Catalog 2008-2009

ECONOMICS AND BUSINESS DEPARTMENT

Division of Social Sciences

Associate Professor John E. Delaney, PhD, Chair
Professor Dirk W. Early, PhD
Professor Kenneth D. Roberts, PhD
Professor A.J. Senchack, Jr., PhD
Professor Mary E. Young, PhD
Associate Professor Emily M. Northrop, PhD
Associate Professor Don M. Parks, PhD
Associate Professor Fred E. Sellers, PhD
Assistant Professor Mary Grace Neville, PhD
Visiting Assistant Professor Stephanie Botello, PhD
Visiting Instructor Andrew Ross, MBA
Assistant Professor Nancy Arenson, JD (part-time)
Assistant Professor Paul C. L. Emberton, PhD (part-time)
Assistant Professor Raymond McLeod, PhD (part-time)
Instructor Rebecca Pearson, BA, CPA (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. Paired majors and major-minor combinations within the department are also available. 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. Students who intend to go to graduate school should discuss additional course recommendations with their advisers.

NOTE: A minimum grade of C- must be earned in any course if it is to count as a prerequisite for a subsequent Accounting, Business or Economics course.

Special support for the library collection in Economics is provided by a memorial fund in honor of Dr. L.H. Merzbach, contributed to Southwestern University by the late Dr. Margaret Kober Merzbach and Dr. Uta Merzbach.

Major in Economics: 30 semester hours, including Economics 31-013, 103, 223, 233, 314, 963 (Capstone); 31-533 or 623; at least eight additional hours of Economics, two hours of which must be above the introductory level. Those planning on graduate study in Economics should discuss the additional mathematical requirements with their adviser.

Required supporting courses in the Economics major: Seven semester hours, including Mathematics 52-113, 154. Those not ready for calculus should first take Mathematics 52-123. An internship (Economics 31-943) is strongly recommended.

Minor in Economics: 21 semester hours, including Economics 31-013, 103; 31-223 or 233; Mathematics 52-113; nine additional hours of Economics above the introductory level.

Major in Business: 42 semester hours, including Accounting 36-113, 123; Business 30-313, 323, 473, 483, 993 (Capstone); Economics 31-013, 103, 213; 12 additional hours above the introductory level in Accounting, Business or Economics.

Required supporting courses in the Business major: Seven semester hours, including Mathematics 52-113, 154. Those not ready for calculus should first take Mathematics 52-123. Those planning on graduate study should also take Mathematics 52-254.

Minor in Business: 27 semester hours, including Accounting 36-113, 123; Business 30-313, 473, 483; Economics 31-013, 103, 213; Mathematics 52-113.

Major in Accounting: 45 semester hours, including Accounting 36-113, 123, 203, 213, 313, 323, 523, 993 (Capstone); Business 30-313, 323, 473, 483; Economics 31-013, 103, 213.

Required supporting courses in the Accounting major: Seven semester hours, including Mathematics 52-113, 154. Those not ready for calculus should first take Mathematics 52-123. Those planning on graduate study should also take Mathematics 52-254.

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. Texas state law also requires CPA candidates to complete a course in ethics that is approved by the Texas State Board of Public Accountancy. Students can fulfill this requirement by taking Business 30-363. Also recommended but not required for the CPA track are Business 30-733, 743, 993 and Economics 31-314.

Economics (ECO)

31-013PRINCIPLES 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. (ScS)
31-103PRINCIPLES OF MICROECONOMICS. Principles and problems related to the determination of prices, the economics of the firm and the distribution of income. (ScS)
31-213MONEY, BANKING AND FINANCIAL MARKETS. Nature and structure of financial markets, monetary theory and policy, the regulation of financial institutions, international finance. Prerequisites: Economics 31-013 and 103. (Fall)
31-223INTERMEDIATE MICROECONOMIC THEORY. Intermediate economic theory relating to the analysis of price and value, production, distribution of income and economic welfare. Prerequisites: Economics 31-013 and 103 and Mathematics 52-154, or permission of instructor.
31-233INTERMEDIATE MACROECONOMIC THEORY. Intermediate economic theory relating to the analysis of employment, inflation, economic growth and the balance of payments. Prerequisites: Economics 31-013 and 103. (Spring)
31-314ECONOMETRICS. 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: Economics 31-223, 233 and Mathematics 52-113, or permission of instructor. (Fall)
31-323ENVIRONMENTAL ECONOMICS. Economic theories and policies regarding protecting or restoring the environment and conserving natural resources. Prerequisite: Sophomore standing. Also Environmental Studies 49-323. (Spring) (ScS)
31-433PUBLIC 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, and Mathematics 52-113. Economics 31-223 is recommended.
31-443ECONOMIC 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 neoliberal 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. Prerequisite: Economics 31-013 or 103, or permission of instructor. Also Environmental Studies 49-453. (IP)
31-473FINANCE. Prerequisites: Accounting 36-123, Economics 31-213, and Mathematics 52-113. See Business 30-473. (Spring)
31-513GENDER, 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 on the United States and other industrialized economies. Prerequisite: Economics 31-223 or 433, or permission of instructor. (Fall)
31-533ECONOMIC HISTORY OF THE UNITED STATES. A review of the economic development of the United States. Prerequisite: Sophomore standing. (ScS)
31-563INTERNATIONAL ECONOMICS. The theory of comparative advantage, analysis of commercial policy and principles of international finance. Prerequisites: Economics 31-013 and 103.
31-573U.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.
31-623HISTORY OF MODERN ECONOMIC THOUGHT. Historical survey and critical examination of leading schools of economic thought. Prerequisites: Economics 31-013 and 103.
31-643THE 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 31-013 or 103, or permission of instructor.
31-963SEMINAR 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.
31-001, 002, 003, 004SELECTED TOPICS. May be repeated with change in topic.
31-301, 302, 303, 304SELECTED TOPICS. May be repeated with change in topic.
31-901, 902, 903, 904TUTORIAL.
31-941, 942, 943, 944ACADEMIC INTERNSHIP. Must be taken Pass/D/F.
31-951, 952, 953, 954INDEPENDENT STUDY AND RESEARCH.
31-983HONORS. By invitation only.

