Foundations of Business Administration 1

Organizational forms of enterprises - financing instruments (equity financing, internal and external financing) - methods of capital budgeting (cost analysis, net present value analysis, internal rate of return analysis) - corporate valuation procedures (discounted cash flow analysis, multiple valuation) - methods and requirements of internal and external accounting (national and international accounting standards, origin and allocation of costs) - human resource management (forms of organizing, history of organizational research, human resource thories, motivational theories)

Upon successful completion of this module, students will be able to remember, distinguish and evaluate the organizational forms of enterprises, financing instruments, methods of capital budgeting, corporate valuation procedures, methods and requirements of internal and external accounting as well as human resources. More specifically,students will learn to differentiate several forms of organizing and to analyze organizational structures in order to find appropriate ways of organizing. Further they understand principal agent relationships, the consequences of information asymmetries and are able to determine the optimal boundaries of organizations. They further understand the cycle of human resource management as well as personal development. Moreover, students will learn to decide on whether investments are profitable and how to determine the value of a firm. This is helpful when buying or selling stocks or creating a business plan. Students also will learn to distinguish between the instruments of external accounting and to differentiate between national and international accounting standards. Regarding internal accounting, they will understand the origin and allocation of costs.

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The module is designed in the form of a lecture, on which the theoretical contents are taught. Moreover, individual aspects and applications will be discussed with the students by asking open-ended questions. Thus they learn to distinguish the subjects from each other and are able to evaluate the methods with regard to their use in each case.

Use of presentation slides (PowerPoint). The presentation slides include theoretical content and questions that additionally stimulate the understanding of the contents. Furthermore, arithmetic problems or application examples are included. The module will be recorded and can be downloaded in retrospect through www.lecturio.de. The script for the module will be made available online.

Thommen, J., Achleitner, A.-K.: Allgemeine Betriebswirtschaftslehre, Gabler, 7., vollst. überarb. Auflage, Wiesbaden 2012.
Thommen, J., Achleitner, A.-K.: Allgemeine Betriebswirtsschaftlehre - Arbeitsbuch, Gabler, 6., vollst. Überarb. Auflage, Wiesbaden 2009.
Vahs, D., Schäfer-Kunz, J.: Einführung in die Betriebswirtschaftslehre, Schäffer-Poeschel, 5. Auflage, 2007.
Schmalen, H., Pechtl, H.: Grundlagen und Probleme der Betriebswirtschaft, Schäffer-Poeschel, 14. Auflage, 2009.

The grading is based on a written exam (60 minutes). Students have to show whether they can remember, distinguish and evaluate the organizational forms of enterprises, financing instruments, methods of capital budgeting, corporate valuation procedures, methods and requirements of internal and external accounting and human resources. The answers in the written exam require own wording as well as answering multiple choice questions. As the content of this module includes the imparting of basic knowledge in business economics, the workload for students covers 3 ECTS.