Economics underlies all business decisions, from pricing to product development, to negotiations, to understanding the general economic environment. This unit introduces microeconomic and macroeconomic analysis, equipping students with the 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 in markets. It also introduces a framework for understanding and analysing the broader economic and public policy environment in which a business competes. In macroeconomics, we consider the aggregate level of economic activity by examining the behaviour of GDP, unemployment and inflation in the short-run and examining the role of stabilization policies. The unit then introduces basic concepts forming the foundations of finance. Finance in many ways emanates from economics. Overall, it examines the management, creation and study of financial resources and instruments that comprise the financial system. The firm and the role of financial institutions are explored along with developing important skills in financial mathematics. The unit then moves to fundamental financial tools, which include the capital asset pricing model (CAPM) and the weighted-average cost of capital (WACC). The decisions firms make around capital structure and payout policy are then studied.
Unit details and rules
Academic unit | Accounting |
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Credit points | 6 |
Prerequisites
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None |
Corequisites
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None |
Prohibitions
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BUSS5001 or FINC5001 |
Assumed knowledge
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None |
Available to study abroad and exchange students | No |
Teaching staff
Coordinator | Roel Boomsma, roel.boomsma@sydney.edu.au |
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