BSc Business

Key points

1. A degree with an international flavour set within a strong social science framework
2. Designed to develop excellent analytical skills, invaluable to the decision making role of management
3. Develops critical skills for a wide range of real world professional situations
4. An excellent preparation for a career in management consultancy, banking, accountancy and general management
5. Flexible study programme, not limited by class times or geographical location
6. Flexible study period of between 3-8 years (minimum 2 years
   on the Graduate Entry Route)
7. Total cost £2,687 if completed in 3 years (Graduate Entry Route costs just over £2,000 if completed in 2 years).

Structure and Syllabus

You will be required to make a serious attempt in the examination for 12 units on the Standard Route of the degree. On the Graduate Entry Route you must take and pass 9 full units.

You can take the Foundation and further units in any order, provided you satisfy any prerequisites (units which you must have already passed). Prerequisites are shown in italic text in brackets.

Most students, however, would normally take the Foundation units first because (as their name suggests) they are the ‘building blocks' – the foundation – for the units that follow.

Economics, Management, Finance and the Social Sciences - Units

Introduction to economics [02]

Introduction

The Economic Problem; production possibility frontiers, specialisation and trade, comparative advantage.

Microeconomics

The Theory of Consumer Behaviour: rationality, revealed preferences and utility, indifference curves, utility maximisation, demand functions, substitution and income effects, substitutes and complements, demand elasticity.

The Theory of the Firm: technology and production functions, returns to scale, returns to factor of production, the law of diminishing marginal return, iso-qants and iso-cost, profit maximisation, cost functions, the distinction between the long and the short run, fixed and variable costs, behaviour of the firm in the long and in the short run, the firm's supply function.

Markets: demand and supply, equilibrium, competitive industry (the competitive firm, entry and exit, short-run and long-run equilibrium, some comparative statistics), monopoly (the firm, monopoly and competitive equilibrium compared, natural monopoly), monopolistic competition (the different nature of the market, the firm's behaviour, the role of entry).

Factors Market: demand and supply of labour (utility maximisation and the supply of labour, profit maximisation and the demand for labour), factors affecting labour market equilibrium (unions).

General equilibrium of a competitive economy, Pareto optimality, market failures, government interventions in a partial equilibrium context (indirect taxation, its inefficiency and the burden of taxation), the problems of social choice, consumer surplus and the welfare implications of the various market structures.

Macroeconomics

Aggregation: the problem of aggregation, value added and the NNP=Y identity, depreciation, capital formation in a closed economy without a government.

The Closed Economy: national accounts of a closed economy, capital formation in a closed economy.

The Goods Market: consumption, investment, aggregate demand, income determination, equilibrium, the multiplier, consumption and taxation, the government budget, automatic stabilisers (the financing of government), aggregate demand and equilibrium (IS), the multiplier and taxation, the role of fiscal policy, alternative view of equilibrium-savings and investment, the paradox of thrift.

Money and Banking: the role of money, real balances, the quantity theory of money, the liquidity preference approach and the demand for money (liquid assets), commercial banks and the supply of money (banks and the various multipliers), central banks and monetary control, bonds and wealth, credit and wealth, equilibrium in the money market (LM).

General Equilibrium: the IS-LM model, monetary and fiscal policies in a closed economy.

The Open Economy: national accounts of the open economy, capital formation in an open economy, demand for exports and imports and their effect on aggregate demand, the net-export function, the multiplier of an open economy.

Exchange Rate Determination and the Money Sector: the balance of payments, foreign currency market, the determinants of demand and supply of foreign currency, capital mobility, the rate of interest and the price of foreign currency, the difference in the impact on the system under different exchange rate regimes.

Income determination in an open economy under various exchange rate regimes and levels of capital mobility, the effects of fiscal and monetary policies under various exchange rate regimes and levels of capital mobility.
Prices, Inflation and Unemployment: deriving Aggregate Demand (AD) in the price output plane, the problems with deriving Aggregate Supply (AS), the Keynesian and the Classical AS, the problems with explaining stagflation.

