Students
FOBE202 – Finance and Regulation for New Ventures
2017 – S2 Day
General Information
Download as PDF
| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Michael Quilter
E4A309
By appointment
Lecturer
Garry Morris
By appointment
|
|---|---|
| Credit points |
Credit points
3
|
| Prerequisites |
Prerequisites
(21cp at 100 level or above) including BBA102
|
| Corequisites |
Corequisites
|
| Co-badged status |
Co-badged status
|
| Unit description |
Unit description
This unit will introduce students to core financial and legal aspects of selecting, forming and structuring a business. By understanding the elements of financial planning, budgeting and capital raising students will be able to make commercially sound choices in relation to starting a business and comparing business structures. The unit also covers the relevant legal concepts and principles underpinning the regulation of business. Students will be introduced to the legal frameworks and issues relevant to different types of business structures and develop an awareness of corporate management responsibilities. The regulation of the operational aspects of a business will also be considered. At the conclusion of the unit students will have had an opportunity to gain a valuable perspective on commencing and running business operations.
|
Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- Examine the characteristics of the commercial legal environment and the Australian corporate legislative framework.
- Distinguish between, and examine the characteristics of business organisations - particularly as to aspects of formation
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
- Apply investment and financing concepts to business decisions and evaluate financial viability including an understanding of financial models, forecasting capital expenditures, working capital needs and financing events
- Evaluate sources of funding and financing needs
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Class Test - Law 1 | 20% | No | 18/8/2017 |
| Class Test - Law 2 | 30% | No | 8/9/2017 |
| Assignment - Finance | 20% | No | 3/11/2017 by 2pm |
| Class Test - Finance | 30% | No | 10/11/2017 |
Class Test - Law 1
Due: 18/8/2017
Weighting: 20%
This test will be held in class on 18/8/2017 - see Assessment Guide on iLearn for more information
On successful completion you will be able to:
- Examine the characteristics of the commercial legal environment and the Australian corporate legislative framework.
- Distinguish between, and examine the characteristics of business organisations - particularly as to aspects of formation
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
Class Test - Law 2
Due: 8/9/2017
Weighting: 30%
This test will be held in class on 8/9/2017.
See Assessment Guide on iLearn for more information.
On successful completion you will be able to:
- Examine the characteristics of the commercial legal environment and the Australian corporate legislative framework.
- Distinguish between, and examine the characteristics of business organisations - particularly as to aspects of formation
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
Assignment - Finance
Due: 3/11/2017 by 2pm
Weighting: 20%
This assignment must be submitted via iLearn/Turnitin by 2pm 3/11/2017. A hard-copy of the assignment must also be submitted (handed-in) in class on 3/11/2017. No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for disruption to studies is made and approved.
See Assessment Guide on iLearn for more information.
On successful completion you will be able to:
- Apply investment and financing concepts to business decisions and evaluate financial viability including an understanding of financial models, forecasting capital expenditures, working capital needs and financing events
- Evaluate sources of funding and financing needs
Class Test - Finance
Due: 10/11/2017
Weighting: 30%
This test will be held in class on 10/11/2017.
See Assessment Guide on iLearn for more information.
On successful completion you will be able to:
- Apply investment and financing concepts to business decisions and evaluate financial viability including an understanding of financial models, forecasting capital expenditures, working capital needs and financing events
- Evaluate sources of funding and financing needs
Delivery and Resources
Classes
Classes will progress through the various Lecture Areas referred to in this Unit Guide. Students will attend one seminar each week. There may be some reorganisation, overlapping, and/or integration of areas to accommodate assessment and unit structure. Note that together with the designated practice questions, the classes may cover other issues relevant to the unit.
The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
Required Texts
Law Text: Quilter, Company Law Perspectives, 3rd ed. 2017, Thomson Reuters (Lawbook Co.)
Finance Text: Berk, J., DeMarzo P., Harford J., Ford, G., Mollica, V. and Finch, N., Fundamentals of Corporate Finance, 2nd Australian Edition, 2014, Pearson Australia,
Both of the above texts can be purchased from the Macquarie University Co-op Bookshop, and are available in the Macquarie University library.
Seminars may make use of PowerPoint; overhead projectors; visualisers.
Unit material will be available on the learning management system (iLearn)
There is a web page for this unit.
This unit is taught by way of seminars. Practice questions are discussed to enable application of content.
Students should take responsibility for their own learning and this will incorporate reading as required, attendance at seminars, developing effective study strategies, reflection on their abilities, and a task oriented approach to assessment – that is, do not think solely about gathering information - think about what will be required - what makes for successful performance in tests and assignments - how you will use the material you have studied.
