Course detail
Financial Management of Small Company
FP-BFMSEAcad. year: 2022/2023
The course content is basic issues of financial management, such as the time value of money, investment decision-making issues, procuring funding and financial planning.
Language of instruction
Number of ECTS credits
Mode of study
Guarantor
Department
Offered to foreign students
Learning outcomes of the course unit
Skills: The student is able to create a financial plan for the stage of starting or developing their own business, and moreover is able to evaluate and identify the risks connected to the solvency of the enterprise. The student is capable of evaluating various investment opportunities.
Abilities: The student can create the financial plan in different variants especially for different scenarios of expected future development. What is more, they can implement measures for stabilising or enhancing the cash flow so assuring and maintaining the solvency of the business. They will be able to weigh up the advantages of various investment opportunities, judge the possibilities for their financing and evaluate their future impact.
Prerequisites
Co-requisites
Planned learning activities and teaching methods
Assesment methods and criteria linked to learning outcomes
There are three conditions for passing the final exam:
1.Attending the lectures and seminars and be prepared in advance for the seminars
2. Preparing and submitting an original seminar work in an acceptable quality*
- The weight of the seminar work on overall evaluation of the subject is 70 per cent, while the submitted seminar work is acceptable only if its evaluation is at least 50 per cent.
- In case of evaluation lower than 50 per cent, the work can be redone and resubmitted within 5 business days after receiving the evaluation.
- The seminar work evaluation is based on the fulfilling the given main requirements (see e-learning).
- The seminar work could be prepared in a team of up to three students. In such case, the team members are equally responsible for the quality of the work, i.e. they share the same assessment of the submitted work.
- A one-student-group is also possible. In case of more than one-member groups, the contribution of each member should be clearly stated.
- All students are required to select a group in the system.
Each team has to have its own original idea about the product/service with will be subject of the intended business which will be further descripted in course of the seminar work.
3) Passing a written test, which will include several theoretical questions (which are listed in a separate file available in the e-learning, see “Preparing for exam – the list of questions“). The minimum passing mark of the test is 50 per cent.
Course curriculum
• Financial statements and setting up cash flow
• Determining of business needs and sources of financing
• Investment decisions
• Setting up financial plan
• Evaluation of the enterprise’s results
Work placements
Aims
Specification of controlled education, way of implementation and compensation for absences
Attending the lectures and seminars and be prepared in advance for the seminars. Missing at maximum of two lectures or seminars is allowed*. Being unprepared for the seminars seminars is also considered as missing the lecture or seminar.
*Fulfilling additional task will be required instead (theoretical topic presentation, or compiling financial plan based on given information etc.).
Recommended optional programme components
Prerequisites and corequisites
Basic literature
BREALEY, R. A., MYERS, S. C., ALLEN, F. Principles of Corporate Finance. 11 Ed. McGraw Hill. 2014. ISBN 978-0078034763 (EN)
BROOKS, R. M. Financial management: Core concepts.1 ed. Prentice Hall. 2010. ISBN 978-0-321-60939-7 (EN)
Recommended reading
DOUGLAS, R., E., FINNERTY, J., D. & J. D.STOWE. Corporate financial management. 3rd Edition. Pearson Prentice Hall, 2007. ISBN 0-13-227872-3. (EN)
Elearning
Classification of course in study plans
Type of course unit
Lecture
Teacher / Lecturer
Syllabus
Subject structure (lecture/seminar):
1.Introduction to financial management / Founding budget
2.Time value of the money / Compounding, PV/FV of annuity,…
3.Financial statements and cash flow / Preparing the cash flow statement
4.Capital budgeting / Capital budgeting and application of the methods
5.Working capital management / Inventories and receivables management
6.Financing business part 1 - long-term sources of financing business
7.Financing business part 2 - short-term sources of financing business
8.Financial plan – short-term horizon / Financial plan – short-term horizon
9.Financial plan – short-term horizon / Financial plan – short-term horizon
10.Spefic forms of financing the business / Lease vs. loan financing dilemma
11.Financial analysis part 1 / Ratio analysis ( liquidity, solvency and profitability ratios)
12.Financial analysis part 1 / Ratio analysis (asset management ratios) + bankruptcy prediction models
13. test
Elearning