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Module FINANCIAL MANAGEMENT Module FIN3212
Title: Code:
Assignment INDIVIDUAL ASSIGNMENT 28.06.2019
Date:
Title:
Student Information: (Do not include your name unless your tutor has told you to do so.)
Name* Student ID*
AMANDA LIM JEAN NEE K16069260
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 TABLE OF CONTENT
1.0 INTRODUCTION 1
2.0 LONG TERM FINANCE AND LONG TERM DEBT 2
3.0 DEBT AND EQUITY 3
4.0 COMMON STOCK AND PREFERRED STOCK WITH ITS 4
ADVANTAGES AND DISADVANTAGES
5.0 LEASING WITH ITS ADVANTAGES AND DISADVANTAGES 8
6.0 FINANCIAL DISTRESS 9
6.1 DIRECT COSTS OF FINANCIAL DISTRESS 9
6.2 INDIRECT COSTS OF FINANCIAL DISTRESS 10
7.0 PROTECTIVE COVENANTS 12
7.1 NEGATIVE COVENANTS 12
7.2 POSITIVE COVENANTS 12
8.0 CONSOLIDATION OF DEBT 13
9.0 OPTIMUM CAPITAL STRUCTURE 13
10.0 WEIGHTED AVERGAE COST OF CAPITAL 14
11.0 CONCLUSION 16
12.0 REFERENCES LIST 17
13.0 SAFE ASSIGN REPORT 19
14.0 UG ASSESSMENT AND GRADING CRITERIA 20
1.0 Introduction

These individual assignments discuss about the basic sources of long-term financing that includes

long-term debt, preferred stock and common stock, and the main source of funding aside the equity

and debt capital which is leasing, including the pros and cons of each financial sources. Besides,

this assignment also discusses about financial distress and the direct and indirect costs of financial

distress on a company. Moreover, the debating of costs of debt can be reduce is included as well.

Additionally, there is analysation of an optimum capital structure a company can have in order to

maximize shareholders’ wealth. This also includes with the discussion of financing decision with

WACC techniques.

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2.0 Long term finance and Long term debt

Long term finance can be defined as ‘any financial instrument with maturity exceeding one year

(such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity

instruments. Maturity refers to the length of time between origination of a financial claim (loan,

bond, or other financial instrument) and the final payment date, at which point the remaining

principal and interest are due to be paid’ (World Bank, 2019).

Long term debt consists of probable future sacrifice of economic benefits arising from present

obligations that are not payable within a year or the operating cycle of the company whichever is

longer such as bonds payable, lease liabilities, obligations under employee pension plans and long

term notes payable.

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3.0 Debt and Equity

The categorisation of debt and equity is important for two legal reasons, First, in the case of a

bankruptcy of the issuer, investors in debt instruments have a priority on the claim on the issuer’s

asset over equity investors. Second, the tax treatment of the payment by the issuer differs

depending on the type of class. For example, interest payments made on debt instruments are tax

deductible to the issuer, whereas dividends are not (Fabozzi and Drake, 2009).

A debt can be in the form of a note, bond, or loan. The issuer must pay interest payments, which

are fixed contractually. The investor who lends then funds and expects interest and the repayment

of the debt is a creditor of the issuer. However, the investor in a debt instrument can realise no

more than the contractual amount, therefore, debt instrument is also called as ‘fixed income

instrument’ (Fabozzi and Drake, 2009).

For example, the Walt Disney Company bonds issued in July 1993, which mature in July 2093, pay

interest at a rate of 7.55%. This means that Disney pays the investor who bout the bonds $7.55 per

year for every $100 of principle value of debt they own (Chicago Tribune, 1993).

In contrast, an equity instrument requires that the issuer pay the investor an amount based on

earnings. After the obligation that the issuer is required to make to the company’s creditor are paid

(Fabozzi and Drake, 2009).

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4.0 Common stock and preferred stock with its advantages and disadvantages

Example of equity are the common stock. It represents ownership in an organisation, and because

the business has a perpetual life, common stock is a perpetual security. Therefore, common stock

has no maturity (Fabozzi and Drake, 2009).

