Managing Financial Resources and Decisions

1091 WordsAug 5, 20135 Pages
UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS Unit 2: Unit code: QCF level: Credit value: Aim Managing Financial Resources and Decisions H/601/0548 4 15 credits The unit aim is to provide learners with an understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making. Unit abstract 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…show more content…
ypes of business ie limited company, partnership, sole trader Interpretation: use of key accounting ratios for profitability, liquidity, efficiency and investment; comparison both external ie other companies, industry standards and internal ie previous periods, budgets BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business – Issue 1 – April 2010 © Edexcel Limited 2010 9 UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS Learning outcomes and assessment criteria Learning outcomes On successful completion of this unit a learner will: LO1 Understand the sources of finance available to a business Assessment criteria for pass The learner can: 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 LO2 Understand the implications of finance as a resource within a business 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 LO3 Be able to make financial decisions based on financial information 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 LO4 Be able to evaluate the financial
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