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CLASS 11 BUSINESS STUDIES - HANDWRITING STYLE
MASTER NOTES
Prepared for Final Term Examination 2-Day Power Revision Book
UNIT 1 – EVOLUTION & FUNDAMENTALS OF BUSINESS
Meaning of Business: Business is an economic activity undertaken to earn profit by producing or selling goods and services.
Characteristics:
- Economic activity
- Production or procurement
- Sale or exchange
- Profit motive
- Risk element
- Regular dealings
Objectives: Economic – Profit, Growth, Market share Social – Quality goods, Fair price, Employment
Important 6 Marker: Explain characteristics of business (write 6 points with explanation).
MCQs:
- Reward of risk – Profit
- Mining – Primary industry
- Buying & selling – Trade
UNIT 2 – FORMS OF BUSINESS ORGANISATION
Sole Proprietorship: One man business with unlimited liability. Advantages – Easy formation, Quick decision Disadvantages – Limited capital, Unlimited liability
Partnership: Agreement between two or more persons to share profits. Features – Agreement, Profit sharing, Mutual agency, Unlimited liability
Company: Artificial person created by law. Features – Separate legal entity, Limited liability, Perpetual succession, Transfer of shares
Stages of Company Formation:
- Promotion
- Incorporation
- Capital subscription
- Commencement
UNIT 4 – BUSINESS SERVICES
Banking: Accept deposits & provide loans. Functions – Deposits, Loans, Overdraft, Agency services
Insurance: Contract to compensate loss. Principles – Utmost good faith, Insurable interest, Indemnity, Contribution, Subrogation
Types – Life, Fire, Marine
UNIT 5 – EMERGING MODES OF BUSINESS
E-Business: Business through internet. Advantages – Low cost, 24x7 service, Wider reach Limitations – Security issues, Technical knowledge
Online transaction steps: Registration – Placing order – Payment – Delivery
UNIT 7 – SOURCES OF BUSINESS FINANCE
Owner’s Fund – Equity shares, Preference shares, Retained earnings Borrowed Fund – Debentures, Bank loan, Public deposits
Difference Equity vs Preference: Equity – Voting rights, No fixed dividend Preference – Fixed dividend, No voting rights
6 Marker: Explain sources of finance (3 owner + 3 borrowed).
UNIT 8 – SMALL BUSINESS
Meaning – Small scale enterprise with limited capital. Role – Employment generation, Balanced regional growth, Export promotion Government support – Subsidy, Tax benefits
UNIT 10 – INTERNATIONAL BUSINESS
Import – Buying from foreign country Export – Selling abroad Documents – Bill of lading, Letter of credit, Bill of exchange
Export Procedure:
- Enquiry
- Order
- Packing
- Shipment
- Payment
