ASSIGNMENT FRONT SHEET

Qualification

Unit Number and Title

Pearson BTEC Level 5 Diploma in Business

Unit
02:
Managing
Resources and Decisions

Reg. No. Learners Name

Assessors Name

Financial

Farhan Saleem
Hand-out Date

Hand-in Date

09th October 2016

1st December 2016

Assignment Type

Partial Assignment

Assignment Title

Understanding of The Sources and Availability of Finance for a

Business

Learning Outcome
No. and Statement

LO1

LO2

LO4

Understand the
sources of
finance
available to a
business

Understand the
implications of
finance as a
resource within
a business

Be able to
evaluate the
financial
performance of
a business.

A.C

Submitted On

In this assessment you will have the

opportunity to present evidence that shows
you are able to:

1.1

Identify the sources of finance available for a

business

1.2

Assess the implications of the different sources

1.3

Evaluate appropriate sources of finance for a

business project

2.1

Analyze 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

4.1

Discuss the main financial statements

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

Task
No.

Page
No.

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

Assessment and Grading Criteria

A pass grade is achieved by meeting all the requirements listed in the assessment
criteria above. Additionally you may achieve higher grades as below.
In order to achieve a
MERIT the learner must
achieve all three merit
descriptors:

Indicative characteristics

M1: identify and apply

strategies to find appropriate
solutions

Complex problems with more

than one variable have been
explored

M2: select/design and apply

appropriate
methods/techniques

A range of methods and

techniques have been applied

M3: present and

communicate appropriate
findings

The communication is
appropriate for familiar and
unfamiliar audiences and
appropriate media have been
used.

Guidance

Critics should be base on

current scenario of given case
study e.g. assessing all
variables for implications of
different sources of finance.
learner need to analyze the
situation
and
select
appropriate
method
Apply
different
techniques
to
calculate cost of finances in
given scenario.

For this question report has to

prepare, submission of
deadline should be taken care
and discuss all 5 financial
statements.

In order to achieve a
DISTINCTION the learner
must achieve all three
merit descriptors in
addition to these
distinction descriptors:

Indicative characteristics

Guidance

D1: use critical reflection to

valuate own work and justify
valid conclusions

Conclusions have been arrived at

through synthesis of ideas and
have been justified

Draft requires a conclusion at

the end. Conclusion should be
made through the synthesis of
ideas and justify with pros
and corns e.g. shareholders
appetite of risk.

D2: take responsibility for

managing and organizing
activities

The unforeseen has been

accommodated

You have to analyze the

situation and consider the
future impacts over the
company.

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

Learner should have to take

into account and explain the
impact on F/S for example
rate of interest.
D3: Demonstrate
convergent/lateral/creative
thinking

Convergent and lateral

thinking has been applied

Presentation is required and

demonstrates the position of
the company with some
effective thoughts on
problems based on the
arguments compelled
throughout the case study.

Learners Declaration
I certify the work submitted for this assignment is my own and research sources have
fully acknowledged.
Learners Signature:
Date:

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

ASSIGNMENT BRIEF
Qualification

Unit Number and Title

Pearson BTEC Level 5 Diploma in Business

Unit 02: Managing Financial

Resources and Decisions

Reg. No. Learners Name

Assessors Name
Farhan Saleem

Hand-out Date

Hand-in Date

Submitted On

09th October 2016

1st December 2016

Assignment Type

Partial Assignment

Assignment Title

Understanding of The Sources and Availability of Finance for a

Business

L.O 1 Understand the sources of finance available to a business

Mr. Joker is determined to open his own Fashion Business (select any boutique,
designing, stitching or printing) but he has lack of finance. Mr. Joker has collected AED
40,000 with several years of savings.
He approached you to take consultancy for this regard. You are working as assistant
financial analyst for Future Consultants.
Dr. Jack, the financial analyst of Future Consultants asked you to prepare a draft and
include all the following:
A.C 1.1: Identify the sources of finance available for a (selected) business
A.C 1.2: Assess the implications of the different sources
A.C 1.3: Evaluate appropriate sources of finance for a business project

