare appropriate formats of financial statements for  different types of business and comparisons, both internal and external.
 

4.3

Interpret financial statements using appropriate ratios
 

OVERALL GRADE: PASS/MERIT/DISTINCTION

 

 

Higher Grade achievements (where applicable)

 

 

Grade descriptor

 

 

Achieved ?

(tick)

 

Grade descriptor

 

Achieved ?

(tick)

 

M1: Identify and apply strategies to find appropriate solutions

 

 

D1: Use critical reflection to evaluate own work and justify valid conclusions

 

M2: Select / design and apply appropriate methods / techniques

 

D2: Take responsibility for managing and organising activities
 

M3: Present and communicate appropriate findings

 

D3: Demonstrate convergent/lateral/  creative thinking


Assignment Feedback

 

Feedback: Assessor to Student

 

Formative feedback 1

 Formative feedback 2

 

Action Plan

 

Summative feedback

 

Feedback: Student to Assessor

 

  

 

Assessor Signature

 

   

 

Date

 

Student  Signature

 

   

 

Date

 

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