Bachelor of Business Studies (BBS)
The objective of the BBS programme at the FOM is to develop students into competent managers for any sector of organized activity. The programme is based on the principle that graduates will spend a major portion of their life in a constantly changing environment. Therefore, the student should have an opportunity to obtain a broad knowledge of the concepts and reality based skills underlying the operation and management of organizations.
Upon graduation, students should be equipped to function as a manager in business, industry and government.
The graduate should also have a variety of career opportunities in different sectors of business including entrepreneurship and create much needed jobs for others.
The BBS programme specially attempts to:
1. Equip the students with the required conceptual knowledge of business and administration to develop a general management perspective in them.
2. Develop required attitudes, abilities and practical skill in students, which constitute a foundation for their growth into competent and responsible business managers.
3. Encourage entrepreneurial capabilities in students to make them effective change agents in the Nepalese society.
4. Develop necessary foundation for higher studies in management and thereafter take up careers in teaching, research and consultancy.
The FOM recognizes the need for both breadth and depth in the total academic pattern.
Therefore, the curriculum for BBS degree comprises four separate and distinct course components:
1. A strong foundation allied areas of business such as language, economic analysis, legal environment and quantitative method to prepare graduates to understand, analyze and comprehend the management concepts, theories and practices.
2. Core business studies encompassing and integrating all functional areas to provide graduates with and appreciation of the diversity and inter-relationship of business and management issues.
3. The opportunity to concentrate in one area of specialization such as accounting, finance, human resources management and marketing in order to provide graduates with some degree of functional expertise.
The Second Year Programme
The purpose of the second year programme is to provide basic concepts, tools and understanding of the foundation and core courses.
The foundations courses are required to develop understand business practices.
The core courses provide essentials of learning which are basic in the broad area of business studies.
The second-year programme is therefore organized into the following core and compulsory courses:
Second Year (500)
MGT 205: Business Communication 100
MGT 209: Macroeconomics for Business 100
MGT 212: Cost and Management Accounting 100
MGT 223: Organizational Behavior & Human Resource Management 100
MGT 215: Fundamentals of Financial Management 100
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Full Marks: 100
Pass Marks: 35
Lecture Hours: 150
This course Fundamentals of Financial Management aims to lay the foundation for understandings fundamental concepts and principles of financial management. This course has been structured as a compulsory course in finance.
This course equips the students with fundamental tools and techniques of financial management to prepare them to resolve complex financial issues concerning corporate firms.
This course is a core course in finance and includes the basic area of financial management functions.
This course consists of the introduction to financial management, understanding, and analysis of financial statements, time value of money, fundamentals of risk and return theory, bond valuation, stock valuation, cost of capital, capital structure and leverage, working capital management, and distributions to shareholders.
Unit 1: Introduction to Financial Management LH 7
Nature of financial management; Finance within an organization;
Functions of financial management;
The financial goal: creating value for investors;
Balancing shareholder interest and the interests of society.
Unit 2: Financial Statement Analysis LH 15
Financial statements: Balance sheet, profit or loss statement, cash flow statement, statement of change in shareholders’ equity; Framework for analysis;
Nature and need of financial ratio analysis;
Types of financial ratios: liquidity ratios, asset management ratios, debt management ratios, profitability ratios, market value ratios;
DuPont system of financial ratio analysis;
Ratios in different industries;
Uses and limitations of financial ratios;
Common size and index analysis.
Unit 3: Time Value of Money LH 20
Concept time value of money;
Cash flow time line;
Future values and present values of a single cash flow;
Finding the interest rate and the number of years;
Future value and present value of an ordinary annuity and annuity due;
Finding annuity payments, periods and interest rates;
Present value of perpetuities; Present value and future value of uneven cash flows;
Semiannual and other compounding periods;
Preparation of loan amortization schedule;
Application of the concept of time value of money.
Unit 4: Fundamentals of Risk and Return LH 18
Defining risk and return, expected rates of return, historical rates of return, standard deviation, coefficient of variation; Risk aversion and required returns;
Return and risk in a portfolio context: The role of covariance and correlation;
The capital asset pricing model (CAPM): the beta coefficient, the security market line (SML): The relationship between risk and rates of return.
Unit 5: Financial Assets Valuation LH 20
Concept of financial assets; Key characteristics of bonds, common stocks and preferred stocks; Basic financial asset valuation models;
Valuation of bonds: perpetual bonds, zero coupon bonds, coupon bonds with a finite maturity, bond valuation with semiannual interest; Discount bond and premium bond;
Bond yields: current yield, capital gain yield, holding period return, yield to maturity, yield to call;
Dividend discount model for stock valuation: zero-growth model, normal growth model, super-normal growth model, single period valuation, multi-period valuation;
Valuation of preferred stock.
Unit 6: Cost of Capital LH 10
Concept of cost of capital; Applications of cost of capital in financial decision making,
Component cost of capital: cost of debt, cost of preferred stock, the cost of retained earnings, the cost of new common stocks; Weighted average cost of capital (WACC); Factors affecting the WACC.
Unit 7: Capital Structure and Leverage LH 10
Concept of capital structure;
Business risk and operating leverage;
Financial risk and financial leverage; Total leverage;
Break-even analysis: Operating break-even, cash breakeven, financial break-even analysis.
Unit 8: Basics of Capital Budgeting LH 20
Characteristic of capital budgeting decision;
Capital budgeting decision process;
Types of capital budgeting projects;
Capital budgeting decision techniques: payback period, discounted payback period, net present value, profitability index, internal rate of return, modified internal rate of return; merits and limitations of each capital budgeting decision technique.
Unit 9: Working Capital Management LH 15
Concepts of working capital;
Types of working capital: Seasonal and permanent working capital,
Factors affecting the size of working capital;
Significance of working capital management;
The cash conversion cycle;
Significance of inventory management;
Basic inventory costs;
The economic order quantity model;
Reorder point and safety stock;
Significance cash management,
Purpose of receivables management;
Elements of credit policy.
Unit 10: Distributions to Shareholders LH 15
Concept and types of dividends;
Factors affecting dividend policy;
Dividend payment procedures;
Dividend policy in practice: Stability in dividends and residual dividend policy;
Stock dividends, Stock splits, Reverse stock splits; Stock repurchases;
Dividend payment practices in Nepal
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Journal Entries in Nepali
Journal Entry and Ledger
Trial Balance and Adjusted Trial Balance
Bank Reconciliation Statement (BRS)
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Financial Accounting and Analysis (All videos)
Accounting for Long Lived Assets
Analysis of Financial Statement
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