Business Economics and Financial Analysis Lecture Notes PDF Free Download

Business Economics and Financial Analysis Notes: Business Economics and Financial Analysis is an important course for all students who are studying a B.Tech. It looks at various concepts in economics to understand and analyse what works in the mind of a businessperson. The course also analyses business structures, organisation and their running through the economic and financial perspective.

Studying by oneself can be rather daunting, especially when it is a subject like economics combined with business and financial analyses. However, you need not worry about this, because we are here to provide you with some study materials for the same.

The following is a list of what we have sourced and provided for you in the article below:

Introduction to Business Economics and Financial Analysis Notes

Business Economics and Financial Analysis Notes hold grave importance to a B.Tech student in his or her 5th semester. The course gets more difficult as you move from one semester to the next. Understanding this, to make your life as a student easier, we have put together a set of Business Economics and Financial Analysis Notes for your reference. They are listed as follows.

  • Business Economics and Financial Analysis Lecture Notes
  • Lecture Notes B.Tech for Managerial Economics and Financial Analysis
  • Managerial Economics and Financial Analysis PDF Notes
  • Business Economics and Financial Analysis (BEFA) All Units Notes PDF
  • BEFA Notes
  • BEFA Notes PDF

B.Tech Business Economics and Financial Analysis Notes Free PDF Download

Business Economics and Financial Analysis is a course which enumerates various economics concepts through the business and financial perspectives of the same. With the completion of this subject course, the student will be able to understand how microeconomic factors like production function, cost concepts, investment decisions, budgeting methods, and several other economic concepts play out in real-world business.

The course of Business Economics and Financial Analysis is an incredibly important subject for those who wish to pursue a business or enter the field of finance when they venture into their career. The course should also help the students acquire basic as well as in-depth knowledge about how to use these economic concepts to interpret and analyse financial statements to reckon the financial situation of a company, and to make appropriate financial decisions for a company.

Let us now dive into the study materials to go along with the Business Economics and Financial Analysis Notes.

Business Economics and Financial Analysis Reference Books

Reference books are helpful to each and every student. For students currently studying Business Economics and Financial Analysis, these reference books that we have listed below are of incredible importance.

Business Economics and Financial Analysis reference books allow a student to gain more fruitful knowledge to be added to what they are learning in their classes. This will, in turn, add to a better understanding of the subject in practically applicable terms, through the concepts and applications provided within Business Economics and Financial Analysis reference books.

The following is a list of some great Business Economics and Financial Analysis reference books that will sufficiently help a student while studying.

  • Managerial Economics, written by D.N Dwivedi
  • Financial Accounting, written by S.N. and S.K. Maheshwari
  • Financial Accounting – A Managerial Perspective, written by R. Narayana Swamy
  • Managerial Economics and Financial Analysis, written by Aryasri
  • Managerial Economics, written by Maheswari Varshney
  • Managerial Economics and Financial Analysis, written by Kasi Reddy and Saraswathi
  • Managerial Economics & Financial Analysis, written by J.V. Prabhakar Rao and P.V. Rao

Business Economics and Financial Analysis Curriculum

When we have the curriculum of a subject before us, it becomes easier to know what we have finished studying and what we are yet to study. It helps us create a good study plan by outlining every topic that we need to cover, and thus, not missing out upon anything.

The Business Economics and Financial Analysis curriculum is listed below. As was mentioned before, this curriculum will allow students of Business Economics and Financial Analysis to create an efficient study plan for themselves. It is divided into 5 basic units and has several substantial topics under it.

Here is the unit wise and topic wise breakdown of the Business Economics and Financial Analysis curriculum.

Unit Topics
Unit 1: Introduction and Demand Analysis
  • Definition, nature and scope of business economics
  • Demand analysis
  • Determinants of demand
  • Law of demand and its exceptions
  • Elasticity of demand – definition, types, measurement and significance
  • Demand forecasting and its factors
Unit II: Production and Cost Analysis
  • Combination of inputs
  • Cobb-Douglas production function
  • Laws of Returns
  • Internal and external economies of scale
  • Cost analysis – cost concepts
    • Opportunity cost
    • Fixed vs variable costs
    • Explicit vs implicit costs
    • Out of pocket vs imputed costs
  • Break-even analysis
    • Determination of break-even point
  • Managerial significance of BEA
Unit III: Markets and New Economic Environment
  • Market structures
  • Types of markets and their features
    • Perfect competition, monopoly and monopolistic competition
  • Price determination
  • Price statistics
  • Price-output determination in case of perfect competition and monopoly
Unit IV: Capital Budgeting
  • Capital and its significance
  • Types of capital
  • Estimation of fixed and working capital requirement
  • Methods and sources of raising capital
    • Trading forecast
    • Capital budget
    • Cash budget
  • Features of capital budgeting proposal
  • Methods of capital budgeting
    • Payback method
    • Accounting rate of return (ARR)
    • Net present value method
Unit V: Introduction to Financial Accounting and Financial Analysis
  • Accounting concepts and conventions
  • Introduction of IFRS
  • Double-entry bookkeeping
    • Journal, ledger, trial balance, final accounts
  • Financial analysis through ratios
    • Significance and limitations
    • Ratio computation
    • Analysis and interpretation of liquidity ratios
    • Activity ratios
    • Capital structure ratios
    • Profitability ratios
  • Du Pont Chart

