Study Guide

Objective

Having completed this study unit

• You recognize the meaning of financial management to an organization and its operations.
• You are able to identify potential financial risk factors and changes in the economic environment and foresee their effects on the organization.
• You know the basics of profitable business and financial thinking.
• You are able to identify the key financial ratios and measures and you are able to analyze their effect to the organization.

Content

Theme 1. Organization’s finances: overview, observation of changes in operating environment, impact of the economy on operations, financial risks and financial management

Theme. 2. Getting to know the financial statement: income statement and balance sheet for limited liabilities company and association, basics of profitable business.

Theme 3. Financial analysis: different analyzing methods, financial ratios, measures, and decision making.

Assessment criteria, satisfactory (1)

Assessment
Fail: The student does not do / pass the required tasks according to the given instructions or does not participate at all.

Level 1
Operations management:
- You recognize the meaning of financial management to an organization and its operations.
- You are able to identify potential financial risk factors and foresee their impact on the organization’s operations, taking into account changes in the operating environment.
- You know the basics of profitable business and financial thinking.
- You are able to identify the key financial ratios and performance measures and you are able to analyze their effect on the organization.

Level 2
Operations management:
- You know the importance of financial management to an organization and its operations.
- You are able to describe potential financial risk factors and foresee their impact on the organization’s operations, taking into account changes in the operating environment.
- You know and are able to describe the basics of profitable business and financial thinking.
- You know the key financial ratios and performance measures that describe the financial situation of the organization.

Assessment criteria, good (3)

Level 3
Operations management:
- You understand the importance of financial management to an organization and its operations.
- You are able to describe by using examples potential financial risk factors and foresee their impact on the organization’s operations, taking into account changes in the operating environment.
- You understand the basics of profitable business and financial thinking.
- You understand the key financial ratios and performance measures that describe the financial situation of the organization.

Level 4
Operations management:
- You have a command of the importance financial management to an organization and its operations.
- You are able to assess potential financial risk factors and foresee their impact on the organization’s operations, taking into account changes in the operating environment.
- You understand the role of key figures and performance measures in monitoring an organization’s finances and know how to use them to make financial management decisions.

Assessment criteria, excellent (5)

Level 5
Operations management:
- You are able to evaluate and analyze the organization’s operations from the perspective of financial management.
- You are able to critically assess potential financial risk factors and foresee their impact on the organization’s operations, taking into account changes in the operating environment.
- You are able to utilize the key financial ratios and performance measures in planning your operations and analyze their results.