Course detail

Corporate Economics

FP-PceKAcad. year: 2019/2020

Corporate economics consider basic theoretic knowledge from the corporate economy theme. This course is designed as a comprehensive overview of corporate economics theory. Course cover a number of topics including production analysis, break - even analysis, accounting profit and economic profit, capital budgeting, managerial decision making, fund flow statement a budget and budgetary control. You will be equipped with a set of concepts and analytical tools that will allow you to approach and analyse a wide variety of common corporate economic questions. Further students will be able to gain company’s economy knowledge connected to each field of company’s activity. Concerning the gained course knowledge and as part of the course evaluation, students should be able to apply it to concrete company’s activity, process or to try to solve the problem in specific field of the company’s activity.

Learning outcomes of the course unit

Students will be able to gain company’s economy knowledge connected to each field of company’s activity.
Concerning the gained course knowledge and as part of the course evaluation, students should be able to apply it to concrete company’s activity, process or to try to solve the problem in specific field of the company’s activity.

Prerequisites

There is expectation to have general knowledge of economics

Co-requisites

Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

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. (EN)
DAVID E. Financial Analysis and Decision Making. 2003 McGraw-Hill. ISBN 0-07-141559-9. (EN)
KOCMANOVÁ, A., LUŇÁČEK, J. Enterprise Economics. 1.a 2.díl. 1.vyd. Brno, 2007. (EN)
SYNEK, M. Manažerská ekonomika. Praha: Grada, 2007. ISBN 978-80-247-1992-4 (CS)

Planned learning activities and teaching methods

Lectures consist of an explanation of basic principles, methodology of the discipline, problems and their solutions.

Assesment methods and criteria linked to learning outcomes

Knowledge is verified by a written examination. For the written exam the student receives two computational examples and four technical questions of a theoretical part defined by lectures in the field of enterprise economics. The student is awarded the classification according to the grading scale ECTS max score of 70 points.
There is also one control test.
Passing the control test: 30 points
Minimum number of points: 17 points.
Correction term is the only one in the credit week.
A 100 – 90
B 89 - 80
C 79 – 70
D 69 – 60
E 59 – 50
F 49 - 0

Language of instruction

English

Work placements

Not applicable.

Course curriculum

Annotation:
• Definition and Meaning of Corporate Economics. Role and Responsibilities of Corporate Economics.
• Production Analysis. Production Functions - Law of variable proportions - Producers equilibrium - economics of scale - Cost concepts - Cost & Output relationship - Cost Control & Cost Reduction.
• Break - Even Analysis. Meaning, determination of Break - Even Point - Even Analysis.
• Profit & Profit Management. Accounting profit and economic profit - Theories of Profit.
• Capital Budgeting. Need for capital budgeting - forms of capital budgeting. Project profitability: Methods of Appraising Project Profitability.
• Managerial Decision Making. Risk & Uncertainty - Elements of Decision Theory - Classification of Managerial Problems - Decision taking under certainty & uncertainty.
• Ratio Analysis: Profitability Ratio - Turnover Ratio - Solvency Ratio.
• Fund Flow Statement. Meaning – Uses of Fund Flow Statement – Schedule of Changes in Working Capital – Funds Flow Statement – Cash Flow Statement – Meaning – Uses – Difference between Fund Flow Statement and Cash Flow Statement.
• Budget and Budgetary Control. Meaning of Budget and Budgetary Control. Advantages and Disadvantages – Sales Budget- Production Budget – Cash Budget – Flexible Budget.

Aims

Objectives of the course: The aim of the course is to provide students with a comprehensive overview of the economic theory of the corporation. It deals with a range of topics, including production analysis, break - even analysis, accounting profit and economic profit, capital budgeting, managerial decision making, fund flow statement a budget and budgetary control. There is underlined the economic aspect of the issue and the focus on the terminology in the lectures.

Learning outcomes:
Knowledge: Further students will be able to gain company’s economy knowledge connected to each field of company’s activity.
Skills: Students will be equipped with a set of concepts and analytical tools that will allow students to approach and analyse a wide variety of common corporate economic questions.
Eligibility: Concerning the gained course knowledge and as part of the course evaluation, students should be able to apply it to concrete company’s activity, process or to try to solve the problem in specific field of the company’s activity.

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

There is one control test during the semester. In the case of excused absence from seminars, teacher in justified cases set a condition alternative task.

Classification of course in study plans

  • Programme MGR-KS Master's

    branch MGR-PFO-KS , 1. year of study, summer semester, 4 credits, compulsory

Type of course unit

 

Lecture

12 hours, optionally

Teacher / Lecturer

Guided consultation in combined form of studies

25 hours, optionally

Teacher / Lecturer

eLearning