Southwestern University
2001-2002 Catalog

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ECONOMICS AND BUSINESS DEPARTMENT

Division of Social Sciences
Associate Professor Fred E. Sellers, PhD, Chair
Professor Kenneth D. Roberts, PhD
Professor A.J. Senchack, PhD
Professor Mary E. Young, PhD
Associate Professor John E. Delaney, PhD
Associate Professor Dirk W. Early, PhD
Associate Professor Emily M. Northrop, PhD
Associate Professor Don M. Parks, PhD
Professor Ira Dolich, PhD (part-time)
Instructor Roy D. Pursley, MBA (part-time)

The Economics and Business Department works toward a three-fold objective: first, to provide students with a broad understanding of the nature of economic forces and institutions; second, to prepare students with skills needed for entry into the job market; and third, to equip students with the knowledge and skills needed for success in graduate school. Students elect to work toward a Bachelor of Arts degree with a major in Economics, Accounting, or Business. Requirements for the three programs are as follows:
The major in Economics requires Mathematics 52-154 and 52-213, plus a minimum of 30 semester hours of Economics, including Economics 31-013, 103, 223, 233, 314, 963 and either 31-533 or 31-623. An academic internship, 31-943, is strongly recommended. Economics majors who intend to go to graduate school should discuss additional course recommendations with their advisors.
The minor in Economics requires Economics 31-013, 103, and either 31-223 or 31-233, plus nine additional semester hours of above-introductory level Economics courses.
The major in Business requires courses in several fields as follows: Mathematics 52-154 and 213 (those not ready for calculus should first take Mathematics 52-123; those planning on graduate study should, in addition, take Mathematics 52-253). Economics 31-013, 103 and either 213 or 233. Accounting 36-113 and 123. Business 30-313, 323, 473, 483, and 993 plus 12 hours of electives in Business, Accounting or Economics.
The minor in Business consists of Economics 31-013, 103, and either 213 or 233; Accounting 36-113 and 123; Mathematics 52-213; and Business 30-313, 473, and 483.
The major in Accounting requires courses from several fields as follows: Mathematics 52-154 and 213 (those not ready for calculus should first take Mathematics 52-123; those planning on graduate study should, in addition, take Mathematics 52-253). Economics 31-013, 103 and either 213 or 233. Business 30-313, 323, 473, and 483. Accounting 36-113, 123, 203, 213, 313, 323, 523, and 993.
Certified Public Accountant (CPA) Examination: To qualify for the CPA Examination, Texas state law requires students to go beyond the major by completing a total of 150 credit hours of college work including 30 upper level hours of Accounting. To fulfill this requirement students may take Accounting 36-333, 533, 763, and 923. Also recommended but not required for the CPA track are Business 30-733, 30-743, and 30-993, and Economics 31-314.
Paired majors and major-minor combinations within the department: Students pursuing a paired major in Economics and Business or Economics and Accounting may count Economics 31-013 and 31-103 toward both majors. The same double counting is also allowed for major-minor combinations within the department.
Capstone courses for each major are indicated below.
Special support for the library collection in Economics is provided by a memorial fund in honor of Dr. L.H. Merzbach, contributed to the University by the late Dr. Margaret Kober Merzbach and Dr. Uta Merzbach.

Economics (ECO)

