EMISJC-Class-11-Business Studies-Mind Map-Chapterwise

Unit - 1 evolution and fundamentals of business Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI · Highly prosperous domestic & international Position of Indian subcontinent in world economy · Between 1st & 7th century CE trade. • Selection of line of Business India had largest economy • Size of the firm · Developed indigenous banking system · In mid 18th century, britishers · Using hundies & chitti • Choice of form of ownership ruined Indian domestic and · Rise of Intermediaries - providing financial foreign trade • Location of Business enterprise security to manufacturers · After Independence India · Well developed land & water transport faacBtuosrisnoefss • Financing the proposition begun to re-industrialist strengthened international trade · Today Indian economy is one · Patliputra, Peshawar, Taxila, Madura, of the fastest growing economies in the world Tamralipti, etc. were major trade centers. • Surable risk • Economic activity → Business • Physical facilities • Insurable risk • Non-Economic Activity → Prayer Types of • Plant Layout Risk • An economic activity to God Business • Production or Procurement Activity Basic • Tax planning Buisness • It means a state of being starting Type of goods and services busy in Economic activity of • Sale or exchange of goods • Business risks arise due NEamtuprloeyomf eBnutsiness Risks cation Evolution and BCuhsainraecssteAricsttiivcsitioefs and services to uncertainties Fundamentals of • Dealings of goods and • Risk is an essential part Business services on regular basis of Business • Profit earning motive Classifi Multipl • Uncertainty of return • Degree of risk depends • Presency of risk on the nature and Business e Objectives of Business size of Business Market standing Innovation • Profit is reward of Productivity risk taking Physical and financial resources • Refers to the occupation Industry Commerce Earning profits in which people work for Social responsibility others and get fulfil remuneration It includes those activities Primary Secondary Tertiary Trade Auxiliaries to trade Profession which require special knowledge and skills to be Extractive Genetic Internal External applied to earn fees Wholesale Retail Import Export Entrepot Manufacturing Construction Analytical Synthetical Processing Assembling Transportation Warehousing Insurance Banking Advertising [1

Unit - 2 forms of business organisations 2 ] • Refers to a form of Business Meaning • The cooperative society is a voluntary • Refers to a form of Business which is owned and carried on Hi g association of persons who join together organisation which is owned, managed and controlled by a by the members of H.V.F with the motive of welfare of members single individual ndu undivided family Meanin • Atleast two members of form Features Features • Voluntary membership Meaning • No separate law to form • Unlimited Liability of karta Merits • Legal status of the Association • Sole risk bearer • Controlled by karta • Limited liability of all persons Features • All the control in one hand • Continued even after death of Limitations Merits • No separate entity Merits • Equality in voting status • Quick decision making karta • Limited liability of all tions • Stable existence • Direct incentive • Effective control of the • Sense of accomplishment business Limitations • Limited resources available • Ease to formation and closure • Inefficiency in management • Limited liability of partners • Lack of secrecy • Limited resources except karta • Government control • Limited life of Business Coopera Sole proprietorship Limita • Continued Business concern Existence tive society • Unlimited liability Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI • Limited managerial ability • Limited resources for the business • Unlimited liability of karta in business • Dominance of Karta in this form • Partnership at will Types of partnership Forms of Business • Partnership refers to the relation • Particular partnership Joint sftcoocokpceoramtipvaensyociety Organisations between the persons who have • General partnership agreed to share the profit of • Limited partnership Meaning Business carried on by them Features • A company is an association of Meaning Types of Partners in partnership Meritsrtnership • Formed according to partnership Act 1932 persons formed for carrying out Limitations • Risks is beared by all partners business activities and has a legal Types o • Customers cooperative • Decisions are taken by the mutual consent status independent of its members society Pa • Minimum-2 and maximum 50 partners • Company is an artificial FeaturesMerits • Producer's cooperative • Ease to formation and closure person Limitations society • Balanced decision making • Limited resources • More funds to be utilised •Company has separate legal • Marketing cooperative available • Sharing of Risks entity society • Inefficiency in • Unlimited liability of partners • Company formation is a • Farmer's cooperative management • Limited Resources lengthy process society • Possibility of conflict • Lack of secrecy • Lack of continuity • It has perpetual succession • Credit cooperative • Government control society • Limited Liability of shareholders • Have to pay higher salary to professional • Perpetual existence • More scope for expansion • Complexity in formation • Lack of secrecy

