Type of Assessment
Summative Individual Business Report
Weighting
85% of the overall grade for the Module.
Submission Date
Wednesday 8th May by 11pm.
The standard undergraduate lateness penalties will begin to run after this time as per Quality Handbook 16A section 8:
Documents for Submission:
You are only required to submit two document(s) to dropbox
1. The written word business report (2000 words)
2. The supporting financial excel (500 words)
Requirements:
Prepare a written business report maximum 2500 words (excluding references) that evaluates and comments on your chosen business’s current position covering the following four sections below.
• The business report word template and excel template will be available on NOW for you to download.
Background
Your individual AFIM project involves establishing your own “theoretical” business and creating a comprehensive business report to attract funding from prospective investors. Spend some time thinking about a realistic business (manufacturing, service or retail) could thrive in the present economic climate, and consider observing a comparable enterprise in operation if possible. Your envisioned business is scheduled to commence operations in January 2025.
Your business should operate under the following two conditions:
• Following a significant lottery win, the magnitude of which aligns with the scale of your business venture (mandatory as a limited company), you can consider allocating the lottery proceeds to constitute approximately one-third of the required capital for establishing the business. This amount will serve as your personal initial share capital for the new venture. The remainder (two-third) of the capital can then be secured through a bank loan or alternative funding sources.
• You are also going to embrace one international element in your business through foreign trade, that is international buy or sell. All financial statements should be prepared in home currency –Sterling £.
You need to include the following three sections in your business report submission:
1. INTRODUCING THE BUSINESS, MARKET AND BUSINESS ASSUMPTIONS (Word template)
• Clearly articulate the business concept and contextualize the venture by delving into the market and competitors associated with the proposed product or service. Additionally, discuss the economic environment relevant to your business. (Emphasis will be placed on connecting your hypothetical scenario to real-world wherever feasible for enhanced evaluation).
• Clarify the assumptions incorporated in the report and the accounting treatment of: stock values, depreciation, interest rate on loan, sales forecast and any other areas of subjective judgement which may be present in the company accounting reports.
2. COST BREAKDOWN, REVENUE AND PROFIT(Excel template)
• Prepare a detailed product cost breakdown, showing variable costs per unit (note: production variable cost is used as the value of inventory), selling price per unit, contribution per unit, total fixed costs, fixed costs per unit, and profit per unit. This information is required for the most likely level of activity i.e. the expected outcomes which you will have built into your balance sheets and profit & loss accounts.
• Produce a graphical cost-volume-profit analysis which shows: total revenues; total fixed and variable costs; the expected break-even point; margin of safety; contribution and profit at all feasible activity levels considered above.
• Produce A cash budget for the first year of trading (analysed into months) which highlights the expected bank/cash balances at the end of each month and at the end of the year.
• Add missing lines in pre-populated working capital budgets.
• Add missing numbers in a pre-populated Income Statement for the first year of business.
• Add missing numbers in a pre-populatedBalance Sheet as at the end of the first year of trading.
3. BUSINESS ANALYSIS (word template)
• Comment on first year business financial performance:
➢ Profitability and risk
➢ Liquidity position
➢ Working capital
➢ Ratio analysis/competitor analysis
• Comment on future business expansion plan.
• Discuss how your business hedges foreign exchange risk in the long-term.
• Discuss appropriate investment appraisal techniques to be adopted by the company in the future and explain the reason (example is not required).
• Propose an appropriate dividend policy for your business.
Note:
For Excel template, you can follow the instruction given and modify content according to the nature of your own business idea.
Harvard Referencing
