Economics, Business, & Accounting

Chairman and Associate Professor: CHARLES N. STEELE
Professors: SUSAN KING, DAVID PAAS, IVAN PONGRACIC, GARY WOLFRAM
Associate Professors: ROBERT ATRA, DAVID BASTERFIELD, ROGER BUTTERS, MICHAEL J. CLARK, PETER JENNINGS, DOUGLAS R. JOHNSON, CHRISTOPHER MARTIN, RONALD RIVAS, JAMES WEBB, ABEL WINN
Assistant Professor: QIANYING ZHANG
Instructor: DEANNA MACKIE
Lecturers: CHRISTINA MAIER, CARTER SNIDER

The Department of Economics, Business, and Accounting offers majors in accounting, economics, financial and marketing management. The Department offers a distinctly “Hillsdale” approach to economics and business administration, utilizing the methodology and context of a liberal arts college to present the nature, scope, and function of economic exchange and business decision-making within a democratic, free-market society.

In keeping with the Hillsdale College Mission Statement, the Department promotes an understanding of how economic ideas and the peaceful practice of commerce have contributed to the development of our Western heritage. A consistent free enterprise approach to economics and business distinguishes the Department’s faculty, curriculum, and course content from typical college programs.

We emphasize creating well-rounded, literate entrepreneurs, business professionals, and economists. The study of business is strengthened with a broad-based, liberal arts education. Our approach integrates the functional areas of business and links them to the larger economic and social context of a free society. An entrepreneurial focus, emphasizing new ventures and family-owned businesses, permeates much of the required coursework. A moral philosophy of business and economics is regularly presented in the required courses. 

The Department offers a major in economics for students interested in careers in research, teaching, business, or public service. The majors in fields of accounting, financial management, and marketing prepare students to embark upon careers in today’s dynamic and global business environment. The Department encourages its students to double major or minor in a foreign language, the sciences, or mathematics. The Department also offers two interdisciplinary majors, one in political economy and one in international business and language. The political economy major combines courses in economics, history, and politics, and is good preparation for law school and careers in public policy. The major in international business and language is offered in cooperation with the Departments of French, German and Spanish, and is well-suited to students seeking careers in the growing global economy, allowing them to combine business coursework with study of their chosen foreign language.

Students at Hillsdale College may take courses in economics or business administration in one of three ways. First, any student at Hillsdale College may take any economics and business course so long as the student meets the prerequisites of the course. These courses may be in accounting, business, economics, or law. Certain courses have no listed prerequisites and may be taken to enrich the student’s curriculum, broaden the base of knowledge in another area of study, or create a fund of knowledge for further study in other areas. 

Second, students in other majors may elect a minor in economics, accounting, entrepreneurship, financial management, marketing management, or general business. The requirements for each minor are found in the following pages.

Third, students may elect a major in economics, accounting, financial management, or marketing management. The requirements for each major are found in the following pages. Students may also elect a major in political economy or international business and language.

Degrees

Courses of Instruction

ACC 209: Principles of Accounting I

Credits 3

The basics of financial accounting and an appreciation of the content and usefulness of accounting measurements and financial reports. Prerequisite: BUS 201 (may be taken concurrently), sophomore standing, or instructor approval.

ACC 210: Principles of Accounting II

Credits 3

A study of accounting systems and controls, including job order cost and process cost systems. The development and application of managerial accounting concepts and principles. Also stressed are the organization and operation from a managerial accounting perspective. Prerequisite: ACC 209 or instructor approval.

ACC 311: Intermediate Accounting I

Credits 3

An in-depth and comprehensive study of the financial statements, with special emphasis on valuation of each class of asset. Also reviewed are the concepts and principles underlying accounting and their application in the accounting process. Prerequisite: Completion of all sophomore-year business core courses or permission of instructor.

ACC 312: Intermediate Accounting II

Credits 3

A continuation of Intermediate Accounting I, emphasizing liability and stockholders' equity accounts. In addition, such topics as statement of cash flows and financial analysis are included.

ACC 316: Federal Income Tax I

Credits 3

A study of the taxation of individuals under the Internal Revenue Code. Emphasis will be placed on concepts of gross income, exclusions, deductions and credits available to individual taxpayers. Business income and deductions of sole proprietors will be addressed. Prerequisite: ACC 210.

ACC 317: Federal Income Tax II

Credits 3

A study of the Internal Revenue Code relating to the taxation of corporations, partnerships, trusts, estates and related entities. This course assumes a knowledge of the taxation of individuals, including sole proprietorships, and is a continuation of ACC 316. Prerequisite: ACC 316.

