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Unit of study_

BUSS5514: Foundation in Economics and Finance

Economics underlies all business decisions, from pricing to product development, to negotiations, to understanding thegeneral economic environment. This unit introduces microeconomic and macroeconomic analysis, equipping students withthe tools to understand the impact of economic, socio-cultural, institutional, and technological factors on businesses'operations. In microeconomics, we address how individual consumers and firms make decisions and how they interact inmarkets. It also introduces a framework for understanding and analysing the broader economic and public policy environmentin which a business competes. In macroeconomics, we consider the aggregate level of economic activity by examining thebehaviour of GDP, unemployment and inflation in the short-run and examining the role of stabilization policies. The unit thenintroduces basic concepts forming the foundations of finance. Finance in many ways emanates from economics. Overall, itexamines the management, creation and study of financial resources and instruments that comprise the financial system. Thefirm and the role of financial institutions are explored along with developing important skills in financial mathematics. The unitthen moves to fundamental financial tools, which include the capital asset pricing model (CAPM) and the weighted-averagecost of capital (WACC). The decisions firms make around capital structure and payout policy are then studied.

Code BUSS5514
Academic unit Accounting
Credit points 6
Prerequisites:
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None
Corequisites:
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None
Prohibitions:
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BUSS5001 or FINC5001

At the completion of this unit, you should be able to:

  • LO1. Describe the fundamental principles of microeconomics and macroeconomics and apply these to real-world contexts.
  • LO2. Identify, explain and analyse the role of individuals and businesses in different types of market structures, including perfect competition, monopolistic competition, monopoly, and oligopoly.
  • LO3. Describe and critically evaluate the effect of changes in macroeconomic indicators including regulatory and political environments on business activity.
  • LO4. Apply the mathematics of finance and identify basic financial risk and risk management concepts.
  • LO5. Describe the role of finance in an organization and the economy.
  • LO6. Discuss how corporations are financed along with common financial tools for measuring and managing risk and returns.
  • LO7. Explain the theory of capital markets along with how organisations make investment and distribution decisions.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.

There are no unit outlines available online for previous years.