†31-013 PRINCIPLES OF MACROECONOMICS. A study of the general characteristics of economic systems, and the principles and problems related to unemployment, inflation, and economic growth. Monetary and fiscal policy are emphasized. (POK-Social Analysis)
31-103 PRINCIPLES OF MICROECONOMICS. Principles and problems related to the determination of prices, the economics of the firm, and the distribution of income. Prerequisite: Economics 31-013 with a grade of C- or better.
31-213 MONEY, BANKING, AND FINANCIAL MARKETS. The nature and structure of financial markets, monetary theory and policy, the regulation of financial institutions, international finance. Prerequisites: Economics 31-013 and 103 with a grade of C- or better. (Fall)
31-223 INTERMEDIATE MICROECONOMIC THEORY. Intermediate economic theory relating to the analysis of price and value, production, distribution of income, and economic welfare. Prerequisites: Economics 31-103 and Mathematics 52-154 with a grade of C- or better or permission of instructor. (Fall)
31-233 INTERMEDIATE MACROECONOMIC THEORY. Intermediate economic theory relating to the analysis of employment, inflation, economic growth, and the balance of payments. Prerequisites: Economics 31-013 and 31-103 with a grade of C- or better. (Spring)
31-314 RESEARCH METHODS. Quantitative and qualitative research methods for economic problems. Research design, data collection, and statistical analysis of cross-sectional and time series data are covered. A major research paper and a weekly computer lab are required. Prerequisites: Mathematics 52-213, Economics 31-223 and 233 with grades of C- or better or consent of instructor. (Fall)
31-323 ENVIRONMENTAL ECONOMICS. Economic theories and policies regarding protecting or restoring the environment and conserving natural resources. (Spring)
31-433 PUBLIC ECONOMICS. Deals with the justification for government activities, the design of programs consistent with these justifications, and the effects of major existing and proposed expenditure programs and taxes. Prerequisites: Economics 31-013 and 103 with a grade of C- or better.
†31-443 ECONOMIC DEVELOPMENT. A survey of the less developed countries of the world and how the economic system of each affects people’s lives. Each student chooses a country which they investigate in depth, and the course proceeds to develop the historical and economic dimensions of the world system in which these countries exist. Major topics are (1) history and colonialism; (2) population, especially the interactions among economic change, social change, population and the environment; (3) agriculture, rural-urban interactions, the role of women and migration; (4) the neo-liberal model of economic development and its critics. A major purpose of the course is to impart an understanding of the controversies surrounding these issues through readings written by leading scholars in the field. (POK-Other Cultures and Civilizations)
31-473 FINANCE. Prerequisites: Economics 31-213, Accounting 36-123, and Mathematics 52-213 all with grades of C- or better. See Business 30-473. (Spring)
31-513 GENDER, RACE AND CLASS. A seminar on the role of gender, race, and class in determining economic outcomes. This course will examine theories, evidence, and policy implications from an economic perspective, with the greatest emphasis being placed the U.S. and other industrialized economies. Prerequisite: Economics 31-223 or 31-433, with a grade of C- or better, or consent of instructor. Also Women’s Studies 04-513. (Fall)
31-533 ECONOMIC HISTORY OF THE UNITED STATES. A review of United States economic development according to major fields of economic activity and policy issues.
31-563 INTERNATIONAL ECONOMICS. The theory of comparative advantage, analysis of commercial policy, and principles of international finance. Prerequisite: Economics 31-103 with a grade of C- or better.
31-573 U.S. POVERTY AND INEQUALITY. An examination of poverty and the inequality of income and wealth with an emphasis on antipoverty policies. Prerequisites: Economics 31-013 and 103 with a grade of C- or better.
†31-623 HISTORY OF MODERN ECONOMIC THOUGHT. Historical survey and critical examination of leading schools of economic thought. Prerequisites: Economics 31-013 and 103 with a grade of C- or better. (POK-American & Western Cultural Heritage)
31-643 THE CHINESE ECONOMY. This course will explore the massive changes in China’s economic structure during the 20th Century, including the period before 1949 and the socialist period of Mao Zedong, but especially the post-1978 economic reforms. Students familiar with China will gain a better understanding of the economic issues accompanying China’s transitions, while students familiar with theories of economic development will see the application of these theories within the context of China. Prerequisite: Economics 31-443 with a grade of C- or better or consent of instructor.
31-963 SEMINAR IN ECONOMICS. Capstone course required of all majors and recommended for minors. Topics vary from year to year, but generally will involve group and/or individual research projects. A comprehensive examination in economics also is usually included.

31-301, 302, 303 SELECTED TOPICS. May be repeated with change in topic.

31-941, 942, 943 ACADEMIC INTERNSHIP.
31-951, 952, 953 INDEPENDENT STUDY AND RESEARCH.
31-961, 962, 963 SEMINAR. Capstone.
31-983 HONORS ECONOMICS.

