18. BUSINESS STUDIES (Code No.

054)
Rationale
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 organizations 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.
Objectives:

To develop students with 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 the process of organizing and managing the
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 enable students to act more effectively and responsibly as consumers, employers, employees and
citizens;
To develop a business attitude and skills in students.
To inculcate appropriate attitude and develop skills among students to pursue higher education, world
of work including self employment.

249

BUSINESS STUDIES (Code No. 054)

CLASSXI (2015-16)
One Paper

100 Marks
3 Hours

Units
Part A

Periods

Marks

20

Foundations of Business

Nature and Purpose of Business

22

Forms of Business Organisations

26

Public, Private and Global Enterprises

22

Business Services

22

Emerging Modes of Business

12

Social Responsibility of Business and Business Ethics

16

Part B

18

12

120

50

20

Finance and Trade

Sources of Business Finance

30

Small Business

16

Internal Trade

30

10

International Business

14

11

Project Work

30

10

120

50

Part A: Foundation of Business

20

120 Periods

Unit 1: Nature and Purpose of Business

22 Periods

Business -Concept

After going through this unit, the student/ learner

would be able to:

Concept includes meaning and features

Business, profession and employment-Concept

Objectives of business

Classification of business activities - Industry and

Commerce

250

Understand the concept of business with special

reference to economic and non economic
activities.
Discuss the characteristics of business.
Understand the concept of business, profession
and employment.
Differentiate between business, profession and
employment.
Appreciate the economic and social objectives
of business.
Examine the role of profit in business.
Understand the broad categories of business
activities- industry and commerce.

Industry-types: primary,
Meaning and subgroups

secondary,

tertiary-

Commerce-trade:
(types-internal,
external;
wholesale and retail) and auxiliaries to trade;
(banking, insurance, transportation, warehousing,
communication, and advertising) - meaning

Business risk-Concept

Describe the various types of industries.

State the meaning of commerce, trade and
auxiliaries to trade.
Discuss the meaning of different types of trade
and auxiliaries to trade.
Examine the role of commerce- trade and
auxiliaries to trade.
Understand the concept of risk as a special
characteristic of business.
Examine the nature and causes of business risks.

Unit 2: Forms of Business organizations

26 Periods

Sole Proprietorship-Concept, merits and limitations.

After going through this unit, the student/ learner

would be able to:

Partnership-Concept, types, merits and limitation

of partnership, registration of a partnership firm,
partnership deed. Types of partners

Hindu Undivided Family Business: Concept

Cooperative Societies-Concept, types, merits, and

limitations.

Company-Concept, merits and limitations; Types:

Private and Public-Concept

Formation of company-stages, important document

(Memorandum
of
Association,
Articles
of
Association, Certificate of incorporation and
Certificate of commencement)

251

List the different forms of business

organisations and understand their meaning.
Identify and explain the concept, merits and
limitations of Sole Proprietorship.
Identify and explain the concept, merits and
limitations of a Partnership firm.
Understand the types of partnership on the
basis of duration and on the basis of liability.
Define limited liability partnership.
State the need for registration of a partnership
firm.
Discuss types of partners active, sleeping,
secret, nominal and partner by estoppel.
Understand the concept of Hindu Undivided
Family Business.
Identify and explain the concept, merits and
limitations of Cooperative Societies.
Understand the concept of consumers,
producers, marketing, farmers, credit and
housing co-operatives.
Identify and explain the concept, merits and
limitations of private and public companies.
Distinguish between a private company and a
public company.
Highlight the stages in the formation of a
company.
Discuss the important documents used in the
formation of a company.

Choice of form of business organization

Distinguish between the various forms of

business organisations.
Explain the factors that influence the choice of
a suitable form of business organisation.

Unit 3: Public, Private and Global Enterprises

22 Periods

Public sector and private sector enterprises

concept

After going through this unit, the student/ learner

would be able to:

Forms of public sector enterprises: Departmental

Undertakings,
Statutory
Corporations
and
Government Company.
Changing role of public sector enterprises

Global enterprises, Joint ventures, Public private

partnership - concept

Develop an understanding of Public sector and

private sector enterprises
Identify and explain the features, merits and
limitations of different forms of public sector
enterprises
Discuss the change in the role of public sector
in an economy.
Develop an understanding of global enterprises,
joint ventures and public private partnership by
studying their meaning and features.

