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FOUNDATION PROGRAMME IMPORTANT NOTE
The study material has been written in lucid and simple language and conscious efforts have been made toexplain business environment, different forms and functions of organizations, basic elements of businessand mercantile laws and concept of entrepreneurship. This study material has been divided into three mainparts
Part-A Business Environment,
Part-B Business Laws, and
The institute has decided that the first examination for Foundation Programme under new syllabus will be heldfrom December 2012 session in the Optical Mark Recognition (OMR) format, whereby students are required toanswer multiple choice questions on OMR sheet by darkening the appropriate choice by HB pencil. One markwill be awarded for each correct answer. There is NO NEGATIVE mark for incorrect answers.
The specimen OMR sheet is appended at the end of the study material. There are two self test question papersin the study to acquaint students with the pattern of examination. These are for practice purpose only, not to besent to the institute.
For supplementing the information contained in the study material, students may refer to the economic andfinancial dailies, commercial, legal and management journals, Economic Survey (latest), CS Foundation CourseBulletin, Suggested Readings and References mentioned in the study material and relevant websites.
The objective of the study material is to provide students with the learning material according to the syllabus ofthe subject of the Foundation Programme. In the event of any doubt, students may write to the Directorate ofAcademics and Professional Development in the Institute for clarification at email@example.com
Although due care has been taken in preparing and publishing this study material, yet the possibility of errors,omissions and/or discrepancies cannot be ruled out. This publication is released with an understanding that theInstitute shall not be responsible for any errors, omissions and/or discrepancies or any action taken on the basisof contents of the study material.
Should there be any discrepancy, error or omission noted in the study material, the Institute shall be obliged ifthe same are brought to its notice for issue of corrigendum in the CS Foundation Course Bulletin.
PAPER 1: BUSINESS ENVIRONMENT AND ENTREPRENEURSHIP
Level of Knowledge: Basic Knowledge
Objective: To give orientation about different forms of organizations, functions in organizations, businessstrategies and environment, along with an exposure to elements of business laws and entrepreneurship.
PART A: BUSINESS ENVIRONMENT (30 MARKS)
1. Business Environment
Introduction and Features
Concepts of Vision & Mission Statements
Types of Environment:
Internal to the Enterprise
Value System, Management Structure and Nature, Human Resource, Company Image andBrand Value, Physical Assets, Facilities, Research & Development, Intangibles, CompetitiveAdvantage
External to the Enterprise
Micro: Suppliers, Customers, Market Intermediaries
Macro: Demography, Natural, Legal & Political, Technological, Economy, Competition, Socio-cultural and International
Business Environment with reference to Global Integration
2. Forms of Business Organization
Concept and Features in relation to following business models:
Statutory Bodies and Corporations
HUF and Family Business
Cooperatives, Societies and Trusts
Limited Liability Partnership
Other Forms of Organizations
3. Scales of Business
Micro, Small And Medium Enterprises
Large Scale Enterprises and Public Enterprises
v4. Emerging Trends in Business
Concepts, Advantages and Limitations:
Business Process Outsourcing (BPO)
5. Business Functions
Strategic: Planning, Budgetary Control, R&D, Location of a Business, Factors affecting Location,Decision Making and Government Policy
Supply Chain: Objectives, Importance, Limitations, Steps, Various Production Processes
Finance: Nature, Scope, Significance of Financial Management, Financial Planning (ManagementDecisions Sources of Funds, Investments of Funds, Distribution of Profits)
