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Location Domestic International
China - TUST N/A Session 1

Unit Summary

Unit type

UG Coursework Unit

Credit points

12

AQF level

7

Level of learning

Intermediate

Former School/College

Former School of Business and Tourism

Co-requisites

ACC10707 - Accounting for Business

Unit aim

Introduces core concepts, principles and tools of finance and business financial management, including an overview of the financial environment, financing alternatives, risk and return, time value of money, investment decision making and working capital management. This basic knowledge of finance will help students in both their personal and business lives.

Unit content

Topic 1: Introduction to finance and its context
Topic 2: Your finance tool kit and accounting
Topic 3: The valuation principle
Topic 4: Time is money
Topic 5: Capital investment decisions
Topic 6: Risk, return and eggs in baskets
Topic 7: Risk and return: From eggs to theory
Topic 8: Managing a business's financial health in the short term
Topic 9: Financing a growing business I
Topic 10: Financing a growing business II
Topic 11: Dangers and opportunities of operating and financial leverage

Learning outcomes

Unit Learning Outcomes express learning achievement in terms of what a student should know, understand and be able to do on completion of a unit. These outcomes are aligned with the graduate attributes. The unit learning outcomes and graduate attributes are also the basis of evaluating prior learning.

GA1: , GA2: , GA3: , GA4: , GA5: , GA6: , GA7:
On completion of this unit, students should be able to: GA1 GA2 GA3 GA4 GA5 GA6 GA7
1 demonstrate an understanding of how businesses make financial decisions and the nature of the broader financial environment in which they operate
2 discuss core concepts of finance and financial management
3 apply the techniques of financial mathematics to investigate financial management problems and opportunities.
4 calculate and interpret measures of risk and return, explain the risk-return trade-off and discuss the concept of diversification.
5 discuss and apply basic techniques for managing working capital
6 compare and assess alternative sources of finance
7 explain the effects of operating and financial leverage.

On completion of this unit, students should be able to:

  1. demonstrate an understanding of how businesses make financial decisions and the nature of the broader financial environment in which they operate
    • GA4:
  2. discuss core concepts of finance and financial management
    • GA1:
    • GA4:
    • GA6:
  3. apply the techniques of financial mathematics to investigate financial management problems and opportunities.
    • GA1:
    • GA4:
  4. calculate and interpret measures of risk and return, explain the risk-return trade-off and discuss the concept of diversification.
    • GA1:
    • GA4:
    • GA5:
    • GA6:
  5. discuss and apply basic techniques for managing working capital
    • GA1:
    • GA4:
    • GA5:
    • GA6:
  6. compare and assess alternative sources of finance
    • GA1:
    • GA4:
    • GA6:
  7. explain the effects of operating and financial leverage.
    • GA1:
    • GA4:
    • GA6:

Prescribed texts

  • Berk, J, DeMarzo, P, Harford, J, Ford, G & Finch, N , 2014, Fundamentals of Corporate Finance, 2nd edn, Pearson, Frenchs Forest, NSW. ISBN: 9781486042197.
Prescribed texts may change in future teaching periods.