Business Administration, Accounting and Economics

Professors J. Chudzinski, Keener, Rennie and Tucker; Associate Professor J. Cook; Assistant
Professors Barga, Kraft and Stine.

The Department of Business Administration, Accounting and Economics offers majors in Business Administration, Economics, Management Science, and Accounting, and minors in Economics and Finance. Requirements for these majors and minors are shown below. All 300 and 400 level courses required for the major or minor must be taken at Heidelberg.

All students must complete the General Education requirements for the Bachelor of Arts or Bachelor of Science degrees that are described elsewhere in this Catalog. In addition, students are encouraged to develop a second major or minor. A student may combine a wide variety of majors or minors to graduate with a dual major or minor specifically in accordance with his or her abilities and interests.

No grade of “D” will be waived in 100 or 200 level ACC, BAE or ECO courses being applied to any major or minor in the BAE department.

Accounting Major

The accounting major complies with the recommendations of the Ohio Society of Certified
Public Accountants for the initial 120 hours. Those who complete the Accounting major, and
an additional 30 semester hours, are qualified to take the Ohio CPA exam. The Heidelberg
Accounting major has an emphasis on both financial accounting and on the aspects of
management necessary for a successful career in corporate accounting. Please see the
department chair for additional information on the “150 Hour Rule” for accounting majors.

Required: ACC 153, 253, 254, 334, 353, 363, 364, 373, 463, 466, 474; ECO 251, 252; BAE 318, 319, 354, 359, 360, 407

Allied Courses: CPS 100; COM 100; ENG 101; either MTH 115 and 210, or 312; MTH 121 or 222; PHI 216. (Note: Students who have achieved academic credit for MTH 210 (without 115) are exempt from 115.)

Recommended Elective: BAE 308

Business Administration Major

Business Administration is a solid preparation for a career in business or management and for
careers in accounting, finance, marketing, or production in public, private, profit, or non-profit
organizations and for graduate school. Students develop specialized skills and also improve
their capacity to analyze, communicate effectively with associates, think independently and
logically, and to get along in various work situations. A major in Business Administration
includes the following courses, in addition to the general College requirements:

Required: ACC 153, 253, 254; BAE 308, 318, 354, 359, 360, 401, 407; ECO 251, 252; and select one from: ECO 330, 352, 358, 364; BAE 367, 444

Allied Courses: CPS 100; COM 100; ENG 101; either MTH 115 and 210, or 312; MTH 121 or 222; PHI 216. (Note: Students who have achieved academic credit for MTH 210 (without 115) are exempt from 115.)

Economics Major and Minor

The major in Economics is excellent preparation for entry into the fields of business and governmental economics as well as a solid foundation for the study of law. Students who anticipate graduate work in Economics are strongly advised to obtain a second major in Mathematics, or at least to complete MTH 222 and 223.

Major: ACC 153 and 253; ECO 251, 252, 361, 362 and 451, plus three additional courses to be selected from: ECO 330, 342, 344, 346, 352, 358 and 364; BAE 354, 355, 367 and 444.

Allied Courses: CPS 100 and 201; either MTH 115 and 210 or MTH 312; either MTH 121 or 222; and either PHI 140 or 216. (Note: Students who have achieved academic credit for MTH 210 (without 115) are exempt from 115.)

Minor in Economics: ECO 251, 252, 361 or 362; and three additional courses from: ECO 330, 342, 344, 346, 352, 358, 361, 362, 364

Allied Courses: One MTH course at the 200 level or above

Finance Minor

The finance minor is designed to provide students with a fundamental understanding of how to analyze financial decisions and to consider risks so that financial capital is efficiently managed. The required finance course work exposes students to three main fields of finance. These are corporate finance, financial institutions, and investments. The minor includes fundamental managerial finance, financial markets and institutions, and investment theory and practice.

Minor in Finance: BAE 354, 367, 444; plus any two of the following courses: ECO 330, 352, 361, 362

Allied Courses: Either MTH 115 and 210, or MTH 312; and either MTH 121 or 222. (Note: Students who have achieved academic credit for MTH 210 (without 115) are exempt from 115.)