The Phillips Curve and the theory of Inflation: the augmented Phillips Curve and the role of expectations in explaining stagflation, price levels and unemployment, the determinants of the short-run aggregate supply, the effects of an exogenous raw material price shock.

Statistics 1 [04a] (half unit)

The aim of this half-unit is both to introduce some of the basic ideas of theoretical statistics while emphasizing the applications of the methods in the disciplines covered by the Management, Finance and Social Science degrees. There will be an emphasis on the interpretation of tables and results.

Basic background

Elementary summation signs, elementary probability, Venn and tree diagrams

Data collection
Elements of Survey design, the stages of a survey, ideas of randomness, observation and experiment

Data presentation and analysis
Descriptive statistics, measures of location and dispersion, pictorial and graphical representation

The Normal Distribution
Estimation of mean, proportion, standard deviation, confidence intervals and hypothesis testing. Ideas of testing for differences between means and proportions. The use of Student's t.

Goodness of fit
The Chi-squared distribution and contingency tables

Regression and correlation
An introduction to the ideas of regression and correlation, least squares, estimation of a, b, and r squared, scatter diagrams.

Mathematics 1 [05a] (half unit)

This subject develops basic mathematical methods and will emphasise their applications to problems in economics, management and related areas.

Basics: Basic algebra; Sets, functions and graphs; Factorisation (including cubics); Inverse and composite functions; Exponential and logarithm functions; Trigonometrical functions.

Differentiation: The meaning of the derivative; Standard derivatives; Product rule, quotient rule and chain rule; Optimisation ; Curve sketching; Economic applications of the derivative: marginals and profit maximisation.

Integration: Indefinite integrals; Definite integrals; Standard integrals; Substitution method; Integration by parts; Partial fractions; Economic applications of integration: determination of total cost from marginal cost, and cumulative changes.

Functions of several variables: Partial differentiation; Implicit partial differentiation; Critical points and their natures; Optimisation; Economic applications of optimisation; Constrained optimisation and the Lagrange multiplier method; The meaning of the Lagrange multiplier; Economic applications of constrained optimisation.

Matrices and linear equations: Vectors and matrices, and their algebra; Systems of linear equations and their expression in matrix form; Solving systems of linear equations using row operations (in the case where there is a unique solution); Some economic/managerial applications of linear equations.

Sequences and series: Arithmetic and Geometric Progressions; Some Financial application of sequences and series.

Principles of sociology [21]

Note: this is a replacement unit for 10 Introduction to sociology. Please note that the subject guide for this unit may not be available until 1 September 2005.

Section A: Theory and method

What is sociology? the difference between lay and sociological knowledge of societies; the differences between sociology and related social sciences; the nature of sociological problems: social order, social change, social institutions and relationships between the individual and society; The concepts of role, identity and socialisation.

Sociological method: the scope of sociological research; the importance of conceptual thinking and measurement in social research; different theoretical models and analogies; the centrality of the debates concerning social research; the research process.

Theory and method: the concept of social theory; methodology: ontological, epistemological and technical questions; theories of knowledge: positivism/empiricism, interpretivism / phenomenology and social realism.

Theories of society: modernity and the genesis of sociology; classical social theory: Marx, Weber, Durkheim; modern social
theory: structural-functionalism, interactionism, phenomenology and rational choice; the idea of postmodern societies and the implications for sociology.

Section B: Globalisation and social change

Understanding and defining the concept of globalisation, the major theories that aim to explain globalisation, the economic, political and cultural levels of globalisation.

Section C: Students should specialise in one of the following and should relate theories and examples to sociological data from their own society.

Religion: religious belief, practice, and power; religion and social change; religion, modernity, and globalisation.

