2023 2024 Student Forum > Management Forum > Main Forum

 
  #2  
4th August 2015, 10:54 AM
Super Moderator
 
Join Date: Apr 2013
Re: Basics of Business Management Calicut University

As you said you are student of calicut university and doing BBA from this university , for prpration of youer exam you need this time syllabus of Basics of business management paper so I have this syllabus in pdf and shairing with you:
Business And Economic System
Business is viewed as an organized economic activity arising at the production and sale of
goods and services needed by the individuals in a society. The business system cannot be studied
without reference to the economic system in which it has to function. An economic system consists
of the institutions through which economic resources are utilized for satisfying needs of individuals
in a society. The basic questions that have to be answered by an economic system are;
1. What commodities shall be produced and what quantities?
2. How shall the goods be produced?
3. For whom shall the goods be produced?
Economic systems will answer these questions. Business activity and its organization will
naturally depend upon the decisions made by the society on the above issues. The basic economic
system fall under four categories; they are
Capitalized or Free Market Economy
Free market economic system or capitalist economic system is characterized by the following
assumptions,
1. It is based on economic individualism.
2. Factors of production are privately owned.
3. Capital is privately owned and right to own and occupy private property.
4. Freedom of choice in respect of consumption, occupation, savings and investment.
5. Free market economy is not planned, controlled or regulated by the government.
Basics of business management paper syllabus
Mixed economy
Mixed economy is characterized by the combination of both free market and centrally
planned economy. Thus it lies in between capitalized and centrally planned economy where both
public and private sector exists. In a mixed economy private enterprise is permitted to function and
flourish subject to control and restrictions by the government. In mixed economies, several basic
and strategic industries are owned and managed by the state. The state regulates the activities of the
private sector so that it may serve the interest of the nation rather than its own interest. The states
also regulate the monopolies and takes effective steps to reduce inequalities of income and wealth.
The public sector functions as a socialist economy and the private sector as a free enterprise
economy.
Communism
In communist economy the control of economic power rests in the state. Communism is the
family of economic and political ideas and social movements related to the establishment of
democratic, classless and stateless society based on common ownership and control of the means of
production and property. Further, state operates with one party system and declares commitment to
Marxism-Leninism.
Under this type of economic system, means of production are socialized and private
property is abolished with the objective of ending the exploitation of the poor by the rich. The
government owns the economic resources and decides what is to be produced, how much is to be
produced, for when its goods and services are to be produced and how these are to be distributed.
Individuals in such an economy work not for private gain but for good of the society. In such an
economy, the state is the only employer and the role of the individual is subordinate to that of the
total population. It is expected that by eliminating the private freedom of choice and action and
establishing the society based on the norm of each according to his ability, to each according to his
need, the communist economic system would achieve the most desirable allocation of resources
and would bring about equality of wealth and opportunity.
Different Forms Of Business Organization Viewed from the angle of ownership, a business firm may be owned privately, or by the government, or be in the joint sector. The chart below illustrates the various form of business organizations.
SOLE PROPERIETORSHIP
An individual or sole proprietorship is a form of organization in which an individual
introduces his own capital, applies his own intelligence and skills in the business and remains
entitled to all the ensuing profit or losses thereon.
As Peterson and plowman state, “a sole proprietorship has no legal existence apart from the
proprietor himself. He is the firm”.
Advantages
The advantages of sole proprietorship includes the following:
a) Easiness information;
b) The owner’s complete control over the business;
c) A direct motivation to work hard and succeed;
d) Maintenance of absolute business secrecy;
e) Possibility of quick and timely decisions;
f) Personal contacts with employees, customers and others;
Disadvantages
The following may be listed as the disadvantages that an individual proprietorship would suffer
from:
Various forms of Business Organizations
Joint enterprises Private enterprises Public enterprises
Unincorporated Incorporated
Sole
proprietorship
Hindu
undivided family
Partnership
firm
Private limited
company
Public limited
company
Cooperative
society
Unincorporated Incorporated
Departmental
undertaking
Board
organization
Government
company
Public corporation
a) Limited capital resources;
b) Limited managerial ability or technical expertise;
c) Limited avenues for diversification and growth;
d) Limited personal liability for business losses; and
e) Uncertain life and lack of continuity.
Suitability
An individual proprietorship is deemed to suitable in the following cases;
a) Where only a small trade is involved;
b) Where capital required is not much;
c) Where risk involved is not for bidding;
d) Where quick decisions are required; and
e) Where personal supervision is merited.
PARTNERSHIP A partnership has been defined by the Indian Contract Act as “the relationship which subsists between persons, who have agreed to combine their property, labouror skill in some business and to share the profits thereof between them.” The Indian Partnership Act, 1932 has defined partnership as follows: “partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.” W.R. spriegal notes that, “partnership has two or more members, each of whom is responsible for the partnership.” Characteristics of partnership
