Business Finance Syllabus

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Hours

Sem Course code Total Marks:100 Credits


CORE-XX: Per
BUSINESS FINANCE Week

VI 21UAGCT603 CIA : 50 ESE :50 5 4

Course Objectives:
1. 1. To understand the various concept relating to business finance
2. 2. To analyze various sources and forms of finance
3. To provide knowledge about capitalization and related theories.
Course Outcomes (CO): On completion of the course, students should be able to
CO 1 Outline various concepts relating to business finance

CO 2 List the various techniques of financial planning


CO 3 Analyze the sources and forms of finance K1-K4

CO 4 Enrich their knowledge in capital market and their components


CO 5 Familiarize with capitalization and related theories

K1 :Remember; K2 :Understand; K3 :Apply; K4 :Analyze

Unit - I Business Finance


Business Finance: Introduction – Meaning – Concepts -objectives of Business finance – Function of
Finance Traditional and Modern approaches –- Relationship between Financial Management and
other Business Functions - Role of Financial Manager.
Unit - II Financial Planning
Financial Planning – Concept - Objectives of Financial plan – Significance - Problems in financial
planning - Principles of Sound Financial plan - Considerations in formulating Financial Plan-
Steps in Financial planning - Limitations of financial planning.
Unit - III Sources and Forms of Finance
Sources and Forms of Finance: Sources of Short-term finance – Sources of Long-term Finance - Equity
Shares - Preference Shares – Bonds - Debentures and Fixed Deposits – Features – Advantages and
Disadvantages- Lease Financing: Meaning – Features – Forms – Merits and Demerits - Venture capital
financing - Methods.
Unit - IV Cost of capital and Capital Structure
Cost of capital – Importance – Classifications - Factors Determining the Cost of Capital –Types
of cost of capital - cost of capital of debt and equity capital - Cost of retained earnings-Weighted
average cost of capital- Role of cost of capital in decision making. Capital Structure - Theories of
Capital Structure – Net Income (NI) Approach - Net Operating Income (NOI) Approach - Traditional
Approach – Modigliani and Miller (MM) Approach.
Unit - V Capitalisation and Working Capital Management
Capitalisation - Over Capitalisation – Causes of Over Capitalisation – Effects of Over Capitalisation –
Remedies of Over Capitalisation - Under Capitalisation - Causes of Under Capitalisation – Effects of
Under Capitalisation - Remedies of Under Capitalisation. Working Capital Management –Cash
management-Receivables management-Inventory management-Factors influencing working capital.
SKILL DEVELOPMENT ACTIVITIES
1.Gain Knowledge the concept of Business Finance
2. Apply the financial skills in daily life.
3. Collect the sources of finance.
4. Record the types of cost of capital.
5 .Prepare powerpoint presentation for working capital management.
TEXT BOOKS
1. R.M. Sri Vatsava , Essentials of Business Finance - Himalaya Publishing
House; Eighth Edition
(3 August 2015)
2. Dr.A.Murthy ,Financial Management-Margham Publications, Edition 2017.

REFERENCE BOOKS
1. Shashi K. Gupta and R.K. Sharma, Financial Management Principles and Practice,
Kalyani Publishers, Edition 2012.

2. Khan & Jain, “Financial Management”, Tata McGraw-Hill Education, 4 th Edition2006.

3 I.M Pandey, “ Financial Management” , Vikas publishing house Pvt ltd, 11th Edition
2009.

WEB RESOURCES

https://www.drnishikantjha.com/papersCollection/Business%20Finance.pdf
2 https://nios.ac.in/media/documents/srsec319new/319EL15.pdf
3 https://www.academia.edu/40291571/Business_Finance_Essentials

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