Gender: The relationship between sex, gender and sexualities; equality and difference, oppression and discrimination; work/home life balance. Race and Ethnicity: definitions of 'race' and ethnicity; 'race' and ethnicity as social division; changing approaches to racial and
ethnic studies.

Power: Power, Modernity and Sociology;  Marxism and the analysis of power; Weber: power, stratification and domination; The power of elites; The pluralist model of power; Power to and power over; Postmodernist perspectives on power.

Organisations: a sociological approach to organisations, theories for understanding organisations, methods of organisational analysis, structure, control and communications within organisations. Social Inequality and Social Injustice: social inequality and social injustice; global perspectives on inequality and injustice;

classical perspectives on social inequality; structural dimensions of inequality; analysing social injustice; states, social injustice and the pursuit of human rights; agendas of inequality and injustice.

Principles of accounting [25]

Note: this is a replacement unit for 19 Elements of accounting and finance. Please note that the subject guide for this unit may not be available until 1 September 2005.

This course is designed to introduce you to financial and management accounting. Traditionally concerned with measuring, recording and reporting financial transactions and events, modern accounting provides a broad range of information for a wide variety of users. Financial accounting and reporting is primarily concerned with the needs of users outside the business, such as shareholders, regulators and creditors.

In contrast, management accounting is concerned with the needs of users who are internal to the business, such as directors, managers, and employees.

The course is arranged in two sections. The first section introduces and explains financial accounting concepts and conventions, and provides a grounding in double-entry bookkeeping and the preparation of basic financial statements.

The second section introduces a range of management accounting applications and techniques for planning, decision-making and control. Reference is made throughout to underlying theories and principles. Emphasis is placed on the ability to explain and interpret accounting information.

Section 1

Balance sheets, cash flow statements, and income statements: their construction, use and interpretation. Accounting concepts and conventions: their nature, purposes and limitations. The nature and capital structure of different forms of businesses including limited companies. The essential differences between accounting and economic concepts of income.

Section 2

Cost behaviour, marginal and total absorption costing for stock. Introduction to budgetary planning and control, including standard
costs, targets, and simple variance analysis.  Techniques for short and long-term decision-making, including: C-V-P analysis, relevant costs, introduction to capital investment appraisal.

Introduction to business and management [107]

The syllabus consists of four sections, each one dealing with several major topics. It is important to recognise the interrelationships between these themes and students should be identifying links, making comparisons, and considering the implications of the different issues throughout the course.

Section 1: Development of Business and Management
Concepts, definitions and origin
- introduction to key concepts; development of organisational theory and management thought.

Section 2: Decision Making
The management role
- decision making as central to main activities of planning, leading, motivating, controlling

Theoretical approaches to strategic decision making and organisational change

- game theory; rational choice; strategic management; change management; resistance

Managing the main functional areas- human resource management; production; marketing; finance; communication systems.

Section 3: Business and Its Environment
Approaches to understanding the business organisation
- perspectives of sociology; psychology; economics; management; the stakeholder model

Key internal elements of the firm
- size; type; structure; ownership; technology; strategy; culture

Key external elements of the business environment
- industry; location; and political, economic, social, technological and cultural spheres

The diverse and dynamic nature of the business context
- small business management; international business; cultural diversity; globalisation; MNCs.

Section 4: Contemporary Issues in Business and Management
Current trends in business development
- knowledge management; e-business; the learning organisation

The social responsibilities of business organisations
- business ethics; managerial integrity; social responsibility; corporate citizenship.

Marketing [36]

The role of marketing in organisations and society.
Strategic marketing at the corporate and business level.
Marketing information and marketing research: marketing intelligence – marketing research process – functions, design and analysis of market surveys – applications of analytical techniques and computer software.

Analysing the marketing environment. Consumer markets and buyer behaviour. Industrial markets and organisational buyer behaviour. Market segmentation, targeting and positioning. New product development.
Managing the product line. Selecting and managing marketing channels. The design of marketing communications and sales promotion. Marketing services. International marketing. Organisation, implementation and control of marketing programmes.