Preferred stock also represents ownership interest in a corporation and can either have a

redemption date or be perpetual. Preferred stock is such a hybrid because it’s similarly like a debt

since investors in this security are only entitled to receive a fixed contractual amount; preferred

stock is also alike to equity as the payment to investor is only made after obligations to the

company’s creditors are satisfied. Preferred stockholders are eligible to a fixed contractual amount

(Fabozzi and Drake, 2009).

The first advantages of common stocks are there is potential for higher return with no upper limits.

Although there is always of risk, but it also guaranteed investors to earn large gains. There are two

methods to gain earnings. First, if the value of the stocks rises, so the capital increases. Second, if

the earnings had cover the business costs such as maintenance and growth, it has the option to

distribute the surplus to the common stockholders, or to make a dividend payment. If a company

issue common stocks and use them as an alternative to debts, it can be assumed to have less risks.

The reason of debt is not that preferable than common stock because it is not obligated to pay

interest to investors but only discretionary payments on dividends that the company has extra cash

(Ayres, 2015).

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More to the point, Ayres (2015) stated the transaction cost is low which is an ideal investment for

investors. Investors are only allowed to invest with limited liability. In simpler words, amount that

invested initially would be the most that would lose in the event of liquidation. In addition,

common stock is on a cash basis, investors can ‘put a cap’ on the amount of money to invest. The

benefit of common stock is investor will not face risk of losing the money that exceeds the invested

funds. As mentioned, investors to a company is limited, therefore, problems arise outside a

stockholder’s investment will not affect the investors. Investors just have to look in to the financial

health of the company.

Third, common stock has the easiest buying and selling process. Common stock is a liquid type of

investment; therefore, investors have to option to sell the stock anytime or buy the stock if investor

wishes to grow the stocks. In addition, common stock can be purchased at a fair price (Ayres,

2015).

First disadvantage of common stock is the earnings and the performance are subject to wide

swings. In simpler words, common stock is considered a high risk investment. Although risks are

always correlated with investing, but is also linked to common stock as well because the price are

unstable, fluctuating erratically. If investors fear of decreasing price of stocks and sells them, the

investors might end up with no earning. Also, the value of stock is unpredictable, hence it is

difficult to evaluate their performance even the company is doing well. Additionally, if the

business goes bankrupt, there is no way to gain the investment (Ayres, 2015).

Secondly, the disadvantage of common stock is lack of control. Purchasing of common stock dilute

investors voting rights, control and value. As a shareholder, investors are subject to the will of

stockholders. Common stockholders can not join in the decision making process or giving

5
suggestion of doing things for the company. However, it the company did not do well, it might

affect the investment. To have some control, investors have to buy a significant amount of shares to

gain a majority in the investment, the downside is it is hard to afford because it requires a lot of

money to gain the shares. In addition, the company usually limit a number of common stock to

ensure the control of existing shareholders is dominant (Ayres, 2015).

The advantages of preferred stock are similar to a bond as preferred stock normally has higher and

more regular dividends, it is more stable than common stock. Therefore, preferred stock carries less

risk (Koba, 2012).

The advantages of owning preferred stock is when the company must repay all the money it would

have pay to preferred shareholders before paying any dividends to common stockholders. Which

means, common stockholders are usually the last to receive dividends (Koba, 2012).

Besides, the stock value can rise and so the dividend pay-outs if the company is doing well.

Therefore, in an aspect of investors. preferred stock has ‘fixed-income’ characteristics, which

makes them an ideal choice of long-term retirement investment (Koba, 2012).

Also, preferred stockholders have the rights to convert their stocks into common stock at a

prearranged price. Investors could gain benefits because they are already entitled for stable

dividends, they can also gain rise in stock value if the company’s common stock rise (Koba, 2012).

The disadvantage of preferred stock is no voting rights Although preferred stock gives the

stockholder ownership in the company, most preferred stock does not give the stockholder voting

rights in the meeting (Parker, n.d.).

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Next, preferred stock is issued for the company to raise capital without taking new debts. As,

mentioned it pays a fixed dividend like bonds. Similarly, both bonds and preferred stock are

sensitive to fluctuation in prevailing interest rates. If the prevailing rates increase, the value of

preferred stock fall, and vice versa (Parker, n.d.).