Prerequisite Courses: ACC 153, 253, 254; ECO 251, 252

Accounting Courses

All ACC courses at the 300 and 400 level have the following prerequisites in addition to any listed below: ACC 153, 253, 254; ECO 251 and 252; either MTH 115 and MTH 210, or 312; either MTH 121 or 222; COM 100; ENG 101. (Note: Students who have achieved academic credit for MTH 210 (without 115) are exempt from 115.)

153. Accounting Laboratory (2 sem. hrs.). A laboratory for those with no previous experience in accounting or bookkeeping. Students will learn the basic practices of accounting in a lab class situation, through which the student will establish a complete set of accounts, journals and ledgers. (Fall and Spring)

253. Financial Accounting (3 sem. hrs.). Introduction to the standards, concepts and generally accepted accounting principles for external financial reports. Emphasis on accounting reports as a means for providing financial information. Prerequisite: Successful completion (C- or better) of ACC 153 and successful completion (C- or better) of one college level mathematics course. Open to all levels. (Fall and Spring)

254. Managerial Accounting (3 sem. hrs.). This course focuses on the internal uses of accounting methods in the control of an enterprise and in decision making, with emphasis on the internal management reports. Prerequisite: Successful completion (C- or better) of ACC 253. (Fall and Spring)

305, 306. Independent Study in Accounting (1-3 sem. hrs.). Open to accounting majors. With instructor approval, the student may do independent reading and research or pursue a topic of special interest.

334. Federal Income Tax (3 sem. hrs.). Fundamentals of federal, state and local tax systems. Emphasis on the applications of the federal income tax regulations and administration. (Fall odd/even years)

353. Advanced Managerial Accounting (3 sem. hrs.). Explores in greater depth the preparation, analysis and use of cost data for the purpose of planning and control of operations of an enterprise. (Spring odd/even years)

356. Governmental and Non-Profit Accounting (3 sem. hrs.). A study of the accounting methods used by government and the non-profit sector of the economy. (Offered on demand)

363. Intermediate Accounting I (3 sem. hrs.). A study of the theory and practice of accounting concepts. Emphasis is placed on the proper accounting for assets using more complex methods of accounting. This course contains junior level discipline specific communication requirements. (Fall only)

364. Intermediate Accounting II (3 sem. hrs.). A continuation of the concepts in ACC 363. Particular emphasis is placed on the proper accounting for liabilities, equity, leases, earnings per share and changing prices. Prerequisite: Successful completion of ACC 363 (C- or better), and related prerequisites for ACC 363. This course contains junior level discipline specific communication requirements. (Spring only)

370. Internship in Accounting (1-15 sem. hrs.) Practical experience in a learning situation in accounting in a commercial
or non-profit organization. Requires departmental approval of the organization in which the internship will be done and
departmental review and approval of the specific experience gained. Prerequisites: Permission of the instructor.

373. Accounting Information Systems (3 sem. hrs.): Prepares users of accounting information systems to participate in project development teams, to evaluate entity internal controls, and to design and implement accounting information systems both manual and computerized. (Spring even/odd years)

463. Senior Seminar in Accounting (3 sem. hrs.). A capstone experience open to graduating seniors. Affords an opportunity to utilize knowledge and skills gained from previous course work in an independent project. Students should consult with the instructor in the term prior to registration to prepare a proposal for a research project and paper. Approval of the proposed project must be obtained prior to registration. Students should anticipate extensive research and writing. This course meets all the requirements for the senior capstone experience and requires the completion of all major accounting courses with the exception of 353 or 373 (must have concurrent enrollment). Prerequisite: Permission of instructor. (Spring only)

466. Auditing (3 sem. hrs.). Develops intellectual discipline of objectively examining financial statements to express an opinion of the validity and adequacy of such statements on the basis of generally accepted professional< standards. (Fall even/odd years)

474. Advanced Accounting (3 sem. hrs.). The theory and application of specialized topics. These topics include business combinations, consolidated financial reporting, segment and interim reporting, partnership accounting, foreign transactions and non-profit accounting. Prerequisite: ACC 364 and all related prerequisites for ACC 363. (Fall only)

Business Administration Courses

All BAE courses at the 300 and 400 level except BAE 318, 319 and 355 have the following prerequisites in addition to any listed below: ACC 153, 253, 254; ECO 251 and 252; either MTH 115 and MTH 210, or 312; either MTH 121 or 222; COM 100; ENG 101.

