Foundations of BusinessUnit 1: Nature and Purpose of
Business Online Notes Page 1
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 2: Forms of Business
Sole Proprietorship: meaning, features, merits
Partnership: features, types, registration,
merits, limitations, types of partners;
Joint Hindu Family Business : features, merits
Cooperative Societies: features , types,
merits and limitations
Company: Private Company, Public Company -
features, merits and limitations;
Choice of form of business organizations
Starting a business - Basic factors.
Unit 3: Public, Private & Global
Private Sector and Public Sector
Forms of organising public sector enterprises
; features, merits and limitations of following :
Statutory Corporation .
Changing role of public sector
Global Enterprises : features.
Unit 4: Business Services Online Notes Page 1 Page 2 Page 3
Nature and types of Business services -
Banking, Insurance, Transportation, Ware housing,Communication.
Banking - types of Banks, Functions of
Commercial banks, E- banking
Insurance - principles, types: life, fire and
Warehousing: types and functions
Postal and Telecom services
Unit 5: Emerging Modes of Business
E - B u
s i n e s s - S c o p e
a n d b e n e f i t s , R e s o u r c e s r e q u i r e d f o r
s u c c e s s f u l e-business implementation, On-line transactions,
payment mechanism, security and safety of business transactions.
Outsourcing- concept, need and scope.
Unit 6: Social Responsibility of
Business and Business Ethics
Concept of social responsibility.
Case for social responsibility;
Responsibility towards owners, investors,
employees, consumers, government and community
Environmental protection and business
Business ethics: concept and elements.
Organisation, Finance and TradeUnit 7: Formation of a Company Online Notes Page 1 Page 2 Page 3
Stages in the formation of a company:
Promotion, Incorporation and Commencement of business
Unit 8: Sources of Business Finance Online Notes Page 1 Page 2 Page 3
Nature and significance of business finance
Owner's funds and borrowed funds
Sources of raising Finance: Equity and Preference shares, Debentures and Bonds, Loan from Financial
Institutions, Retained Profits, Global Depository Receipt, American Depository
Receipt, Loans from commercial Banks, Public deposits, Trade Credit
Unit 9: Small Business
Small Scale Industry: Tiny Sector; cottage and
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 10: Internal Trade
Internal trade; types : wholesale and retail trade.
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 Chamber of Commerce and Industry in
promotion of internal trade.
Unit 11: International Business
Nature and Importance of International Business;
Ways of entering into International Business.
Export-Import Procedures and documentation. Foreign Trade Promotion.
Organizational support and incentives; Nature and importance of Export
Processing Zone/Special Economic Zone; International Trade Institutions and
Agreement: WTO, UNCTAD, World Bank, IMF.
Unit 12: Project Work
Any one of
(i) Find out from local sample business unit
(s) the various objectives they pursue.
(ii) Problems of setting up and running
(iii) Enquiry into the ethics of running
business through questionnaires.
(iv) Survey of quality of bank services in the
local branch office.
(v) Study of postal and courier mail services.
(vi) Availability and use of agency services,
advertising, packaging, investments in savings schemes, etc.
(vii) Survey of the popularity of credit cards
issued by different banks.
(viii) Study the profile of a sole
trader/partnership commenting on the nature and working of business.
(ix) Study of a Joint Hindu family business.
(x) Study of the organisational and functional
aspects of any of the following cooperatives :
(i) Banking Cooperatives
(ii) Thrift and Credit Societies.205
(iii) Cooperative Consumer Stores
(iv) Diary Cooperatives.
(v) Housing Cooperatives
(vi) Marketing Cooperatives
(xi) Study of a small business unit regarding
source of finance.
(xii) Study of nature of small traders (like
hawkers and pedlars in a specific locality) with reference to types of goods,
capital investment, turnover.
(xiii) Study of weekly bazaar in a locality.
(xiv) Study of franchise retail store.
(xv) Study of export/import procedure of any
(xvi) Problems of women entrepreneurs in
(xvii) Survey of waste/garbage disposal by a
(xviii) Study of pavement trade.
scrapbook and collect articles on the changing role of public sector and any
other topics related to the syllabus.
Ma r k
s ma y
b e s u i t a b l y d i s t r i b u t e d o v e r
t h e d i f f e r e n t p a r t s
o f t h e P r o j e c t R e p o r t -
Conclusions - findings and suggestions
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