Managerial economics [28]

Note: this unit cannot be taken with 66 Microeconomics

Prerequisites (if taken as part of a BSc degree):
02 Introduction to economics and 05a Mathematics 1.

[Currently registered students should consult the Regulations for alternative prerequisites.]

Basic microeconomics i.e. supply, demand, consumer theory, labour supply, neo-classical theory of the firm, production, costs, factor demands, perfect competition, monopoly, monopolistic competition, government intervention, regulation, public goods, welfare etc. Alternative theories of the firm, internal organisation of the firm, market structure, efficiency wages, incentive structures, human resource management etc. as well as some industrial organisation theories of commonly used pricing practices, resale price maintenance and transfer pricing.

Individual (one person) decision making under uncertainty, attitudes to risk and the value of information. Theory of games i.e. strategic decision making, with applications to oligopoly, collusion, product differentiation, entry deterrence etc. The effects of asymmetric information in areas such as bargaining, bidding and auctions. Situations of moral hazard and adverse selection. A knowledge of constrained maximisation and lagrangian functions would be helpful for students taking this subject.

Financial management [59]

Note: this unit cannot be taken with 92 Corporate finance.

Prerequisite (if taken as part of a BSc degree):
25 Principles of accounting or 19 Elements of accounting and finance.
A critical perspective of the topic of finance, the role of financial managers and the place of financial markets within the business environment in developed and developing economies. Topics will be set in both national and international contexts.

Sources and methods of raising finance including venture capital, public offerings, private placements and project finance.

A critical review of the different forms of finance such as equity, debt and their derivatives and incorporating critical consideration of their costs individually and in combination. Valuation methods for costing the different elements of capital such as the Capital Asset Pricing Model and the Arbitrage Pricing Model. theories of capital gearing, divident policy and corporate restructuring and refinancing. Mergers and acquisitions.

Evaluation of risk measurement theories and methods and their application to both sources of finance and to investment appraisal. Investment appraisal techniques in the certain and uncertain world, with and without constraints.

Analytical tools, techniques and methods for analysing financial reports incorporating an assessment of their relevance for evaluation and planning purposes. Strategic considerations of financial planning and control, models and methods, for management of corporate liabilities and assets.

Consideration of theories and techniques for management of short term funds including treasury and currency management.
An introduction to risk management including hedging, futures, options and derivatives and their uses in both long and short term situations.

Corporate finance [92]

Note: this unit cannot be taken with 59 Financial management.

Prerequisites (if taken as part of a BSc degree):
02 Introduction to economics and 05a Mathematics 1.
[Currently registered students should consult the Regulations for alternative prerequisites.]

Project evaluation: Hirschleifer analysis and Fisher separation; the NPV rule and IRR rules of investment appraisal; comparison of NPV and IRR; 'wrong' investment appraisal rules: payback and accounting rate of return.

Risk and return - the CAPM and APT: the mathematics of portfolios; mean-variance analysis; two-fund separation and the CAPM; Roll's critique of the CAPM; factor models; the arbitrage pricing theory.

Derivative assets - characteristics and pricing: definitions: forwards and futures; replication, arbitrage and pricing; a general approach to derivative pricing using binomial methods; options: characteristics and types; bounding and linking option prices; the Black-Scholes analysis.

Efficient markets - theory and empirical evidence: underpinning and definitions of market efficiency; weak-form tests: return predictability; the joint hypothesis problem; semi-strong form tests: the event study methodology and examples; strong form tests: tests for private information.

Capital structure: the Modigliani-Miller theorem: capital structure irrelevancy; taxation, bankruptcy costs and capital structure; the Miller equilibrium; asymmetric information - 1) the under-investment problem, asymmetric information; 2) the risk-shifting problem, asymmetric information; 3) the pecking order theory.

