LT4001 - Economics and Finance for the Service Sector (2017/18)
|Module specification||Module approved to run in 2017/18|
|Module title||Economics and Finance for the Service Sector|
|Module level||Certificate (04)|
|Credit rating for module||30|
|School||London Metropolitan Business School|
|Total study hours||300|
|Running in 2017/18||No instances running in the year|
An introduction to economics and finance for non-specialists. The module uses real world business examples to explain how economics and finance can by used for problem solving and decision making.
Prior learning requirements
This module aims to:
(1) Provide knowledge and comprehension of the basic principles, tools and techniques of economics and finance
(2) Apply given economic and finance tools/techniques/methods accurately and carefully to well-defined problems and begin to appreciate the complexity of the issues in the disciplines
(3) Analyse ideas and information in a predictable, logical and well-defined context, making use of standard economic and finance techniques and procedures and,
(4) Demonstrate research and information-gathering skills.
(5) Apply principles of accounting and finance appropriate to cultural industries
It also aims to develop students’ skills, in particular:
• Academic Reading
• Analysing Data
• Application of Knowledge and Presenting Data
• Critical Thinking and Writing
• Problem Solving and Decision Making
a. Demand analysis: the key factors influencing the demand for goods and services, movement along and shift of the demand curve;
b. Supply analysis: the key factors influencing the supply of goods and services, movement along and shift of the supply curve;
c. Demand and supply and market price; the interaction of supply and demand to determine the market price, with fixed and flexible supply;
d. Production: the factors of production and output in the short- and long- run;
e. Cost: average and marginal cost, the importance of costs in pricing and profits;
f. Elasticity: the sensitivity of demand to price changes, maximising total revenue;
g. Profits and contributions: making and maximising profits, the importance of contributions in the short-run;
h. The competitive environment;
i. Macroeconomics, national income, the exchange rate and economic growth.
j. Preparation and interpretation of financial statements.
k. Sources of capital funding. Internal and external sources. Long term and short term sources.
l. Introduction to Management accounting.
m. Full costing. Including absorption costing and marginal costing.
n. Cost volume profit analysis/break-even analysis
o. Cash flow forecasts/budgets.
Learning and teaching
This module will be delivered as a workshop. Each week students will receive three hours of input. The
majority of workshops will be split equally between economics and finance, but a few workshops will
focus on one subject area.
The intention is to examine a theme, such as costs or profit, from the perspective of finance and economics in workshops so that the student can learn the two disciplines in an integrated manner.
The module will use a blended learning strategy where student learning is supported and enhanced by both classroom contact and on-line support. Student study responsibilities will be based on bi-weekly practice sessions using the previous workshop as their information set.
Reflective learning will be based around the assessment where students will be required to submit draft work which will generate feed forward comments for the students to reflect on as they work on the preparation of assessments.
On successful completion of the module, students will:
(1) Appreciate the context in which business takes place;
(2) Understand the principles which underpin economics and finance;
(3) Understand the principles which underpin the behaviour of economic and financial agents;
(4) Appreciate the importance of national income accounting in economic and financial thinking;
(5) Appreciate the link between theoretical principles and policy;
(6) Construct economic and financial arguments through the retrieval of information and data;
(7) Identify sources of internal and external funding for leisure and tourism businesses
(8) Understand basic practices of financial accounting
(9) Understand topical issues in relation to published financial data of cultural industries
Three pieces of written work.
Assessment 1: Using a real world business describe their economic background using workshop information up to and including week 15. All the economic aspects covered up to and including week 15 must be included in your description. You are expected to collect real world data on your firm and to present this data in your background description. Word count – 1350 to 1650 words. Work submitted outside this range will be penalised. Weighting 30% of total mark. Due in week 18
Assessment 2: Prepare a financial statement and a cash flow forecast from data given. Weighting 30% of total mark. Due in week 21.
Assessment 3: Using one of the listed companies given or the firm used in the first assessment, you are required to identify three economic and financial problems in the business (there must be at least one economic problem and one finance problem). Propose solutions, using economic and financial knowledge and techniques, for each of the three problems. Word count – 1350 to 1650 words. Work submitted outside this range will be penalised. Weighting 40% of total mark. Due in week 30.
Curran, J. (2005) Taking Fear Out of Economics, London, Business Press/Thomson Learning
Fardon, M and Cox.D (2008) Accounting, Worcester: Osborne Books
Begg, D.K.H. (2008) Economics (ninth edition), New York, McGraw-Hill higher Education
Lipsey, R. and Chrystal , A. (2011) Economics, twelfth edition, Oxford, Oxford University Press
Sloman, J. and Wride, A. (2009) Economics, seventh edition, Harlow, Financial Times/Prentice Hall
Sloman, J. and Hinde, K. (2007) Economics for Business, fourth edition, Harlow, Financial Times/Prentice Hall
Atrill, P and Mclaney, E (2008). Accounting and finance for non-specialists, London: Prentice Hall
Wood, F. and Sangster, a (2002) Frank Wood’s Business Accounting 1 (9th Edition), Harlow: Financial Times/ Prentice Hall
Dyson, J.R. (2003) Accounting for non-accounting students (6th Edition), Harlow: Financial Times/ Prentice Hall.
Mclaney, E. (2003) Business Finance: Theory and Practice, (6th Edition), Harlow: Financial Times/ Prentice Hall.