Following, preferred stock holders have no guarantee for a failed company may end up with no

dividends at all. If the company gets liquidated, preferred stock holders will get ‘second crack’ at

company assets after the bond holders (Parker, n.d.).

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5.0 Leasing with its advantages and disadvantages

The other source of long term financing is leasing. A lease is a contract between lessee, which is

liable for periodic payment in exchange for the right to use the asset; and lessor, whom owns the

asset and entitled to receive payment in for lending the asset. Like rental, the lessee should make a

regular lease payment for the term of the contact (Berk and DeMarzo, 2017).

In the aspect of finance, the advantage of leasing is there would be less initial expenses. It allows

lessee to acquire assets with a minimal expenditure, as equipment leases usually does not require

down payment, lessee can obtain the assets without significantly affecting the cash flow. Also,

leasing is tax deductible as it can be deducted as business expenses on the tax return, hence, the

deduction is reducing the net cost of the lease (Nolo, 2019).

In the down side, leasing can be cost higher for the company (Nolo, 2019). Leasing an asset could

be more expensive than purchasing it. For instance, a 2-year lease on machinery worth RM40,000,

at a standard rate of RM400/month per RM10,000, will cost a total of RM41,600. Buying the

machinery would only cost RM40,000.

In addition, the lessee does not have ownership on the asset. As it doesn’t provide equity in the

equipment, unless the equipment has become out-dated by the end of the contact (Nolo,2019).

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6.0 Financial Distress

Financial distress is a term that used in corporate finance where a firm’s operating cash flows are

not sufficient to satisfy current obligations, and the firm is forced to take corrective action.

Financial distress may lead a firm to default on a contract, and it may involve financial

restructuring between the firm, creditors and equity investors (Ross et. al, 2016).

In financial distress, it does not usually result in the firm’s death. There are two methods deal with

distress which is first, asset restructuring: selling major assets, merging with other firm, reducing

capital expenditure and research and development; second, financial restructuring: issue new

securities, negotiating with banks and creditors, exchanging debt for equity and filing for

bankruptcy (Ross et. al, 2016).

6.1 Direct Costs of Financial Distress

Direct costs are the quantifiable costs such as legal fees and administrative expenses associated

with financial distress, default, or bankruptcy. The term ‘default’ refers to failure to meet an

interest payment or violation of debt agreement. While bankruptcy refers to a formal procedure for

working out default. However, it does not necessarily from default (Ross et. al, 2016).

As mentioned direct cost included legal fees. Ross et. al (2016) stated that lawyers are involved in

all the stages before and during bankruptcy. The cost can be added up quickly in time. Besides,

administrative and accounting expenses could add cost as well. In addition, if a trial takes place,

expert witnesses such as finance professors can also add to the total bill (Ross et. al, 2016).

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6.2 Indirect Costs of Financial Distress

Aside from direct costs, there are also indirect costs are related with financial distress. However,

compared to direct costs, indirect costs are complicate to measure accurately.

Such indirect cost includes loss of customer. When a company is under a financial distress,

customers may be refuse to buy or cancel their orders which the value depends on after sales from

the firm or fear of not getting deliveries on time. For instance, the clients will be hesitant to buy

tickets from airline that may cease operations. However, the loss of customers is likely to be

unaffected for producers of raw materials as the ‘values of these goods, once delivered, does not

depend on the seller’s continued success’ (Ross et al, 2016).

During financial distress, company might face loss of suppliers as they are unwilling to provide a

firm with inventory if they fear the company might face bankruptcy and they will not get paid.

Typically, in this situation, the suppliers of goods and services insist on cash on delivery terms

(Ross et al, 2016).

Another damageable indirect cost is loss of employees. In the state of distress, firms unable to offer

long-term employment contract, and therefore, unable to hire new employees. In addition, existing

employees may resign from the company (Ross et al, 2016). In short, retaining employees may be

costly. Hiring new employees may occur hidden cost such as productivity loss (O’connell, 2007).

Altman (2017) mentioned that the cost of losing an employee can range from $10,000 to 1.5–2.0x

the employee’s annual salary: it is because these costs involves hiring, training, ramp time to peak

productivity, the loss of engagement from others due to high turnover, higher business error rates,

and general culture impacts. This cost is expected to be high for company that is heavily depending

on their human resources (Ross et al, 2016).

