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
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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
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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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This paper will identify key areas of financial functions, and recommendation to maintaining a sound financial structure.
d. Evaluate the impact of the major sources of finance on market value of shares and profitability.
This Summer Project report has the requisite standard for the partial fulfillment the Under Graduate Degree in Business Administration. To the best of our knowledge no part of this report has been reproduced from any other report and the contents