Course detail

Economics of Company

FP-BECOEAcad. year: 2021/2022

The course focuses on categories of business economics, objectives, and functions of a company, assets and capital, valuation of assets and liabilities, income and expenses, profit and their mutual relations. The course includes the basics of financial and investment activities and economic decision-making.

Language of instruction


Number of ECTS credits


Mode of study

Not applicable.

Offered to foreign students

Of all faculties

Learning outcomes of the course unit

Students will gain theoretical knowledge of business economics in particular business activities. On the basis of the acquired knowledge and skills, students will be able to apply and solve a task in a selected company during a semester project.


General economic knowledge is expected.


Not applicable.

Planned learning activities and teaching methods

Lessons are realised as lectures. Lectures are focused on an explanation of basic principles, methodology, examples and their solutions.

Assesment methods and criteria linked to learning outcomes

Students will get a credit if they receive at least 25 points out of the 45 possible points awarded for processing assignments (max. 25 points) and credit test (min. 10 points, max. 20 points). The form of the exam is written. The maximum points from the exam are 55, the student must get at least 25 points. The final assessment is a sum of points from seminars and exam.

A 100 - 90
B 89 - 80
C 79 - 70
D 69 - 60
E 59 - 50
F 49 - 0

Course curriculum

1. Corporate economics – key terms: Economy and economics. Production. Production factors. Enterprise and business principles.
2. Business environment, Corporate stakeholders, Enterprise functions (activities), Enterprise typology.
3. Objectives of a firm: Enterprise objective. Profit maximisation. Shareholder value.
4. Legal forms of entrepreneurship in the Czech Republic: Sole proprietorship. Business corporations. European legal forms of entrepreneurship.
5. Assets and capital structure of a company - Asset structure, Capital structure.
6. Revenues and costs of a company - Profit and loss statement.
7. Cash flow .
8. Costing - Cost accounting, Classification of costs.
9. Costing methods.
10. CVP analysis.
11. Funding strategies.
12. Economic evaluation of investment projects.

Work placements

Not applicable.


The aim of the course is to provide students with basic theoretical knowledge of business economics with an emphasis on small and medium-sized enterprises. It deals with the founding, running, and activities of the company. The lectures underlined the economic aspect of the issue and the emphasis is on mastering professional terminology.
Students gain theoretical knowledge in the field of business economics and business activities. Based on the acquired knowledge and skills students should be able to apply the knowledge in the company and in the business itself.

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

Attendance at lectures is not compulsory.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

ALLEN, B.W., WEIGELT K., DOHERTY, N.A., MANSFIELD, E. Managerial Economics: Theory, Applications, and Cases. 7th Edition. W.W. Norton, New York, 2009, ISBN-10: 0393932249. (EN)
DAVID E. Financial Analysis and Decision Making. 2003 McGraw-Hill. ISBN 0-07-141559-9. (EN)
WHITE, G.I., SONDHI, A.C., FRIED, D. The analysis and use of financial statements. 3rd ed. Hoboken: John Wiley, 2003. ISBN 0-471-37594-2. (EN)

Recommended reading

BERNSTEIN, L.A., WILD., J.J. Analysis of financial statements. 5th ed. New York: McGraw-Hill, 2000. ISBN 0-07-094504-7. (EN)
HILTON, R.W., MAHER, M., SELTO, F.H.. Cost management: strategies for business decisions. 4th ed. Boston: McGraw-Hill/Irwin, 2008. ISBN 978-0-07-128799-9. (EN)

Classification of course in study plans

  • Programme BAK-Z Bachelor's

    branch BAK-Z , 1. year of study, winter semester, elective

  • Programme BAK-E Bachelor's

    branch BAK-ESBD , 1. year of study, winter semester, compulsory

  • Programme BAK-ESBD Bachelor's, 1. year of study, winter semester, compulsory

Type of course unit



26 hours, optionally

Teacher / Lecturer


13 hours, optionally

Teacher / Lecturer