Course detail

Basic Elements of Financing

FP-zfPAcad. year: 2021/2022

Company as a parf of financial system. Company's financial statements - a source of information for financial decisions. Founding budget. Working capital management. Capital budgeting methods. Sources of financing the business. Cash flow. Aim of doing business from financial perspective and its evaluation.

Language of instruction


Number of ECTS credits


Mode of study

Not applicable.

Learning outcomes of the course unit

Knowledge: The students will be informed about the position of the company in the financial system, the economic criteria of choosing a specific form of doing business, the principles of preparing founding budget and ways of estimating the cash flow resulting from investment actions. Students will be aware of potential sources of financing the business and their suitability of use.

Skills: The students will be able to identify financial needs according to given line of doing business and justify the need of sources of financing and to chose appropriate criteria for the assessment of certain processes.

Abilities: Student will be able to prepare a founding budget, i.e. to define the asset need and calculate the need of financing. They will be able to prepare the capital budget and to assess the expected cash flow based on the given parameters. They will be able to find the cost of capital and cash outflows related to a specific source of financing, to assess the suitability of selected debt financing form or lease. They will be able to analyse the efficiency in utilizing disponible capital by applying the tools of financial analysis.


Not required.


Not applicable.

Planned learning activities and teaching methods

The course contains lectures that explain principles, decisions problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

CREDIT REQUIREMENTS: A mid-term test: Assessing the knowledge of topic taught from 1. to 5. week of the term, with maximum mark of 20 points. There is no retake possible for this test.
Final test: assessing the knowledge of topics of whole term, ith maximum mark of 40 points. There is one possible retake.
A minimum passing mark for being granted by the credits is 50 %, i.e. 30 point.

Student with individual study plan are obliged to pass the final test. The test date will be announced in the information system.

WAY OF EXAMINATIONS: A written exam, consisting of theoretical questions (both open-ended and close-ended). Assessment is in the line of Examination rules of BUT (minimum passing mark is 50 %, i.e. 20 points), the maximum assessment is 40 points.
The final mark is based on sum of point granted by credit and exam.


Course curriculum

1. Introduction. Company as a part of a financial system.
2. Financial statements - an information source for financial decision making.

3. Founding budget. Production factors and their consumption.

4. Working capital management - inventories and receivables.

5. Capital budgeting - cash inflows and outflows related to an investment.

6. Financing the business - internal sources of finances.

7. Financing the business - external sources of finances.

8. Cash flow.

9. Aims of doing business and its evaluation.

10. Analysis of differential and ratio type indicators.

11. Analysis of  ratio type indicators.

12, Analysis of bankruptcy prediction models.

Work placements

Not applicable.


The aim of the subject is to provide students with basic knowledge on cash flows related to business, its analysis and possibilites of prediction using external and internal sources of information. 

For doing that, it is needed to manage the approaches to defining corporates need, based on the business plan and the given form of doing business, to learn the methods of financial planning and evaluation of the fixed assest recovery, to apply economic criteria of invnetory management, to define sources of financing the business needed to cover asset needs and its evaluation for the given case.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is required and checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

MAREK, P. a kol. Studijní průvodce financemi podniku. Praha: Ekopress, 2006. 624 s. ISBN 80-86119-37-8. (CS)
KORÁB, V. a REŽŇÁKOVÁ, M. a PETERKA, J. Podnikatelský plán. Brno: Computer Press, 2007. 216 s. ISBN 978-80-251-1605-0. (CS)
SRPOVÁ, J., ŘEHOŘ, V. a kol. Základy podnikání. Teoretické poznatky, příklady a zkušenosti českých podnikatelů. Praha: Grada Publishing. 2010. (CS)
BROOKS, R. M. Financial management: Core concepts. 3rd ed. Boston: Pearson, 2016. 619 p. ISBN 978-0-133-86669-8 (EN)

Recommended reading

KISLINGEROVÁ, E. a kol. Manažerské finance. 2. přeprac. a rozš. vyd. Praha: C. H. Beck, 2011. 745 s. (CS)
FOTR, J. Podnikatelský záměr a investiční rozhodování. 2. přepr. a dopl. vyd. Praha: Grada Publishing, 2005. 356 s. (CS)
NÝVLTOVÁ, R., MARINIČ, P. Finanční řízení podniku. Moderní metody a trendy. Praha: Grada, 2010. 204 s. ISBN 978-80-247-3158-2. (CS)

Classification of course in study plans

  • Programme BAK-PM Bachelor's, 2. year of study, summer semester, compulsory-optional

Type of course unit



26 hours, optionally

Teacher / Lecturer


26 hours, compulsory

Teacher / Lecturer