Description
Our paper about small business financing accounting and mathematics.
SUBJECT SYLLABUS
Subject name:
Small Business Financing Subject code: ERN-0-0005T
Subject type: Compulsory
Number of hours: 2+2 credit 5
Semester: I. Classes: Erasmus
Major/ specialty:
Preconditions:
Accounting and Mathematics
Coordinator: Dr. Melles Hagos Tewolde PhD Status Professor
Instructor: Dr. Melles Hagos Tewolde PhD Status Professor
Department: Business Management
The object of the course: The successful completion of this course should provide the student
with the basic skills that should be used in analyzing alternative busi-
ness investments. This course introduces the student to the fundamen-
tals of business finance. The course requires an understanding of
mathematics as well as economic concepts and accounting principles.
The course is corporate-oriented with emphasis on practical applica-
tions and problem solving techniques. The primary objective is to
provide the student with the tools to understand and solve the basic
financial problems confronting business today. The topics covered
include the time value of money, valuation of assets, capital budgeting
techniques, capital structure theory and dividend policy assessment.
The application of the topics to international markets will be made
whenever possible
Highlight of the course
The successful student of Business Finance should understand and be
able to apply the basic time value methodology to general valuation
and other cash flow applications and employ the traditional evaluation
techniques of capital budgeting analysis in business and personal capi-
tal investment decisions.
Learning outcomes
When the students have successfully completed this course, they will
be able to:
? understand and apply basic time value methodology to general
valuation and integrated cash flow applications;
? understand and apply the conceptual relationship between the
expected return and the relevant risk of individual assets and
portfolios of assets;
? understand and apply the traditional evaluation techniques of
capital budgeting analysis in business and personal capital in-
vestments;
? understand the concept of cost of capital and financial leverage
and apply those concepts in the determination of the optimal
capital structure; and,
? understand the current financial environment in which business
decisions are made.
Topic of the course:
I. THE ENTREPRENEURIAL ENVIRONMENT.
1. Introduction to Finance for Entrepreneurs.
2. Developing the Business Idea.
II. ORGANIZING AND OPERATING THE VENTURE.
3. Organizing and Financing a New Venture.
4. Preparing and Using Financial Statements.
5. Evaluating Operating and Financial Performance.
III. PLANNING FOR THE FUTURE.
6. Managing Cash Flow.
7. Types and Costs of Financial Capital.
8. Securities Law Considerations When Obtaining Venture Fi-
nancing.
IV. CREATING AND RECOGNIZING VENTURE VALUE.
9. Projecting Financial Statements.
10. Valuing Early-Stage Ventures.
11. Venture Capital Valuation Methods.
V. STRUCTURING FINANCING FOR THE GROWING VEN-
TURE.
12. Professional Venture Capital.
13. Other Financing Alternatives.
14. Security Structures and Determining Enterprise Values.
VI. EXIT AND TURNAROUND STRATEGIES.
15. Harvesting the Business Venture Investment.
16. Financially Troubled Ventures: Turnaround Opportunities?
Teaching methods:
Theoretical:
The teacher gives the necessary materials to learn, explains, analyses
in class all the concepts and methods and clarifies the students’ doubt
with help of examples.
Practical:
The students solve exercises applying the theoretical knowledge they
have learned.
Course Requirements:
We will be drawing heavily on the accounting vocabulary and con-
cepts that you learned in Accounting.. You are expected to have a
thorough grasp of this material before beginning your study of fi-
nance.
Your active participation in class is necessary, both for you and for
your classmates. Your participation score will reflect my assessment
of your attendance, your contributions to class discussions, and your
overall positive demeanor during class. The semester will be closed by
taking examination 70% of the total point and presenting during the
semester, which include 30 % of your final results.
Grades: 90-100 5
80-89 4
70-79 3
60-69 2
0-59 1 failed.
required materials: ? J. Chris Leach, Ronald W. Melicher, Small business Finance,
Published by Cengage Learning, ©2015.
Offered readings:
? Fundamental of Financial Management Brigham and Houston,
Concise 4TH edition.
? Edward Bellamy’s Looking Backwards, Ursula LeGuin’s The
Dispossessed and Aldous Huxley’s Brave New World.
doc_695413457.pdf
Our paper about small business financing accounting and mathematics.
