Course detail

Economics of Company

FP-ERBECOEAcad. year: 2017/2018

The course focuses on categories of business economics, objectives and functions of a company, property and capital valuation of assets and liabilities, income and expenses, profit and their mutual relations. The course includes the basics of financial and investment activities and economic decision-making.

Language of instruction

English

Number of ECTS credits

4

Mode of study

Not applicable.

Offered to foreign students

Of all faculties

Learning outcomes of the course unit

Students will gain theoretical knowledge of business economics in particular business activities.

Prerequisites

General economic knowledge is expected.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Lessons are realised as lectures. Lectures consist are focused on an explanation of basic principles, methodology, examples and their solutions.

Assesment methods and criteria linked to learning outcomes

Knowledge is verified by a written test.
The classification is according to ECTS:
A100-90
B 89-80
C 79-70
D 69-60
E 59-50
F 49-0

Course curriculum

1. Corporate economics – key terms: Economy and economics. Production. Production factors. Enterprise and business principles, Business environment, Corporate stakeholders, Enterprise functions (activities), Enterprise typology.
2. Objectives of a firm: Enterprise objective. Profit maximisation. Shareholder value.
3. Legal forms of entrepreneurship in the Czech Republic: Sole proprietorship. Business corporations. European legal forms of entrepreneurship.
4. Assets and capital structure of a company - Asset structure, Capital structure.
5. Revenues and costs of a company - Profit and loss statement.
6. Cash flow .
7. Costing - Cost accounting, Classification of costs, Costing methods.
8. CVP analysis.
9. Funding strategies.
10. Economic evaluation of investment projects

Work placements

Not applicable.

Aims

The aim of the course is to provide students basic theoretical knowledge of business economics. It deals with the founding, running and activities of the company. The lectures underlined the economic aspect of the issue and the emphasis is on mastering professional terminology.
Students gain theoretical knowledge in the field of business economics and business activities. Based on the acquired knowledge and skills students should be able to apply the knowledge in the company and in the business itself.

Specification of controlled education, way of implementation and compensation for absences

In case of excused absence from seminars, the teacher may give an additional task.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

ALLEN, B.W., WEIGELT K., DOHERTY, N.A., MANSFIELD, E. Managerial Economics: Theory, Applications, and Cases. 7th Edition. W.W. Norton, New York, 2009, ISBN-10: 0393932249.
DAVID E. Financial Analysis and Decision Making. 2003 McGraw-Hill. ISBN 0-07-141559-9.
WHITE, G.I., SONDHI, A.C., FRIED, D. The analysis and use of financial statements. 3rd ed. Hoboken: John Wiley, 2003. ISBN 0-471-37594-2.

Recommended reading

BERNSTEIN, L.A., WILD., J.J. Analysis of financial statements. 5th ed. New York: McGraw-Hill, 2000. ISBN 0-07-094504-7.
HILTON, R.W., MAHER, M., SELTO, F.H.. Cost management: strategies for business decisions. 4th ed. Boston: McGraw-Hill/Irwin, 2008. ISBN 978-0-07-128799-9.

Classification of course in study plans

  • Programme BAK-Z Bachelor's

    branch BAK-Z , 1. year of study, winter semester, elective

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

Syllabus

1. Corporate economics – key terms: Economy and economics. Production. Production factors. Enterprise and business principles, Business environment, Corporate stakeholders, Enterprise functions (activities), Enterprise typology.
2. Objectives of a firm: Enterprise objective. Profit maximisation. Shareholder value.
3. Legal forms of entrepreneurship in the Czech Republic: Sole proprietorship. Business corporations. European legal forms of entrepreneurship.
4. Assets and capital structure of a company - Asset structure, Capital structure.
5. Revenues and costs of a company - Profit and loss statement.
6. Cash flow .
7. Costing - Cost accounting, Classification of costs, Costing methods.
8. CVP analysis.
9. Funding strategies.
10. Economic evaluation of investment projects