Students should be ready to allocate at least 150 hours during session time for FOBE202. This includes all classes, assessment, personal study and other learning activities. Here is a sample breakdown of a student workload:
|
|
Activities
|
Hours |
|
1 |
Weekly Seminars including required assessment (3×12) |
36 |
|
2 |
Assessment Task 1 and 2 (self-study plus preparation) |
57 |
|
3 |
Assessment Task 3 and 4 (Self-study plus preparation) |
57 |
|
|
||
|
|
Total |
150 |
Unit Schedule
UNIT SCHEDULE - This Unit has a Law component and a Finance component
LAW
Law Text: Quilter, Company Law Perspectives, 3rd ed. 2017, Thomson Reuters (Lawbook Co.) - [referred to herein as "Q"]
Week 1 – Law
Legal system
Litigation; Tort; Contract; Consumer Law (Q Ch. 1, 2, 3 and 34); Intellectual Property; Agency (Q Ch. 4)
Week 2 – Law
Comparison of business organisations
Corporate legislative framework, registration and types of companies
Partnership Act: www.austlii.edu.au/au/legis/nsw/consol_act/pa1892154/
Associations; Sole Proprietors; Partnerships: Q Ch. 5
Applying for registration and the consequences of incorporation: Q Ch. 8
Types of Companies: Q Ch. 7
Corporations Act: www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/
Week 3 – Law
Class Test 1 (Law)
The company constitution and the replaceable rules: Q Ch. 9
Fundraising
Disclosure to Investors – fundraising: Q Ch. 14
Share capital: Q Ch. 15
Debentures and Loan Capital: Q Ch. 17
Promoters and pre-registration contracts: Q Ch. 12
Week 4 – Law
Directors and Management
Duties of directors and other officers: Q Ch. 18, 19, 20, 21
Financial and Reporting Obligations of Directors: Q Ch. 22
Week 5 – Law
Insolvency – Corporate and Personal
Arrangements and Reconstructions; Receivership; Voluntary Administration:
Q Ch. 29, 30, 31 and 32
Bankruptcy
Liquidation - Insolvent trading: Q Ch. 33
Week 6 – Law
Class Test 2 (Law)
FINANCE
Finance Text: Berk, J., DeMarzo P., Harford J., Ford, G., Mollica, V. and Finch, N., 2014. Fundamentals of Corporate Finance, 2nd Australian Edition, Pearson Australia, Frenchs Forest, Australia. ISBN 9781442564060 (referred to herein as ‘Berk’)
Week 7 - Finance
Introduction to Corporate Finance
Berk Ch. 1 and 2
MID-SESSION BREAK
Week 8 – Finance
Time Value of Money
Berk Ch. 3, 4 and 5
Week 9 – Finance
Bond and Share Valuations
Berk Ch. 6, 7 and 10
Week 10 – Finance
Investment Decisions
Berk Ch. 8 and 9
Week 11 – Finance
Risk and Return
Berk Ch. 11 and 12
Week 12 – Finance - Submit Finance Assignment
Raising Funds
Berk Ch. 14, 15 and 16
Week 13 – Finance
Class Test (Finance)
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy_2016.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html
Disruption to Studies Policy (in effect until Dec 4th, 2017): http://www.mq.edu.au/policy/docs/disruption_studies/policy.html
Special Consideration Policy (in effect from Dec 4th, 2017): https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policies/special-consideration
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Results
Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.
•There is a prize for the most successful student in this unit. http://www.businessandeconomics.mq.edu.au/undergraduate_degrees/prizes_scholarships
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
Discipline Specific Knowledge and Skills
Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
Learning outcomes
- Examine the characteristics of the commercial legal environment and the Australian corporate legislative framework.
- Distinguish between, and examine the characteristics of business organisations - particularly as to aspects of formation
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
- Apply investment and financing concepts to business decisions and evaluate financial viability including an understanding of financial models, forecasting capital expenditures, working capital needs and financing events
- Evaluate sources of funding and financing needs
Assessment tasks
- Class Test - Law 1
- Class Test - Law 2
- Assignment - Finance
- Class Test - Finance
Critical, Analytical and Integrative Thinking
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Learning outcomes
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
- Evaluate sources of funding and financing needs
Assessment tasks
- Class Test - Law 1
- Class Test - Law 2
- Assignment - Finance
- Class Test - Finance
Problem Solving and Research Capability
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
This graduate capability is supported by:
Learning outcomes
- Examine the characteristics of the commercial legal environment and the Australian corporate legislative framework.
- Distinguish between, and examine the characteristics of business organisations - particularly as to aspects of formation
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
- Apply investment and financing concepts to business decisions and evaluate financial viability including an understanding of financial models, forecasting capital expenditures, working capital needs and financing events
- Evaluate sources of funding and financing needs
Assessment tasks
- Class Test - Law 1
- Class Test - Law 2
- Assignment - Finance
- Class Test - Finance
Effective Communication
We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.
This graduate capability is supported by:
Learning outcomes
- Examine the characteristics of the commercial legal environment and the Australian corporate legislative framework.
- Distinguish between, and examine the characteristics of business organisations - particularly as to aspects of formation
- Effectively recognise corporate management issues, in particular formulate an understanding of the role and obligations of directors, together with financial aspects and insolvency regulation.
- Apply investment and financing concepts to business decisions and evaluate financial viability including an understanding of financial models, forecasting capital expenditures, working capital needs and financing events
- Evaluate sources of funding and financing needs
Assessment tasks
- Class Test - Law 2
- Assignment - Finance
- Class Test - Finance
Research and Practice, Global and Sustainability
This unit addresses global and sustainability issues as direct areas of study and as necessary implications arising from the materials, assessment and academic discussion and debate in classes/seminars. We promote sustainability by developing ability in students to research and locate information within accounting discipline. We aim to provide students with an opportunity to obtain skills which will benefit them throughout their career.
The unit materials provide some guidance to references that could be used to research particular issues.
Both texts for this unit (Company Law Perspectives and Fundamentals of Corporate Finance) are the result of research in relation to the areas of corporate law and finance. The material in these texts provides you with a thorough coverage of the relevant issues. Interested students can pursue further research into any of the areas of this unit via the various scholarly journals available. Examples of journals that can be consulted to follow up matters of interest in company law are: Australian Journal of Corporate Law; Company and Securities Law Journal.