Paper 3: Economics and Business Fundamentals (One paper:
3 hours: 100 Marks)
A. ECONOMICS (60 marks)
1. Basic Concepts of economics 10%
a)
The
Fundamentals of Economics & Economic Organizations
b)
Utility,
Wealth,
c)
Basic
Elements of Supply and Demand, elasticity Equilibrium
d)
Theory of
Production, Cost of production,
2. Forms of Market 5%
a)
Perfect
competition and Imperfect competition
b)
Pricing in
perfect and imperfect competition
3. National
Income 5%
a)
Gross
National Product
b)
Net
National Product
c)
Measurement
of National Income
d)
Economic
growth and fluctuations
e)
Consumptions,
savings and investments
4. Theory of
Employment 5%
a)
Type of
unemployment
b)
Concepts
of full employment
c)
Labour and
Population theories
d)
Definition
of capital and growth of capital
e)
Steps in
capital formation
5. Money 10%
a)
Definition
and functions of money
b)
Quantity
theory of money
c)
Inflation
and effect of inflation on production and distribution of wealth
d)
Control of
inflation
e)
Money
supply
f)
Liquidity
preference and marginal efficiency
g)
Rate of
interest and investment
6. Banking 10%
a)
Definition,
Functions and utility of Banking, Principle of commercial banking, Essentials
of sound banking system
b)
Multiple
credit creation
c)
Functions
of Central Bank
d)
Weapons of
credit control and money market
e)
National
& International Financial Institutions
7.
International Trade 5%
a)
Basic
feature of export and import
b)
Competitive
advantage of trade
8. Public Finance 10%
a)
Direct and
indirect taxes
b)
Principle
of taxation
c)
Effect of
taxation on production and distribution
d)
Deficit
financing system
B. Business
Fundamentals (40 marks)
9. Type of Business Unit 10%
a)
Sole
proprietorship, Partnership, Companies, Cooperatives
b)
Hindu
Undivided Family
c)
Joint
Stock Companies, Public Utilities services, State Enterprises
d)
Limited
Liability Partnership
10. Company Organization and Management 10%
a)
Types of
companies and their formation
b)
Incorporation
and commencement of business
c)
Memorandum
of Association, Articles of Association and Prospectus, Shares and debentures, Board
of Directors and General Meeting
11. Business
Objectives 5%
a)
Concept
and rationale of social responsibility
b)
Business
and its environment, interface with legal, political, economic, social and
cultural aspects
12. Stock Exchange and its workings 10%
a)
Dealers
and brokers transactions
b)
Economic
significance, condition of membership
c)
Role of
stock exchanges, Depository participant
13. Business
Communication and Report Writing 5%
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