Financial and Economic Literacy for Managers
Paper details:
Please use UK English language not USA English.
Semester: C16 – Summer 2016
Module Code: FELM4026
Module Title: Financial and Economic Literacy for Managers
Programme BSc (Hons) Business Management with E-commerce
BSc (Hons) Business Management
BSc (Hons) Enterprise and Small Business Development
BSc (Hons) Human Resources with Management
BSc (Hons) Oil and Gas Management
Level: Level 4
Awarding Body: University of Plymouth
Module Leader Constance Vigilance
Format: Essay
Presentation: No
Any special
requirements:
All work should be submitted on the Student Portal along with
an acceptable Turnitin Report
Word Limit: 2,500 words (+ or – 10 percent)
Please include a word count in your submission
Deadline date for
submission:
Thursday August 18, 2016 at 2pm
Learning outcomes to
be examined in this
assessment
At the end of this module students will be expected to be able to:
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.
Percentage of marks
awarded for module:
The assignment account for 100 percent of the assessment
Assessment criteria Explanatory comments on the
assessment criteria
Maximum marks for
each section
Content, style,
relevance, originality
Content will reflect the students’ ability
to understand and to analyse the
Financial and Economic Literacy for
Managers (FELM4026) course as taught.
Answers to be based on an interpretation
of class handouts and evidence of
background reading.
50%
Format, referencing,
bibliography
• The limit is not a guide, it is an
instruction.
• Do not stray into tangential material.
Always ask yourself – is what I’ve
written relevant to the question set?
• Copy and Paste. Please try to refrain
from doing this.
• Font size. Please use font size of TNR
12 or Arial 12 size.
• Use Double space.
• Read (aloud) what you have written. If
we can’t understand your argument, you
will not get any credit for it.
• The Study Skills Handbook and Module
provide detailed guidance on referencing.
Ensure you reference your citations using
the Harvard method.
10 %
Constructive critical
analysis, introduction,
conclusion
Critical analysis is an important test of
the student’s ability to evaluate business
economics and finance concepts.
Introductions and conclusions should
briefly address the issues to be discussed.
40%
Candidates must clearly label their ID Number on additional separate reference, formula or
answer sheets.
Assignment (2,500 words + or – 10 percent) Due on : Thursday August 18, 2016 at 2pm
Question 1 (25 marks)
(a) Explain the three classifications of production and give examples of each
classification (5 marks)
(b) Explain opportunity costs and give examples (5 marks)
(c) Explain the purpose and evolution of the UK standard industrial classification (SIC)
since 1948 (5 marks)
(d) Explain with the use of two (2) separate diagrams, the shift in the demand curve and
the movement along the demand curve (5 marks)
(e) Explain the income and substitution effect of an increase in price. (5 marks)
Question 2 (25 marks)
(a) Explain two types of markets and give examples of each (5 marks)
(b) Define a public good and give examples of public goods (5 marks)
(c) Explain the three ways in which government intervenes in the market and give
examples (5 marks)
(d) Explain the four key macroeconomic policy objectives that governments typically
pursue. (5 marks)
(e) Explain the circular flow of income including the inner flow, withdrawals and
injections. (5 marks)
Question 3 (25 marks)
(a) Define and give examples of each of the four major areas of finance (5 marks)
(b) Explain the determinants of market interest rates including the various types of risk
premiums (5 marks)
(c) Explain the four basic financial statements, including formats and purpose. (5 marks)
(d) Use the Marks and Spencer 2014 Annual Report financial statements on pages 88-91 of
the Annual Report. Use the following link or see GSM Learn for the Annual Report.
Link:
http://corporate.marksandspencer.com/investors/b73df1d3e4f54f429210f115ab11e2f6
You are required to calculate four (4) ratios – one (1) of each of the following categories
– liquidity ratios, market value ratios, debt management ratios and asset management
ratios – and explain what each ratio means for Marks and Spencer in the UK economy.
(10 marks)
Question 4 (25 marks)
(a) Describe the importance of capital budgeting decisions and the general process that is
followed when making investment (capital budgeting) decisions (5 marks)
(b) Describe how the net present value (NPV) technique is used to make investment
(capital budgeting) decisions (5 marks)
(c) Explain the yield curve including the reasons why yield curves differ. Use diagrams.
(5 marks)
(d) 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 15,625 0
2 15,625 0
3 15,625 0
4 15,625 0
5 15,625 99,500
If the required rate of return on these projects is 10 percent, which would be chosen and why?
