Part 1
Economics, Finance and Management
A. Microeconomics
(10% - 15%) (Level B)
Factors affecting the individual firm including demand, supply, elasticity, and their interaction; consumption of goods; production factors and their cost; market structures and pricing; various economic markets including the demand for resources and the labor market.
B. Macroeconomics
(10% - 15%) (Level A)
Issues in macroeconomics such as inflation, employment, and economic growth; the nature of business cycles and reasons for fluctuations; fiscal and monetary policies.
C. International Business Environment
(10% - 15%) (Level B)
Comparative advantages of trade; free trade and protectionism; barriers to international trade; nature and theory of foreign exchange; international capital investment and global standards.
D. Domestic Institutional Environment of Business
(10% - 15%) (Level A)
Legal environment of business including the legal forms of business and the structure of government regulation; the impact on business of external forces including employee protection, antitrust policies, social legislation, and non-governmental groups such as consumer and environmental organizations, and financial institutions; social responsibility.
E. Working Capital Policy and Management
(10% - 15%) (Level C)
Evaluating optimum levels of current assets and current liabilities and balancing profitability and risk; policies for the management of cash, marketable securities, accounts receivable, and inventories; short-term credit for financing current assets.
F. Long-Term Finance and Capital Structure
(10% - 15%) (Level B)
Factors influencing the optimum capital structure including types of risk and leverage; objectives and policies of long-term financing; cost of capital; types of long-term financing instruments; dividend policies
G. Organizational Structures, Management, and Communication
(20% - 30%) (Level B)
Nature of organizational decision making; structural evolution in organizations; characteristics of effective organizations; jobs, teams, and the roles of managers; human resources, leadership styles, and motivational theories and methods; communication models, and managing communication and information content.