101. Introduction to Business Administration (3 sem. hrs.). A survey of practices and terminology in American Business. Specific topics covered include organization, management, marketing, accounting, finance and the regulatory environment. Credit for this course is not applicable to majors in the Business Administration, Accounting and Economics Department. (Japan campus only)

257. Personal Finance (3 sem. hrs.). Study of a wide range of subjects and problems of concern to individuals and families in the management of their financial resources. Emphasis is placed on financial planning, cash management, borrowing, personal investments and insurance. Open to all students as an elective. Does not count toward any major offered by the Business Administration, Accounting and Economics Department.

305, 306. Independent Study (1-3 sem. hrs.). Open to students of demonstrated ability who have completed at least 9 hours in the department. With instructor approval the student may do independent reading, research or pursue a topic of special interest.

308. Human Resources Management (3 sem. hrs.). The responsibilities, activities, and the laws which affect Human Resources function in current American business. This course contains junior level discipline specific communication requirements. (Spring only)

318. Business Law I (3 sem. hrs.). Introduction to the American legal institutions and sources of law with emphasis on ethics, torts, criminal law, contracts and sales. The course is one of two courses which cover the business law content specified by the American Institute of Certified Public Accountants. (Fall only)

319. Business Law II (3 sem. hrs.). Examination of negotiable instruments; debtor-creditor relationships with emphasis on secured transactions; bankruptcy, agency law, real property law; and wills and estates. The course is one of two courses which cover the business law content specified by the American Institute of Certified Public Accountants. (Spring only)

354. Managerial Finance (3 sem. hrs.). Introduction to a variety of techniques and applications of modern financial theory to the main decisions faced by the financial manager. Fundamentals of financial analysis, working capital management, capital budgeting, and investment and financing decisions. This course contains junior level discipline specific communication requirements. (Spring only)

355. Government and Business (3 sem. hrs.). A study of regulatory laws and the economics of regulation, with particular emphasis on current activities in the regulation of business. Open to juniors and seniors in any field. (Offered on demand)

359. Marketing (3 sem. hrs.). A managerial approach to the marketing function in a business or not-for-profit organization. Covers market strategy planning and the marketing mix of place, price, product, and promotion in relation to the customers and/or clients. This course contains junior level discipline specific communication requirements. (Fall only)

360. Operations Management (3 sem. hrs.). An introduction to operations management principles and production systems. An emphasis on management decision-making in the design and control of systems responsible for the productive use of resources in the development of products or services. (Fall only)

367. Financial Markets and Institutions (3 sem. hrs.). Introduction to world financial markets and the institutions which operate within these market places. Capital, money, and the derivative market are studied along with the various instruments traded in these markets. The emphasis is on debt obligations. Techniques used by commercial banks and other financial intermediaries to manage their assets, liabilities, and capital positions are discussed relative to the current state of the economy and various domestic and international regulatory concerns. Prerequisite: BAE 354. (Fall only)

370. Internship (1 to 9 sem. hrs.). Practical experience in a learning situation in management of a commercial or non-profit organization. Requires departmental approval of the organization in which the internship will be done and departmental review and approval of the specific experience gained. Prerequisites: Permission of department head. (Fall and Spring)

401. Strategic Management (3 sem. hrs.). Teaches students how to administer business organizations, including strategy formulation, implementation, and executive control with exposure to business cases. Prerequisites: BAE 308, 354, and 359. This course meets all the requirements for the senior capstone experience. (Spring only)

407. Organizational Behavior and Management (3 sem. hrs.). A course dealing with the principles and practices of management: How people interact within a business setting, and how managers organize, plan, control, and motivate. Prerequisite: one of: BAE 354, 359, 360. (Spring only)

444. Investments (3 sem. hrs.). The investment process, from the selection of individual investments to portfolio management. The problems and processes of security evaluation will be stressed. An individual research project is required. Prerequisite: BAE 354 or permission of the instructor. (Spring only)

456. Senior Seminar in Business (1 or 2 sem. hrs.). Seminar meets to hear visiting business leaders, study and evaluate interviewing, job selection and professional advancement. Optional second hour includes a competitive business simulation, in which students make management decisions and are evaluated in terms of their market effectiveness. (Offered on demand, Spring only)