Unit - 3 public, private and global enterprises Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI Development of Infrastructure Changing Role of pub • Huge capital resources Publi Statutory corporationrtmerntatkailng• These enterprises are Regional Balance • Foreign Collaboration UndeDepaGovernment company established as departments Economics of scale • Advanced technology of the ministry and are • Product innovation considered part or an Check over concentration of • Marketing strategy extention of the economic power • Expansion of market territory ministry itself Impart substitution • Centralised control GlobFaleuetnutreersprises lic sector c enterprises • Reduction in the Governmesencttporolsiicnyceto1w99a1rds public Public, Private and •These are brought into existence number of Industries dianlaEsscifoicnaotmiony Global Enterprises by a special Act of the parliament. reserved for the public The Act defines its powers and sector from 17 to 8 In Joint ve functions and rules & regulations c • Disinvestment of shares • A government company means in public sector any company in which not less than 51 percent of the paid up • Policy regarding sick capital is held by the government units Public sector Private sector nture Two Businesses come together Private, public or foreign company Departmental Government Partnership Company undertaking companies Statutory Sole Joint Hindu Public Private corporation properietorship family Multinational Cooperative corporation society [3

Unit - 4 business services 4 ] • Acceptance of deposits • Private warehouses: S. Chand Warehouse • Commercial-ICICI • Lending of funds • Public warehouses: Satish and Co. • Cooperative-Agriculture • Cheque facility • Bounded warehouses: Particular Warehouse • Remittance of funds • Government warehouses: U.P. Warehouse cooperatives • Other Allied services • Cooperative warehouses: Farmer’s Warehouse • Specialised-ECGC • Central-R.B.I ypes of Banks Functions of Ban Type of Warehousing • Intangibility: they are intangible T in nature Types Utmost good faith Principles of Insurance ks Nature of services • Inconsistancy:-not permanent Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI Insurable interest Indemnity Business Services of services • Inseparability:-not started for Proximate cause Consolidation future Subrogation Types of Insurance services Break the bulk Contribution Life Stock piling • Inventory:- No tangible component Mitigation Fire InsuranceInsurance Value added services Price Stabilization • Involvement:- participation of Whole life policy Marine Insurance Financing customer Endowment life Communication assurance policy Business services- Banking, Joint life policy unctioning of Warehousing Insurance, transportation, Annuity policy • Postal services F warehousing and • Mail services communication services • Telephone services Social services- Health care and education services • Ship or hull insurance by NGOS • Cargo insurance Personal services- Tourism, • Freight insurance recreational services, Restaurants • To cover from fire causes • Goods destroyed by fire • Premises destroyed by fire

Unit - 5 emerging modes of business Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI • Ease to form:- very easy to start • e- business may be defined as the conduct of industry, • Love personal touch • Convenience:-24 hours available trade and commerce • Speed:- very fast transactions using the computer • Incongruence between network. order taking / giving Limitations of e-comme • Global reach:- reaching • B2B commerce= Business • Need for technology Benefits of e- commerce • throughout the earth e-cboumsimneesrsce to Business capability of Paperless:- No • B2Ccommerce- Business • Increased risk due to paper needed to customers non- traceability of parties Moreae-ning • Intra-B Commerce= Concerns Transactions • Registration:- one has to Steps of online transactions Need for outsourcingEmerging ModesScope of e Businesswithin a given business firm register with the online of Business vendor usiness Risks rce • C2C commerce= customer to customer • Placing an order:- how place an order e- b ng Meaning of outsourci • Choose the payment option • Your item is booked • Transaction risks • It refers to a long- term over outsourcing Confidentiality contracting out generally Sweat shopping • Data storage and the non-core and of late • Focusing of attention Ethical concerns transmission risks even some of the core • Quest for excellence Resentment in the activities to third party • Cost reduction home countries • Risks to threat to specialist • Growth through alliance intellectual property [5

Unit - 6 social responsibility of business and business ethics 6 ] • Top management commitment Elements of • Ethics are concerned with what • Publication of a ‘code’ is right and what is wrong • Establishment of compliance mechanism in human behaviour • Involving employees at all levels • Measuring results Concept of business ethics Meaning • Reduction of health hazard Need of pollution control Business ethics of social responsibility • Social responsiblity of business • Reduced risk of liability refers to its obligation to take • Cost savings those decisions which are desi- rable in terms of the objectives and values of our society • Improved public image • Social benefits Social Responsibility Arguments for social • Justification for existence and Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI of Business responsibiliity growth • Air pollution • Water pollution and Business Ethics • Long-term interest of the firm • Land pollution • Noise pollution Types of pollution Reality & social responsibility Arguments • Avoidance of government Types of social responsibility regulations • Economic responsibility • Legal responsibility • Maintenance of society • Ethical responsibility availability of resources • Discreationary responsibility against social responsibility • Violation of profit maximisation objective • Threat of public regulation • Pressure of labour movement • Burden on customers • Lack of social skills • Lack of broad public support • Impact of consumer consciousness • Development of social standard for business • Development of Buisness education

