Principles of Business Administration and Management
A.Y. 2024/2025
Learning objectives
The course introduces the fundamental elements of political economics and analytical accounting needed to understand the individual behaviours, markets functioning and to evaluate the cost-revenues flow of small production activities. The course explores the market theory and the behaviour of the entrepreneur and the consumer, with practical software exercitations focused on the representation of market equilibrium and the optimization of choices. Differential accounting analysis and break-even point analysis for the evaluation of investments in small businesses are also introduced during the course.
Expected learning outcomes
At the end of the course, the student must demonstrate the knowledge of markets' forms, of the functioning mechanism of supply and demand, as well as the behaviour of entrepreneurs and consumers. Furthermore, the student must be able to explain the components and the nature of costs and revenues of a basic production activity and explain the mechanism by which the related investments break even. At the end of the course, the student must be able to independently use a calculation software to analytically and graphically represent the basic functions of political economics and the break-even point of a small production activity.
Lesson period: Second semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Second semester
Course syllabus
Frontal lessons - 32 hours
Program
MICROECONOMICS - 16 hours
1. The principles of economics (4h)
· The Principles of economic behaviours
· The scientific tools of economic thought
2. Market theory (4h)
· Demand, Supply and Market Equilibrium
· Perfect competition and other forms of market
3. Elasticity (2h)
· Price elasticity of supply and demand
· Sales revenue models and elasticity
4. Business cost theory (2h)
· Production function and total costs
· Efficient size and average costs
5. Theory of business behaviour (4h)
· Profit function
· Marginal costs and choice of entrepreneur in perfect competition
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
1. Economics and business organization (8h)
· The nature and economic purpose of the company
· The financial statements: purpose and structure
· Balance Sheet & Income Statement
· Accounting principles
· Budget analysis - Outline
· Reclassification and Indices
2. The programming and control systems (8h)
· Introduction to business operating systems
· The nature of the costs
· Direct and indirect costs
· Analysis of the breakeven point
Exercises - 32 hours
MICROECONOMICS - 16 hours
Market analysis and inverse demand curve
· Processing of individual willingness to pay data
· Construction of the market demand curve
· Calculation of revenues at different market prices
· Calculation of elasticities at different market prices
· Identification of the point of maximum revenue
· Construction of the market revenue curve
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
· Estimation of unit production costs: Variable and Fixed costs
· Allocation of indirect costs
· Break-even point estimation
Program
MICROECONOMICS - 16 hours
1. The principles of economics (4h)
· The Principles of economic behaviours
· The scientific tools of economic thought
2. Market theory (4h)
· Demand, Supply and Market Equilibrium
· Perfect competition and other forms of market
3. Elasticity (2h)
· Price elasticity of supply and demand
· Sales revenue models and elasticity
4. Business cost theory (2h)
· Production function and total costs
· Efficient size and average costs
5. Theory of business behaviour (4h)
· Profit function
· Marginal costs and choice of entrepreneur in perfect competition
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
1. Economics and business organization (8h)
· The nature and economic purpose of the company
· The financial statements: purpose and structure
· Balance Sheet & Income Statement
· Accounting principles
· Budget analysis - Outline
· Reclassification and Indices
2. The programming and control systems (8h)
· Introduction to business operating systems
· The nature of the costs
· Direct and indirect costs
· Analysis of the breakeven point
Exercises - 32 hours
MICROECONOMICS - 16 hours
Market analysis and inverse demand curve
· Processing of individual willingness to pay data
· Construction of the market demand curve
· Calculation of revenues at different market prices
· Calculation of elasticities at different market prices
· Identification of the point of maximum revenue
· Construction of the market revenue curve
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
· Estimation of unit production costs: Variable and Fixed costs
· Allocation of indirect costs
· Break-even point estimation
Prerequisites for admission
No specific prerequisites are required.
Teaching methods
The teaching activities are divided into theoretical lectures and practical exercises. The theoretical lectures focus on microeconomics and general and analytical accounting. The practical exercises involve analyzing original data to define the market characteristics of a product or service, evaluate cost-revenue flows in a small economic activity, and identify its break-even point. Students are taught problem-solving techniques through example exercises and are then asked to apply these methods to new, original cases.
Teaching Resources
Textbooks:
N Gregory Mankiw Mark P. Taylor (2018). Principi di Microeconomia, Zanichelli - Chapters 1, 2, 3, 4 and 6
Antoldi F. (2012). Economia e organizzazione aziendale: introduzione al governo delle imprese, McGraw-Hill - Chapters 2 and 4
Supplementary teaching material distributed through the Ariel website
Supplementary Teaching Materials
Distributed via the Ariel website - NOTE, THIS IS A SUPPLEMENT AND DOES NOT REPLACE THE RECOMMENDED BOOKS
Course Web Page on MyAriel Portal of UNIMI - https://myariel.unimi.it/course/view.php?id=3397
This page, updated annually, contains:
1. The current Syllabus
2. Supplementary materials for theoretical lessons - Slides, all released at the beginning of the course
3. Supplementary materials for practical exercises - Slides, released after each lesson
4. A NOTICE BOARD, which allows the instructor and STUDENTS to communicate. If students have general questions about the course, they can use the notice board to write to the instructor, ensuring all responses are visible to everyone.
N Gregory Mankiw Mark P. Taylor (2018). Principi di Microeconomia, Zanichelli - Chapters 1, 2, 3, 4 and 6
Antoldi F. (2012). Economia e organizzazione aziendale: introduzione al governo delle imprese, McGraw-Hill - Chapters 2 and 4
Supplementary teaching material distributed through the Ariel website
Supplementary Teaching Materials
Distributed via the Ariel website - NOTE, THIS IS A SUPPLEMENT AND DOES NOT REPLACE THE RECOMMENDED BOOKS
Course Web Page on MyAriel Portal of UNIMI - https://myariel.unimi.it/course/view.php?id=3397
This page, updated annually, contains:
1. The current Syllabus
2. Supplementary materials for theoretical lessons - Slides, all released at the beginning of the course
3. Supplementary materials for practical exercises - Slides, released after each lesson
4. A NOTICE BOARD, which allows the instructor and STUDENTS to communicate. If students have general questions about the course, they can use the notice board to write to the instructor, ensuring all responses are visible to everyone.
Assessment methods and Criteria
The exam consists of a 90-minute writing session divided into two sections: theoretical concepts and practical content, each with a separate score. Students must score at least 18/30 in both sections to pass. If they do, the average of the two scores will be recorded as the final grade. Both sections must be passed in the same exam.
The first section includes 20 multiple-choice questions. Each correct answer earns 1.6 points, while each incorrect answer results in a deduction of 0.20 points. No points are deducted for unanswered questions.
The second section comprises 4 exercises related to the course topics. Each exercise is worth 8 points, with no penalties for mistakes. The exercises are graded as follows:
4 points: correctness of the final result
2 points: formal completeness of the graphs and/or formulas
2 points: readability and overall tidiness of the result sheet
Students are reminded that they must present a valid ID document to be admitted to the exam. Please note that the University Card cannot be used as an ID document.
The first section includes 20 multiple-choice questions. Each correct answer earns 1.6 points, while each incorrect answer results in a deduction of 0.20 points. No points are deducted for unanswered questions.
The second section comprises 4 exercises related to the course topics. Each exercise is worth 8 points, with no penalties for mistakes. The exercises are graded as follows:
4 points: correctness of the final result
2 points: formal completeness of the graphs and/or formulas
2 points: readability and overall tidiness of the result sheet
Students are reminded that they must present a valid ID document to be admitted to the exam. Please note that the University Card cannot be used as an ID document.
AGR/01 - AGRICULTURAL ECONOMICS AND RURAL APPRAISAL - University credits: 6
Practicals: 32 hours
Lessons: 32 hours
Lessons: 32 hours
Professors:
Demartini Eugenio, Marescotti Maria Elena
Shifts:
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Professor(s)