Accounting (ACC)

36-113 FUNDAMENTALS OF FINANCIAL ACCOUNTING. An introduction to financial accounting concepts and techniques, with emphasis on the accounting model, financial statements, and financial information systems. No previous knowledge of accounting is assumed. (Fall)
36-123 FUNDAMENTALS OF MANAGERIAL ACCOUNTING. An introduction to cost accounting and managerial accounting concepts and techniques, with emphasis on development, analysis, and uses of accounting information, including financial statement analysis and cash flow reporting. Prerequisite: Accounting 36-113 with a grade of C- or better. (Spring)
36-203 INTERMEDIATE ACCOUNTING I. An in-depth study of financial accounting principles, standards, and techniques. Covers financial statements, cash, receivables, inventory, plant assets, intangible assets, and investments. Special attention is paid to underlying accounting theory. Prerequisite: Accounting 36-123 with a grade of C- or better. (Fall)
36-213 INTERMEDIATE ACCOUNTING II. A continuation of the study of financial accounting, emphasizing coverage of specific accounting issues, including leases, pensions, corporate owners’ equity, the statement of cash flows, accounting for income taxes, and earnings per share. Prerequisite: Accounting 36-203 with a grade of C- or better. (Spring)
36-313 COST ACCOUNTING. An in-depth study of the concepts and techniques of cost accounting and managerial accounting, including job order costing, process costing, variable costing, standard costs and variances, and management uses of accounting information for decision-making purposes. Prerequisite: Accounting 36-123 with a grade of C- or better. (Spring)
36-323 TAXATION. Study of the taxation of income of individual taxpayers: includability or excludability of various types of income, deductibility of costs and expenses, capital gains and losses, and preparation of returns. Prerequisite: Accounting 36-113 with a grade of C- or better.
36-333 GOVERNMENTAL AND NONPROFIT ACCOUNTING. Study of accounting techniques and requirements peculiar to governmental and non-profit concerns. Prerequisite: Accounting 36-123 with a grade of C- or better.
36-523 AUDITING. Study of auditing concepts, standards, objectives, and procedures. Includes internal control evaluation, audit reports, evidence, statistical sampling, professional responsibilities, and generally accepted auditing standards. Prerequisite: Accounting 36-213 with a grade of C- or better and senior standing.
36-533 ADVANCED FINANCIAL ACCOUNTING. Study of the accounting for partnerships, branches, business combinations, and consolidated financial statements. Prerequisite: Accounting 36-213 with a grade of C- or better.
36-763 FINANCIAL STATEMENT ANALYSIS. Application of accounting information to financial decision-making. Students learn to assess the financial strengths and weaknesses of corporations; to measure operating and financial performance using financial statements and cash flows; and to construct pro forma financial statements and forecasts of sales and earnings. Other topics may include analyzing business strategies; analyzing mergers and acquisitions; estimating a firm’s cost of capital, and valuing financial assets. Prerequisite: Business 30-473 or Economics 31-473 with grades of C- or better. Also Business 30-763.
36-923 ADVANCED AUDITING. A continuation of the topics introduced in Accounting 36-523. This course includes a study of specific areas relevant to the practice of professional auditing, including fraud, forensic accounting, and internal auditing. Emphasis is placed on relevant professional standards. Recommended for students planning to sit for the CPA examination. Prerequisites: Accounting 36-523 with a grade of C- or better and consent of instructor. (Spring)
36-993 ACCOUNTING THEORY. Study of current issues that involve both accounting theory and accounting practice. May be repeated when topics vary. Counts as accounting capstone. Prerequisites: Accounting 36-213 with a grade of C- or better, senior standing, and permission of instructor.

36-301, 302, 303 SELECTED TOPICS. May be repeated with change in topic.

36-941, 942, 943 ACADEMIC INTERNSHIP.
36-951, 952, 953 INDEPENDENT STUDY AND RESEARCH.
36-961, 962, 963 SEMINAR. Capstone.
36-983 HONORS ACCOUNTING.

