Corporate Economics

The course is a substitute for:

Enterpreneurial Economics (X16EPO)

Lecturer:

Tutor:

Supervisor:

Department of Economics, Management and Humanities

Synopsis:

Principles of corporate management. Economic, legal, tax, marketing and management aspects of business.

Requirements:

Syllabus of lectures:

1. Basic forms of corporate financing. External and internal sources of finance. Short-term financing.

2. Long-term financing. Shares, bonds, bank loans, leasing, franchising.

3. Basic accounting principles. Balance equation. Assets, liabilities. Accounting systems.

4. Accounting statements and their structure. Balance sheet, income statement and their relations.

5. Principles of financial analyses. Profit division, effectiveness and productivity.

6. Business plan. Outline, building up and implementation.

7. Marketing. Basic principles and tools.

8. Financial mathematics. Interests calculation, insurance calculus. Interest factors calculation.

9. Investment appraisal. Marginal and average values. Relevant items. Opportunity cost.

10. Investment decision-making. Basic criteria (payback period, net present value, internal rate of return).

11. Risk and uncertainty in business. External and internal factors, sensitivity analyses. Decision trees.

12. How to manage taxes. Tax system in CR. Income tax, indirect taxes.

13. Capital markets, bank sector. Stock exchange and entrepreneur. Mutual funds.

14. Foreign markets. Legal aspects, collection of cash, insurance, financing.

Syllabus of tutorials:

1. Business credit analysis, customers rating.

2. Bill of exchange (IOU), short-term securities. Shares and bonds issue.

3. Assignment. Making the teams.

4. Simple entry accounting. Accounting documents, features and their keeping.

5. Balance sheet, income statement. Structure, construction and their relations.

6. Effectiveness and productivity. Basic ratio analysis.

7. Interest calculus, discounting. Typical examples of financial calculus.

8. Financial calculus - continuation.

9. Investment appraisal examples. Marginal and average values. Opportunity cost.

10. Basic criteria (payback period, net present value, internal rate of return) - case studies, software tools.

11. Quiz.

12. Assignment presentation and evaluation.

13. Tax and accounting depreciation. Tax shield.

14. Assessment.

Study Objective:

Study materials:

1. Koontz, H., Weihrich, H.: Management. McGraw-Hill, 1998

2. Brealey, R.A., Meyers, S.C.: Principles of Corporate Finance. McGraw-Hill, 2000

3. Nickels, W. G.: Understanding Business. Mosby, 1997

According to lecturer requirements.

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans: