Basic Elements of Financing

• 26 hrs lectures
• 26 hrs exercises

Knowledge: The students will be informed about the place of the business in the financial system, about the economic criteria about deciding about the legal form of doing business, about the factors of identifying business needs and its projection into financial requirements, about the budgeting rules and projection of inflows from investment projects. Students will get information about potential sources of financing a business together and about the conditions of their usage.
Skills: Students will be able to identify needs of the business depending on the specific line of doing business and to justify the need of financing, describe the business processes from the financial perspective and to choose appropriate criteria when assessing whether a process is financially worthwhile.
Eligibility: Students are able to prepare a founding budget for a business, i.e. to identify need of specific assets and to calculate amount of needed sources. Students will be able to prepare an investment project budget and to estimate future inflows based on the given set of parameters and to employ appropriate method of assessing whether the investment project is worthwhile. Students will be able to assess an appropriate form of debt and the lease. Students will be able to evaluate the efficiency of spending the available resources via the methods of financial analysis.

The aim of the subject is to provide students with basics of financial management of a company. Especially with possibilities of financing the business, assessing the current financial situation of the business and capital budgeting methods.

Not required.

• KISLINGEROVÁ, E. a kol. Manažerské finance. 2. přeprac. a rozš. vyd. Praha: C. H. Beck, 2011. 745 s.
• FOTR, J. Podnikatelský záměr a investiční rozhodování. 2. přepr. a dopl. vyd. Praha: Grada Publishing, 2005. 356 s.
• NÝVLTOVÁ, R., MARINIČ, P. Finanční řízení podniku. Moderní metody a trendy. Praha: Grada, 2010. 204 s. ISBN 978-80-247-3158-2.

• MAREK, P. a kol. Studijní průvodce financemi podniku. Praha: Ekopress, 2006. 624 s. ISBN 80-86119-37-8.
• KORÁB, V. a REŽŇÁKOVÁ, M. a PETERKA, J. Podnikatelský plán. Brno: Computer Press, 2007. 216 s. ISBN 978-80-251-1605-0.
• SRPOVÁ, J., ŘEHOŘ, V. a kol. Základy podnikání. Teoretické poznatky, příklady a zkušenosti českých podnikatelů. Praha: Grada Publishing. 2010.
• BROOKS, R. M. Financial management: Core concepts. 3rd ed. Boston: Pearson, 2016. 619 p. ISBN 978-0-133-86669-8

1. Introduction. Business as a part of financial system.
2. Founding budget. Production factors and their consumption.
3. Managing current assets – inventories and receivables management.
4. Investiční rozhodování – rozpočet kapitálových výdajů a příjmů. Metody hodnocení investičních projektů.
5. Sources of financing the business. Internal sources.
6. Short-term financing (business loan, bank loan, funding programs).
7. Long-term financing.
8. Cash flow – cash inflows, cash outflows, methods of preparing cash flow statement.
9. Aims of doing business and their evaluation. Process of assessing financial results of business.
10. Differential indicator analysis. Financial ratios.
11. Financial ratios – part 2
12. Analysing profitability of the business. An analysis of operational performance.
13. Overall index of business performance and ways of creating them.

1. Introduction. Conditions for obtaining credit. Founding budget.
2. Founding budget and its evaluation.
3. Inventories management models.
4. Methods of capital budgeting.
5. Loan amortization schedule.
6. Midterm test.
7. Loan versus lease dilemma.
8. Introduction to financial analysis: financial statements, účetní výkazy, Common size financial statements, analysis of trends.
9. Financial ratios.
10. Financial ratios - continuation
11. Cash flow analysis, cash conversion cykle, profitability analysis.
12. Repetition, time reserve.
13. Final test.

Non required

CREDIT REQUIREMENTS: Midterm test (verifying knowledge of topics of first five weeks of the semester (maxium assessment of 20 points). No retakes possbile.
Final test (verifying knowledge of the topics from whole semester (maximum assesment of 40 point). One retake possible.

WAY OF EXAMINATIONS: The written exam is oriented to verify theoretical and practical knowledge. The questions are formulated in the form of open and closed questions. The test is required 50% success rate.

RULES OF THE CLASSIFICATION: according to rules of study Examination of Brno University of Technology


Students with granted individual study plan have to pass the final test. The test date will be announced in the information system.

The course contains lectures that explain principles, decisions problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Due to the epidemiological situation, there will be no control of participation in the exercises. Knowledge control will take place in the form of online tests.