Principles of Business Administration and Management
A.Y. 2025/2026
Learning objectives
The course introduces the fundamental elements of political economics and analytical accounting needed to understand the individual behaviours, markets functioning and to evaluate the cost-revenues flow of small production activities. The course explores the market theory and the behaviour of the entrepreneur and the consumer, with practical software exercitations focused on the representation of market equilibrium and the optimization of choices. Differential accounting analysis and break-even point analysis for the evaluation of investments in small businesses are also introduced during the course.
Expected learning outcomes
1. Knowledge and understanding: By the end of the course, the student must demonstrate knowledge of the fundamentals of political economy, including the functioning of markets, the interactions between supply and demand, and the different market structures (perfect competition, oligopoly, monopoly). Additionally, the student must demonstrate an understanding of managerial economics principles, particularly related to financial statements and applications of cost accounting.
2. Applying knowledge and understanding: The student must demonstrate the ability to apply acquired skills to graphically represent economic functions such as demand, supply, and business costs, as well as to perform accounting analyses for the allocation of indirect costs, break-even analysis of investments, and evaluation of cost-revenue flows.
3. Making judgments: The student must demonstrate the ability to critically evaluate the functioning of a market and the behavior of entrepreneurs and consumers, as well as to calculate the cost and unit contribution margin of various business activities.
4. Communication: The student must demonstrate the ability to comment on graphs representing economic functions in a structured and comprehensible manner and to explain the methodologies used in economic analyses, showcasing synthesis and precision.
5. Lifelong learning skills: The student must demonstrate the ability to independently learn how to use new tools for calculating and graphically representing economic phenomena.
2. Applying knowledge and understanding: The student must demonstrate the ability to apply acquired skills to graphically represent economic functions such as demand, supply, and business costs, as well as to perform accounting analyses for the allocation of indirect costs, break-even analysis of investments, and evaluation of cost-revenue flows.
3. Making judgments: The student must demonstrate the ability to critically evaluate the functioning of a market and the behavior of entrepreneurs and consumers, as well as to calculate the cost and unit contribution margin of various business activities.
4. Communication: The student must demonstrate the ability to comment on graphs representing economic functions in a structured and comprehensible manner and to explain the methodologies used in economic analyses, showcasing synthesis and precision.
5. Lifelong learning skills: The student must demonstrate the ability to independently learn how to use new tools for calculating and graphically representing economic phenomena.
Lesson period: Second semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
Second semester
Course syllabus
Frontal lessons - 32 hours
Program
MICROECONOMICS - 16 hours
1. The principles of economics (4h)
· The Principles of economic behaviours
· The scientific tools of economic thought
2. Market theory (4h)
· Demand, Supply and Market Equilibrium
· Perfect competition and other forms of market
3. Elasticity (2h)
· Price elasticity of supply and demand
· Sales revenue models and elasticity
4. Business cost theory (2h)
· Production function and total costs
· Efficient size and average costs
5. Theory of business behaviour (4h)
· Profit function
· Marginal costs and choice of entrepreneur in perfect competition
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
1. Economics and business organization (8h)
· The nature and economic purpose of the company
· The financial statements: purpose and structure
· Balance Sheet & Income Statement
· Accounting principles
· Budget analysis - Outline
· Reclassification and Indices
2. The programming and control systems (8h)
· Introduction to business operating systems
· The nature of the costs
· Direct and indirect costs
· Analysis of the breakeven point
Exercises - 32 hours
MICROECONOMICS - 16 hours
Market analysis and inverse demand curve
· Processing of individual willingness to pay data
· Construction of the market demand curve
· Calculation of revenues at different market prices
· Calculation of elasticities at different market prices
· Identification of the point of maximum revenue
· Construction of the market revenue curve
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
· Estimation of unit production costs: Variable and Fixed costs
· Allocation of indirect costs
· Break-even point estimation
Program
MICROECONOMICS - 16 hours
1. The principles of economics (4h)
· The Principles of economic behaviours
· The scientific tools of economic thought
2. Market theory (4h)
· Demand, Supply and Market Equilibrium
· Perfect competition and other forms of market
3. Elasticity (2h)
· Price elasticity of supply and demand
· Sales revenue models and elasticity
4. Business cost theory (2h)
· Production function and total costs
· Efficient size and average costs
5. Theory of business behaviour (4h)
· Profit function
· Marginal costs and choice of entrepreneur in perfect competition
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
1. Economics and business organization (8h)
· The nature and economic purpose of the company
· The financial statements: purpose and structure
· Balance Sheet & Income Statement
· Accounting principles
· Budget analysis - Outline
· Reclassification and Indices
2. The programming and control systems (8h)
· Introduction to business operating systems
· The nature of the costs
· Direct and indirect costs
· Analysis of the breakeven point
Exercises - 32 hours
MICROECONOMICS - 16 hours
Market analysis and inverse demand curve
· Processing of individual willingness to pay data
· Construction of the market demand curve
· Calculation of revenues at different market prices
· Calculation of elasticities at different market prices
· Identification of the point of maximum revenue
· Construction of the market revenue curve
GENERAL AND ANALYTICAL ACCOUNTING - 16 hours
· Estimation of unit production costs: Variable and Fixed costs
· Allocation of indirect costs
· Break-even point estimation
Prerequisites for admission
No specific prerequisites are required.
