Mathematics is an essential function in the operations of many different fields, including business. During undergraduate and graduate coursework, future business professionals take math courses in order to apply math skills and knowledge in completing everyday business operations and management from calculating payroll and taxes to estimating and analyzing expenditures and profits.
Minimum Math Requirements
As students get started, they will take many introductory courses. Many of these courses in the business department will include minimum requirements in math.
Algebra is not only one of the fundamental subjects in mathematics, it is also fundamental for the majority of math that business professionals will need an understanding of in order to perform most finance and accounting functions. Many different business functions include using algebra to calculate taxes, depreciation, and payroll.
Students might also need to take pre-calculus if prerequisites for calculus have not already been met. Essentially, pre-calculus is designed to prepare students to successfully understand and complete the required additional and advanced calculus courses. Students in pre-calculus courses study topics that include logarithms, exponents, and trigonometry.
In order to analyze data samples and research, business professionals must have a solid understanding of statistics. From consumer trends to performance, statistical operations are performed to assist in the analysis of many different relevant business functions, including analysis of investments and evaluating quality assurance reports.
Math Courses and Business Specializations
There are many different disciplines and majors within business, and some business degree programs will include higher level mathematics courses or specialized subjects in math for graduation.
Finite mathematics includes the study of mathematical equations that do not fall into the calculus category. One of the major benefits of gaining an understanding in finite mathematical is the ability to gain analytical thinking skills through the organization of data. Some of the topics covered in finite mathematics include logic, modeling, matrices, and linear programming.
Probability is the study of the likelihood of an action or event occurring or not occurring. Probability allows for some prediction in uncertainty. Because so many business functions require the evaluation of risks and uncertainty, understanding theories in probability and how to calculate it are essential.
Calculus is used in many different types of business functions. In addition to understanding costs, calculus helps business professionals to minimize spending while maximizing profits through calculating rates in change. Some calculus functions that assist in these financial evaluations include differential equations and derivatives.
For more information on the study of math, see the helpful links and resources on the Mathematical Association of America website.
Using Math in Business
In every division within the business field, mathematics is used. Whatever position a job seeker is entering, a foundation and understanding of a variety of math equations and analysis techniques will be helpful in making predictions, evaluating data, and making decisions about cost, spending, investment, and other financial operations. In accounting, economics, finance, management, management information systems, marketing, and administration, business professionals need the inclusion of math in their educations to be ready for the workplace. To read more about how mathematics is used in business, visit the Business Professionals of America website.
FAQs
The most advanced math courses you'll likely have to take as an MBA student include algebra, statistics and probability, and basic calculus.
What math classes do you need to take for a business degree? ›
Business Calculus
- Derivatives.
- Integrals.
- Differential equations.
- Optimization problems.
Calculus is used in many different types of business functions. In addition to understanding costs, calculus helps business professionals to minimize spending while maximizing profits through calculating rates in change.
Do business majors need a lot of math? ›
Strong mathematical foundations are required for economics in business administration. For cost analysis, budgeting, and financial modeling, fundamental algebra and math skills are required. Calculus and statistics are useful for examining demand-supply dynamics, market trends, and optimization.
What math is used in business studies? ›
Mathematics typically used in commerce includes elementary arithmetic, such as fractions, decimals, and percentages, elementary algebra, statistics and probability. Business management can be made more effective in some cases by use of more advanced mathematics such as calculus, matrix algebra and linear programming.
Is statistics or calculus better for business? ›
Calculus will give you the theoretical math background that's useful for business analytics and higher-level finance courses, while Statistics is directly applicable to various fields of business such as marketing, economics, and management.
Do I need pre-calc for business? ›
Business calculus isn't as difficult as the regular calculus that most applied science majors need to know, but you would still need a foundation in pre-calc to understand it, and taking precalc in college would probably be harder than taking it in high school.
Which business major has the least math? ›
Human resources is a common concentration offered within business administration programs and requires little math. Human resources emphasizes interpersonal skills, conflict resolution, and communication. Marketing is another big area of business that does not necessarily require much math.
What degree has the least math? ›
10 College Majors That Don't Require Math
- English. ...
- Graphic Design. ...
- Culinary Arts. ...
- Psychology. ...
- History. ...
- Education. ...
- Business Administration. A business administration degree may also require some mathematics. ...
- Social Work. Social work is the work of helping individuals and communities in need.
According to the US Bureau of Labor Statistics (BLS), the median annual wage for people with a business degree is $65,000 [3]. That's a bit higher than the median wage for bachelor's degree holders across all fields, $60,000.
In terms of the difficulty of mathematical requirements, a business administration degree indeed requires students to engage with mathematical concepts. However, compared to the math used in disciplines like engineering or physics, this math is typically not as difficult.
What math is used in business finance? ›
Finance degrees will often cover more basic mathematical concepts such as algebra and statistics, as well as more industry-specific math courses such as probability and business mathematics.
How hard is calculus? ›
Calculus is widely regarded as a very hard math class, and with good reason. The concepts take you far beyond the comfortable realms of algebra and geometry that you've explored in previous courses. Calculus asks you to think in ways that are more abstract, requiring more imagination.
Are business math classes hard? ›
In terms of the difficulty of mathematical requirements, a business administration degree indeed requires students to engage with mathematical concepts. However, compared to the math used in disciplines like engineering or physics, this math is typically not as difficult.
Is marketing math heavy? ›
Because a marketing major pursuing a bachelor's will likely be involved in data analysis and metric tracking when they enter their career, there is usually a larger math requirement.
Do you need to know math to start a business? ›
You'll need to be able to add, divide, subtract and multiply numbers to calculate your earnings, provide clients with estimates and pay your employees. Basic arithmetic skills will also help you complete your taxes, particularly if you're eligible for numerous deductions and credits.
