PEMBABEC Business Economics

School of Business Administration in Karvina
Summer 2022
Extent and Intensity
1/2/0. 6 credit(s). Type of Completion: zk (examination).
Ing. Žaneta Rylková, Ph.D. (lecturer)
doc. RNDr. Ing. Roman Šperka, Ph.D. (lecturer)
Guaranteed by
doc. RNDr. Ing. Roman Šperka, Ph.D.
Department of Business Economics and Management - School of Business Administration in Karvina
Contact Person: Ing. Žaneta Rylková, Ph.D.
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
Business economics focuses on the microeconomic factors that influence the decision-making processes with an organization. The strategic decisions of corporations result in either a profit or a loss for the company. Business economics principles are intended to influence and guide corporate strategy and decisions toward the best outcomes for a company. The aim of the lectures and seminars is to extand the theoretical knowledge acquired in business theory and to offer students the opportunity to become familiar with business economics.
  • 1. Basic concepts of business economics
  • Importance and consequence of the costs, cost centres, cost accounting, revenues, economic result, capital structure, financial statements, financial ratios. Cost types, cost function, cost calculation.
  • 2. Revenues, economic result, price
  • Understanding the revenues, economic result, price, non-linear revenues is critical to comprehending the process of estimating the business development. Relationship between quantity and sales is analyzed.
  • 3. Break-even point and analysis of profit of an enterprise, performance indicators
  • Break-even point, return on costs, return on revenues, analysis of the profit of the enterprise, profitability, distinguishing indicators of performance.
  • 4. Compiling basic statements
  • Reviewing basic statements, recognizing assets and liabilities, compiling balance sheet, presenting income statement, showing the data on shares and equity, reporting cash flow statement, modifying accounting data. Capital structure and financial leverage - business economics meaning.
  • 5. Economic Value Added and contribution margin
  • Explaining purpose and calculation of economic value added indicator, distinguishing indicators of contribution margin related to production and related to revenues, interpreting the scores, contribution margin – calculating the indicator. Contribution margin and break-even point graph.
  • 6. Inventory management
  • Supply chain, types of stock, classification of stocks, inventory management, inventory optimization, objectives of inventory management, stock control chart, operational purchasing planning, stock planning, optimum delivery calculation.
  • 7. Production, production capacity and economies of scale
  • Invention, innovation, capacity of production lines, production planning, production capacity, time funds, investment spending reasons, investment spending perspectives, investment strategy, economies of scale – combination of production factors, economies of scale and boundaries of its applicability.
    required literature
  • SIVAGNANAM, K. J. and R. SRINIVASAN. Business Economics. India: Tata McGraw-Hill, 2010. ISBN 978-0-07-068215-3. info
  • CAFFERKY, M. E. and J. WENTWORTH. Breakeven Analysis: The Definitive Guide to Cost-Volume-Profit Analysis. New York, 2014. Business Expert Press. ISBN 978-1-63157-092-6. info
    recommended literature
  • GRIFFITHS, A. and S. WALL. Economics for Business and Management Paperback. Harlow, 2011. Pearson Education Limited. ISBN 978-0-273-73524-3. info
  • FRIDSON, M. and F. ALVAREZ. Financial Statement Analysis. A Practitioner´s Guide. New Jersey: John Wiley and Sons, 2011. ISBN 978-0-470-63560-5. info
Teaching methods
lectures, seminars, class discussion, team work, homework, reading, economics problems solutions
Assessment methods
mandatory participation 50%; solution of case studies (40%), final combined exam (60% of evaluation)
Language of instruction
Further Comments
The course is taught annually.
The course is also listed under the following terms Winter 2021.
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