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Enterpreneurship Financing

Course developer

Course abstract

Students acquire knowledge, skills and reflection abilities regarding the aspects of assets, a balance sheet, financing, financial performance, financial assets, financial costs, a finance lease, financial services, a financial statement, financial risk, the financial system and financial structure.

Learning outcomes and their assessment

1) Students will be able to demonstrate in-depth knowledge of the role of enterprise finances in the performance of the enterprise as well as of capital and financial planning and the choice of the sources of finance for the enterprise – discussions in classes.
2) Demonstrate an in-depth knowledge of financial accounting in an enterprise, an analysis and interpretation of financial statements – test with calculations.
3) Demonstrate an in-depth knowledge of financial stability assessment methods and how to apply them in various situations – test with calculations.
4) Explain the basic principles of the financial system and describe the types of financing enterprises – test, an examination, discussions in classes.
5) Perform calculations, analyse the results obtained, understand causes and make proposals for avoiding problems or enhancing the situation – test with calculations, an examination, calculations during classes.
6) Choose the most appropriate kind of financing an enterprise and assess the efficiency of financial investments made and the financial and economic performance of the enterprise – test with calculations, independent work, discussions in classes.
7) Independently assess the performance of another individual and produce a written peer-review on it (the financial stability of an enterprise analysed and the findings made, a practical solution made as well as whether the proposals made are consistent with the expected results) – independent work.
8) Responsibly plan the completion of the assignments given, select information, present the calculations performed and proposals made – independent work.

9) Apply the knowledge acquired, successfully develop a financial plan for an enterprise, apply modern financial management methods and maximally effectively plan and manage the cash flow of the enterprise; Perform a financial analysis and interpret the results, come up with proposals for decision-making based on economic changes – practical assignments, tests, an examination.

Course Content(Calendar)

1. The main lines, environment and scope of the financial activity of the enterprise. (lecture 1h)
2. Financial functions. (lecture 1 h)
3. Information provision for financial work.(lecture 1 h)
4. Risk of forming the capital of an enterprise. (lecture 1 h, practical classes 1 h)
5. Creditworthiness and factors affecting it. (lecture 1 h, practical classes 1 h)
6. Sources of financing the company's capital. Crowdfunding. (lecture 1 h, practical classes 2 h)
7. Weighted average capital price (WACC). (lecture 1 h, practical classes 2 h)
8. Financial planning. (lecture 1 h, practical classes 1 h)
9. Financial analysis and decision-making. (lecture 1 h, practical classes 1 h)
10. Business cash flow and liability settlement. (lecture 1 h, practical classes 2 h)
11. Financial leverage and its effectiveness. The impact of the capital structure and the profitability of equity. (lecture 1 h, practical classes 1 h)

12. Insolvency forecasting models. (lecture 1 h, practical classes 1 h)

Requirements for awarding credit points

Successfully completed 2 tests: Test 1 - Theoretical aspects of and math problems related to enterprise financial management (determination of the kind of financing an enterprise and the level of current assets, creation and calculation of a loan repayment schedule, calculation of the weighted average price of capital, profit distribution and the determination of the size of dividends) (25%); Test 2 - Calculation and assessment of the financial performance and profitability of an enterprise, bankruptcy prediction models and their application in financial analysis, financial leverage and the calculation and assessment of its effects (25%).
Presentation of a report on an individual study - Analysis of enterprise financing models and an analysis and presentation of the financial performance of an enterprise financing models (10%).
Examination on the topics acquired during the course (40%).

Description of the organization and tasks of students’ independent work

Learning and strengthening the theory material by solving tasks and tests. Preparing for tests. Presentation of a report on an individual study - Analysis of enterprise financing models and an analysis and presentation of the financial performance of an enterprise financing models.

Criteria for Evaluating Learning Outcomes

Tests, examination and presentation with mark – average score in balls (10% are equal to one point on a 10-point marking scale).

