ECON / MGMT 005 Introduction to Business & Finance Syllabus

Transcription

1 ECON / MGMT 005 Introduction to Business & Finance Syllabus Course Description: This course provides an introduction to the study of the modern business enterprise. The course is taught in four modules, the order of which may vary from semester to semester. The first examines the role and governance of business enterprise in the global economy. The second concentrates on financial tools, including the time value of money, capital budgeting and evaluation, and valuation of various capital sources. The third examines product pricing and marketing. The last module concentrates on personal financial management. Expected Course Learning Outcomes (CLOs): The student will be able to: A. Explain and apply the concepts of entrepreneurship. B. Apply mathematical, computational, and problem-solving skills in personal, business, and consumer applications (supports PLO 5, see below). C. Describe the role of the business enterprise in the broader social context, including principles of corporate social responsibility and business ethics (supports PLO 1, see below). D. Describe basic concepts of targeted advertising and product marketing. E. Explain the time value of money and apply it to a variety of problems/scenarios. F. Analyze financial markets, financial instruments, and financial institutions as they relate to the US and global economies (supports PLOs 1, 4 and 5, see below). G. Analyze and become acquainted with interest rates and the term structure of interest rates (supports PLO 5, see below). H. Describe risk and rates of return. I. Evaluate the basics of capital budgeting, including the calculation of net present value, internal rate of return, modified internal rate of return, and payback period (supports PLO 5, see below). J. Explain the basics of financial statements and financial statement analysis. The CLOs above support the following Program Learning Outcomes (PLOs) for the Economics program (visit the Economics website for the full list of PLOs): 1. Demonstrate an understanding of the role of organizations and institutions in a society, the impact of organizations and institutions on the economic environment and outcomes, and how incentives influence individual and organizational behavior and performance. 4. Define problems and identify multifaceted explanations for complex economic phenomena by using information and data from multiple sources to answer the questions at hand. 5. Demonstrate critical thinking about the information encountered, whether it is in coursework or reported in the media.

2 Methods of Evaluation: 1. Tests 2. Projects 3. Homework 4. In Class Work Textbook: Principles of Business, 8th Edition, 2012, by Dlabay, Burrow, & Kleindl, ISBN-13: , cengage. The text will be supplemented with readings on select topics from Essentials of Corporate Finance, Ross, Westerfield & Jordan (RWJ), 6e, Required Materials: A financial calculator. The calculator must have time value of money keys (PV, FV, PMT, N, I/Y, NPV, and IRR). Recommended options: Hewlett Packard 10BII or Texas Instruments BAII+. Most graphing calculators have the time value of money functions, so if you have one you probably won t need to buy a financial calculator. Note: You may be able to find an app for your smart phone for a lower cost or free. Grading: Tests (3 at 100 points each) Homework (14 collections)* Team Projects (4 at 25 points each) Excel Project In Class Work * See homework section below 300 pts. 70 pts. 100 pts. 10 pts. 70 pts. 550 points possible Grading based on 550 points total (+/- grading): A 93% and up A- 90% below 93% B+ 87% below 90% B 83% below 87% B- 80% below 83% C+ 77% below 80% C 73% below 77% C- 70% below 73% D+ 67% below 70% D 63% below 67% D- 60% below 63% F Below 60%

3 Teamwork: The class will be divided into teams of up to five people. The teams will remain intact throughout the semester. Teams will work on the projects together. I recommend that your teams meet on a regular basis. I have found that studying and working on homework in teams helps students understand the subject matter better. Homework: Homework is due on the dates indicated on the class timeline. Each homework assignment is worth 5 points. There are 14 homework assignments. Total possible value for homework is therefore 70 points (5 points x 14 assignments = 70 points). The homework is due at the beginning of class. All homework problems must be attempted in order to get full credit. Some homework problems are out of the book, others are in a supplemental packet that can be found in CROPS. Partial credit will be given for partially completed homework. Homework must be submitted in class as a hardcopy (hand-written or typed). In your homework submittal you will indicate the number of homework items attempted out of the total items possible. I will be checking your scores for accuracy. If your submitted scores do not match your work, you will receive a 0 on the homework and a 0 on the next homework assignment. If I find that any of your homework answers bear a strong resemblance to the solutions manual, you will receive a 0 for your overall homework grade. You have an option for homework. I will either count your total homework grade or substitute an equivalent average based on your average overall test grades (e.g. if your overall average test grade is 83%, I will count your homework grade as 70 points * 83% = 58 points). I will take the greater of the two scores (calculated at the end of the semester). If you choose not to do the homework, I will take your average test grade as calculated in the example. No late homework will be accepted. Please make sure all homework problems are legible and well organized. Note: It is definitely in your best interest to do the homework. It is easily possible to receive 70 points for homework since the grade is based on effort, not accuracy. Tests: Tests will consist of multiple-choice questions, as well as (a) problem(s). Three tests will be administered during the semester. The tests are non-cumulative. I strongly encourage you to take the test on the regularly scheduled test days. Make-up tests are allowed only under extenuating circumstances. You will be allowed to use a calculator, scratch paper, pencils/pens, and a 4 x 6 index card for notes during the test.