ACC 401: Accounting Information Systems

Credits 3

A comprehensive survey of information systems commonly used in modern business, emphasizing the role of computer hardware/ software. Prerequisite: Completion of all sophomore-year business core courses or permission of instructor.

ACC 405: Principles of Auditing

Credits 3

The basic principles of auditing, including elements of internal control, statistical sampling, financial statement and audit reports. The auditor's professional responsibilities and legal liability are also explored. Prerequisite: ACC 311 and senior status or concurrent enrollment in ACC 311.

ACC 411: Advanced Accounting

Credits 3

An advanced analysis of accounting theory and practice designed to prepare the accounting major for complex problems that arise from partnerships, home office and branch relationships, consolidations and mergers, receiverships and governmental units. Also a study of the theoretical and practical approach of accounting, budgeting, reporting and auditing for governmental units, colleges and universities, hospitals and other not-for-profit organizations. Prerequisites: ACC 312.

ACC 431: Managerial and Cost Accounting

Credits 3

The accumulating and reporting of costs of operations, budgets and other tools of management for measuring profitability of a business enterprise are studied. Emphasis is given to the various cost systems-job order, process cost, standard cost and variable costing. Economics and monetary incentives are also considered. Prerequisite: ACC 210.

BUS 201: Enterprise in a Commercial Republic

Credits 2
An introduction to business through an examination of the evolution and function of the modern corporation. Through case discussions and lectures, we seek to understand the ways in which the challenges faced by managers shaped, and continue to shape, the strategic behavior of businesses.

BUS 215: Business Topics for the Non-Business Student

Credits 1
A series of one-credit courses in various business topic areas. Designed as a general introduction to topics studied in greater detail in other business courses. May include general discussions of personal finance, beginning investing, leadership, starting a business, as well as other topics. Not available for students who have declared a major in business (accounting, financial management, marketing management, and international studies in business and foreign language). Not available for juniors and seniors who have taken or enrolled for more than two courses in business above the 200 level. Students who enroll for this course and violate any of these requirements will be disenrolled.

BUS 302: Business Written Communication

Credits 3
Emphasis on written communication in various business and professional contexts. Topics include report writing, business plans, professional correspondence and reports, and written communications in the employment context.

BUS 304: Entrepreneurship

Credits 3
A study of entrepreneurs and the creation of new ventures. Emphasis is on the characteristics of successful entrepreneurs, the identification and analysis of new ventures, and the traditional requirements for continued success of a venture after its founding. There is no business or economics prerequisite for this course. It is open to all Hillsdale College students with junior standing.

BUS 306: Small Business Management

Credits 3
Effective processes for managing small businesses in today's global economy will be studied. Researching available resources for small businesses and effective management structures and developing a plan for managing a small business comprise the basic content of this course. Small business owners may be invited as speakers.

BUS 315: Principles of Marketing

Credits 3
An introduction to the principles and practices of marketing goods and services. The essentials of strategy, organization, marketing mix, ethical responsibilities, communication an inter-functional relationships are studied. Prerequisite: ACC 209 or permission of instructor.

BUS 320: Quantitative Analysis

Credits 3
An introduction to the quantitative tools necessary for advanced courses in business, covering such topics as regression analysis, decision-making under uncertainty, linear programming, forecasting, elementary game theory, queuing theory and inventory management. Prerequisites: ECO 206 or instructor approval.

BUS 325: Management Theory and Practice

Credits 3
A study of basic principles of management and leadership in global organizations. Emphasis is placed upon organizational structure, development and change. Professional competencies and ethical issues are outlined.

BUS 326: Leading People and Teams

Credits 3
Leading People and Teams, through the use of classical and contemporary readings and cases, will focus on the leadership role played by managers, managerial responsibilities in the development of human capital across the individual career, and the formation and leadership of teams.

BUS 330: Financial Management

Credits 3
An introduction to business finance, covering the topics of present value, stock and bond valuation, capital budgeting, financial forecasting and capital structure.

BUS 345: Professional Selling

Credits 3
Planning, employment, organization, training, evaluation and compensation in combination with trends in sales management are the integral areas of study. Additionally, emphasis will be given on developing new sales approaches for achieving organizational goals.

BUS 353: International Business

Credits 3
Study of the political, economic and cultural environment of international business, the comparative advantages of countries, and the strategies companies may pursue to gain and sustain competitive advantage. Particular attention will be given to the features of the strategic and functional areas of management that are distinctive to international business. Prerequisite: Completion of junior-year business core courses.

