Courses of Studies 2011
Class : 11th & 12th
18. BUSINESS STUDIES (Code No. 054)
The courses in Business Studies and Accountancy are introduced at + 2 stage of Senior Secondary Education as formal commerce education is provided after first ten years of schooling. Therefore, it becomes necessary that instructions in these subjects are given in such a manner that students have a
good understanding of the principles and practices bearing in business (trade and industry) as well as their relationship with the society.
Business is a dynamic process that brings together technology, natural resources and human initiative in a constantly changing global environment. To understand the framework in which a business operates, a detailed study of the organisation and management of business processes and its interaction
with the environment is required. Globalisation has changed the way firms transact their business.
Information Technology is becoming a part of business operations in more and more organisations. Computerised systems are fast replacing other systems. E-business and other related concepts are picking up fast which need to be emphasized in the curriculum. The course in Business Studies will prepare students to analyse, manage, evaluate and respond to changes which affect business. It provides a way of looking at and interacting with the business environment. It recognizes the fact that business influences and is influenced by social, political, legal and economic forces. It allows students to appreciate that business is an integral component of society and develops an understanding of many social and ethical issues.
Therefore, to acquire basic knowledge of the business world, a course in Business Studies would be useful. It also informs students of a range of study and work options and bridges the gap between school and work.
• To develop in students an understanding of the processes of business and its environment;
• To acquaint students with the dynamic nature and inter-dependent aspects of business;
• To develop an interest in the theory and practice of business, trade and industry;
• To familiarize students with theoretical foundations of organizing, managing and handling operations of a business firm;
• To help students appreciate the economic and social significance of business activity and the social cost and benefits arising there from;
• To acquaint students with the practice of managing the operations and resources of business;
• To prepare students to function more effectively and responsibly as consumers, employers, employees and citizens;
• To help students in making the transition from school to the world of work including self-employment;
• To develop in students a business attitude and skills to be precise and articulate.
Business Studies Syllabus
One Paper 3 Hours 100 Marks
Part A: Foundations of Business
1. Nature and Purpose of Business 20 Periods 08 Marks
2. Forms of Business Organisations 24 Periods 12 Marks
3. Public, Private and Global Enterprises 20 Periods 10 Marks
4. Business Services 18 Periods 08 Marks
5. Emerging Modes of Business 10 Periods 06 Marks
6. Social Responsibility of Business and Business Ethics 12 Periods 06 Marks
Part B : Organisation, Finance and Trade
7. Formation of a Company 16 Periods 07 Marks
8. Sources of business finance 20 Periods 10 Marks
9. Small Business 14 Periods 07 Marks
10. Internal Trade 20 Periods 08 Marks
11. International Business 12 Periods 08 Marks
12. Project Work 22 Periods 10 Marks
A Part: Foundations of Business (Periods 104)
Unit 1: 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 2: Forms of Business Organisations (Periods 24)
• Sole Proprietorship: meaning, features, merits and limitations.
• Partnership: features, types, registration, merits, limitations, types of partners;
• Joint Hindu Family Business : features, merits and limitations.
• 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 Enterprises (Periods 20)
• Private Sector and Public Sector
• Forms of organising public sector enterprises ; features, merits and limitations of following :
• Departmental Undertaking
• Statutory Corporation .
• Government Company
• Changing role of public sector
• Global Enterprises : features.
• Joint ventures- features.
Unit 4: Business Services (Periods 18)
• 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 marine
• Warehousing: types and functions
• Postal and Telecom services
Unit 5: Emerging Modes of Business (Periods 10)
• E-Business - 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 6: Social Responsibility of Business and Business Ethics (Periods 12)
• 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.
Part B: Organisation, Finance and Trade (Periods 104)
Unit 7: Formation of a Company (Periods 16)
Stages in the formation of a company:
• Incorporation, and
• Commencement of business
Unit 8: Sources of Business Finance (Periods 20)
• 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: (Periods 14)
• 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 10: Internal Trade (Periods 20)
• 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 (Periods 16)
• Nature, Importance and complexities involved in 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 Suggestive/Illustrative Projects (Periods 22)
Any one of the following:-
(i) Find out from local sample business unit (s) the various objectives they pursue.
(ii) Problems of setting up and running business units.
(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 working of any cooperative society.
(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 article.
(xvi) Problems of women entrepreneurs in business.
(xvii) Survey of waste/garbage disposal by a business enterprise
(xviii) Study of pavement trade.
