5029.12 - Business Economics
Upper Secondary School with B-level in mathematics.
The purpose of this course is to equip students with skills to analyse and evaluate key economic problems and make managerial decisions based in theory.
The course covers: the company’s annual report – including income statement, cash flow and balance sheet; budgeting; financial analysis – including profitability, earnings, capital adjustment, liquidity and solvency; investment and financing; price-volume optimization; price elasticity; market structures; price-sales function; and cost theory.
Learning and teaching approaches
Lectures and Assignments
After completing the course, students should be able to use key business economic methods to: - set up accounts with the income statement, cash flow and balance sheet, - make budgets and understand the use of budgets as a management tool, - analyse a company’s annual report and conduct a financial analysis, including calculating ratios for profitability, earnings, capital adjustment, financial position and liquidity, and to do benchmarking. - make investment calculations; calculate net present value and internal rate of return - carry our sensitivity analyses using parameters such as scrap value, investment values and net payments, - understand the most common forms of financing, - understand the most common forms of competition, - optimize price, volume and earnings using various assumptions, such as – one product in one or more markets, with or without price discrimination.
Written exam in 4 hours. The exam is 2/3 of the total grade. The student must submit three assignments of which the last assignment is 1/3 of the total grade.
Jørgen Waarst og Knud Erik Bang: Erhvervsøkonomi - videregående uddannelser, 3. ed. ISBN: 9788776755027. Gyldendal 2007.
Petur F. Zachariassen