Thus, persons who enter into a partnership are individually called the partners, collectively
referred to as the partnership firm, and they conduct their business under a firm name.
Essential characteristics of a partnership may be briefly outlined as follows:
a) There should be two or more persons;
b) An agreement must have been entered into;
c) There must be a lawful business in existence;
d) Sharing of profit or losses is to be done;
e) Every partner is an agent of every other partner;
f) The management is to be done;
g) Every partner is an agent of every other partner;
h) The management is to be collective;
Partnership Deed
Partnership deed is a document which contains the terms and conditions of partnership
agreed by partners. A partnership is formed by an agreement .This agreement may be either written
or oral. When the agreement is in writing, it is called partnership deed. If such a written agreement
is made, future disputes between partners can be avoided
Types of Partnership
A partnership can be of two kinds, namely
1. General Partnership
2. Limited Partnership
1. General or Unlimited Partnership
A partnership in which the liability of all the partners is unlimited is known as unlimited
partnership. In such a case all the partners have the right to take part in the management of the firm.
It can be of three types.
a) Partnership at will – Partnership at will is a partnership which is formed to carry on
business without specifying any period of time, and no provision is made as to when and
how the partnership continues as long as the partners are willing.
b) Particular Partnership – It is a partnership established for a stipulated period of time or
for the completion of a specified venture. It automatically comes to an end with the
expiry of stipulated period or when the specified venture is completed.
c) Joint venture – A joint venture is a temporary partnership which is formed to complete
a specific venture or job during a specified period of time. A joint venture may be set up
to underwrite an issue of securities, to construct a building or for any other similar
purpose.
2. Limited Partnership
A limited partnership is one where there are two types of partners. They are limited
partners and general partners. The liability of limited partner is limited to the extent of his
capital contribution. Limited partnerships are not allowed by the Indian partnership act.
Limited liability partnership
In India limited liability partnership act was passed in the year 2008 and it came into force
with effect from January 9, 2009. Limited liability partnership is a hybrid corporate form of
organization. It enables professional enterprise and entrepreneurial initiative to combine, organize
and operate in an innovative and efficient manner. It has the flexibility of the partnership firm and
the advantages of the company at a low compliance cost.
Formation of Partnership
A partnership firm can be formed through an agreement among two or more persons. The
agreement may be oral or in writing. But it is desirable that all the terms and conditions of
partnership are put in writing so as to avoid misunderstanding and disputes among partners. Such a
written agreement of partnership is known as partnership deed.
The partnership deed must be stamped properly and each partner should be given a copy of
the deed. The partnership deed is not a public document. It can be altered with the mutual consent
of all the partners. It lays down the mutual rights and obligations of the partnership deed usually
contain the following points:
i) Name of the firm
ii) Name and addresses of all the partners,
iii) Nature of the firm’s business,
iv) Date of the agreement,
v) Principal place of the firm’s business,
vi) Duration of partnership, if any,
vii) Amount of capital contributed by each partner,
viii) Profit and loss sharing ratio,
ix) Loans and advances by partners and interest payable on that,
x) Withdrawal allowed to partners and rate of interest on that,
xi) Amount of salary or commission payable to any partners,
xii) The duties, powers and obligations of partners,
xiii) Maintenance of accounts and audit,
xiv) Mode of valuation of goodwill on admission, retirement or death of a partner.
xv) Procedure for dissolution and settlement of accounts,
xvi) Arbitration for settlement of disputes,
xvii) Arrangement in case a partner becomes insolvent,
xviii) Any other clause which may be found necessary
Types of Partners
1. Active or Working Partner – a partner who contributes capital and takes active part in the
management of the partnership firm is known as active or working partner. He has
unlimited liability and is partner in the real sense.
2. Special or limited partner – he is a partner whose liability is limited to the extent of his
capital contributed to the firm. He has no authority to take part in the management of
business.
3. Dormant or sleeping partner – such partner does not take active part in the management
of the firm. He shares the profit and his liability is unlimited.
4. Nominal or ostensible partner – He is a partner in name only because he neither
contributes capital nor takes part in the management of the firm.
5. Partner in profits only – a partner who shares in the profit of a firm but who is not liable
for losses is called’ partner in profits’ only.
6. Sub-partner – when a person makes an arrangement with a partner to share his profit, he is
known as a sub- partner.
7. Minor as a partner – a minor is a person, who has not completed 18 years of age. Legally,
a minor cannot become a partner but he may be admitted to the benefits of partnership.
RIGHTS AND OBLIGATIONS OF PARTNERS
Rights of Partners
1) Right to take part in the conduct and management of the firm’s business.
2) Right to express his opinion on any matter related to firm.
3) Right to inspect and copy any books of accounts and records of the firm