BUS 401: Advanced Financial Management

Credits 3
Analysis of decision-making within the firm, emphasizing the conceptual structure of problems and the use of advanced analytic techniques. Specific topics include current asset management, capital budgeting, capital structure, dividend policy, long-term financing, mergers and corporate planning models. Prerequisite: BUS 330.

BUS 410: Investments I

Credits 3
The course introduces mean-variance portfolio analysis stressing the core knowledge and tools used by professional portfolio managers. Topics include security markets and trading basics, fundamental security analysis, portfolio theory, mean-variance asset pricing and market efficiency. Case studies and assignments require use of Excel. Prerequisite: BUS 330.

BUS 411: Futures and Options Markets

Credits 3
This course provides an introduction to the trading, pricing and risk management applications of financial derivatives. The derivatives contracts studied include: futures on commodities, currencies, bonds and stock indices; currency forward contracts; forward rate agreements; and options on stocks, stock indices, currencies and futures. Prerequisite: BUS 330.

BUS 418: Leadership, Power and Responsibility

Credits 3
Classic and contemporary readings in organizational and human-resource management, leadership style and responsibility, ethical and social dimensions of business, and moral philosophy of business. Prerequisite: junior standing.

BUS 419: Business Ethics

Credits 3
A case course focusing on typical ethical dilemmas encountered by business managers. Students will be introduced to the context in which managers are forced to make ethical decisions and provided with various models and frameworks by which ethical problems may be analyzed. Prerequisite: junior standing.

BUS 431: Case Studies in Finance

Credits 3
Case studies covering the topics of corporate financial analysis, value creation, financing alternatives, international finance and derivative securities. Extensive case readings and class participation are required. Prerequisite: BUS 330.

BUS 432: International Finance

Credits 3
This course surveys the modern paradigms in international finance stressing the behavior and the global competitive environment facing the multinational firm. Specifically, the course examines the theory linking the world's various foreign exchange (FX), money and securities markets, emphasizing global investment and risk management. Topics include international monetary arrangements, balance of payments statistics, spot and forward FX markets, FX futures and options contracts, interest rate parity, purchasing power parity, exchange rate theory, global mean-variance portfolio theory, FX hedging and emerging markets. Prerequisite: BUS 330 or permission of instructor.

BUS 433: Investments II

Credits 3
A seminar in portfolio management, this course examines advanced topics in professional management of investment funds. Course topics vary, depending on the instructor, and typically focus on innovations in investment strategies and products. Specific topics may include principles of active portfolio management, performance evaluation, hedge funds and investment applications of derivative products. The course requires use of Excel and outside research resources. BUS 410 is a prerequisite.

BUS 434: Risk Management

Credits 3
This course provides an introduction to enterprise risk management, where the management of risk is integrated and coordinated across the entire organization. All categories of risk (financial, market and operational) are studied. Value-at-risk, which is the main method for measuring risk, is examined in detail. Other measures, such as earnings-at-risk and shareholder value added, are also considered. Finally, the course also examines how enterprise risk management may be implemented, and the issues that arise when one attempts to change the culture of a firm. Prerequisite: BUS 330 or permission of instructor.

BUS 435: New Venture Finance

Credits 3
A survey of the theory and practice of meeting and managing the capital needs of emergent firms over the start-up lifecycle from angel investing through the initial public offering. Topics are covered from both the perspective of the investor and entrepreneurial leader.

BUS 440: Operations Management

Credits 3
The processes and management of the production of goods and services, the transformation of inputs into the finished product and services available to the consumer or organization are studied. Emphasis will be given to understanding operations management as a competitive force within the organization. Site visits are an integral part of the course. Prerequisite: BUS 325 or permission of the instructor.

BUS 441: Strategic Management

Credits 3
Case studies involving the formulation, analysis and implementation of corporate strategy in a global business context. Extensive readings and class participation are required. Prerequisite: BUS 325 or permission of the instructor.

BUS 442: Project Management

Credits 3
Develops the student's understanding and ability to plan and organize the various components required for successful project management. Emphasis will be on the fundamental steps essential for an organization to meet goals and objectives using effective project management. Prerequisite: BUS 325 or permission of the instructor.

BUS 452: Marketing Management

Credits 3
An in-depth analysis of the quantitative and qualitative factors involved in the management of the marketing function. Also, the non-quantitative tools of management will be applied to marketing. Students must develop a course project. Prerequisite: Completion of junior-year business core courses

BUS 457: Digital Marketing

Credits 3

Digital marketing directly applies marketing strategies and concepts to practical commerce-based Internet business. It prepares future business decision makers for the rapidly changing world of Web business practices. Prerequisite: BUS 315; computer and Web literacy.