Economics Courses

102. Survey of Economics (3 sem. hrs.). An introduction to basic economic concepts and tools of economic analysis through their application to contemporary social problems. Course open to all except students majoring in areas of Business Administration, Accounting and Economics. Course is not open to students with previous credit in either ECO 251 or 252. Credit for this course is not applicable to majors in the Business Administration, Accounting and Economics Department. (Fall and Spring)

251. Principles of Microeconomics (3 sem. hrs.). Survey of fundamental concepts. Emphasis is placed on decision-making by households as they allocate their resources for maximum satisfaction and by business firms concerning levels of output, employment and prices. Analysis of the role of competition in the free-market, privateenterprise economic system. Prerequisite: Sophomore standing. (Fall only)

252. Principles of Macroeconomics (3 sem. hrs.). Analysis of economic performance as it affects levels of unemployment and inflation. Emphasis on economic policy activities of the federal government and the Federal Reserve System. Prerequisite: Sophomore standing. (Spring only)

330. Public Finance (3 sem. hrs.). A study of the role of government in a market economy including market efficiency and failure, and government provision of public goods and remediation of externalities. Additional topics include: the application of cost-benefit analysis to governmental programs and an examination of both the expenditure and revenue components of the public sector budget. Prerequisites: ECO 251 and 252. (Spring only)

342. Urban and Regional Economics (3 sem. hrs.). The purpose of this course is to apply the principles of
economics to the study of regions and urban areas. Regional areas will be defined and their economic development studied. Urban areas will be studied from the viewpoint of inefficient resource allocations resulting from externalities, industrial location, land use policies, transportation, housing markets and urban fiscal problems. Prerequisite: ECO 251. (Spring of even-odd years)

344. Environmental and Natural Resource Economics (3 sem. hrs.). This course applies economic principles to natural resource and environmental issues in society. Economic principles will be used to analyze society’s use of limited natural resources. The social welfare criteria of both efficiency and equity will be used to analyze environmental policies directed toward the correction of externalities. Prerequisite: ECO 251. (Spring only)

346. Law and Economics (3 sem. hrs.). This course applies the principles of economics to the study of law. Economic models of rational behavior can provide insight into law and legal institutions. Areas of law such as property law, contract law, torts and criminal law will be examined within the context of economic principles. Prerequisite: ECO 251. (Fall of even-odd years)

352. International Economics (3 sem. hrs.). Introduction to the theories of international trade, the functions of international monetary systems and current international economic issues. Emphasis on a practical understanding of the dynamics of international trade. Prerequisites: ECO 251 and 252. (Fall only)

358. Labor Economics (3 sem. hrs.). The application of economic theory to the world of work, and the related issues of employment, unemployment and productivity. Topics covered include Human Capital Theory and the impact of labor unions. Prerequisites: ECO 251 and 252. (Fall only)

361. Intermediate Microeconomic Theory (3 sem. hrs.). The economics of price theory, including consumer choice, demand, supply, costs of production, resource allocation, competition and the concept of market power. This course contains junior level discipline specific communication requirements. Prerequisites: ECO 251 and 252. (On demand)

362. Intermediate Macroeconomic Theory (3 sem. hrs.). The economic analysis of the overall performance of the economy, including national income accounting, income determination models, fiscal and monetary policies and economic growth. This course contains junior level discipline specific communication requirements. Prerequisites: ECO 251 and 252. (On demand)

364. Economic Development (3 sem. hrs.). Analysis of the economics of countries with low per-capita income and of positive and negative factors bearing on their development. Impact of saving, investment, foreign trade, as well as of population, technology, social and political modernization, will be analyzed. Prerequisite: One course in economics or permission of the instructor. (Spring of odd-even years)

370. Internship

451. Economics Seminar (3 sem. hrs.). Detailed investigation of one or two topics through application of economic principles previously studied. Extensive student participation through discussion and oral and written reports. Open to senior Economics majors only. This course meets all the requirements for the senior capstone experience. Prerequisites: ECO 361 and 362. (Fall, on demand)

452. Independent Study in Economics (3 sem. hrs.). Open to seniors with consent of the instructor. Affords seniors an opportunity to utilize knowledge and economic skills gained from earlier coursework in an independent project. Students should prepare a project proposal during the fall term and submit it to the instructor for approval before registration. Students should anticipate a project equivalent to a 50-page research paper. (Offered on demand)