COURSE SPECIFICATION

PROFORMA

INTERNATIONAL ISLAMIC UNIVERSITY

ISLAMABAD

Course Title: Business Finance

Course Code: FBM251

Program: BS Accounting & Finance

Department: Department of Accounting, Finance& Commerce

Faculty: Faculty of Management Sciences

Table of Contents
A. Course Identification 3
1. Credit Hours 3
B. Course Objectives and Learning Outcomes 3
1. Course Description 3
2. Course Main Objective 3
3. Course Learning Outcomes 4
C. Course Content 4
D. Teaching and Assessment 5
1. Alignment of Course Learning Outcomes with Teaching Strategies and Assessment Methods 5
2. Assessment Tasks for Students 5
E. Student Academic Counseling and Support 5
F. Learning Resources and Facilities 6
1.Learning Resources 6
2. Facilities Required 6
G. Course Quality Evaluation 7
H. Specification Approval Data 7

Course Specification V2 Page 2 of 7

A. Course Identification

1. Credit hours:
2. Course type
a. University College Department Others
b. Compulsory Elective
3. Level/Semester at which this course is offered: BS Accounting & Finance 3rd semester
4. Pre-requisites for this course (if any): Nil

5. Co-requisites for this course (if any): Nil

6. Mode of Instruction (mark all that apply)

No Mode of Instruction Contact Hours Percentage
1 Traditional classroom 42 %87.5
2 Blended -
3 E-learning 6 %12.5
4 Distance learning - -
5 Other - -

7. Contact Hours (based on academic semester)

No Activity Contact Hours
1 Lecture 42
2 Laboratory/Studio 3
3 Tutorial 3
4 Others (specify)
Total 48

B. Course Objectives and Learning Outcomes

1. Course Description
This is one of the first courses in the series of Accounting and Finance related courses aimed
at providing the students a comprehensive understanding of the scope and importance of
accounting and finance from the point of view of entrepreneurs and business managers not
only from conventional perspective but also from Islamic perspective.
2. Course Main Objective
1. To introduce students to the basic concept of finance, source and use of funds, the
concept of business entity and management of its financial affairs with a view to
achieve its objective of net worth maximization.
2. To enhance the understanding of financial terminologies used in business context.
3. To develop a concept of management of finance in the business.
4. To understand the financial system in which business operates.
5. To understand the process of analyzing financial statements.
6. To understand the capital budgeting cash flows and techniques.

Course Specification V2 Page 3 of 7

3. Course Learning Outcomes
Aligne
Domain
CLOs d
Level
PLOs
1 Explain the basics of finance for a business and concept of net C2 PLO 1
worth maximization
2 Understand the financial system and its components C2 PLO 1
3 Understand the concepts related to change in value of money C2 PLO 1
with time through different types of cash flows
4 Understand the Financial Statement analysis. C2 PLO 1
5 Understand capital budgeting estimation and techniques C2 PLO 1
6 Understand how a firm manages its working capital C2 PLO 1

C. Course Content
N Contact
List of Topics
o Hours
Introduction 3
Business and its forms. Finance and the role of financial management.
1 Financial decision making. Flow of funds, role of financial manager,
understanding the agency problems, Corporate Governance, Social
.responsibility of the firm, Difference between a treasurer and a controller
The Financial Environment 3
Purpose and makeup of financial markets, Money & Capital Markets,
2 Primary & Secondary Markets, Financial Institutions, Financial
Intermediaries and understanding Instruments of short term & long term
.financing
Interest-rates 3
What is interest rate, what are the major elements of interest rate, how an
3 interest rate effect the financial manager’s decision making, effect of
interest rate on economy and curves of interest rates. Determinants of
.Market Interest rates, Real rate, Nominal-rate
Time Value of Money 6
Compounding and Discounting. Simple interest vs. compound interest.
Present value and future value concept. Annuity and its types. The future
4
value and present value of an annuity. Perpetuity and its Present value.
Impact of increase in compounding periods. Effective annual interest rate.
Amortization of Loan.
5 Practice on Excel about TVM problems 3
Financial Statements analysis Financial Statements and its type. Types of 6
analysis. Ratios and trend analysis. Different categories of ratios. Liquidity
6
ratios, Asset Management ratios, Debt management ratios, Profitability
ratios, Market value ratios & DuPont Analysis
6
7
Capital budgeting cash flow estimation Practice on Excel)(
8 Capital budgeting techniques 3
Midterm exams 2

Working Capital Management 3

9 Overview of Working Capital Management. Current Asset Investment
Policies, Current asset financing policies, Hedging Approach, Aggressive

