Economics of Company
FP-BECOEAcad. year: 2019/2020
The course focuses on categories of business economics, objectives, and functions of a company, assets 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.
Learning outcomes of the course unit
Students will gain theoretical knowledge of business economics in particular business activities. On the basis of the acquired knowledge and skills, students will be able to apply and solve a task in a selected company during a semester project.
General economic knowledge is expected.
Recommended optional programme components
Recommended or required reading
BERNSTEIN, L.A., WILD., J.J. Analysis of financial statements. 5th ed. New York: McGraw-Hill, 2000. ISBN 0-07-094504-7. (EN)
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)
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. (EN)
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. (EN)
Planned learning activities and teaching methods
Lessons are realised as lectures. Lectures 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 exam. During the exam, the student receives two computational examples and four theoretical questions.
The classification is according to the ECTS scale
Language of instruction
1. Corporate economics – key terms: Economy and economics. Production. Production factors. Enterprise and business principles.
2. Business environment, Corporate stakeholders, Enterprise functions (activities), Enterprise typology.
3. Objectives of a firm: Enterprise objective. Profit maximisation. Shareholder value.
4. Legal forms of entrepreneurship in the Czech Republic: Sole proprietorship. Business corporations. European legal forms of entrepreneurship.
5. Assets and capital structure of a company - Asset structure, Capital structure.
6. Revenues and costs of a company - Profit and loss statement.
7. Cash flow .
8. Costing - Cost accounting, Classification of costs.
9. Costing methods.
10. CVP analysis.
11. Funding strategies.
12. Economic evaluation of investment projects.
The aim of the course is to provide students with basic theoretical knowledge of business economics with an emphasis on small and medium-sized enterprises. 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
Attendance at lectures is not compulsory.