Unit - 7 sources of business finance Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI • Cost of return • Cumulative and Non-cumulative • Secured and Unsecured • Financial strength and stability • Participating and Non-participating • Registered and Bearer • Convertible and Non-convertible • Convertible and Non-convertible of operation • First and Second • Form of organisation and legal f Debentures Factors affecting the choice of s Types of preference shares status Types o • Purpose and time limit • Risk Profile • Control and Power • Effect on credit worthiness • Tax benefits • Commercial Banks International financing Sources of financeTypes of Business requirement • Fixed Capital Requirement: • International Agencies and Business finance ource of fund -To purchase fixed Assets Sources of Business Development Bank Finance • Working Capital Requirement: - To pay current Expenses like • International Capital markets nds Salaries, wages e.t.c. • Global Depository Receipts • American Depository Receipts • Retained Earning eg.- Earnings that • Foreign Currency Convertible are kept retained by business firms. Bonds • Trade credit: Eg:Credit Purchase of goods. • The cash requirement Meaning of to operate the business Classification of sources of fu • Factoring- Factoring cost is found for long term and short • Public deposits:- the deposits by term is Business Finance public with Banks • Commercial paper • On the basis of period • Issue of shares Equity shares • On the basis of ownership Preference shares • On the basis of source of generation • Debentures:-Borrowed capital • Commercial Banks:- Eg: State Bank of india • Financial Instructions Eg:Muthoot finance [7

Unit - 8 small business and enterprises 8 ] Small Business Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI and Enterprises

Unit - 9 internal trade Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI Services to manufactures Services to customers and wholesalers (i) Regular availability of goods (i) Distribution of goods (ii) New products information (iii) Convenience in buying (ii) Personal selling (iv) Wide selection (iii) Collecting market information (iv) Help to promotion • Interstate movement of goods Role of commerce in pro Services of a Retailer f internal trade Buying and selling of goods and • Octroi and local levies Meaning o services within the boundaries of • Harmon isation of sales tax a nation referred to as Internal trade • Marketing of agro products Wholesale trade is concerned with • These are networks of retail shops Multiple shops lesalersmeaning of wholesale tradethe activities of buying and selling of that are owned and operated by motion of trade goods and services in large quantities manufacturers or intermediaries for the purpose of resale or intermediate use. Departmental stores Internal Trade • A departmental store is a large Services of who establ ishment offering a wide Types of Retailing trade variety of p roducts Itinerant Retailers Fixed shop retailers Services to Retailers Services to manufacturers (i) Pedlars and Hawkers (i) General stores (i) Availability of goods (i) Facilitating large scale production (ii) Market trad ers (ii) Speciality shop (ii) Bearing risk (iii) Street traders (iii) Street store holders (ii) Marketing Support (iii) Financial assistance (iv) Cheap jacks (iv) Secondhand goods shop (iii) Grant of credit (iv) Expert advice (iv) Specialised knowledge (v) Facilitate Production continuity [9 (v) Risk Sharing

Unit - 10 international trade 10 ] Domestic trade Foreign trade • Merchandise Exports (i) Trade within the boundary (i) Trade Outside the boundary of and Imports of the nation the country Manufacturing and trade beyond the • Service Export and Import (ii) Less capital needed to be (ii) Huge capital needed to be boundaries of one's own country is • Licensing and Franchising t Differe known as international trade • Foreign investments Invested Invested Meaning of international trade (iii) Less risk association (iii) High risk assossiation • Earning of foreign Exchange e to firms (iv) Does not earn foreign (iv) Earns foreign currency Modes of entry into the international trade currency rnacdeebaentwd eInenterthnaetDioonmaletsrtaidc e • More efficient use of resources (v) Less Profit to be Earned (v) High Profit to be Earned Benefits of international trade to nation • Improving growth prospects • Increased standard of living • India is now the 10th largest Economy India's Involvement in World in the world and the fastest growing • Duty drawback scheme Economy, next only to china. India is • Export manufacturing under an Important Country for international trade • Receipt of enquiry and sending quotation • Receipt of order or indent Export Procedure International Foreign trade promotion Scheme bond scheme Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI Trade Benefits of international trad • Exemption from payment of • Assessing importer's credit worthiness and securing a guarantee for payment sales tax • Advance licence scheme • Obtaining export licence • Export of services • Obtaining pre - shipment finance • Production or procurement of goods • Export processing zones • Pre - shipment inspection • Excise clearance • Obtaining certificate of origin • Reservation of shipping space • Packing and Forwarding • Prospects of higher Profits • Insurance of goods • Increased capacity Utilisation • Customs clearance • Prospects for growth • Improved Business vision • Obtain mate receipt • Payment of freight • Preparation of invoice • Securing payment • Trade Enquiry • IMF=International Monetary Fund • Department of commerce • Exporting and Importing : • Procurement of import licence • MIGA=Multinational Investment • Export Promotion councils sending goods from one country to another • Obtaining foreign exchange • Commodity boards • Placing order or indent Guarantee Agency • Export inspection council • Contract manufacturing- Outsourcing • Obtaining letter of credit • IDA=International Development • Indian trade Promotion of Products • Arranging of finance Association organisation • Licensing and franchising:- firm grants • Receipt of shipment advice • IFC=International Finance Corporation access to its patents to another firm in • World Bank • Indian Institute of foreign foreign country • Retirement of import documents trade • Joint venture-agreement between two firms • Arrival of goods of two nations • Customs clearance and release of goods