Business Studies

Part A: Foundation of Business

Unit 1: Nature and Purpose of Business

• Concept and characteristics of business.
• Business, profession and employment - Meaning and their distinctive features.
• Objectives of business - Economic and social, role of profit in business.
• Classification of business activities: Industry and Commerce.
• Industry - types: primary, secondary, tertiary - Meaning and sub types.
• Commerce - trade: types (internal, external, wholesale and retail; and auxiliaries to trade: banking, insurance, transportation, warehousing, communication, and advertising.
• Business risks - Meaning, nature and causes.

Unit 2: Forms of Business organizations

• Sole Proprietorship - meaning, features, merits and limitations.
• Partnership - Features, types, merits and limitations of partnership and partners, registration of a partnership firm, partnership deed. Type of partners.
• Hindu Undivided Family Business: features.
• Cooperative Societies- features, types, merits and limitations.
• Company: private and public company -features, merits and limitations.
• Formation of a company- four stages, important document (MOA, AOA, relevances of certificate of incorporation and certificate of commencement.
• Starting a business - Basic factors.

Unit 3: Public, Private and Global Enterprises

• Private sector and public sector enterprises.
• Forms of public sector enterprises: features, merits and limitations of departmental undertakings, statutory corporation and Government Company.
• Changing role of public sector enterprises.
• Global enterprises, Joint ventures, Public Private Partnership - Features

Unit 4: Business Services

• Banking: Types of bank accounts- savings, current, recurring, fixed deposit and multiple option deposit account.
• Banking services with particular reference to issue of bank draft, banker's cheque (pay order), RTGS (Real Time Gross Settlement) NEFT (National Electronic Funds Transfer), bank overdraft, cash credits and e- banking.
• Insurance: principles, concept of life, health, fire and marine insurance.
• Postal and telecom services: mail (UPC, registered post, parcel, speed post and courier) and other services.

Unit 5: Emerging Modes of Business

• E-business - scope and benefits, resources required for successful e-business implementation, online transactions, payment mechanism, security and safety of business transactions.
• Outsourcing-concept, need and scope of BPO (business process outsourcing) and KPO (knowledge process outsourcing).
• Smart cards and ATM's meaning and utility

Unit 6: Social Responsibility of Business and Business Ethics

• Concept of social responsibility
• Case for social responsibility
• Responsibility towards owners, investors, consumers, employees, government and community
• Environment protection and business

Part B: Finance and Trade

Unit 7: Sources of Business Finance

• Concept of business finance
• Owner's funds - equity shares, preference share, GDR, ADR, IDR and retained earnings.
• Borrowed funds: debentures and bonds, loan from financial institution, loans from commercial banks, public deposits, trade credit, ICD (inter corporate deposits).

Unit 8: Small Business

• Small scale enterprise as defined by MSMED Act 2006 (Micro, Small and Medium Enterprise Development Act).
• Role of small business in India with special reference to rural areas.
• Government schemes and agencies for small scale industries: (National Small Industries Corporation) and DIC (District Industrial Center) with special reference to rural, backward and hilly areas.

Unit 9: Internal Trade

• Services rendered by a wholesaler and a retailer
• Types of retail - trade - Itinerant and small scale fixed shops
• Large scale retailers - Departmental stores, chain stores, mail order business
• Concept of automatic vending machine
• Chambers of Commerce and Industry: Basic functions
• Main documents used in internal trade: Performa invoice, invoice, debit note, credit note. LR (Lorry receipt) and RR (Railway Receipt)
• Terms of Trade: COD (Cash on Delivery), FOB (Free on Board), CIF (Cost, Insurance and Freight), E&OE (Errors and Omissions Excepted)

Unit 10: International Trade

• Meaning, difference between internal trade and external trade: Meaning and characteristics of international trade.
• Problems of international trade: Advantages and disadvantages of international trade
• Export Trade - Meaning, objective and procedure of Export Trade
• Import Trade - Meaning, objective and procedure: Meaning and functions of import trade; purpose and procedure
• Documents involved in International Trade; documents involved in export trade, indent, letter of credit, shipping order, shipping bills, mate's receipt, bill of lading, certificate of origin, consular invoice, documentary bill of exchange (DA/DP), specimen, importance
• World Trade Organization (WTO) meaning and objective