List of Business Economics and Financial Analysis Important Questions

No studying process is complete without having taken a look at the important questions for the subject. Students are required to look at the important questions because the education system relies on these questions to get marks out of a subject. Looking at such questions is imperative as it provides an outline of the posed question paper.

Students of Business Economics and Financial Analysis can take a look at the list of Business Economics and Financial Analysis important questions to get an idea of what kinds of questions can be given in an examination question paper.

Below, there is a list of Business Economics and Financial Analysis important questions for your reference. They are divided into questions of 2, 3, 5 and 10 marks, respectively.

2 markers

  1. What is the major advantage of a sole proprietorship?
  2. Define income elasticity of demand.
  3. What are the 2 inputs that should be considered for production functions with 2 variables?
  4. Define “carriage inwards.”
  5. Differentiate between “current ratio” and “quick ratio.”

3 markers

  1. Which is the most expensive method of demand forecasting? Explain why.
  2. Mention and explain the different phases of the business cycle in brief.
  3. What are the stages of the product cycle?
  4. Explain what constitutes the net worth of a company.
  5. What should be the reference of comparison for a company for the best use of the ratio analysis? Explain why.

5 markers

  1. Distinguish between complementary goods and substitute goods using suitable examples.
  2. What is a recession? What is the relevance of a recession with reference to the economy?
  3. Explain the significance of the word “limited” after the name of a company.
  4. Distinguish between microeconomics and macroeconomics.
  5. Differentiate between positive and normative economics.

10 markers

  1. State and explain the law of supply. Mention the determinants of supply. Explain briefly.
  2. Discuss the different elasticities of demand with the help of diagram(s).
  3. What is the business cycle? Explain the phases of the business cycle. Also, list out the measures to be taken when protecting the interests of a business.
  4. Explain the meaning of “joint stock company” and also list and explain the sources of capital required by a joint-stock company.
  5. What are accounting concepts? Discuss any 3 accounting concepts in detail.

Frequently Asked Questions about Business Economics and Financial Analysis Notes

Question 1.
What are the course objectives for Business Economics and Financial Analysis?

Answer:
By the end of the Business Economics and Financial Analysis course, students should be able to understand the dynamics of the market structure, understand the rationale behind budgeting decisions and also be able to make good financial and budgeting decisions themselves. Further, the student should also be able to analyse the financial statements of a company through the ratio analysis and come to conclusions about the financial situation of the company in the process.

Question 2.
What is the basic course outline for Business Economics and Financial Analysis?

Answer:
The Business Economics and Financial Analysis encompasses five units over the course of the semester. These are:

  1. Introduction and Demand Analysis
  2. Production and Cost Analysis
  3. Markets and New Economics Environment
  4. Capital Budgeting
  5. Introduction to Financial Accounting and Financial Analysis

Question 3.
What are some good Business Economics and Financial Analysis reference books?

Answer:
Some good Business Economics and Financial Analysis reference books are as follows:

  • Managerial Economics and Financial Analysis, written by Kasi Reddy and Saraswathi
  • Financial Accounting – A Managerial Perspective, written by R. Narayana Swamy

Other good reference books for Business Economics and Financial Analysis have been listed before below the respective subtopic.

Question 4
What is the Business Economics and Financial Analysis question paper pattern?

Answer:
The Business Economics and Financial Analysis question paper holds a total of 75 marks. It has two sections – A and B, where section A holds 25 marks and has several compulsory 2 and 3 marks questions. Section B consists of 50 marks and is divided into 5 units. Each unit has two questions consisting of 10 marks each, either as a full 10 marks or in a 5+5 pattern. Students must answer one question worth 10 marks from each unit in section B compulsorily.

Conclusion

All in all, we have provided you with the best resources available for Business Economics and Financial Analysis. These resources include a set of Business Economics and Financial Analysis Notes, some great reference books for the subject, its curriculum for outlining what the student needs to do and has already finished, and lastly, a list of Business Economics and Financial Analysis Important questions. These resources should be sufficient for ensuring the student a top-notch understanding of the subject and also for some assured great marks as long as the student uses what we have made available to the best of their abilities.

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