Course detail

Financial Management of Small Company

FP-ERBFMSEAcad. year: 2017/2018

The course content is basic issues of financial management, such as the time value of money, investment decision-making issues, procuring funding and financial planning.

Language of instruction

English

Number of ECTS credits

5

Mode of study

Not applicable.

Offered to foreign students

Of all faculties

Learning outcomes of the course unit

Knowledge: The student knows the basic principles and methods of compiling of the financial plan,. They are aware of different possibilities of financing the enterprise and their specific features. Moreover, they can identify those forms suitable for the small enterprise. They know the basic method of working capital management and methods of assuring the solvency of business.
Skills: The student is able to create a plan of revenue, expenses and profit prof given scenario. The student knows the concept of time value of the money and he is able to appy it. The student is capable of evaluating various investment opportunities.
Abilities: The student can create a basic form of financial plan in different variants especially for different scenarios of expected future development. What is more, they can implement measures for stabilising or enhancing the cash flow so assuring and maintaining the solvency of the business. They will be able to weigh up the advantages of various investment opportunities, judge the possibilities for their financing and evaluate their future impact. Student will be able to calculate the return on investment.

Prerequisites

Knowledge and understanding of the content of financial statements, a knowledge of basic corporate-economics terms and a knowledge of mathematical functions.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course involves lectures that explain the basic principles, problems and methodology of the discipline, and seminars that promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

Producing and defending a seminar paper and responding to supplementary theoretical questions. The subject of the seminar paper is the compilation and evaluation of a financial plan with an outlook of 3 years for a concrete plan for the start-up and development of a business. In the resulting assessment of the course the level of the paper produced has a 70% share, and a pass requires a minimum of 50%.

Course curriculum

• Introduction to financial management. Time value of money
• Financial statements and setting up cash flow
• Determining of business needs and sources of financing
• Investment decisions
• Setting up financial plan
• Evaluation of the enterprise’s results

Work placements

Not applicable.

Aims

The aim of the course is to introduce students to the basics of corporate financial management, such procuring funding, deciding on investments, working capital management and financial planning, all with a special focus on small enterprises.

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

Monitoring of results of independent work on assigned tasks. In the case of excused absence from a seminar the teacher can set additional condition if appropriate, usually production of a partial written task.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

BREALEY, R. A., MYERS, S. C., ALLEN, F. Principles of Corporate Finance. 11 Ed. McGraw Hill. 2014. ISBN 978-0078034763
BROOKS, R. M. Financial management: Core concepts.1 ed. Prentice Hall. 2010. ISBN 978-0-321-60939-7
ATRILL, P. Financial management for Non-specialists. 3 ed. Prentice Hall. 2003. ISBN 0-273-65749-6

Recommended reading

DAMODARAN, A. Applied corporate finance. 3rd Edition. John Wiley&Sons, 2011. ISBN 978-0-470-38464-0.
DOUGLAS, R., E., FINNERTY, J., D. & J. D.STOWE. Corporate financial management. 3rd Edition. Pearson Prentice Hall, 2007. ISBN 0-13-227872-3.

Classification of course in study plans

  • Programme BAK-Z Bachelor's

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

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

Exercise

13 hours, compulsory

Teacher / Lecturer