Compulsory reading

1. Pike R. Corporate Finance and Investment: Decisions and Strategies. 8th edition. New York: Pearson Education Limited, 2015. 844 pp. ISBN 1-292-06416-1
2. Brealey R.A., Myers S.C., Marcus A.J. Fundamentals of Corporate Finance. Boston: McGraw-Hill/Irwin, 2007.
3. Brigham Eugene F., Houston Joel F. Fundamentals of Financial Management, Wiley, 2013. ISBN 13: 978-0-538-48243-1 http://books.google.com
4. Krogzeme H. Komersantu darbības analīze un kontrole. Rīga: RTU Izdevniecība, 2013. 348 lpp. ISBN 978-9934-10-408-4
5. Brooks R. Financial Management: Core Concepts. 3rd edition. Boston: Pearson, 2016. 643 p. ISBN: 978-1-292-10142-2
6. Šneidere R. Finanšu analīzes metodes uzņēmuma maksātnespējas prognozēšanai. Rīga: Lietišķās informācijas dienests, 2009. 232 lpp.
7. Saksonova S. Finanšu informācijas un pārskatu praktiskā izmantošana uzņēmumu finanšu lēmumu pieņemšanā. Rīga: Info tilts, 2014. 313 lpp. ISBN 978-9984-863-08-5
8. Пласкова Н.С. Cтратегический и текущий економический анализ: учебник. Москва: Эксмо, 2007. 656 c.

Further reading

1. Kassalis J. Uzņēmumu finanšu pārskatu analīzes modeļi un to pielietojums dažādām lietotāju grupām. Promocijas darbs. Rīga: LU, 2005. 213 lpp.
2. Šneidere R. Finanšu analīzes metožu vēsturiskā attīstība un to pielietojums uzņēmumu maksātspējas prognozēšanai. Latvijas Universitātes Raksti: zinātnisko rakstu krājums, Nr. 677, 2004. 403.-412.lpp.
3. Subatnieks K. Komercsabiedrības naudas plūsma: naudas plūsmas absolūto un relatīvo rādītāju izmantošana uzņēmuma finanšu analīzē. Rīga: Drukātava, 2008.
4. Stecenko I. Firmas apgrozāmā kapitāla pārvaldīšanas galvenie aspekti. Finansists, nr.6, 2004,18.-19.lpp.
5. Бригхэм Ю., Гапенски Л. Финансовый менеджмент: полный курс. ч.1. Санкт-Петербург, 1999. 497 с.
6. Чернова Г.В., Кудрявцев А.А. Управление рисками: учебное пособие. Москва: ТК Велби, Изд.Проспект, 2003. 160 с.
7. Риск-менеджмент: учебник. В.Н.Вяткин, И.В.Вяткин, В.А.Гамза, Ю.Ю.Екатеринославский, Дж.Дж.Хэмптон; под ред.И.Юргенса. Москва: ИТК «Дашков и К», 2003. 512 с.
8. Бюджетирование: шаг за шагом. Е.Добровольский, Б.Карабанов, П.Боровков, Е.Глухов, Е.Бреслав. 2е изд.дополн. Санкт-Петербург: Питер, 2014. 480 c.
9. Ковалев В. В. Финансовый менеджмент: теория и практика. Москва: ОАО “Можайский полиграфический комбинат”, 2007. 1024 c. ISBN 9785482015056
10. Савицкая Г. В., Анализ хозяйственной деятельности предприятия. 7-е из. Mинск: ООО “Новое знание”. 704 с. 2002. ISBN 9854750094

Periodicals and other sources

1. Dienas Bizness: nedēļas laikraksts. Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005-.ISSN 1407-2041
2. Riska vadības rokasgrāmata. Lietišķās informācijas dienests. Rīga.
3. Žurnāls Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests. ISSN 1407-5709
4. Žurnāls 'Kapitāls". IKK Izdevniecība SIA, Rīga ; ISSN 1407-2505
5. Ekonomikas ministrija. Pieejams: http://www.em.gov.lv
6. Finanšu ministrija. Pieejams: http://www.fm.gov.lv
7. Attīstības finanšu institūcija “Altum”. Pieejams: http://www.altum.lv
8. Vides un reģionālās attīstības ministrija. Pieejams: http://www.varam.gov.lv  
9. Valsts reģionālās attīstības aģentūra. Pieejams: http://www.vraa.gov.lv  
10. Latvijas pašvaldību savienība. Pieejams: http://www.lps.lv
11. ES fondi. Pieejams: http://www.esfondi.lv

Notes

Compulsory course of full-time master’s degree programme “Economic”