Accounting (ACC)

36-113FUNDAMENTALS 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) (ScS)
36-123FUNDAMENTALS 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. (Spring)
36-203INTERMEDIATE 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. (Fall)
36-213INTERMEDIATE 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. (Spring)
36-313COST 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. (Spring)
36-323TAXATION. 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 36-123.
36-333GOVERNMENTAL AND NONPROFIT ACCOUNTING. Study of accounting techniques and requirements peculiar to governmental and private, not-for-profit concerns. Prerequisite: Accounting 36-123.
36-523AUDITING. 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 and senior standing.
36-533ADVANCED FINANCIAL ACCOUNTING. Study of the accounting for partnerships, foreign currency issues, business combinations and consolidated financial statements. Prerequisite: Accounting 36-213.
36-763FINANCIAL 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. Also Business 30-763.
36-923ADVANCED 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. Prerequisites: Accounting 36-523 and permission of instructor. (Spring, odd years)
36-993ACCOUNTING 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, senior standing and permission of instructor.
36-001, 002, 003, 004SELECTED TOPICS. May be repeated with change in topic.
36-301, 302, 303, 304SELECTED TOPICS. May be repeated with change in topic.
36-901, 902, 903, 904TUTORIAL.
36-941, 942, 943, 944ACADEMIC INTERNSHIP. Must be taken Pass/D/F.
36-951, 952, 953, 954INDEPENDENT STUDY AND RESEARCH.
36-961, 962, 963SEMINAR.
36-983HONORS. By invitation only.

Business (BUS)

30-313FOUNDATIONS OF BUSINESS I. 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, 103 and prior or concurrent enrollment in Accounting 36-113. (Fall)
30-323FOUNDATIONS OF BUSINESS II. 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. (Spring)
30-353LEADERSHIP IN ORGANIZATIONS: ADVANCED THEORY AND APPLICATIONS. This course reviews and critiques the main areas of leadership theory, reflecting results from more than 5,000 published scholarly studies. Students gain further understanding by applying theories to case studies, and develop the ability to recognize and evaluate leadership literature, issues and situations. Heavy emphasis on preparation prior to class and in-class discussion. Prerequisite: Business majors - Business 30-323. Other majors - advanced standing in major and senior hours or permission of instructor.
30-363BUSINESS ETHICS AND SOCIAL RESPONSIBILITY. Required for accounting majors who seek CPA certification. This course seeks to develop students as virtuous business leaders in society by challenging norms, evaluating assumptions and systematically crystallizing personal moral imperatives. The course fosters ethical reasoning and distinguishes between legal and social obligation. Topics include integrity, objectivity, independence and other core values. Advanced critical thinking and self reflection capabilities necessary for success. Prerequisites: Business 30-323 or permission of instructor. (Fall)
30-473FINANCE. 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 application of calculators and computer spread sheets to financial analysis. Prerequisites: Accounting 36-123, Economics 31-213 and Mathematics 52-113. Also Economics 31-473. (Spring)
30-483BUSINESS 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. Junior standing preferred. Prerequisites: Accounting 36-123 and Business 30-313.
30-543ORGANIZATIONAL 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.
30-553ORGANIZATION 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. Also Sociology 34-343.
30-563ENTREPRENEURSHIP. 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: Accounting 36-123, Business 30-323, and Business 30-473 or Economics 31-473.
30-573CONTEMPORARY 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.
30-733INVESTMENTS. 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 30-323 and Business 30-473 or Economics 31-473, or permission of instructor.
30-743INTERNATIONAL BUSINESS. This course develops a conceptual framework for making business decisions in a globally competitive company. This framework requires an understanding of an environment that has different cultures and values, multiple foreign currencies, alternative capital markets, and country and political risks. The first part of the course focuses on the multinational firm’s operating environment, which is composed of country factors (political and economic systems and socio-cultural factors), and global trade, financial and investment markets. The second part of the course focuses on the individual firm’s global strategy and functional operations, such as management, marketing and human resource management. Prerequisites: Business 30-323 or permission of instructor.
30-763FINANCIAL STATEMENT ANALYSIS. Prerequisites: Business 30-323, and Business 30-473 or Economics 31-473. See Accounting 36-763.
30-993STRATEGIC 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, Business 30-473 or Economics 31-473, and Business 30-483.
30-001, 002, 003, 004SELECTED TOPICS. May be repeated with change in topic.
30-301, 302, 303, 304SELECTED TOPICS. May be repeated with change in topic.
30-901, 902, 903, 904TUTORIAL.
30-941, 942, 943, 944ACADEMIC INTERNSHIP. Must be taken Pass/D/F.
30-951, 952, 953, 954INDEPENDENT STUDY AND RESEARCH.
30-961, 962, 963SEMINAR.
30-983HONORS. By invitation only.