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

L.O 2 Understand the implications of finance as a resource within

a business
The cost of finance is critical to the businesses. This is the liability and any business, that
borrows finance, must be able to meet it while generating profits and enhancing worth of
the organization.
Mr. Joker called you few days later and asked about debt financing and equity financing
as he is unfamiliar with these terms. He further said might not need accountant as he
had studied accountancy in his schooling but he does not have any experience or other
qualification. In addition to that he does not want any formal financial statements as he
is the sole owner of the company.
Mr. Jack further asked you to prepare a report for Fashion Business and include the all
followings.
A.C 2.1: Analyze the costs of different sources of finance
A.C 2.2: Explain the importance of financial planning
A.C 2.3: Assess the information needs of different decision makers
A.C 2.4: Explain the impact of finance on the financial statements

Note:
Interest rate is, LIBOR plus 1.5%.

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

L.O 4 4 Be able to evaluate the financial performance of a

business.
Few fresh graduates are going to join next week with Future Consultants. Mr. Jack is
very concerned about that and wants you to prepare a PowerPoint Presentation and
give 5 minutes lecture to the completely new interns next week about financial
statements.
Moreover, he wishes to discuss the financial statements prepared by the accountant of
Farmhouse LLC as existing client.
A.C 4.1: Discuss the main financial statements
A.C 4.2: Compare appropriate formats of financial statements for different
types of business

Farmhouse LLC
Profit and loss account for the year 30th September 2016

Sales
Cost of goods sold
Gross profit
Operating Expenses
Bank Interest
Net profit before tax
Tax
Net profit after tax
Dividend paid:
Ordinary shares
Retained Profit

2015
AED millions
160
-110
50
-30
-5
15
-9
6

2016
AED millions
200
-120
80
-50
-12
18
-12
4

-2
4

-0
4

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

Farmhouse LLC
Balance sheet at 30 September 2016
2015
AED millions
300

2016
AED millions
320

15
35
8
58

30
50
1
81

358

401

225
63
288

225
67
292

Long term liabilities

Bank Loan (8%)

45

70

Current Liabilities
Trade creditors

25

39

358

401

Fixed assets (net book value)

Current assets
Stock
Trade debtors
Cash and bank

Total Assets

Capital and Reserves

Capital
Retained earning

Total Capital and Liabilities

Note:
Assume the share price of the company is AED 0.92

A.C 4.3: Interpret financial statements using appropriate ratios and

comparisons, both internal and external
Use appropriate graphs and attach all the calculations in appendix.

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman

Instructions
1

An electronic copy of your assessment must be fully uploaded by the deadline

date and time
2 You must submit one single PDF or MS Office Word document. Any relevant
images or screenshots must be included within the same MS Office Word or PDF
document
3 Clearly indicate the Grading and AC number you address
4 Ensure that all work has been proof-read and checked prior to submission
5 Ensure that the layout of your documents are in a professional format
a Font: Verdana
b Font Size:
i 14-Main heading, Bold and Underlined
ii 12-Sub heading and Underlined
iii 10-Body text
c Line Spacing: 1.0 and justified
d Page Border Spacing: Normal
e Page Size: A4
6 Check your work for plagiarism. The College has strict penalty for plagiarism
and the assignment will cancelled if the assignment is observe for this.
7 Ensure that any file you upload is virus-free and not corrupted
8 You must NOT submit a paper copy or email of this assessment to any other
member of staff
9 Filing the reference checklist is compulsory
10 Visits need to be arranged and made to the organizations. For meeting the
respective managers, the college will provide a reference letter for the project
and the manager of the organization is welcome to contact the administration
at the college
11 If any student has less than 80% of attendance, his/her assignment will not be
check as per the college policy.
Further Instructions:
a) Attempt every new question in new page
b) Headings and text should be clear, appropriate & prominent
c) Add appendix at the end of assignment and perform all calculations, if
necessary.
d) Please avoid repetition of paragraphs and sentences
e) Do not be precise and explain yourself clearly.
f) Take care of DEADLINE i.e. 1st December 2016
g) Full hall presentation date i.e. 3rd December 2016
h) Check spellings and grammar before submission
i) Late submission will cause you to lose grade
j) Only one submission is allowed
k) In case of second submission that will be subject to special written
permission from IV or Academic Coordinator.

PEARSON BTEC Level 5 HND - Unit 02, Managing Financial Resources & Decisions
December 2016 - Cromwell UK, Ajman