Marketing: Concept, Difference Between Marketing and Selling, Marketing Mix, Functions of Marketing
Human Resources: Nature, Objectives, Significance
Services: Legal, Secretarial, Accounting, Administration, Information and Communication Technology
PART B: BUSINESS LAWS (40 MARKS)
6. Introduction to Law
Meaning of Law and its Significance; Relevance of Law to Modern Civilized Society; Sources of Law;Legal Terminology and Maxims; Understanding Citation of Cases
7. Elements of Company Law
Meaning and Nature of Company; Promotion and Incorporation of a Company; Familiarization with theConcept of Board of Directors, Shareholders and Company Meetings; Company Secretary;E-Governance
8. Elements of Law relating to Partnership
Nature of Partnership and Similar Organizations - Co-Ownership, HUF; Partnership Deed; Rights andLiabilities of Partners: New Admitted, Retiring and Deceased Partners; Implied Authority of Partnersand its Scope; Registration of Firms; Dissolution of Firms and of the Partnership
9. Elements of Law relating to Contract
Contract - Meaning; Essentials of a Valid Contract; Nature and Performance of Contract; Terminationand Discharge of Contract; Indemnity and Guarantee; Bailment and Pledge; Law of Agency
10. Elements of Law relating to Sale of Goods
Essentials of a Contract of Sale; Sale Distinguished from Agreement to Sell, Bailment, Contract forWork and Labour and Hire-Purchase; Conditions and Warranties; Transfer of Title by Non-Owners;Doctrine of Caveat Emptor; Performance of the Contract of Sale; Rights of Unpaid Seller
11. Elements of Law relating to Negotiable Instruments
Definition of a Negotiable Instrument; Instruments Negotiable by Law and by Custom; Types of
Negotiable Instruments; Parties to a Negotiable Instrument - Duties, Rights, Liabilities and Discharge;Material Alteration; Crossing of Cheques; Payment and Collection of Cheques and Demand Drafts;Presumption of Law as to Negotiable Instruments
PART C: ENTREPRENEURSHIP (30 MARKS)
Introduction to Concept of Entrepreneurship, Traits of Entrepreneur, Entrepreneurship: Who isan Entrepreneur, Why Entrepreneurship
Types of Entrepreneurs: Idealist, Optimizer, Hard Worker, Sustainer, Improver, Advisor, Superstar,Artiste, Visionary, Analyst, Fireball, Juggler, Hero, Healer.
Distinction Between Entrepreneur and Manager
Entrepreneurship and Intrapreneurship: Definition, Features, Examples and Difference
13. Entrepreneurship Creativity and Innovation
Entrepreneurial Venture Initiation: Sensing Entrepreneurial Opportunities, Environment Scanning,Market Assessment
Assessment of Business Opportunities: Identification of Entrepreneurial Opportunities, Selectionof an Enterprise, Steps in setting up of an Enterprise
Entrepreneurial Motivation: Meaning and Concept, Process of Achievement Motivation, Self-efficacy,Creativity, Risk Taking, Leadership, Communication and Influencing Ability, Mentoring and PlanningAction
Developing Effective Business Plan
14. Growth & Challenges of Entrepreneurial Venture
Strategic Planning for Emerging Venture: Entrepreneurial Opportunities in Contemporary BusinessEnvironment
Financing the Entrepreneurial Business: Resource Assessment -Financial and Non Financial,Fixed and Working Capital Requirement, Funds Flow, Sources and Means of Finance.
Managing the Growing Business: Effecting Change, Modernization, Expansion, and Diversification.
LIST OF RECOMMENDED BOOKS*PAPER 1 : BUSINESS ENVIRONMENT AND ENTREPRENEURSHIP
1. M.C. Shukla A Manual of Mercantile Laws; Sultan Chand & Company, New Delhi.
2. N.D. Kapoor Mercantile Law; Sultan Chand & Co., New Delhi.
3. N.D. Kapoor & Business Laws and Management; Sultan Chand & Sons.Dinkar Pagare
4. M.C. Kuchhal Mercantile Law; Vikas Publishing House, New Delhi.
5. P. P. S. Gogna A Textbook of Business Law; Sultan Chand & Company, New Delhi.
6. Poonam Gandhi Business Studies; Dhanpat Rai & Company Private Limited, Delhi.
7. NCERT Business Studies Text Book for Class 10+2
8. D. Chandra Bose Business Laws; PHI Learning Pvt. Ltd.
1. Sen & Mitra Commercial Law; The World Press Pvt. Ltd., Calcutta.