Course detail

Financial Management of Small Company

FP-BFMSEAcad. year: 2023/2024

The course content is basic issues of financial management, such as the time value of money, capital budgeting issues, capital raising and financial planning.

Language of instruction


Number of ECTS credits


Mode of study

Not applicable.

Offered to foreign students

Of all faculties

Entry knowledge

Knowledge and understanding of the content of financial statements, a knowledge of basic corporate-economics terms and a knowledge of mathematical functions.

Rules for evaluation and completion of the course

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.

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.).


The aim of the course is to introduce students to the basics of corporate financial management, such capital raising, capital budgeting, working capital management and financial planning, all with a special focus on small enterprises.
Knowledge: The student knows the principles and methods of compiling of the financial plan, both in the form of short-term financial plans and in the form of the outlook or long-term financial plan. They are aware of different possibilities of financing the enterprise and their specific features. Moreover, they can identify those forms suitable for the small enterprise. They know the method of working capital management and methods of assuring the solvency of business.
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.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

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)
ATRILL, P. Financial management for Non-specialists. 3 ed. Prentice Hall. 2003. ISBN 0-273-65749-6 (EN)

Recommended reading

DAMODARAN, A. Applied corporate finance. 3rd Edition. John Wiley&Sons, 2011. ISBN 978-0-470-38464-0. (EN)
DOUGLAS, R., E., FINNERTY, J., D. & J. D.STOWE. Corporate financial management. 3rd Edition. Pearson Prentice Hall, 2007. ISBN 0-13-227872-3. (EN)


Classification of course in study plans

  • Programme BAK-Z Bachelor's

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

  • Programme BAK-E Bachelor's

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

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

Type of course unit



26 hours, compulsory

Teacher / Lecturer


13 hours, compulsory

Teacher / Lecturer