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Aside from loss of employees and supplier, the firm will encounter loss of receivables. The

company that is in financial distress usually have difficulty to collect the money that is owed. The

people that owed will refuse to pay back to the company as they are perceived that the small

amounts are unimportant to the company. There are several reports shows that there is difference

on the average account receivables between distressed and unstressed firms (Wu and Lu, 2001).

However, collecting trade receivables are not ‘primary measure’ of companies before financial

distress incurred (Li and Zhang, 2009).

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7.0 Protective covenants

To answer the question of ‘can the costs of debt be reduced?’, of course it can be. However, the

methods that will be mentioned at most only reduce the costs of debt, but cannot be removed

completely. As the amount of the debt will eventually affect debt financing, costs of debt must be

reduced (Ross et al, 2016).

The first method is protective covenants, which is referred as a loan agreement between the

stockholders and bondholders. It can be categorised into negative covenants and positive

covenants. These covenants should be taken seriously because breaking them can lead to default

(Ross et al, 2016).

7.1 Negative covenants

Negative covenants are used to limit actions that the company may take, such as the company may

not merge with other company or the company should not issue any long term debt. While positive

covenants are used to request certain action that the company should agree with. For instance, the

company should agree to maintain the working capital at a certain level. To reduce the cost of

debts, these loan agreements are not limited (Ross et al, 2016).

7.2 Positive covenants

The purpose of protective covenants is to reduce the costs of bankruptcy, eventually increasing the

firm’s value. Therefore, all reasonable covenants are expected to abide by the stockholders. Firstly,

stockholders should accept to ‘issue no debt’; due to the tax advantages, it is effective but

expensive way to avoid disagreements. Second, ‘issue debt with no restrictive and protective

covenants. However, it is also not worth as bondholders will demand high interest rates because

12
there is no protection of their debt. Last is to provide protective and restrictive covenants into the

agreements. This will give protection to the debts and creditors are expected to accept this

approach than the ones without covenants (Ross et al, 2016).

8.0 Consolidation of debt

The second method to reduce costs of debts is ‘consolidation of debt’. In the books of record, debt

consolidation refers to combining more than one debt obligation into a new loan with a favourable

term structure such as lower interest rate structure. Here, the amount received from the new loan is

used to pay off other debts (The Economic Times, n.d.). The bankruptcy cost is high is due to

conflict inside the firm. This can be solved if there is a proper discussion between bondholders and

stockholders, such as some lenders can bear the entire debt, therefore, the cost can be decrease

during this approach. Aside from this, bondholders can also purchase stock as they are not separate

entities (Ross et al, 2016).

9.0 Optimal Capital Structure

The ‘optimal capital structure’ is the mix of debt, preferred stock, and common equity

that reduces the weighted cost to the firm of its ‘employed capital’. When the weighted cost of

capital is minimized, the total value of the firm will be maximised, therefore the shareholder’s

wealth can be maximised as well. It involves in balancing the shareholder’s expectations such as

risk and returns and the capital requirement of the firm. Other than that, the structure is used to

maintains the financial stability of a company. Consequently, the minimum cost capital structure is

known as the ‘optimal capital structure’. However, some companies could be all equity finance and

have no debts (ACCA Global, n.d.).

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10.0 Weighted Average Cost of Capital

The importance and usefulness of the weighted average cost of capital (WACC) as a financial tool

for both investors and companies are well accepted among financial analysts. It’s important for

companies to make their investment decisions and evaluate projects with similar and dissimilar

risks.Therefore, there is a financing decision to be made that has a direct effect on the weighted

average cost of capital (WACC), a ‘simple weighted average of the cost of equity and the cost of

debt’. The author stated that the lower the WACC, the higher the market value of the company. To

conclude, if the firm is able to change the capital structure to a lower WACC, it is possible to

increase the company’s market value and eventually increase the shareholders’ wealth (ACCA

Global, n.d.).