Course Specification V2 Page 4 of 7

 approach, Conservative approach. Spontaneous financing concept, short term
.financing vs Long term financing
Motives of Cash holding, accelerating cash collection, slowing down 3
10
payments, Collection Float etc. Cash conversion cycle
11 Account Receivable, Accounts Payable, Use of security in short-term financing 3
12 Inventory management 2
13 Operating and Financial Leverage 2
Total 48

D. Teaching and Assessment

1. Alignment of Course Learning Outcomes with Teaching Strategies and
Assessment Methods
AssessmentMethod
Code Course Learning Outcomes TeachingStrategies
s
1.1 Explain the basics of finance for a Lecture, Discussion,
business and concept of net worth Quiz, Written exams
maximization
1.2 Understand the financial system and Lecture, Discussion, Assignment, Written
its components exams
1.3 Understand the concepts related to Lecture, Discussion, Written exams
change in value of money with time
through different types of cash flows
1.4 Demonstrate how to analyze Financial Lecture, Discussion, Project, Written
Statement. exams
1.5 Understand and apply capital Lecture, Discussion, Quiz, Written exams
budgeting estimation and techniques
`.6 Understand how a firm manages its Lecture, Discussion, Assignment, Written
working capital exams

2. Assessment Tasks for Students

Percentage of Total
# *Assessment task Week Due Assessment Score
1 Quiz: Written Exams 5,12 %5
2 Assignment ,3,6,9 %5
3 Project 14 %10
4 Midterm exams 8 %20
Final exams After 16 %60
5 week
*Assessment task (i.e., written test, oral test, oral presentation, group project, essay, etc.)

E. Student Academic Counseling and Support

Arrangements for availability of faculty and teaching staff for individual student
consultations and academic advice :

Every teacher needs to allocate time for counseling of student and support.
Course coordinators have been appointed as well.
Batch advisors have also been allocated by department.

Course Specification V2 Page 5 of 7

F. Learning Resources and Facilities
1.Learning Resources
● Fundamentals of Financial Management by James C Van
Horne 13th Edition
Required Textbooks
● Fundamentals of Financial Management by E.U.Brigham and
Houston15th edition
1. M Y Khan and P K Jain, Financial Management: Text and
Problems, Tata McGraw-Hill Publishing Company Limited,
New Delhi.
Essential References
Materials 2. Mahmoud A. El-Gamal, Islamic Finanace: Law, Economics,
and Practice , Cambridge University Press, Cambridg

1. Articles of renown authors:

Chapra, M, Umar. “ The Prohibition of Riba in Islam: An
Evaluation of Some Objectives 1:2/23 AJISS
2. RaquibuzZaman, M, “ Some Issue in Risk Management”.
5:2/263 AJISS

3. Problems and Prospects of Financing Rural Micro-enterprise

Electronic Materials Projects under Rural Micro-enterprise Projects under Islamic
Shar’iah: BangladeshPerspective ( Prof. Dr. S.M. Ather&
Prof. Dr. Muhammad Loqman)
4. Iqbal, Zamir, “ The Benchmark Issue in the Islamic Financial
System.” 16:2/45 AJISS.
5. The Economist, Economic and Business Review by The
News, CFO, Mckinsey on Finance

Other Learning Annual reports of the companies

Materials Business News

2. Facilities Required
Item Resources

Infrastructure
Classrooms, laboratories, demonstration( Classrooms, IT labs, multimedia, whiteboard
).rooms/labs, etc

Technology Resources Internet

).AV, data show, Smart Board, software, etc(

Other Resources
Specify, e.g. if specific laboratory(
equipment is required, list requirements or
)attach a list

Course Specification V2 Page 6 of 7

G. Course Quality Evaluation(Online)
Evaluation
Evaluators Evaluation Methods
Areas/Issues
Effectiveness of teaching and
assessment
Student, Academic Incharges Direct
Extent of achievement of course
learning outcomes,
Student Direct
Quality of learning resources Peer review, Chairman Indirect
Punctuality Program office Direct
Market based knowledge Peer review, Chairman Indirect
Evaluation areas (e.g., Effectiveness of teaching and assessment, Extent of achievement of course learning
outcomes,Quality oflearning resources, etc.)
Evaluators (Students,Faculty, Program Leaders,Peer Reviewer, Others (specify)
Assessment Methods(Direct, Indirect)

H. Specification Approval Data

Committee / BoS / BOARD OF STUDIES MEETING ON NOVEMBER 22, 2023
BoF / Academic 56TH MEETING OF BOARD OF FACULTY (DECEMBER 06, 2023
Council
Reference No.
Date

Course Specification V2 Page 7 of 7