Show your calculations/explanations. (10 marks)
Paper details:
Please use UK English language not USA English.
Semester: C16 – Summer 2016
Module Code: FELM4026
Module Title: Financial and Economic Literacy for Managers
Programme BSc (Hons) Business Management with E-commerce
BSc (Hons) Business Management
BSc (Hons) Enterprise and Small Business Development
BSc (Hons) Human Resources with Management
BSc (Hons) Oil and Gas Management
Level: Level 4
Awarding Body: University of Plymouth
Module Leader Constance Vigilance
Format: Essay
Presentation: No
Any special
requirements:
All work should be submitted on the Student Portal along with
an acceptable Turnitin Report
Word Limit: 2,500 words (+ or – 10 percent)
Please include a word count in your submission
Deadline date for
submission:
Thursday August 18, 2016 at 2pm
Learning outcomes to
be examined in this
assessment
At the end of this module students will be expected to be able to:
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.
Percentage of marks
awarded for module:
The assignment account for 100 percent of the assessment
Assessment criteria Explanatory comments on the
assessment criteria
Maximum marks for
each section
Content, style,
relevance, originality
Content will reflect the students’ ability
to understand and to analyse the
Financial and Economic Literacy for
Managers (FELM4026) course as taught.
Answers to be based on an interpretation
of class handouts and evidence of
background reading.
50%
Format, referencing,
bibliography
• The limit is not a guide, it is an
instruction.
• Do not stray into tangential material.
Always ask yourself – is what I’ve
written relevant to the question set?
• Copy and Paste. Please try to refrain
from doing this.
• Font size. Please use font size of TNR
12 or Arial 12 size.
• Use Double space.
• Read (aloud) what you have written. If
we can’t understand your argument, you
will not get any credit for it.
• The Study Skills Handbook and Module
provide detailed guidance on referencing.
Ensure you reference your citations using
the Harvard method.
10 %
Constructive critical
analysis, introduction,
conclusion
Critical analysis is an important test of
the student’s ability to evaluate business
economics and finance concepts.
Introductions and conclusions should
briefly address the issues to be discussed.
40%
Candidates must clearly label their ID Number on additional separate reference, formula or
answer sheets.
Assignment (2,500 words + or – 10 percent) Due on : Thursday August 18, 2016 at 2pm
Question 1 (25 marks)
(a) Explain the three classifications of production and give examples of each
classification (5 marks)
(b) Explain opportunity costs and give examples (5 marks)
(c) Explain the purpose and evolution of the UK standard industrial classification (SIC)
since 1948 (5 marks)
(d) Explain with the use of two (2) separate diagrams, the shift in the demand curve and
the movement along the demand curve (5 marks)
(e) Explain the income and substitution effect of an increase in price. (5 marks)
Question 2 (25 marks)
(a) Explain two types of markets and give examples of each (5 marks)
(b) Define a public good and give examples of public goods (5 marks)
(c) Explain the three ways in which government intervenes in the market and give
examples (5 marks)
(d) Explain the four key macroeconomic policy objectives that governments typically
pursue. (5 marks)
(e) Explain the circular flow of income including the inner flow, withdrawals and
injections. (5 marks)
Question 3 (25 marks)
(a) Define and give examples of each of the four major areas of finance (5 marks)
(b) Explain the determinants of market interest rates including the various types of risk
premiums (5 marks)
(c) Explain the four basic financial statements, including formats and purpose. (5 marks)
(d) Use the Marks and Spencer 2014 Annual Report financial statements on pages 88-91 of
the Annual Report. Use the following link or see GSM Learn for the Annual Report.
Link:
http://corporate.marksandspencer.com/investors/b73df1d3e4f54f429210f115ab11e2f6
You are required to calculate four (4) ratios – one (1) of each of the following categories
– liquidity ratios, market value ratios, debt management ratios and asset management
ratios – and explain what each ratio means for Marks and Spencer in the UK economy.
(10 marks)
Question 4 (25 marks)
(a) Describe the importance of capital budgeting decisions and the general process that is
followed when making investment (capital budgeting) decisions (5 marks)
(b) Describe how the net present value (NPV) technique is used to make investment
(capital budgeting) decisions (5 marks)
(c) Explain the yield curve including the reasons why yield curves differ. Use diagrams.
(5 marks)
(d) 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 15,625 0
2 15,625 0
3 15,625 0
4 15,625 0
5 15,625 99,500
If the required rate of return on these projects is 10 percent, which would be chosen and why?
Show your calculations/explanations. (10 marks)