To lower down WACC, it is stated that the cost of debt must be cheaper than the cost of equity. It

is because the debt is less risky than equity, the required return needed to compensate the debt

investor is lower compared to required return needed to compensate the equity investor. Other than

that, debt as the payment of interest is usually a fixed amount and compulsory, also it is also prior

to receive the payments of dividends compared to others (ACCA Global, n.d.). Besides, in the

profit and loss accounts, interest is deducted before the tax is calculated, therefore, the firms get tax

relief on that interest. Nonetheless, dividends are deducted after tax calculations, and no tax relief

on the dividend (ACCA Global, n.d.). In simpler words, it is beneficial and for the firm to enjoy

that the interest is ‘tax deductible’. For example, if the interest payment is RM100 million and the

tax rate is 20%, the cost to the company is RM80 million.

The other method to lower the WACC, firms can replace some of the expensive equity with

cheaper debt as the equity could increase the WACC. In spite of this, issuing more debt will lead to

14
more interest paid out of profits before the dividends is paid to the shareholders. Then again, the

interest payment will also increase instability of dividend payments as well; this will lead to

financial risk to shareholders. If financial risk is high, shareholders might request a higher return to

compensate them. Eventually, cost of equity will increase as well as increase in the WACC (ACCA

Global, n.d.).

Brealey et al (2017) mentioned that in 1958, Modigliani and Miller stated that, ‘assuming a perfect

capital market and ignoring taxation, the WACC remains constant at all levels of gearing’.

According to Brealey et al (2017), a company gears up will lead to decrease in WACC due to a

greater amount of cheaper debt is exactly offset by the increase in the WACC that is caused by the

increase in the cost of equity because of financial risk. When gearing increases, the financial risk

increases, therefore Keg increases. It is essential to know that increasing in Keg will also increase

the financial risk. Tax deductible will lead the company to gear up and gain tax relief. Tax relief is

also known as tax shield as it protects the profits from the corporate tax. This approach can reduce

its WACC and increase its value by substituting debt for equity. On the other hand, as the company

gears up and the interest payment increase, it will reach a point that they are required to be

deducted, therefore beyond a certain amount the company will not gain any tax relief (ACCA

Global, n.d.).

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11.0 Conclusion

To conclude, as most of the financial objective is to maximise the shareholders’ wealth, the

company should take action to reduce their WACC. Practically, this can be accomplished by

having some debts in the capital structure as it is relatively cheaper than equity, while avoiding

little or extreme gearing. Such little gearing is WACC can continue to be reduce and too much

gearing is too much burden on bankruptcy cost and tax exhaustion. Company should engage in

reasonable levels of gearing instead of searching for an optimum capital structure (ACCA Global,

n.d.).

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12.0 References List
ACCA Global. (n.d.). Optimum capital structure | F9 Financial Management | ACCA
Qualification | Students | ACCA Global. [online] Available at:
https://www.accaglobal.com/my/en/student/exam-support-resources/fundamentals-exams-study-
resources/f9/technical-articles/optimum-capital-structure.html [Accessed 24 Jun. 2019].

Altman, J. (2017). How Much Does Employee Turnover Really Cost? [online]
Huffpost.com. Available at: https://www.huffpost.com/entry/how-much-does-employee-turnover-
really-cost_b_587fbaf9e4b0474ad4874fb7 [Accessed 21 Jun. 2019].

Ayres, C. (2015). 8 Big Advantages and Disadvantages of Common Stocks. [online]

ConnectUS. Available at: https://connectusfund.org/8-big-advantages-and-disadvantages-of-
common-stocks [Accessed 20 Jun. 2019].

Berk, J. and DeMarzo, P. (2017). Corporate Finance. 4th ed. Edinburgh: Pearson Education
Limited, pp.921-923.

Brealey, R., Myers, S. and Allen, F. (2017). Principles of corporate finance. 12th ed. New
York: McGraw-Hill Education, pp.452-455, 490-493.

Chicago Tribune. (1993). DISNEY'S `CENTURY' BOND DRAWS ANIMATED

DEMAND. [online] Available at: https://www.chicagotribune.com/news/ct-xpm-1993-07-22-
9307220314-story.html [Accessed 20 Jun. 2019].

Fabozzi, F. and Drake, P. (2009). The Basics of Finance: An Introduction to Financial

Markets, Business Finance, and Portfolio Management. Hoboken: John Wiley & Sons, pp.15-17.

Koba, M. (2012). Preferred Stock: CNBC Explains. [online] CNBC. Available at:
https://www.cnbc.com/id/44517614 [Accessed 20 Jun. 2019].

