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LPC FELM4026 Financial and Economic Literacy for Managers SPRING 2019 FIRST SIT Coursework Brief Handout: [Week 1] Deadline for Submission: [2pm, Wed 24 April, 2019] 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: At the end of a 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, and application in business and financial economics in an international context. This coursework is worth 100% of the total marks for this module. FELM4026 SPRING 2019 COURSEWORK BRIEF GSM LONDON Page 2 of 15 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. FELM4026 SPRING 2019 COURSEWORK BRIEF GSM LONDON Page 3 of 15 Blank FELM4026 SPRING 2019 COURSEWORK BRIEF GSM LONDON Page 4 of 15 Assignment Questions 1. In a competitive economy, ‘consumer sovereignty’ assumes that buyers influence production decisions. Discuss the notion that the pursuit of profit maximisation is consistent with consumer sovereignty. You should explain the business economics concepts or models and practice. (20 marks) (600 words). (Learning outcome 1 and 6) 2. Consumers obtain goods and services from several companies including Tesco, British Airways, the McDonald’s restaurant, and the hairdressers. Produce a report that critically examines the market structure, demand and supply. Your answer should include both the theory of business concepts and empirical evidences. (600 words) (20 marks). (Learning outcome 3 and 6) . 3. As a business manager, part of your day-to-day roles includes taking decisions on the firm’s resources (e.g. growing the business to achieve the firm’s objectives). Two concepts have been paramount to the objectives of financial management – wealth maximisation and profit maximisation. (a) Compare and contrast wealth maximisation and profit maximisation (300 words) (b) Discuss the statement that wealth maximisation is superior to profit maximisation (300 words). Your answer should include both the theory and concepts taught in this module with relevant hypothetical examples. (Total 600 words) (20 marks) (Learning Outcomes 5 and 6) 4. Write a report that applies the business economics concepts of environmental policy, fiscal policy, supply side policies to the desire of the UK government to seek economic prosperity for the country. 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) FELM4026 SPRING 2019 COURSEWORK BRIEF GSM LONDON Page 5 of 15 5 (a) Extract from the Zenobia Limited accounts for the year ended 31 March 2018 2017 2018 £m £m Sales Turnover 7,653 6876 Operating costs (5,778) (5,342) Operating profit 1,875 1,534 Current Assets Stocks 250 208 Debtors 2,168 1,945 Investment 798 252 Cash at bank 61 55 A 3,277 2,460 Creditors Loans and other borrowing 265 303 Other creditors 2,568 1,794 B 2,833 2,097 Net current assets A - B