Foundations of Business
Corporate Organisation, Finance and Trade
Foundations of Business
Unit I:Nature and Purpose of Business
- 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
- 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
- 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
- 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
- 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
- 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
Unit VII: Formation of a Company
Stages in the formation of a company:
- Incorporation, and
- Commencement of business.
Unit VIII: Sources of Business Finance
- 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
- 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
- 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
- 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