Li, L.S. and Zhang, Y., 2009. Judging and early warning of financial crisis in Chinese listed
companies [J]. Journal of Business Economics, 4.

Nolo. (2019). Business Equipment: Buying vs. Leasing. [online] Available at:
https://www.nolo.com/legal-encyclopedia/business-equipment-buying-vs-leasing-29714.html
[Accessed 20 Jun. 2019].

O'Connell, Kung, Mavis. (2007). The Cost of Employee Turnover. Industrial Management.
49. 14-19.

Parker, M. (n.d.). The Disadvantages of Preferred Stock. [online] Budgeting.thenest.com.

Available at: https://budgeting.thenest.com/disadvantages-preferred-stock-27345.html [Accessed
20 Jun. 2019].

Ross, S., Westerfield, R., Jaffe, J. and Jordan, B. (2016). Corporate finance. 11th ed. New
York: McGraw-Hill, pp. 530-533, 588-590, 923-934.

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 Shinong, W. and Xianyi, L., 2001. A Study of Models for Predicting Financial Distress in
China's Listed Companies [J]. Economic Research Journal, 6, pp.46-55.

The Economic Times. (n.d.). Definition of Debt Consolidation | What is Debt Consolidation
? Debt Consolidation Meaning. [online] Available at:
https://economictimes.indiatimes.com/definition/debt-consolidation [Accessed 24 Jun. 2019].

World Bank. (2019). Long Term Finance. [online] Available at:

https://www.worldbank.org/en/publication/gfdr/gfdr-2016/background/long-term-finance
[Accessed 24 Jun. 2019].

