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ASSIGNMENT INSTRUCTIONS Assessment e.g. Analytical report (use terms used in MDF) Assessment code: 010/011/012 (delete as appropriate – code appears on MDF) Academic Year: 2021/2022 Trimester: Tri 2,...

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Assessment e.g. Analytical report (use terms used in MDF)
Assessment code: 010/011/012 (delete as appropriate – code appears on MDF)
Academic Year: 2021/2022
Trimester: Tri 2, Jan 2022
Module Title: Business Finance
Module Code: MOD003319
Level: 4
Module Leader: Nidhi Gogia
Weighting: 50%, 30 credits
Word Limit: 2,500 words
This excludes bibliography and other items listed in rule 6.75 of the
Academic Regulations:

Assessed Learning
1 – 2(see relevant MDF)

Deadline :

This assignment must be received by no later than 14:00 on Friday, 25
March 2022
• This assignment must be completed individually.
• You must use the Harvard referencing system.
• Your work must indicate the number of words you have used. Written assignments must not
exceed the specified maximum number of words. When a written assignment is marked, the
excessive use of words beyond the word limit is reflected in the academic judgement of the
piece of work which results in a lower mark being awarded for the piece of work (regulation
• Assignment submissions are to be made anonymously. Do not write your name anywhere on
your work.
• Write your student ID number at the top of every page.
• Where the assignment comprises more than one task, all tasks must be submitted in a single
• You must number all pages.
In order to achieve full marks, you must submit your work before the deadline. Work that is
submitted late – up to five working days after the published submission deadline - will be
accepted and marked. However, the element of the module’s assessment to which the work
contributes will be capped with a maximum mark of 40%.
Work cannot be submitted if the period of 5 working days after the deadline has passed (unless
there is an approved extension). Failure to submit within the relevant period will mean that you
have failed the assessment.
Requests for short-term extensions will only be considered in the case of illness or other cause
considered valid by the iCentre Adviser. Please contact XXXXXXXXXX. A request must
normally be received and agreed by the iCentre Adviser in writing at least 24 hours prior to the
deadline. See rules XXXXXXXXXX:

Mitigation: The deadline for submission of mitigation in relation to this assignment is no later than
five working days after the submission date of this work. Please contact XXXXXXXXXX
See rules 6.103 – 6.132: http:
TASK 1.1
Kashi is preparing the cash budget for the first 3 months of her business’s trading. Business is called
Kashi textiles and Kashi will be investing £25,000 of her personal savings to get it started. Rest of the
information is as follows:
a. In January 2022, Kashi will purchase a computer and a printer for use in the business for £1,980,
payable upfront.
. Kashi expects to sell the following textiles:
January £4,500 to Moon Traders
uary £6,890 to Hans Traders
March £5,670 to Down Town shops.
c. Kashi expects to make the following purchases of textiles over the next three months:
January £3,280 for Moon Traders supplies
uary £5,120 for Hans Traders supplies
March £4,100 for Down Town shops’ supplies
d. All sales will be made for cash.
e. Purchases: 10% payment in the same month, 50% payment next month and remaining payment
in 2 months’ time.
f. Kashi will need to hire a printing machine to print her logos and the hiring charges will be £250
per month, payable in the same month. Hiring will be made in January and will be needed for all
the subsequent trading months.
g. Kashi has agreed to pay £250 per month to an accountant for his advice and preparation of
h. Other expenses have been estimated as follows:
£100 on delivery costs per month, payable at the end of each month.
£425 on telephone costs per quarter, payable at the end of the quarter.
£250 on other expenses, such as electricity and insurance, payable at the end of each month.
i. Kashi will be withdrawing £700 per month to cover her personal expenses.
Prepare the cash budget for Kashi textiles for first 3 months’ of trading from January to March,
2022.Show your workings separately XXXXXXXXXXMarks)

A. Define a Company. Explain its features and also explain advantages and disadvantages of
forming a public company XXXXXXXXXXMarks)
B. Discuss the crucial importance of cash to a business. Is the profit that a business makes a reliable
indicator of its cash balances? XXXXXXXXXXMarks)
C. What is the reason for the existence of Corporate Governance? Discuss some principles of good
governance as described by the Corporate Governance Code XXXXXXXXXXMarks)
D. Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in
a company’s level of gearing? XXXXXXXXXXMarks)
Answered 5 days AfterMar 13, 2022


Ayushi answered on Mar 19 2022
33 Votes
Business Finance: MOD003319
Solution A:    3
Company:    3
Features of Company:    3
Advantages and disadvantages of public company:    4
Advantages:    4
Disadvantages:    4
Solution B:    5
Importance of Cash:    5
Difference between ‘profit’ and ‘cash’:    5
Solution C:    6
Reasons for the existence of corporate governance:    6
Principles of good governance:    6
Solution D:    8
Gearing:    8
Advantages and disadvantages of gearing:    8
Advantages:    8
Disadvantages:    8
Bank’s interest in the level of gearing:    8
References:    10
Solution A:
A company can be defined as a body corporate or a business organization that is incorporated and registered under the companies act. In simple terms we can say that a company can be explained as a business entity which ca
ies out all its business activities as an artificial legal person and its formation is done by either one or a group consisting of many legal persons for the purpose of running a business. There are many types of companies such as private company, public company, limited company, unlimited company, a company which is limited by way of guarantee, a share capital based company and a company with community interest.
Features of Company:
1. Incorporated Association: In order to establish and exist, it is required by each and every company to get itself registered under the companies act. It is mandatory for a company that all the requirements mentioned in the MOA and AOA of the company are fulfilled to be called as a company.
2. Separate Legal entity: very company has its own identity and it is considered as independent entity which is separate from the members or the owners and directors running the company. As a company is a separate legal identity therefore the members or any other stakeholders of the company is not responsible or liable to pay for any dues related to company and they cannot be sued for the actions that were done under the name of the company.
3. Artificial legal person: any contracts done by the company or any other transactions are done in the name of the company because as per law a company is treated as an artificial legal person.
4. Common seal: for the purpose of signature the common seal of the company is used. If there is any document which has common seal of the company then such documents bind the company on legal terms.
5. Perpetual existence: the life of the company is stable and its life cannot be combined with the life of its members, shareholders or any other person related to company. A company always remains into existence whether the members come or go.
6. Limited liability: The liability of the shareholders is not unlimited and is limited only to the extent of that value of shares which is unpaid by them or in case of company that is limited by guarantee then the shareholders are liable in case of winding up only for that portion of amount which was agreed by them.
Advantages and disadvantages of public company:
1. Capital is raised by public issue of shares: as the shares of a publicly listed company are available to everyone so it can raise large amount of capital as compared to a private company.
2. Opportunities of growth and expansion: as public company has more funds so it can easily invest in many areas like open new product lines and invest in technology through this it has more opportunities for growth in the market and also expand its business easily.
3. Transferability of shares: as the company has registered itself on a stock exchange so it becomes easy for the shareholders to transfer their shares as per their will that means it provides liquidity to the shareholders.
1. Many regulatory requirements: for the purpose of protecting the company its shareholders from any legal complications a public company has to fulfill many legal and regulatory requirements which are a hectic task.
2. Issues related to control and...

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