BUS 459: Advertising

Credits 3
Focuses on communication tools in marketing management: advertising, sales promotion, personal selling, public relations and publicity, packaging and their interaction with personal selling and both externally and internally within the organization. Course culminates with the development of an integrated marketing communication plan. Prerequisite: BUS 315.

BUS 460: New Product Development

Credits 3
Covers the process of identifying new consumer needs and developing new products and services meeting Covers the process of identifying new consumer needs and developing new products and services meeting those needs. Methods of planning, organizing, and managing the process of new product development are also addressed.

BUS 499: Business Capstone: Strategic Decision-Making in a Dynamic Economy

Credits 2
Through lectures, case discussions, and projects, students will apply the frameworks and methods learned Through lectures, case discussions, and projects, students will apply the frameworks and methods learned across Hillsdaleís business curriculum to the strategic, integrated analysis of business opportunities and challenges.

BUS 516: Marketing Research

Credits 3
A seminar outlining the essential components of marketing research. Emphasis is given to the systematic and objective analysis of market research processes. A written and oral research project is required. Prerequisite: BUS 315 and BUS 452.

BUS 597: Summer Intern Program

Credits 1 Max Credits 3
Students may earn up to three credit hours that are applied to total hours required for graduation but may not be applied to core hours. Please see program director for program information and application forms.

BUS 597: How to Start and Manage a Business

Credits 3
Students receive instruction in five areas, namely; Management, Marketing, Finance, Business Law, and Human Resources selection and development. A Business Plan is developed by the participants for a business of their choice.

ECO 105: Introduction to Political Economy

Credits 3
An introduction to the study of economics and its relationship to political systems. Emphasis is on the study of markets, the role of government and constitutional law. These topics will be analyzed from a historical perspective as well as by examining current political/economic circumstances.

ECO 203: Principles of Macroeconomics

Credits 3
A continuation of ECO 202, including an examination of the economy as a whole based on aggregates of output, price, and employment. National income accounting and determination, private and public finance, fiscal policy, money and banking, monetary policy, and international trade will be analyzed.

ECO 206: Business and Economic Statistics

Credits 3
An introduction to the collection, presentation and analysis of quantitative economic data, analysis of central tendency, dispersion, statistical inference, index numbers, time series, correlation and regression. Course includes functions and graphing. Prerequisite: MTH 105 or equivalent.

ECO 303: Intermediate Microeconomics

Credits 3

An advanced analysis of exchange, production, productive resource use and price theory. Prerequisites: ECO 202 and 203, MTH 113 or 120 or equivalent.

ECO 304: Intermediate Macroeconomics

Credits 3

A thorough exposure to classical, Keynesian and Monetarist macroeconomics. A critique of macro-analysis is provided. Prerequisites: ECO 202 and 203, MTH 113 or 120 or equivalent.

ECO 323: Industrial Organization

Credits 3
A detailed examination of various theories of competition, monopoly, and oligopoly, with the goal of achieving a greater understanding of the market process in the real world. The focus is on critical engagement with concepts of market failure, collusion and regulation, culminating in a survey of antitrust laws and practices.

ECO 328: Labor Economics

Credits 3

A survey of the labor movement, union structures and internal political forces. Union strategies, government labor arbitration and employment contracts and negotiations are also described. Prerequisites: ECO 202 and 203.

ECO 355: History of Economic Thought I

Credits 3

A two-course evaluation of man's ideas about economic matters, including an examination of the relationship of economic theories to the respective historical environments in which those theories were developed. Prerequisites: ECO 202 and 203.

ECO 356: History of Economic Thought II

Credits 3

A two-course evaluation of man's ideas about economic matters, including an examination of the relationship of economic theories to the respective historical environments in which those theories were developed. Prerequisites: ECO 202 and 203.

ECO 362: Econometrics

Credits 3
An introduction to, and foundations for, the use of techniques for estimating and testing relationships between variables. The course includes advanced topics in hypothesis testing, analysis of variance, multiple regression and correlation analysis, and experimental design. Prerequisite: ECO 206.

ECO 375: Game Theory

Credits 3

Game theory is the study of the interaction of rational decision makers. This course uses game theory to study incentives and strategic behavior in practical situations of inter-dependent decision making and negotiations. The course will develop basic theoretical concepts in tandem with applications from a variety of areas, including bargaining, competition, and strategic voting. Prerequisite: MTH 310 or MTH 320 (spring, even-numbered years).

ECO 402: Public Finance and Taxation

Credits 3

A study of the economics of government spending and taxation. Among the topics covered are budgeting and cost/benefit analysis, effects and incidence of major taxes imposed in the U.S., and issues in state and local government finance. Prerequisites: ECO 202 and 203; 303 is recommended.