SUBJECT SYLLABUS
Subject name:
Small Business Financing Subject code: ERN-0-0005T
Subject type: Compulsory
Number of hours: 2+2 credit 5
Semester: I. Classes: Erasmus
Major/ specialty:
Preconditions:
Accounting and Mathematics
Coordinator: Dr. Melles Hagos Tewolde PhD Status Professor
Instructor: Dr. Melles Hagos Tewolde PhD Status Professor
Department: Business Management
The object of the course: The successful completion of this course should provide the student
with the basic skills that should be used in analyzing alternative busi-
ness investments. This course introduces the student to the fundamen-
tals of business finance. The course requires an understanding of
mathematics as well as economic concepts and accounting principles.
The course is corporate-oriented with emphasis on practical applica-
tions and problem solving techniques. The primary objective is to
provide the student with the tools to understand and solve the basic
financial problems confronting business today. The topics covered
include the time value of money, valuation of assets, capital budgeting
techniques, capital structure theory and dividend policy assessment.
The application of the topics to international markets will be made
whenever possible
Highlight of the course
The successful student of Business Finance should understand and be
able to apply the basic time value methodology to general valuation
and other cash flow applications and employ the traditional evaluation
techniques of capital budgeting analysis in business and personal capi-
tal investment decisions.
Learning outcomes
When the students have successfully completed this course, they will
be able to:
? understand and apply basic time value methodology to general
valuation and integrated cash flow applications;
? understand and apply the conceptual relationship between the
expected return and the relevant risk of individual assets and
portfolios of assets;
? understand and apply the traditional evaluation techniques of
capital budgeting analysis in business and personal capital in-
vestments;
? understand the concept of cost of capital and financial leverage
and apply those concepts in the determination of the optimal
capital structure; and,
? understand the current financial environment in which business
decisions are made.
Topic of the course:
I. THE ENTREPRENEURIAL ENVIRONMENT.
1. Introduction to Finance for Entrepreneurs.
2. Developing the Business Idea.
II. ORGANIZING AND OPERATING THE VENTURE.
3. Organizing and Financing a New Venture.
4. Preparing and Using Financial Statements.
5. Evaluating Operating and Financial Performance.
III. PLANNING FOR THE FUTURE.
6. Managing Cash Flow.
7. Types and Costs of Financial Capital.
8. Securities Law Considerations When Obtaining Venture Fi-
nancing.
IV. CREATING AND RECOGNIZING VENTURE VALUE.
9. Projecting Financial Statements.
10. Valuing Early-Stage Ventures.
11. Venture Capital Valuation Methods.
V. STRUCTURING FINANCING FOR THE GROWING VEN-
TURE.
12. Professional Venture Capital.
13. Other Financing Alternatives.
14. Security Structures and Determining Enterprise Values.
VI. EXIT AND TURNAROUND STRATEGIES.
15. Harvesting the Business Venture Investment.
16. Financially Troubled Ventures: Turnaround Opportunities?
Teaching methods:
Theoretical:
The teacher gives the necessary materials to learn, explains, analyses
in class all the concepts and methods and clarifies the students’ doubt
with help of examples.
Practical:
The students solve exercises applying the theoretical knowledge they
have learned.
Course Requirements:
We will be drawing heavily on the accounting vocabulary and con-
cepts that you learned in Accounting.. You are expected to have a
thorough grasp of this material before beginning your study of fi-
nance.
Your active participation in class is necessary, both for you and for
your classmates. Your participation score will reflect my assessment
of your attendance, your contributions to class discussions, and your
overall positive demeanor during class. The semester will be closed by
taking examination 70% of the total point and presenting during the
semester, which include 30 % of your final results.
Grades: 90-100 5
80-89 4
70-79 3
60-69 2
0-59 1 failed.
required materials: ? J. Chris Leach, Ronald W. Melicher, Small business Finance,
Published by Cengage Learning, ©2015.
Offered readings:
? Fundamental of Financial Management Brigham and Houston,
Concise 4TH edition.
? Edward Bellamy’s Looking Backwards, Ursula LeGuin’s The
Dispossessed and Aldous Huxley’s Brave New World.
doc_695413457.pdf