FELM4026

Financial and Economic Literacy for Managers

Coursework Brief

Submit this coursework through the Student Portal with a Turn-it-in Report

Word Limit: 2,500 words (Plus or minus 10%)

Learning outcomes assessed:

1. Explain the principles of business and financial economics in an international context.

2. Identify and explain the impact of governmental, monetary and economic policy on decision making in a business context.

3. Describe and apply macro and micro concepts and models to business decision making.

4. Interpret financial information (external and internal) and apply to decision making within a business context.

5. Discuss the rationale and impact of decisions for business strategies to users and stakeholders.

6. Examine and discuss the relationship between theory, application in business and financial economics in an international context.

This coursework is worth 100% of the total marks for this module.

Coursework Instructions

Please read carefully

• Carefully read the module handbook, the marking criteria and the grade descriptors.

Academic Misconduct

You are responsible for ensuring you understand the policy and regulations about academic misconduct. You must:

• Complete this work alone except where required or allowed by this assignment briefing paper and ensure it has not been written or composed by or with the assistance of any other person.

• Make sure all sentences or passages quoted from other people’s work in this assignment (with or without trivial changes) are in quotation marks, and are specifically acknowledged by reference to the author, work and page.

Assignment Questions

(1) Write a report that uses the business economics concepts of globalisation and labour markets to explain the outsourcing of call centres by some firms to India. Your answer should include both the theory of these concepts and relevant hypothetical examples (600 words) (20 marks)

(Learning Outcomes 1and 6)

(2) Write a report that uses the business economics concepts of macroeconomic objectives and macroeconomic policies to explain the government’s concern with an increase in Inflation as measured by the Office for National Statistics` Consumer Prices Index (CPI) jumped to 2.3% in February 2017 - up from 1.8% in January. Your answer should include both the theory of these concepts and empirical evidence from the actions of the UK government. (600 words) (20 marks).

(Learning Outcomes 2 and 6)

(3) Write a report that uses the business economics concepts of market structure and demand and supply to discuss the range of businesses that supply goods and services to consumers include supermarkets such as Sainsbury, train services such as London Underground and restaurants such as McDonalds. Your answer should include both the theory of these concepts and relevant hypothetical examples (600 words) (20 marks)

(Learning Outcomes 3 and 6)

(4) Write an essay on how managers use the accounting and finance concepts of financial planning and control, financial statements and capital budgeting when making financial decisions that impact the survival of their firm. Your answer should include both the theory of these concepts and relevant hypothetical examples (600 words) (20 marks)

(Learning outcomes 4 and 5)

(5)

a. Suppose you borrow £40,000 for a business you own, and the loan is to be repaid in three equal payments at the end of each of the next three years at an interest of 6 percent. Calculate the Amortization schedule for the next three years (8 marks) [Amortization]

b. Suppose that Gary has decided that he wants to pay himself £800 each year for the next three years rather than deposit these amounts in his savings account. If he can invest a lump-sum amount in a savings account that pays 6 percent interest per year, how much money does Gary need to deposit today to accomplish his goal? (6 marks) [Present Value]

c. Two projects being considered are mutually exclusive and have the following projected cash flows:

Year	Project A	Project B
0	−$50,000	−$50,000
1	18,000	0
2	18,000	0
3	18,000	0
4	18,000	0
5	18,000	99,500

 

 

 

 

 

If the required rate of return on these projects is 7.35 percent, which would be chosen and why? Show your calculations/explanations. (8 marks) [Net Present Value]    (Learning outcomes 4 and 5)

End of Assignment Brief