ECO 404: Behavioral Economics

Credits 3

A study of the field of behavioral economics, which incorporates insights from psychology into economic theory and models. The course includes directed reading of seminal contributions, and analysis of the arguments and counterarguments for the behavioral approach. The class goal will be to better understand human behavior, the standard economic model, and the pros and cons of behavioral economics as a field. Prerequisite: ECO 303 or consent of instructor.

ECO 412: Austrian Economics I

Credits 3

A year-long course which will present, analyze and critically assess the Austrian school of economics from its founder, Carl Menger, to present-day representatives such as Murray Rothbard and Israel Kirzner. The course will emphasize the works of Ludwig von Mises, whose personal library and papers will be utilized. Prerequisites: ECO 202 and 203.

ECO 413: Austrian Economics II

Credits 3

A year-long course which will present, analyze and critically assess the Austrian school of economics from its founder, Carl Menger, to present-day representatives such as Murray Rothbard and Israel Kirzner. The course will emphasize the works of Ludwig von Mises, whose personal library and papers will be utilized. Prerequisites: ECO 202 and 203.

ECO 415: Public Choice

Credits 3

Applications of economic theory in the analysis of collective decisions. Emphasis will be on explanation/ prediction of legislative, bureaucratic and judicial decisions. Prerequisites: ECO 202 and 203.

ECO 432: Environmental and Resource Economics

Credits 3

Economics of the allocation and use of natural resources, and the impact of institutional factors on how decisions are made and implemented. Emphasis on property rights, economic rent, and impact of regulations on resources such as forests, fisheries, minerals, land, and water, as well as pollution control issues. Prerequisites: ECO 202 and MTH 112 or 120.

ECO 440: Money and Banking

Credits 3

An analysis of the mechanics and objectives of the Federal Reserve System. A brief history and analysis of money and credit in modern financial markets. Prerequisites: ECO 202 and 203.

ECO 441: Monetary Theory

Credits 3

Studies in the theory of money and credit. Emphasis will be placed on the role of money in a market economy and the impact which changes in the supply of and demand for money have on both the structure and level of economic activity. Prerequisites: ECO 303 and 304.

ECO 460: Theory of International Trade

Credits 3

A study of the microeconomics of international trade, with emphasis on the determinants of the direction, volume, terms and gains from international trade. Issues surrounding the impact of trade, tariffs, quotas and other factors affecting the distribution of earnings will be examined. Prerequisites: ECO 202 and 203.

ECO 461: International Monetary Economics

Credits 3

A study of the macroeconomics of international trade. A systematic analysis of the monetary and financial components of economic transactions across international boundaries. Topics covered will include various models of exchange-rate adjustments under fixed, floating and mixed-exchange regimes. Prerequisites: ECO 202 and 203.

ECO 464: Mathematical Economics

Credits 3

A mathematical treatment of the theory of the firm and household behavior, including optimization problems, implicit functions and comparative statistics. This course may be viewed as advanced microeconomics. Prerequisites: ECO 303 and MTH 220 or 310 or equivalent, or special permission from the instructor

ECO 465: Comparative Economic Systems

Credits 3

A study of the theoretical and practical differences between highly centralized "command" economies and comparatively decentralized "market" economies. Attention is given to the contrasting ideological and political aspects of these two systems as they relate to economic production and human freedom. Prerequisites: ECO 202 and 203.

ECO 470: Constitutional Political Economy

Credits 3

Conventional microeconomics courses seek to understand individual decisions without regard for the institutional framework under which such decisions are made. In this course, students learn different institutional structures and how they influence incentives, and thus individual decision-making. Prerequisites: ECO 202 and 203.

ECO 472: Law and Economics

Credits 3

This course uses rational choice theory to understand legal rule-making and institutions. Efficiency criteria act as a guide for decision-makers in formal legal institutions. This methodology is employed as it applies to torts, property, contract, criminal and antitrust law. Prerequisites: ECO 202 and 203.

ECO 575: Political Economy Senior Thesis

Credits 1
The senior thesis is a one-credit course that serves as a capstone for the Political Economy major. The purpose is to allow the student to demonstrate his or her ability to analyze a topic in political economy using the knowledge gained from their course work in history, political science and economics. The paper is expected to be approximately 25 pages in length, although this may vary according to the topic and method of analysis. It is suggested that the paper follow the general guideline of: (1) a statement of the topic and why it is of interest; (2) a review of the literature; and (3) the student's own analysis of the topic which will incorporate the literature review and the student's background knowledge.