Business (BUS)

30-313 FOUNDATIONS OF BUSINESS 1. A study that integrates traditional macro issues in management, marketing and operations, including production systems, organization structure and design, and market segmentation and strategy. High performance work systems and total quality management approaches provide integrating frameworks. Prerequisites: Economics 31-013 and 103 with grades of C- or better; also, prior or concurrent enrollment in Accounting 36-113. (Fall)
30-323 FOUNDATIONS OF BUSINESS 2. A study that integrates traditional micro issues in management, marketing, and operations, including leadership, reward systems, group effectiveness, pricing, promotion, consumer behavior, and statistical quality control. High performance work systems and total quality management approaches provide integrating frameworks. Prerequisite: Business 30-313 with a grade of C- or better. (Spring)
30-473 FINANCE. Analysis and application of the principles of managerial finance, especially the valuation of financial assets, capital budgeting, and financial planning. Proficiency is gained in the use of financial analysis calculators and computer spread sheets. Prerequisites: Economics 31-213, Accounting 36-123, and Mathematics 52-213, all with grades of C- or better. Also Economics 31-473. (Spring)
30-483 BUSINESS LAW. The role of law in society; introduction to legal reasoning, the judicial process, and other areas of law. The study of contracts, agency, and partnerships. Prerequisites: Accounting 36-123 and Business 30-313 with grades of C- or better.
30-543 ORGANIZATIONAL BEHAVIOR. A study of the process of management focused on the behavioral approach to management of modern business organizations with emphasis on individual, group, intergroup, and total organizational behavior. Communications, leadership styles, perceptual differences, and motivation in organizations are stressed. Prerequisites: Junior standing and Business 30-323 with a grade of C- or better.
30-553 ORGANIZATION THEORY AND DESIGN. This course stresses the organization level of analysis. Organization effectiveness, structure, control systems, technology, and culture are concepts included. Prerequisites: For business majors: Business 30-323; for sociology majors: Sociology 34-113 with a grade of C- or better. Also Sociology 34-343.
30-563 ENTREPRENEURSHIP. A study of entrepreneurs and new venture planning. Students are exposed to problems and successes of those who have started businesses, as well as the variety of scholarly literature concerning entrepreneurs. Students research a potential business and create a business plan appropriate for financing and startup. Prerequisites: Business 30-323, Business 30-473 or Economics 31-473, and Accounting 36-123 with grades of C- or better.
30-573 CONTEMPORARY ISSUES IN BUSINESS. Study of a recent business history is used to illustrate detailed, concrete issues facing businesses. The evolution of management thought is reviewed, especially theories related to experiences described in the business history. Students conduct literature reviews and investigate businesses to determine the applicability of theories to the real world. Prerequisite: Business 30-323 with a grade of C- or better.
30-733 INVESTMENTS. Principles of portfolio management and institutional investment analysis; various theories of the securities markets and their relation to the economy; the relation between investment theory and corporate investment; relation of investment to corporate capital structure; the role of investment banking in the financial system. Prerequisites: Business 30-473 or Economics 31-473, and Business 30-323 with grades of C- or better or consent of the instructor.
30-743 INTERNATIONAL FINANCE. Financing international movement of goods and services; international investment and capital flows; balance of payments, money supply, and the terms of trade; exchange rate risk, forward and futures contracts, and arbitrage; tariffs, taxes, expropriation and other political factors; financial planning and information technology from an international setting; policy and history from the perspective of international finance. Prerequisites: Business 30-473 or Economics 31-473, and Business 30-323 with grades of C- or better or consent of the instructor.
30-763 FINANCIAL STATEMENT ANALYSIS. Prerequisites: Business 30-473 or Economics 31-473, and Business 30-323 with grades of C- or better. See Accounting 36-763.
30-993 STRATEGIC MANAGEMENT. Capstone course that focuses on top management and the total organization. Three approaches are used to accomplish course goals: theories that integrate functional, business, and corporate level strategies are explored; case analysis is performed; and operation of computer simulated businesses demonstrates the dynamic nature of strategic management. Prerequisites: Business 30-323, 30-473 (or Economics 31-473), and 30-483 with grades of C- or better.

30-301, 302, 303 SELECTED TOPICS. May be repeated with change in topic.

30-941, 942, 943 ACADEMIC INTERNSHIP.
30-951, 952, 953 INDEPENDENT STUDY AND RESEARCH.
30-961, 962, 963 SEMINAR.
30-983 HONORS IN BUSINESS.