Unit 4: Business Services

22 Periods

Banking: Types of bank accounts- savings, current,

recurring, fixed deposit and multiple option deposit
account.

After going through this unit, the student/ learner

would be able to:

Banking services with particular reference to issue

of bank draft, bankers cheque (pay order), Real
Time Gross Settlement (RTGS), National electronic
Funds Transfer (NEFT), bank overdraft, cash credit
and e-banking

Insurance-: Principles, Types life, health, fire and

marine insurance concept

252

Understand the meaning of banking

Develop and understand the different types of
bank accounts
Differentiate among the different types of bank
accounts.
Appreciate the different services provided by
the banks
Differentiate between a bank draft and a
bankers cheque
Differentiate between bank overdraft and cash
credit
Understand the meaning of e-banking.
Describe Automated Teller Machine (ATM),
Debit Card, Credit Card and Internet banking
and Mobile banking as different ways of ebanking.
Recall the concept of insurance
Understand Utmost Good Faith, Insurable
Interest, Indemnity, Contribution, Doctrine of
Subrogation and Causa Proxima as principles of
insurance

Postal and telecom services: Mail, Under Postal

Certificate (UPC), Registered Post, Parcel, Speed
Post and Courier and other services

Describe the different types of insurance.

Understand the utility of different postal and
telecom services.

Unit 5: Emerging Modes of Business

12 Periods

E-business-scope and benefits, resources required

for successful e-business implementation, online
transaction, payment mechanism, security and
safety of business transactions

After going through this unit, the student/ learner

would be able to:

State the meaning of e-business.

Discuss the scope of e-business.

Appreciate the benefits of e-business

Distinguish e-business from traditional business.

Outsourcing-Concept: Business process Outsourcing

(BPO) and Knowledge Process Outsourcing (KPO)Concept, need and scope

Smart cards and ATMs meaning and utility

Explain the process of online buying and selling

as a part of e-business.
Examine the major security concerns
electronic mode of doing business.

Understand the methods of secure and safe

business transactions.
Identify
the
resources
required
implementation of a successful e-business.

Discuss the need for business process

outsourcing and Knowledge Process Outsourcing
Examine the
Outsourcing
Outsourcing.

scope
and

for Business
Knowledge

towards
employees,

owners,
investors,
government
and

Environment protection and business-Meaning and

role
Business Ethics-Concept and Elements

process
Process

State the meaning of Smart cards and ATMs.

Appreciate the utility of Smart cards and
ATMs.
16 Periods

After going through this unit, the student/ learner

would be able to:

Case of social responsibility

Responsibility
consumers,
community.

for

Understand the concept of outsourcing.

Unit 6: Social Responsibility of Business and Business Ethics

Concept of social responsibility

of

State the concept of social responsibility.

Examine the case for social responsibility.

Identify the social responsibility

different interest groups.

towards

Appreciate the role of business in environment

protection.

State the concept of business ethics.

Describe the elements of business ethics.

253

Part B: Finance and Trade

120 Periods

Unit 7: Sources of Business Finance

30 Periods

Concept of business finance

After going through this unit, the student/ learner

would be able to:

Owners funds- equity shares, preferences, share,

Global Depository receipt (GDR), American
Depository Receipt (ADR), International Depository
Receipt (IDR) and retained earnings

Borrowed funds: debentures and bonds, loan from

financial institution, loans from commercial banks,
public deposits, trade credit, Inter Corporate
Deposits (ICD).

Unit 8: Small Business

State the meaning, nature and importance of

business finance.
Classify the various sources of funds into
owners funds and borrowed funds.
State the concept of owners funds.
Explain the merits and limitations of equity
shares, preference shares and retained
earnings.
Understand the concept of Global Depository
receipts, American Depository Receipts and
International Depository Receipts.
State the concept of borrowed funds.
Discuss the merits and limitations of
debentures, bonds, loans from financial
institutions, trade credit and inter corporate
deposits.
Distinguish between
borrowed funds.

owners

funds

and

16 Periods

Small scale enterprise as defined by MSMED Act

2006 (Micro, Small and Medium Enterprise
Development Act)
Role of small business in India with special
reference to rural areas
Government schemes and agencies for small scale
industries (National Small Industries Corporation)
and District Industrial Centre (DIC) with special
reference to rural, backward and hilly areas

After going through this unit, the student/ learner

would be able to:

Understand the concept of small business

Discuss the role of small business in India

Unit 9: Internal Trade

Appreciate the various Government schemes

and agencies for development of small scale
industries.

