Documente Academic
Documente Profesional
Documente Cultură
May 9th
PIN or Student Date
ID Due
Your group is involved in the start up of a new business. The exact nature of
the business is left to the group to decide but must be a new venture that will
not require an unreasonable level of funding.
You are required to produce a comprehensive financial plan for this business
which and:
a) Clearly outline the aims and objectives of the business, indicate what
the unique selling point of the enterprise is and the legal form
(company or partnership).
b) Indicate the level of funding required and what form that funding will
take.
c) Detail the main costs of the products or services provided and establish
the break even point for those products or services including a
sensitivity analysis. You must indicate how you have arrived at the
price of your product or service.
d) Produce a detailed monthly cash flow for the first three years of the
business.
e) Provide an investment appraisal for a capital purchase (machinery,
transport, or buildings) that may need to be made for the business at
the end of year 3.
f) Produce annual budgeted income statements, balance sheets and
cash flow statements for the first three years of the business. Showing
a range of financial ratios from year to year so that an analysis of the
business may be made.
This data will be complied into a 2000 word report (tables and financial
statements are not included in the word count).
The report is expected to explain the decisions made, include appropriate
theory where applicable, and show an understanding of the markets you will
operate within and justification of your reasons why this business will be a
financial success.
Learning Outcomes
On successful completion of this assessment, the student will:
Marking Scheme
Answers should follow the question structure; the basis of assessment gives a
clear indication of what is expected. There is not a model answer to this as each
group will produce a unique data set, but the marks will reflect the clarity of
thought by the students and those that link appropriate theory into their
responses will be rewarded. Certainly it is expected that those students whose
analysis includes a comprehensive commentary on the decisions taken will be
credited.
Similarly the marking should be on the basis of clarity and appropriateness, not
on volume or discursive presentation. Students who show a clear understanding
of the techniques they are using will be appropriately awarded.
Ratios 10
Marker’s comment/s
The ratios used should clearly demonstrate the changes in the
business and accurately reflect the data created in the
accounts.
Mark Total
The presentation should be clear informative and persuasive. The marker will be
looking for a well-structured, concise but detailed report, with relevant tables
and/or figures to aid the student’s explanation or argument. A good standard of
English is essential. Correct Harvard referencing is required.
Note that the word limit does not include references or contents page. Students
are expected to keep to the word limit +/- 10%
The costs and prices of the products or services offered must be clearly
thought through and consist with the current market chosen.
With a new business the detail and accuracy of the cash flows is critical. The
group will need to demonstrate they have gone through a range of possible
outcomes and that the cash flows produced are the most likely outcome.
The group will need to demonstrate they have given clear thought to the cost
of capital in any investment appraisal.