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13.0 Safe Assign Report

19
14.0 UG Assessment & Grading Criteria
UG Assessment & Grading Criteria for UHBS Coursework (Report)
Module Code: FIN3212
REPORT Presentation & structure
Task details Follows report structure &
keeps to word limit of ...
/marks / 5 Marks
80-100 Outstanding... Presentation &
report structure, with numbered
Outstanding paragraphs, list of
contents/figures &appendices.
Articulate & fluent academic
writing style with ideas cross
referenced. No grammatical /
spelling errors.
70-79 Excellent ... Presentation &
report structure, with numbered
Excellent paragraphs, list of
contents/figures, appendices &
cross referencing.
Articulate & fluent academic
writing style. Only a minor error.
60-69 Very good... Presentation &
report structure, paragraphing,
Very Good use of numbering, list of
contents/figures, appendices &
cross referencing.
Fluent academic writing style.
Very few grammatical errors &
spelling mistakes.
50-59 Good... Clear presentation &
report structure, use of
Good numbering & appendices.
Writing is mainly clear but some
spelling &/ or grammatical
errors.
40-49 Satisfactory... Basic report
structure.
Satisfactory Not always written clearly & has
grammatical & / or spelling
errors.
Lecturer: WINNIE BINTI ABDUL
NASIR
Use & presentation of Harvard
Referencing
Follows Harvard style for in-text
citation & Reference List
Use a minimum of ... sources
/ 5 Marks
Outstanding... Standard of
referencing within text & consistent
use of Harvard referencing system.
Accuracy of in-text references &
full details shown in Reference list.
More than the ten journals used.
Excellent... Standard of
referencing within text & consistent
use of Harvard referencing system.
Accuracy of in-text references &
full details shown in Reference list.
More than eight journals used, but
less than ten.
Very good... Standard of
referencing within text & consistent
use of Harvard referencing system.
Accuracy of in-text references &
full details shown in Reference list.
More six journals used, but less
than eight.
Good... Standard of referencing
within text & consistent use of
Harvard referencing system.
Accuracy of in-text references &
full details shown in Reference list.
Six journals used.
Satisfactory... Basic referencing
within text & consistent use of
Harvard referencing system.
Accuracy of in-text references &
full details shown in Reference list.
Meet the requirement of minimum
of five journals used.
Content/ Terms/ Findings/
Definitions/ Calculations
Content included - specify task
requirements as in module
guide & coursework guidance
/ e.g. 30 Marks
Outstanding... Exploration of topic
showing excellent knowledge &
understanding through thorough &
appropriate research.
Impressive choice and range of
appropriate content.
Excellent ... Level of knowledge &
understanding demonstrated.
Evidence of appropriate reading.
Covers all relevant points & issues.
Very good... Level of knowledge &
understanding demonstrated.
Covers most relevant points &
issues.
Few errors / omissions in
content/calculations.
Good... Grasp of the topic & some
of its implications presented.
Knowledge & understanding is
demonstrated.
Minor errors / omissions in content/
calculations.
Satisfactory... Content / level of
knowledge of the topic. Addresses
part of the task. Some errors /
omissions in content/ calculations.
May benefit from further research.
20
Student: AMANDA LIM JEAN NEE
Business Application &
Integration of Data/Literature
Integration & application of
information - from coursework
guidance /module guide
/e.g. 30 Marks
Outstanding... Business insight
& application.
Breadth, depth & integration of
literature/data into work.
Excellent ... Business insight &
application.
Breadth, depth & integration of
literature/data into work.
Very good... Business insight &
application.
Breadth, depth & integration of
literature/data into work.
Good... Business insight &
application.
Breadth, depth & integration of
literature/data into work.
Satisfactory... Business insight
& application. Limited integration
with literature/ data.
Use of literature/data but limited in
breadth OR depth.
Penalty:
Total Mark Awarded:
Discussion /Analysis /Critical Any other lecturer instructions
evaluation &/or Reflection
Line of argument, development of
discussion add instructional verbs
to suit the task & level
Lecturer comments:
/e.g. 30 Marks
Outstanding... Level of
discussion/analysis/ critical
evaluation &/or reflection.
Highly developed/ focused work.
Excellent... Level of
discussion/analysis/ critical
evaluation &/or reflection clearly
developing points in the appropriate
way with thorough consideration of all
possibilities.
Very good... Level of
discussion/analysis/ critical
evaluation &/or reflection & a few
ideas/points could benefit from
further development &/or
evaluation/comparison.
Good... Level of discussion/analysis/
critical evaluation &/or reflection but
more ideas/points could be addressed
/developed further.
Satisfactory... Basic evidence of
discussion/analysis/ critical
evaluation &/or reflection but some
points superficially made so need
further development.
 30-39 Weak... Report format, limited or
poor structure.
Marginal Fail Muddled work with many
spelling & / or grammatical
errors.
20 – 29 Inadequate... Report format and
poor paragraphing / signposting.
Clear Fail Inappropriate writing style
Poorly written &/or poor spelling
& grammar.
Weak...Use of Harvard referencing
system with errors & inconsistently
applied. Limited referencing within
the text. Limited accuracy of in-text
references compared to those in
the final Reference list. Less than
the minimum requirement of five
journals used.
Inadequate... Use of Harvard
referencing with many errors &/or
inconsistencies. Less than the
minimum requirement of five
journals used.
Weak... Limited content /
knowledge/ calculations. Limited or
muddled understanding of the
topic/question.
Does not meet all the learning
outcomes.
Inadequate... Lacking in relevant
content/ knowledge/calculations.
Content irrelevant / inaccurate.
Does not meet all the learning
outcomes.
21
Weak... Unsatisfactory evidence
of business application & insight
Work needs to show better links
between practical application and
theory.
Inadequate... Lacks evidence of
business application & insight.
Some literature irrelevant to topic.
Weak... Limited evidence of
discussion/analysis/ critical
evaluation &/or reflection.
More development & comment
needed. May need to do more than
describe.
Inadequate... Lacking / inadequate
level of discussion/ analysis/critical
evaluation & /or reflection.
Descriptive.
 1 – 19 Nothing of merit... Poorly Nothing of merit... No or little Nothing of merit... Unsatisfactory Nothing of merit... No Nothing of merit... Unsatisfactory
written work, lacking structure, attempt to use the recommended level of knowledge demonstrated. evidence of appropriate level of discussion/analysis/critical
Little or paragraphing / signposting. Harvard referencing system. No Content used irrelevant / not business application & insight. evaluation &/or reflection
Nothing of Many inaccuracies in spelling & journal used. appropriate/ to the topic. Does not
merit grammar. meet the learning outcomes.

This form is used by staff & students to provide feedback to assist students’ future work.