Enterprise Economics

The course cannot be taken simultaneously with:

Business Economics (BIE-EPD)

Lecturer:

Tutor:

Supervisor:

Department of Software Engineering

Synopsis:

Students get common knowledge of business economics. They understand the goals and functions of a business, the business environment, and the business lifecycle. They understand the relationships among profit, production volume, price and costs. They have an overview of applicable taxes. They know the fundamentals of financial mathematics and investment decision making. They can draft and interpret a business plan. They understand management functions, corporate processes and corporate governance.

Requirements:

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Syllabus of lectures:

1. Business and entrepreneurship. Targets and functions of a business, legal forms.

2. Business plan - outline, creation and implementation. Assets and capital structure of the company.

3. Assets, liabilities, cost, income.

4. Cost classification, cost calculation methods. Relationship among profit, production volume, price and costs.

5. Profit and its structure. Profit division, profitability and productivity.

6. Financial mathematics - interest calculation. Investment appraisal - marginal and average values. Opportunity cost.

7. Shares, bonds, bank loans, leasing. Short-term financing - business credit, bill of exchange.

8. Basic effectiveness criteria (payback period, net present value, internal rate of return). Risks and uncertainties in business.

9. Tax system in the Czech Republic. Income tax, consumption taxes, value-added tax.

10. Human resources management. Motivation, stimulation, communication. Workgroup management. Managers own time management.

11. Company management, managerial roles. Organizational structure of a company.

12. Public finances.

13. Information systems in management introduction.

Syllabus of tutorials:

1. Rules of the game. Entrepreneurship, types of companies.

2. Basics of financial mathematics. Interest calculation.

3. Accounting. Structure of balance sheet, profit-and-loss statement, cash-flow statement; relationships.

4. Founding budget. Project assignment. Management game.

5. Examples of relationships among profit, production volume, price, and costs.

6. Leverage, break-even point.

7. Break-even point analysis using cash flows. Cost calculation methods.

8. Productivity, profitability, basic indicators of financial situation of a company.

9. Criteria of economical efficiency - practical examples.

10. Financing, criteria of economic efficiency.

11. Tax and accounting writeoffs. Tax shield. Bookkeeping.

12. Test. Project presentations.

13. Project presentations. Case study - workgroup management.

Study Objective:

The module aims to give basic information about economical principles that govern the functioning of businesses and business processes. Students gain an overview of important relationships among the individual units in a business structure as well as the outside economic environment.

Study materials:

1. Brealey, R. A., Myers, S. C., Allen, F. ''Principles of Corporate Finance.'' McGraw-Hill Higher Education, 2007. ISBN 0071266755.

Note:

Time-table for winter semester 2011/2012:

	06:00–08:0008:00–10:0010:00–12:0012:00–14:0014:00–16:0016:00–18:0018:00–20:0020:00–22:0022:00–24:00
Mon
Tue
Fri
Thu	room 16:15–17:45 (lecture parallel1) room 18:00–19:30 (lecture parallel1 parallel nr.101)
Fri

Time-table for summer semester 2011/2012:

Time-table is not available yet

The course is a part of the following study plans:

• Information Systems and Management (Presented in English) (compulsory course of the specialization)
• Informatics (Presented in English) (VO)