Assignment Brief

BTEC Level 5 Higher National Diploma in Business

Unit Aim
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 introduction
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 relating to pricing and investment appraisal are also considered within the unit. Finally, learners
will learn and apply techniques used to evaluate financial performance.

Learning outcomes and assessment criteria

In order to pass this unit, the assignment that you present for assessment needs to demonstrate that you
can meet all the learning outcomes listed below.
Learning Outcomes ( LO)

Assessment Criteria ( AC)

1

a
1.1 identify the sources of finance available to business

1. Understand 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
business project

2
2.1 analyse the costs of different sources of finance
2. Understand the implications of
finance as a resource within a
business

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
3

3. Be able to make financial

decisions based on financial
information

g
3.1 analyse budgets and make appropriate decisions
3.2 explain the calculation of unit costs and make
pricin
decisions using relevant information
3.3 assess the viability of a project using investment
appraisal techniques

4.1 discuss the main financial statements

4. Be able to evaluate the financial
performance of a business

4.2 compare appropriate formats of financial statements

for different types of business
4.3 interpret financial statements using appropriate ratios
and comparisons, both internal and external.

Before you get started please read the following information very carefully.
Assignment Format/Style
Produce an informal report/paper that addresses all the tasks in the assignment brief. You are
encouraged to use diagrams or tables to illustrate and reinforce your findings. Any references to academic
theory should be correctly cited and referenced in a bibliography at the end of the report. (please do not
copy and paste information)
Fully completed assignment cover page
Title page
Table of contents Introduction
Main body of the report clearly identifying the separate outcomes and assessment criteria
Conclusion and recommendations ( if relevant)
References and bibliography
Appendices only if relevant and necessary
Assignment Content
The assignment brief includes headings relevant to the unit outcomes, read and follow the tasks listed
under each heading and this will make certain that you cover all the outcomes and assessment criteria to
achieve the unit.
Assessment and Grading
Read the assessment grading criteria before attempting the assignment tasks, as it contains important
information about how you should approach your assignment and how grading is applied in order for you
to achieve a pass, merit or distinction.
Assignment Submission
All assignments must be submitted by the agreed date, via MOODLE. Assignments submitted late, but
with permission, will be marked as a pass only. Assignments submitted late, without permission, will not
be marked until the end of the year, or the next time the unit is scheduled.
Please ensure that your assignment is attached to the assignment submission receipt and that you read
and sign the statement confirming authenticity. Check that all relevant fields are completed fully before
submission.

Assignment Feedback
Once the assessor has marked your assignment, you will receive written feedback, either confirming that
you have met the required standard and grade awarded, or that you have not yet met the standard and
what you need to do to make the necessary improvements. Please note that achieved and confirmation of
grades is provisional until signed off by the Internal Verifier.

Student Guide to Writing an Assignment

This is an assignment guide to help support you while completing your BTEC Assignments.
It includes:
Assignment writing guidance
Referencing guidance
Recommended Reading
A reading list will be given to you at the first session unit session.
You should also read a good quality newspaper and/or use relevant internet sites regularly and identify key
influences and recent and relevant research with regard to your subject area. You should read topical case
studies and read about national campaigns and government initiatives in your area of interest.

Good Luck!
Assessment and Grading
The grading of Edexcel BTEC Higher National Qualifications is at the unit and the qualification level. Each
successfully completed unit will be graded as a pass, merit or distinction.
Learners will be awarded a merit or distinction grade by the aggregation of points gained through the
successful achievement of individual units. The points will be calculated based on the unit credit size, the
points available for each credit is: pass = 0 merit =1 distinction= 2. To achieve a merit grade overall you
will need to accumulate a minimum of 75 points and for a distinction a minimum of 150 points.

To achieve a Pass
A pass grade is achievable by meeting all the requirements defined in the
assessment criteria for pass for each unit.
To achieve a Merit a
The learners evidence shows, for
example: learner must:
Identify and apply Effective judgments have been made strategies to find Complex problems with
more than one variable have been explored
appropriate solutions
An effective approach to study and research has been applied
Relevant theories and techniques have been applied
Select/design and apply
A range of methods and techniques have been applied appropriate
methods and
A range of sources of information has been used
techniques The selection of methods and techniques/sources has been justified
The design of methods/techniques has been justified
Complex information/data has been synthesized and processed.
Appropriate learning methods/techniques have been applied.

The appropriate structure and approach has been used

Present and Coherent, logical development of principles/concepts for the intended communicate
appropriate audience
findings
A range of methods of presentation have been used and technical
language has been accurately used.
Communication has taken place in familiar and unfamiliar contexts
The communication is appropriate for familiar and unfamiliar audiences and appropriate media have been
used. To achieve a distinction a The learners evidence shows, for example:
leaner must:
Use critical reflection to Conclusions have been arrived at through synthesis of ideas and have
evaluate own work and been justified. justify valid conclusions The validity of results has been
evaluated using defined criteria.
Self-criticism of approach has taken place
Realistic improvements have been proposed against defined characteristics for success.
Take responsibility for Autonomy/independence has been demonstrated managing and organising
Substantial activities, projects or investigations have been planned, activities. managed and
organized.
Activities have been managed
The unforeseen has been accommodated
The importance of interdependence has been recognised and achieved.
Demonstrate
Ideas have been generated and decisions taken convergent/lateral/creati

Self-evaluation has taken place

ve thinking Convergent and lateral thinking have been applied
Receptiveness to new ideas is evident
Effective thinking has taken place in unfamiliar contexts

Overview
Please use the headings shown below when writing up your report

Assessment Criteria
coverage

Assignment Title
Evaluate the financial performance of a business

Title is provided

Context

Context of assignment is
provided

Briefly describe your organisation and what it does.

Understand the sources of finance available to a business
outcome 1)
Task 1a

(learning

Right from the moment someone thinks of a business idea, there needs to be
cash. Depending on the type of the business, it will need to finance the
purchase of assets, materials, employing people and financing the day to day
running of the business.

AC 1.1

Choosing the right source of finance will depend on the needs of the business.
You are required to identify the sources of finance available to your business
which considers options for short-term and long-term finance.
Task 1b
You have now identified the sources of finance available to your business. AC 1.2
Before you make the final decision about the finance option for your business,
you must assess the implications of the different finance sources you identified
in 1a.
Task 3
Your Organisation seeks to expand and sell their services/products into a new
geographical area. You are part of the innovation project team and your role is AC 1.3
to evaluate a range of appropriate finance sources and provide clear information
to the decision makers.
You are to produce a report that evaluates 3 different finance sources
appropriate to the project brief.
Understand the implications of finance as a resource within a business
(learning outcome 2)
Task 1
You have already identified the different sources of finance. You are to take the
next step and analyse the costs of the different sources of finance. Consider
the list below or include your own if relevant:

AC 2.1

1. tangible costs; such as, interest and dividends;

2. opportunity costs; such as loss of alternative projects when using
You will learn about and gain an understanding of a broad range of financial sources, availability and
implications for a business. You will learn how to make financial decisions and evaluate the financial
performance of a business. The organisation that you choose can be one that you are familiar with or by
choosing a case study provided by GCMS

retained earnings;
3. tax
Task 2
Financial planning determines how a business affords and finances its strategic
goals and objectives. You are to consider the implications to a business of
failing to finance adequately and explain the overall importance of financial
planning.

AC 2.2

Task 3
Within your organisation there are various functions, departments and
individuals who need financial information to support business and operational
decisions. You are to identify three main decision makers and assess their
financial information needs.

AC2.3

Task 4
You are to explain the impact of finance on the financial statements produced
by your Organisation. Include the two points listed below:
1. How different types of finance and their costs appear in the financial
statements.
2. The interaction of assets and liabilities on the balance sheet and on
international equivalents under the International Accounting Standards
(IAS)
Be able to make financial decisions based on financial information
(learning outcome 3)
Task 1

AC2.4

AC3.1
Finance uses the analytic process to develop recommendations on budget
proposals and issues that may financially impact the business. To demonstrate
that you are able to make sound financial decisions, you are to select and
analyse 3 different budgets from the list below:
1.
2.
3.
4.
5.
6.

Cash Budget
Human Resource Budget
Marketing Budget
Advertising Budget
Capital Expenditure Budget
Operating Budget
Task 2
By using one of the budgets analysed in task one and other relevant financial AC3.2
information gathered in the other tasks. Explain the calculation of the unit
costs and make your own judgements to the pricing decisions.

Task 3

10

You are required to assess the viability of a project by using investment AC3.3
appraisal techniques. Select 3 of the following techniques to carry out your
assessment.
Payback period;
Accounting rate of return;
Discounted cash flow techniques
Internal rate of return
Be able to evaluate the financial performance of a business (learning
outcome 4)
Management of any business requires a flow of information to make informed,
intelligent decisions affecting the success or failure of its business.
Management, Investors and Stakeholder need financial statements to analyse,
to ascertain the investment potential and to identify any risks involved in doing
business with the Organisation.

On successful completion of the following tasks you will show that you know,
understand and can demonstrate that you are able to evaluate the financial
performance of a business.

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AC4.1
Task 1
Provide a report that discusses the main financial statements in your
Orgainisation. You may select the 3 financial statements listed below, or
choose alternatives that are specific to your Organisation.
1. balance sheet
2. profit and loss account
3. cash flow statement.
Task 2

AC4.2

Compare the format of the 3 financial statements against the industry standard
for 2 different types of businesses. Select 2 from the list below:
1. limited company
2. Partnerships
3. sole trader
Task 3
Financial ratios are one of the most common tools of managerial decision
making. Financial ratios involve the comparison of various figures from the
financial statements in order to gain information about the business
performance.
Task 3a Using the three financial statements discussed in task one, you are
to interpret the financial statements of your Organisation, using the three ratios
listed below.

12

AC4.3

13

Profitability Ratio
Liquidity Ratio
Asset Utilization Ratio

Task 3b
Make comparative judgements
both internally
(
previous periods,
budgets and forecasts) and
externally
(
Competitors and Industry standards
)

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Reading Materials
Textbooks
Denzil Watson & Antony Head, Corporate Finance, Fifth Edition, ISBN 9780273725251
Business study guide, Level 4 & 5, Edexcel (2011, Pearson Education Limited), ISBN 978085776003
J Managing Financial Reso
urces
( Elsevier, 2003
) ISBN 0750657553
,
9780750657556
Hayre, A. (2015). Managing Financial Resources and Decisions
Seitz, N., & Ellison, M. (1995)
Capital budgeting and- long term financing decisions. Harcourt Brace College Publishers
Journals
Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic
man resources
hu
management effectiveness
as determinants of firm performance.
Academy of Management journal,
40(1), 171- 188.
Gross, D. B. (1995).The investmentand financing decisions of liquidity constrainedfirms( Doctoral dissertation,
Massachusetts Institute of Technology).
Howlett, E., Kees, J., & Kemp, E. (2008). The role
regulation, future orientation, and financial knowledge
of self
termin long
financial decisions. Journal of Consumer Affairs,
42(2), 223- 242.
Surroca, J., Trib, J. A., & Waddock
, S. (2010). Corporate responsibility and financial performance: The role of intangible
resources. Strategic Management Journal,
31(5), 463- 490.
Websites

financialfountains.com
www.digitallibrary.edu.pk
www. fsb.org

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