Course description

The syllabus is divided into two parts: Part A is Foundations of Business with 6 units, and Part B is Finance and Trade with five units.

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 the 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, the 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, loans from the financial institutions, 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

Tags

Business Studies, class 11, study material