Prepare a scrapbook and collect articles on the changing role of public sector and any other topics related to the syllabus.
Marks may be suitably distributed over the different parts of the Project Report-
3. Conclusions - findings and suggestions
Recommended text books :
1. Business Studies, published by NCERT
One Paper 3 Hours 100 Marks
Part A : Principles and Functions of Management
1. Nature and Significance of Management 14 Periods 7 Marks
2. Principles of Management 14 Periods 7 Marks
3. Management and Business Environment 10 Periods 5 Marks
4. Planning 14 Periods 7 Marks
5. Organizing 16 Periods 10 Marks
6. Staffing 16 Periods 8 Marks
7. Directing 22 Periods 10 Marks
8. Controlling 14 Periods 6 Marks
Part B: Business Finance and Marketing
9. Financial Management 22 Periods 12 Marks
10. Financial Markets 20 Periods 8 Marks
11. Marketing Management 30 Periods 14 Marks
12. Consumer Protection 16 Periods 6 Marks
Part A: Principles and Functions of Management
Unit I: Nature and significance of Management (Periods 14)
• Management - concept, objectives, importance
• Management as Science, Art, Profession.
• Levels of management
• Management functions - planning, organizing, staffing, directing and controlling
• Coordination - characteristics and importance
Unit 2: Principles of Management (Periods 14)
• Principles of Management - concept, nature and significance
• Fayol’s principles of management
• Taylor’s Scientific Management - principles and techniques
Unit 3: Managment and Business Environment (Periods 10)
• Business Environment - importance
• Dimensions of Business Environment - Economic, Social, Technological, Political and Legal
• Economic Environment in India; Impact of Government policy changes on business and industry, with special reference to adoption of the policies of liberalization, privatization and globalisation
Unit 4: Planning (Periods 14)
• Concept, features, importance, limitations
• Planning process
• Types of Plans - Objectives, Strategy, Policy, Procedure, Method, Rule, Budget, Programme.
Unit 5: Organising (Periods 16)
• Concept and importance.
• Steps in the process of organising.
• Structure of organization - functional and divisional.
• Formal and informal organization.
• Delegation: concept, elements and importance.
• Decentralization: concept and importance.
Unit 6: Staffing (Periods 16)
• Concept and importance of staffing
• Staffing as a part of Human Resource Management
• Staffing process
• Recruitment - meaning and sources
• Selection - process
• Training and Development - Concept and importance. Methods of training
Unit 7: Directing (Periods 22)
• Concept and importance
• Elements of Directing
- Supervision - concept and role
- Motivation - concept, Maslow’s hierarchy of needs;
Financial and non-financial incentives.
- Leadership - concept ; qualities of a good leader
- Communication - concept , formal and informal communication; barriers to effective communication.
Unit 8: Controlling (Periods 14)
• Concept and importance
• Relationship between planning and controlling
• Steps in the process of control
• Techniques of controlling : budgetary control,
Part B : Business Finance and Marketing
Unit 9: Financial Management (Periods 22)
• Concept, importance, objectives of financial management
• Financial decisions : factors affecting
• Financial planning - concept and importance.
• Capital Structure - concept and factors affecting
• Fixed and Working Capital - concept and factors affecting its requirements.
Unit 10: Financial Markets (Periods 20)
• Concept of Financial Market: Money Market and its instruments.
• Capital market and types - primary and secondary market.
• Stock Exchange - functions, Trading Procedure, NSEl, OCTEI.
• Securities and Exchange Board of India (SEBI)- Objectives and Functions.
Unit 11: Marketing Management (Periods 30)
• Marketing - meaning, functions and role, marketing and selling
• Marketing management philosophies.
• Marketing mix - elements
- Product - nature, classification, branding, labeling and packaging
- Price - Factors determining fixation of price
- Physical distribution: Elements; Channels of distribution : types, function, choice of channels
- Promotion -Elements of promotion mix; Advertising - role, limitations, objections against advertising. Personal selling - concept, importance; Sales promotion - merits,limitations, methods ; Publicity - concept and role.
Unit 12: Consumer Protection (Periods 16)
• Importance of consumer protection
• Consumer rights
• Consumer responsibilities
• Ways and means of consumer protection - Consumer awareness and legal redressal with
reference to Consumer Protection Act.
• Role of consumer organizations and NGOs.
Recommended text books :
1. Business Studies - I, Published by NCERT
2. Business Studies - II — do —