30 Periods

Services rendered by a wholesaler and a retailer

After going through this unit, the student/ learner

would be able to:

Types of retail-trade-Itinerant and small scale fixed

shops
Large scale retailers-Departmental stores, chain

254

State the meaning and types of internal trade.

Appreciate the services of wholesalers and
retailers.
Explain the different types of retail trade.
Highlight
the
distinctive
features
of
departmental stores, chain stores and mail

stores, mail order business

order business.

Concept of automatic vending machine

Chambers
functions

of

Commerce

and

Industry:

Basic

Main documents used in internal trade: Performa

invoice, invoice, debit note, credit note. Lorry
receipt (LR) and Railways Receipt (RR).
Terms of Trade: Cash on Delivery (COD), Free on
Board (FOB), Cost, Insurance and Freight (CIF),
Errors and Omissions Excepted (E&OE).

State the
machine.

concept

of

automatic

vending

Discuss the role of Chambers of Commerce and

Industry in the promotion of internal trade.
Describe the main documents used in internal
trade.
Develop an understanding of the various terms
used in internal trade.

Unit 10: International Trade

14 Periods

Meaning, difference between internal trade and

external trade: Meaning and characteristics of
international trade

After going through this unit, the student/ learner

would be able to:

International trade: Advantages and disadvantages

of international trade

Export trade- Meaning, objective and procedure of

Export Trade

Import Trade- Meaning, objective and procedure;

Meaning and functions of import trade; purpose and
procedure.
Documents involved in International Trade;
documents involved in export trade, indent, letter
of credit, shipping order, shipping bills, mates
receipt(DA/DP), specimen, importance

World Trade Organization (WTO) meaning and

objectives

Unit 11: Project Work

State the meaning

international trade.

and

characteristics

of

Distinguish between internal trade and external

trade.
Describe the scope of international business and
its advantages to the nation and business firms.
Discuss the disadvantages of international trade.
State the meaning and objectives of export
trade.
Explain the important
executing export trade.

steps

involved

in

State the meaning and objectives of import

trade.
Discuss the important steps involved in executing
import trade.
Develop an understanding of the
documents used in international trade.

various

Identify the specimen of the various documents

used in international trade.
Highlight the importance of the documents
needed in connection with international trade
transactions.
State the meaning of World Trade Organization.
Discuss the objectives of World Trade
Organization in promoting international trade.
30 Periods

As per CBSE guidelines

255

QUESTION PAPER DESIGN YEAR 2015-16

BUSINESS STUDIES

Code No. 054

CLASS XI

Time: 3 hrs
S.
No.

Max. Marks - 90

Typology of Questions

Learning
Outcomes &
Testing
Skills

Analytical
Skills

Critical
Skills

Short
Answer
-II
(SA-II)

Long
Answe
r
(LA)

Essay

Total

Type

Marks

Mark)

(3
Marks)

(4
Marks)

(5
Marks)

14

16%

(6
Marks
)

%
Weighta
ge

Understanding(Comprehension to be
familiar with meaning and to
understand conceptually,
interpret, compare,
contrast, explain,
paraphrase, or interpret
information)

18

20%

Application- (Use abstract

information in concrete
situation, to apply
knowledge to new
situations; Use given content
to interpret a situation,
provide an example, or solve
a problem)

26

29%

20

22%

12

13%

45=

46=

20

24

90(27)
project
(10)

40
min

60
min

Reasoning

Short
Answer
-I
(SA-I)

Remembering- (Knowledge
based Simple recall
questions, to know specific
facts, terms, concepts,
principles, or theories;
Identify, define, or recite,
information)

High Order Thinking Skills(Analysis & SynthesisClassify, compare, contrast,

or differentiate between
different pieces of
information; Organize

Very
Short
Answer
(VSA)
(1

and/or integrate unique

pieces of information from a
variety of sources)

Evaluation- (Appraise,
judge, and/or justify the
value or worth of a decision
or outcome, or to predict
outcomes based on values)
TOTAL-1 project
(10 Marks) 10
Estimated Time (in
minutes)

1(Values
based)

81=8

63=
18

54=
20

8 min

27 min

30 min

256

100%

165 min+15 min

for revision