Course Description
Examines necessary tools required to plan and run a successful business venture. Requires integration of concepts, methods and models from accounting, economics and marketing in forming a business plan for a product or service in a case study. First course in a two-course sequence.
Course Objectives
The objective of this course is to help business students learn fundamental business concepts and apply them by developing a business plan. This 8 week course is the first in a series of two courses. Students will learn the basics of accounting, economics and marketing while conducting a financial analysis of a company. A full business plan will be developed at the end of the second course in the series (BUS 5602).
Week 1
Lecture: Course Introduction
Outcomes
- Define accounting
- Identify users of accounting information and explain why it is useful
- Discuss accounting services
- Define financial accounting standards
- Describe information reported in financial statements
- Define the relationship between financial statements
- Demonstrate the meaning and usefulness of the Accounting Equation
- Identify limitations of financial statements
Week 2
Lecture: Transaction Analysis and the Balance Sheet
Outcomes
- Calculate and interpret financial ratios
- Analyze a financial transaction
- Describe the relationship between the income statement and balance sheet through owner’s equity
- Define revenue and understand revenue recognition criteria
- Describe the purpose and general format of the income statement
- Describe the general format of the statement of cash flows
Week 3
Lecture: Economics Introduction
Outcomes
- Distinguish microeconomics from macroeconomics
- Explain the concept of opportunity cost and how it relates to economic profit
- List the four market structures and their main characteristics
- List the determinants of demand and supply
- Explain and illustrate in a demand/supply graph the terms market equilibrium, shortage and surplus
- Use demand/supply graphs to determine the market’s equilibrium price and quantity
- Describe the market outcomes associated with controlled prices
- Determine short-term movements in the exchange rate using demand and supply analysis
- Explain PPP theory; how it relates to the law of one price; and, how it is used to explain long term trend movements in the exchange rate
Week 4
Lecture: Cost Benefit Analysis
Outcomes
- Explain the Cost-Benefit Principle and the three features of an optimization problem
- Identify and describe the three irrelevant costs when applying the cost-benefit principle
- Construct and work with MB-MC diagrams
- Solve for the optimal solution using the cost-benefit principle
- Describe the three most common measures of economic performance and how each varies over the phases of a business cycle
- Explain how a central bank controls the money supply in an economy and how monetary policy is used to stabilize the economy
- Describe the role of international reserves in pegging the exchange rate to a specific value
- Describe how monetary policy is used to peg the exchange rate
- Explain how a speculative attack against an overvalued currency ultimately leads to devaluation of the currency
Week 5
Lecture: Marketing Introduction
Outcomes
- Define marketing
- Explain why marketing is useful
- Understand the marketing concept
- Describe the major marketing functions
- Explain the importance of marketing strategy
- Understand marketing mix and explain the 4 P’s
- Define target marketing
- Explain market segmentation
- Describe differentiation and product positioning
Week 6
Lecture: Marketing Environment
Outcomes
- Understand the External Market Environment
- Explain how changes in the External Environment can affect marketing strategy
- Describe consumer behavior
- Understand the factors which influence the buying decision
- Explain the process used by consumers to make a buying decision
Week 7
Lecture: Corporate Governance and Financial Disclosures
Outcomes
- Explain the importance of notes to the financial statements
- Describe how significant accounting policies can affect financial disclosures
- Describe the role of the Securities and Exchange Commission (SEC)
- Explain the importance of corporate governance
- Discuss the major financial ratios
Week 8
Lecture: Financial Statement Analysis Project
Outcomes
- Complete a financial analysis of your selected company
- Develop conclusions based on your analysis
The course description, objectives and learning outcomes are subject to change without notice based on enhancements made to the course. May 2011