Teaching methods
The teaching activities are divided into theoretical lectures and practical exercises. The theoretical lectures focus on microeconomics and general and analytical accounting. The practical exercises involve analyzing original data to define the market characteristics of a product or service, evaluate cost-revenue flows in a small economic activity, and identify its break-even point. Students are taught problem-solving techniques through example exercises and are then asked to apply these methods to new, original cases.
Teaching Resources
Textbooks:
N Gregory Mankiw Mark P. Taylor (2018). Principi di Microeconomia, Zanichelli - Chapters 1, 2, 3, 4 and 6
Antoldi F. (2012). Economia e organizzazione aziendale: introduzione al governo delle imprese, McGraw-Hill - Chapters 2 and 4
Supplementary teaching material distributed through the Ariel website
Supplementary Teaching Materials
Distributed via the Ariel website - NOTE, THIS IS A SUPPLEMENT AND DOES NOT REPLACE THE RECOMMENDED BOOKS
Course Web Page on MyAriel Portal of UNIMI - https://myariel.unimi.it/course/view.php?id=3397
This page, updated annually, contains:
1. The current Syllabus
2. Supplementary materials for theoretical lessons - Slides, all released at the beginning of the course
3. Supplementary materials for practical exercises - Slides, released after each lesson
4. A NOTICE BOARD, which allows the instructor and STUDENTS to communicate. If students have general questions about the course, they can use the notice board to write to the instructor, ensuring all responses are visible to everyone.
N Gregory Mankiw Mark P. Taylor (2018). Principi di Microeconomia, Zanichelli - Chapters 1, 2, 3, 4 and 6
Antoldi F. (2012). Economia e organizzazione aziendale: introduzione al governo delle imprese, McGraw-Hill - Chapters 2 and 4
Supplementary teaching material distributed through the Ariel website
Supplementary Teaching Materials
Distributed via the Ariel website - NOTE, THIS IS A SUPPLEMENT AND DOES NOT REPLACE THE RECOMMENDED BOOKS
Course Web Page on MyAriel Portal of UNIMI - https://myariel.unimi.it/course/view.php?id=3397
This page, updated annually, contains:
1. The current Syllabus
2. Supplementary materials for theoretical lessons - Slides, all released at the beginning of the course
3. Supplementary materials for practical exercises - Slides, released after each lesson
4. A NOTICE BOARD, which allows the instructor and STUDENTS to communicate. If students have general questions about the course, they can use the notice board to write to the instructor, ensuring all responses are visible to everyone.
Assessment methods and Criteria
The exam consists of a 90-minute writing session divided into two sections: theoretical concepts and practical content, each with a separate score. Students must score at least 18/30 in both sections to pass. If they do, the average of the two scores will be recorded as the final grade. Both sections must be passed in the same exam.
The first section includes 20 multiple-choice questions. Each correct answer earns 1.6 points, while each incorrect answer results in a deduction of 0.20 points. No points are deducted for unanswered questions.
The second section comprises 4 exercises related to the course topics. Each exercise is worth 8 points, with no penalties for mistakes. The exercises are graded as follows:
4 points: correctness of the final result
2 points: formal completeness of the graphs and/or formulas
2 points: readability and overall tidiness of the result sheet
Students are reminded that they must present a valid ID document to be admitted to the exam. Please note that the University Card cannot be used as an ID document.
The first section includes 20 multiple-choice questions. Each correct answer earns 1.6 points, while each incorrect answer results in a deduction of 0.20 points. No points are deducted for unanswered questions.
The second section comprises 4 exercises related to the course topics. Each exercise is worth 8 points, with no penalties for mistakes. The exercises are graded as follows:
4 points: correctness of the final result
2 points: formal completeness of the graphs and/or formulas
2 points: readability and overall tidiness of the result sheet
Students are reminded that they must present a valid ID document to be admitted to the exam. Please note that the University Card cannot be used as an ID document.
AGR/01 - AGRICULTURAL ECONOMICS AND RURAL APPRAISAL - University credits: 6
Practicals: 32 hours
Lessons: 32 hours
Lessons: 32 hours
Professor:
Demartini Eugenio
Professor(s)