The goal of this course is to introduce law students and practicing lawyers to the concepts of accounting, economics and finance needed to effectively counsel clients operating in the complex environment of modern business, as well as to touch on the skills lawyers need to operate effective and profitable legal practices. Through lectures, discussion and exercises, students will learn simple accounting methods, the elements of financial reporting statements, tests for evaluating businesses; the use of financial analysis in business transactions; and the mechanics of the market and investing. Towards the end of the course, as time allows, the class will touch on the economics of law practice and the fundamentals of compensation, management and marketing for professional services.
CLASS |
DATE |
GENERAL TOPIC |
REPRESENTATIVE COVERAGE |
Class 1 |
|
Basic Accounting Principles |
Ledgers, balance sheets, income statements, accrual accounting, depreciation and amortization. |
Class 2 |
|
Basic Accounting Principles |
Reading and using financial statements; GAAP versus Non-GAAP; the role of the auditor; accounting exercises. |
Class 3 |
|
Business Strategies and Valuation |
Cash flow, debt and interest, the uses and types of debt, the present and time value of money, capital budgeting |
Class 4 |
|
Business Strategies and Valuation |
Valuation of an ongoing business; methods of appraisal; capitalization rates; discount factors; real estate finance |
Class 5 |
|
Corporate Finance |
Survey of business forms; capitalization; types of shares, bonds and debentures; debt versus equity considerations; tax. |
Class 6 |
|
Corporate Finance |
Dividends and distributions: distributions of property; accounting tests; stock splits; shareholder protection. |
Semester Break |
|
|
Class 7 |
|
Corporate Finance |
Mergers & acquisitions methods and dynamics; tax and accounting considerations; hostile takeovers |
Class 8 |
|
Investing & the Market |
Intro to the stock markets and the operations of exchanges; market participants and investing. |
Class 9 |
|
Investing & the Market |
Investment companies advisors and their operations; commercial annuities and pensions; insurance. |
Class 10 |
|
The Law Firm as a Bus. Organization |
The economics of legal practice. Productivity and compensation methods in the law firm. |
Class 11 |
|
The Law Firm as a Bus. Organization |
“Rainmaking” marketing for professionals; market placement, image and strategy |
Class 12 |
|
The Law Firm as a Bus. Organization |
Law firm governance and management decision making; the managing partner as a CEO. |
Exam |
TBD |
|
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