4 In-Class Work: During class periods, we will work on in-class problems. You will need to print out the in-class work packet. The in-class work packet is available in CROPS under Resources. Do not lose it or you will lose credit for the work you complete. I will collect your completed in-class work on test days, so make sure to bring it to class. In order to get credit for your in-class work, I will need to put a stamp on it. Don t forget to get the stamp whenever we work on in-class assignments. Team Projects: During the semester, four projects will be assigned. Each project is worth 25 points. The projects will be completed in your teams. One project per team will be submitted in the Assignments folder of CROPS. DO NOT SUBMIT IN THE DROPBOX OR VIA . Projects are due on the dates indicated on the class timeline. Excel Project: Some of the team projects require the use of a spreadsheet. To ensure that you are familiar with the use of spreadsheets, you will complete a small project using Microsoft Excel. The instructions are to be found in CROPS under the Assignments folder. You will need to submit your completed project in the Assignments folder of CROPS as an attachment. This is an individual project. Teammate Evaluation: During the semester, each team member will be given the opportunity to evaluate his/her teammates efforts. The evaluations will be taken into account for the grading of the projects. This process will help to mitigate the problems with nonperforming team members. Bonus Points: From time to time, at my sole discretion, I will consider offering bonus points for additional assignments. Textbook Website: I highly encourage you to utilize the textbook s website. There are a variety of resources that will help you to succeed in this class. There are practice quizzes, homework templates, review problems, check figures and a variety of other resources. Some of the resources are free, others can be purchased. The textbook website is optional, you are not required to purchase access to the resources contained on it. The website is non=true#home Method of Instruction: Each class period will consist of lecture with the aid of PowerPoint presentations, group work, and class discussion. Your active participation in all of these activities is essential to your success in the class.

5 Advice on how to do well in the course: My simple advice for success in this course is this: actively participate and spend time outside of class studying. Read the textbook thoroughly and do the homework. You will be introduced to a whole new vocabulary that you will have to familiarize yourself with. For the average student, 2 hours of study time should be spent per hour of class time. Therefore, you should spend 8 hours of study time per week for this class. If you read the book, do the homework, and actively participate in class, you should be able to perform well on the tests. General Classroom Rules: 1. Be respectful of others. I believe this rule covers everything, but I address specific situations below. 2. Please turn off cell phone ringers. If you are on call, please set the phone to vibrate and take the call outside the classroom. If I notice that you are leaving class often to take calls, then I will ask you to leave (see rule #1). 3. Please do not talk while I am talking, unless you are asking a question. Please do not interrupt your fellow students while they are speaking (see rule #1). 4. Actively participate in classroom discussion. It will make your educational experience much more fulfilling and less tedious. Remember, you signed up for the class, so make the most of your time here. NOTE: Please be aware of the deadlines for dropping a class. If you do not intend to take the class, please formally drop it. Failure to drop the class could result in an F in the class. Academic Integrity Policy Academic integrity is the foundation of an academic community. Academic integrity applies to research as well as undergraduate and graduate coursework. UC Merced s Academic Honesty applies to all students both graduate and undergraduate. Students should be aware that UC Merced s faculty take academic integrity issues very seriously. Faculty will actively seek to educate students about the Academic Honesty Policy, as well as to determine whether this policy has been followed. Academic misconduct has serious consequences. Academic misconduct includes, but is not limited to, cheating, plagiarism, and collusion, as specified in this policy or other campus regulations. Please see UC Merced s Academic Integrity policy for more details, including the disciplinary process.

6 General Education This course addresses the following General Education Guiding Principles: Scientific Literacy: Students learn how to construct, evaluate and interpret quantitative information about project and firm performance. Decision Making: Students learn methods for evaluating investment and financing projects, and making decisions about these projects that advance the interests of a firm and its owners. Communication: Students develop skills in written and oral communication for the business environment. Ethics and Responsibility: Students learn about the environmental and societal context in which corporate firms make decisions. The schedule of topics follows. This syllabus is subject to change at my discretion.

7 Schedule of Topics Unit I: BUSINESS IN THE GLOBAL ECONOMIC ENVIRONMENT (Weeks 1-3) Economic Decisions and Systems (Ch. 1) Economic Activity (Ch. 2) Business in the Global Economy (Ch. 3) Social Responsibility of Business and Government (Ch. 4) Unit II: BUSINESS ORGANIZATION AND FINANCIAL MANAGEMENT (6 weeks) Basics: Using a Calculator and Computer Keypad (App. A) Math Review (App. B) Determining Percentages and Interest in Business (App. C) Business Organization (Ch. 5) Entrepreneurship and Small Business Management (Ch. 6) Financial Statements (Readings from RWJ) Time Value of Money (RWJ) Bond Valuation (RWJ) Capital Budgeting (RWJ) Risk Management (Ch. 14) Unit III: MARKETING AND TECHNOLOGY (3 weeks) Marketing (Ch. 10) Business and Technology (Ch. 11) Production and Business Operations (Ch. 13) Unit IV: PERSONAL FINANCIAL MANAGEMENT (3 weeks) Consumers in the Global Economy (Ch. 15) Money Management and Financial Planning (Ch. 16) Banking and Financial Services (Ch. 17) Consumer Credit (Ch. 18) Savings and Investment Strategies (Ch. 19) Insurance (Ch. 20)