Dividend theory: the Modigliani-Miller and dividend irrelevancy; Lintner's fact about dividend policy; dividends, taxes and clienteles; asymmetric information and signalling through dividend policy.

Mergers and acquisitions: motivations for merger activity; calculating the gains and losses from merger/takeover; the free-rider problem and takeover activity.

Human resource management [75]

The aims of this subject are: to demonstrate how the social sciences can assist in understanding the management of human resources; and to examine and evaluate human resource policies and practices of organisations. The subject adopts the view that research and theory about managing people at work has progressed to the point where analytic coherence can be achieved, and that this in turn can guide policy development and human resource practice. The subject aims to present and then examine the principal theories upon which modern human resource policies are based.

The syllabus draws on the following theories: human resource strategy; psychological contracts; organisational commitment; motivation; organisational justice. These theories are used as a basis for examining the following traditional human resource areas: recruitment and selection; employment appraisal; pay, benefits and performance incentives; job redesign; training; management development and promotion; industrial relations and collective bargaining.

The syllabus examines current theoretical perspectives on the relationship between human resource practices and organisational performance. These include universalistic, contingency and configurational frameworks that offer different explanations of how HRM practices impact on organisational performance. Organisational commitment, defined as an individual's emotional attachment to an organisation, is central to understanding the effects of HRM practices on employees.

The syllabus focuses on the antecedents and consequences of employees' commitment to their employing organisation. Organisational justice is also covered as it provides an alternative theoretical framework for assessing the implications of human resource practices for employees.

The psychological contract captures the exchange relationship between employees and the employer, and can be viewed as a complement or alternative to a collectivist approach to employment relationships (collective bargaining).

Students are expected to always go beyond description and simple prescription. They will be required to know and understand the major theoretical frameworks and examine the empirical evidence supporting them. Different human resource policies will be assessed by discussing the underlying theories (for example, human resource practices such as payment systems and job redesign are based on particular theories of motivation).

These theories will then provide the basis for considering the conditions under which HRM practices are more or less likely to achieve their hypothesized outcomes. From this, the potential limitations of each theory, and the subsequent implications for organisational practice will be assessed.

Entrance requirements

If you do not satisfy the criteria for automatic acceptance we will still consider your application on an individual basis or under our

Special Admissions procedures.
If we cannot accept you with your current qualifications and experience, we will advise you what qualifications you could take in order to become eligible in the future.

Application for the Graduate Entry Route

Applicants who meet the above criteria and also hold a full first degree completed in a minimum of three years duration on a full-time basis or equivalent, from a university or other institution acceptable to the University of London may apply for entry to the Graduate Entry Route of the degree.

Exemptions

Although we use the word 'exemption', other institutions often use the term 'credit transfer'.

An exemption means that you are not required to take a particular unit as part of your degree.

To be eligible you must satisfy the University that you have already passed examinations that compare in level, content and standard to the syllabuses from which you want to be exempted. Some exemptions we award are automatically granted; all others are considered on a non-automatic basis.

To be considered for exemption you must satisfy our criteria and make an application. Any exemption awarded is only valid for a limited period which will be specified in your decision letter. If you do not attempt an examination during this period, the exemption will expire. If you still want the exemption to count towards your degree you will need to apply again.
You may apply for exemption from up to four Foundation units.

All non-automatic exemptions are considered on payment of a fee, currently £50 per unit / £25 per half unit.

Fees

Please note that fees are subject to annual review.

Note: the University reserves the right to amend previously announced fees, if necessary.

All fees must be paid in pounds sterling, which may be paid either by a credit card recognised by Mastercard International or by the Visa group OR by banker's draft, cheque or postal order, made payable to 'The University of London' and crossed 'a/c payee'.

Other costs         
Besides the fees payable to the University, you should also budget for:

textbooks (approximately £300 per year)

tuition costs (if studying at a teaching institution)

if you are taking exams outside London you will have to pay an additional fee to your local examination centre (this fee will vary).