4) Right to an equal share of profit unless otherwise agreed.
5) Right to receive interest on loans and advances made by him.
6) Right to indemnified for the expenses incurred and losses sustained by him
Duties of Partners
1) Must act diligently and honestly in the discharge of his duties.
2) Must act in a just and faithful manner towards each other.
3) Must act within the scope of his authority entrusted to him.
4) Every partner is bound to share the losses of the firm equally unless otherwise agreed.
5) Every partner must identify the firm against losses sustained due to his willful negligence.
6) Must maintain and render true and correct accounts.
Dissolution
A distinction should be made between the ‘dissolution of partnership’ and ‘dissolution of
firm’.
Dissolution of partnership – implies the termination of the original partnership agreement of
change in the contractual relationship among partners. A relationship is dissolved by the admission,
insolvency, retirement, incapacity, death, etc. of a partner or on the expiry/completion of the
term/venture of partnership. Partnership can be dissolved without dissolving the firm.
Dissolution of firm- it implies dissolution among all the partners. The business of the partnership
firm comes to an end. It’s assets are realized and the creditors are paid off. Thus dissolution of firm
always involves dissolution of partnership but the dissolution of partnership does not necessarily
mean dissolution of the firm.
A partnership firm may be dissolved in following ways :
1) Dissolution by agreement:- A partnership firm may be dissolved with the mutual consent
of all the partners in accordance with the terms of the agreement.
2) Dissolution by notice:- In the case of partnership-at-will, a firm maybe dissolved if any
partner gives a notice in writing to other partners indicating his attention to dissolve the
firm.
3) Contingent dissolution:- It involves dissolution of expiry of term, on completion of
venture, on death of partner or insolvency of partner.
4) Compulsory dissolution :- A firm automatically dissolves if all partners or all but one is
declared insolvent or when business of firm becomes unlawful.
5) Dissolution through court:- Court may order dissolution is a partner becomes of unsound
mind, if a partner becomes permanently incapable of performing duties, guilty of
misconduct or it is just or equitable to do so.
Disadvantages of Partnership
The partnership form of organization suffer from the following major disadvantages:
a) Possibility of conflict:- The partners may disagree on various aspects of business, leading
to disharmony and conflict.
b) Risk of Implied Authority:- since the act of any partner is legally binding on the other
partners and the firm, every partner will have to pay the consequence for any partner’s
indiscretion or inefficiency.
c) Unlimited Liability:- the liability of the partners being unlimited, i.e. extending even into
their private estates, breeds an element of conservatism into the firm’s strategies and
operations.
d) Instability:- a partnership is an appropriate form of ownership for medium sized business
involving limited capital, application of personal skill and judgment, diversified managerial
talents and moderate risk.
JOINT HINDU FAMILY BUSINESS
The joint Hindu family form of business is one in which the undivided family possesses some
property and the ‘karta’, the head of the family, operates it.
The joint family business arises out of the provisions of the Hindu laws, and so is not governed by
the Indian Partnership Act, 1932.
The two forms of joint Hindu family business prevalent are follows:
a) The Mitakshara: in this mode, only the successive generation in the male line can
simultaneously inherit the ancestral property. This form is prevented in the whole of the
country, except West Bengal.
b) The Dayabhaga: in this form, females can also share the family property. This system
commonly prevails in West Bengal.
Advantages of Joint Hindu Family Business.
The following may be cited as the prime advantages of this system:
a) Continuity: It need not be dissolved on the insolvency or death of any member.
b) Centralized Management: the management being centralized in the hands of the ‘karta’
leads to discipline and efficiency in the firm’s operations.
c) Unlimited Membership: this form is not limited in membership by law. Hence, a large
family would automatically mean moiré coparceners.
d) Limited Liability: the liability of all the coparceners being limited, with the exception of
the ‘karta’, is a prime advantage of this form.
Disadvantages of Joint Hindu Family Business
The chief disadvantages marking this form of business may be listed as the following:
a) Lack of Congruence between Effort and Reward: Through the ‘karta’ look after the
business, the rewards are shared by all the coparceners.
b) Limited Financial Resources: This form has relatively limited financial resources, nor can
it raise funds as a joint- stock company can.
c) Limited Managerial Ability: Science the management is vested with the family head under
law, it does not ensure any criterion for the decision making powers to be centred in him
other than age. This may handicap the business owing to the ‘karta’s lack of relevant
knowledge, qualification, vision or innovativeness.
d) Relative Instability: This form of business is dependent on the continuance of the joint
family system itself, which is gradually disintegrating in the face of rapid modernization
and the consequent social mobility.
cooperative societies
The cooperative movement has been the outcome of the economic and social imbalances
caused by the Industrial Revolution. Cooperative societies have acquired significance in both
capitalist countries as the US and Japan, as well as in socialist countries.


To get complete syllabus see following attechemnt;
Attached Files
File Type: pdf Basics of business management paper syllabus.pdf (476.7 KB, 197 views)


Quick Reply
Your Username: Click here to log in

Message:
Options

Thread Tools Search this Thread



All times are GMT +5. The time now is 03:38 PM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
SEO by vBSEO 3.6.0 PL2

1 2 3 4