Foundations of Business (Total Periods 104)
Unit I: Nature and Purpose of Business (Periods 20)
• Concept and characteristics of business.
• Business, profession and employment – 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.
• Commerce: Trade and Auxiliaries.
• Business risks – nature and causes.
Unit II: Forms of Business Organisation (Periods 24)
• Sole Proprietorship; Joint Hindu Family Business – meaning, features, merits and limitations.
• Partnership – meaning, types, registration, merits, limitations, types of partners.
• Cooperative Societies – types, merits and limitations.
• Company: Private Ltd., Public Ltd – merits, limitations.
• Choice of form of business organisations.
• Starting a business – Basic factors.
Unit III: Private, Public and Global Enterprises (Periods 14)
• Private Sector and Public Sector.
• Forms of Organising public sector enterprises:
– Departmental Undertaking
– Statutory Corporation
– Government Company
• Changing role of public sector.
• Global Enterprises (Multinational Companies): meaning and features,
• Joint ventures — meaning, benefits.
Unit IV: Business Services (Periods 18)
• Nature and types of Business services — Banking, Insurance, Transportation, Warehousing, Communication.
• Banking — types of Banks, Functions of Commercial banks, E-banking.
• Insurance: principles, types: life, fire and marine.
• Postal and Telecom services.
• Warehousing: types and functions.
Unit V: Emerging Modes of Business (Periods 14)
• E-Business — Meaning, scope and benefits, Resources required for successful e-business implementation, On-line transactions, payment mechanism, security and safety of business transactions.
• Outsourcing — concept, need and scope.
Unit VI: Social Responsibility of Business and Business Ethics (Periods 14)
• Concept of social responsibility;
• Case for social responsibility;
• Responsibility towards different interest groups: owners, investors, employees, consumers, government, community and public in general;
• Business and environmental protection;
• Business ethics: concept and elements.
Corporate Oganisation, Finance and Trade (Total Periods 104)
Unit VII: Formation of a Company (Periods 16)
Stages in the formation of a company:
• Incorporation, and
• Commencement of business.
Unit VIII: Sources of Business Finance (Periods 24)
• Nature and significance
• Financial requirements and sources: owners funds and borrowed funds
• Methods of raising Finance:
– Equity and Preference shares
– Debentures and Bonds
– Retained profits
– Public deposits
– Loan from Commercial Banks
– Loan from Financial Institution
– Trade Credit
– Discounting of Bills of Exchange
– Global Depository Receipt, American Depository Receipt
Unit IX: Small Business (Periods 20)
• Small Scale Industry; Tiny Sector; cottage and rural industry;
• Role of small business in rural India;
• Problems of small business in India.
• Government Assistance and Special Schemes for Industries in rural, backward and hilly areas.
Unit X: Internal Trade (Periods 20)
• Meaning and types of internal trade: wholesale and retail;
• Services of a wholesaler and a retailer.
• Types of Retail Trade:
– Itinerant retailers and fixed shops.
– Departmental store, super market, malls, chain store, mail order business, consumer’s cooperative store
– Automatic Vending Machine
• Role of Chambers of Commerce and Industry in promotion of internal trade.
Unit XI: International Business (Periods 24)
• Nature, Importance, scope and complexities involved in International Business;
• Basic information about ways of entering into International Business;
• Contract manufacturing; licensing; franchising; Joint ventures and Setting up Wholly Owned Subsidies;
• Export-Import procedures and Documentation;
• Foreign Trade Promotion: Organisational Support and Incentives; Nature and Importance of Export Processing Zone/Special Economic Zones;
• International Trade Institutions and Agreement: WTO, UNCTAD, World Bank/IMF.