These activities are performed

It includes activities done It includes for mental and emotional

for obtaining raw materials those activities satisfaction.
like mining meant for
manufacturing
Capital of finished goods
Investment less
than ₹ 25 lakhs These activities are performed
• Production for earning money.
Nature and Purpose according to
Capital of Business National
Investment Priorities
between ₹ 5 • Social Justice
• It focus on the • Self
crores to ₹ 10
satisfaction of sufficient
crores
Extraction, production, wants and desires
Capital Investment Conversion, processing of the society.
2 ] Oswaal ISC Mind Maps, COMMERCE, Class-XI

between ₹ 25 or Fabrication comes

• Social and It refers to work which is done
lakhs to ₹ 5 crore under Industry.
Psychological for others and in return get
Includes those
development of remuneration.
activites which
employees

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require special
• Development of
Capital skills
human Resources
Investment
more than • It increases capacity of
₹ 10 crore earning profit.
• It offers employment
• It deals with activities directed
opportunities.
towards profit earning.
• It facilitates exchange of goods
• It creates time and utility in goods.
and services.
• Transaction should be regular.
• It ensures improved standard
of delivery. It refers to purchase and sale
of goods for earning profit.
It refers to buying and
selling of goods and
services for earning
profit.

It includes all those

activities which helps in
overcoming hindrances
of production and
distribution.
 • It is easy to start.
It means business owned and
• Secrecy level is high.
controlled by a single person.

• Raising of Funds is difficult.

• The owner may not be experts is all • It is owned by one person.
areas of work. • He is having full power of decision making.
• The liability of owner is unlimited.
It consists of various organization
owned and managed by It is a voluntary association of two or
government. more joined for sharing profit.
Forms of Business
Organisation • Maximum 2 and maximum 10 in
• Capital is contributed by
banking business and 20 in non -
government.
• It is a written agreement. banking business.
• Public welfare is the main
• It is an outcome of agreement.
objective. • It includes names, location, duration
• Its liability is limited.
• It is accountable to the public. of business, profit sharing ratio etc

• It is easy to form.

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• Large amount of capital.
• A partner of such • Risk factors is shared by all.
firm cannot file
suit.
• The firm cannot • Restriction on the number
file suit against of partners that can be
third party. admitted.
• Level of secrecy is less.

• It is established • Active Partners

• Sleeping Partners
under a special
• Partnership at Will • Unlimted Liability Partnership • Secret Partners
Act of Parliment. • Particular Partnership • Limted Liability Partnership • Nominal Partners
• It has a separate • It refers to involment
• Partner by Estoppel
legal entity. of private sector in • Partner by holding out
• Board of Directors government projects.
appointed by • It aims at public
governments. benefits.
Oswaal ISC Mind Maps, COMMERCE, Class-XI [ 3
 It is an autonomous association of It is a voluntary association of
person united voluntarily to meet its persons having seperate legal
common needs. entity

Me
an
in • It is created by law.

g
• It has perpetual existence.
• It has a common seal.
ive Organisatio
perat ns
Coo
Forms of Business • Limited liability
• Easy transfer of share
Organsiation • Skill of experts are
available

es
ag
t
v an
Ad • The formation process
ies
4 ] Oswaal ISC Mind Maps, COMMERCE, Class-XI

mpan is time consuming.

• Easy to form f Co • Level of Secrecy is less.
so
• One man one note ype
system
T
• Limited Liability

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• Public

s
Company • Filing of

age
• Private documents • Identification of business

ant
• Payment of opportunity

v
Company

d
• One Person fees • Feasibility studies

is a
• Certificate of • Name approval

D
Company
Incorporation • Fixing up signatories to
the MOA
ion • Appointment of
ciat professionals
Asso
of • Preparation of necessary
i

• Funds available is m on
du documents
iat

limited an
or
ssoc

• High dependent on em • Declaration for the minimum

M subscription of shares
government funds
of A

• A Statutory declaration by a
es

director that are the necessary

documents have been
• No company registered without it.
Articl

• Six clauses completed

- Name clause • Commencement of business
- Situation clause
- Object clause • It contains the rules, duties right • It is a document which invites
- Liability clause and power of the officers and the public to purchase its shares
- Capital clause directors of the company. and debentures.
 • Eco-freindly Social responsibility of business refers to the
• Recycling of waste responsibilities which it owes to different
• Updation of Plant sections being a part of society.
and Machinery

• It is a part of society so necessary to

Social Responsibility discharge its obligation.
• It also builds image of the society.
of Business and • The human resources are the part of
Business Ethics society so their proper uplifment by
business is required.

us
• Proper Employment

in
es
Opportunity

sE
• Avoiding pollution • Strengthen financial • Proper payment
thi
cs
• Upliftment of position • Fair remuneration of tax
society especially • Fair return on • Good working • No concealing
weaker section investment condition of Information

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Business can discharge its responsibility • It owes a responsibility for the
only by following healthy ethics known betterment of its employement.
as Business Ethics. • A business with good ethics is
respectable firm in the society.
• It helps in earning long run profit.
Oswaal ISC Mind Maps, COMMERCE, Class-XI [ 5
 It means contracting out non-core and
routine activities to outside agencies.
It means conducting industry trade and
business using computer network 24 x 7
days a year.
• Product at cheaper cost
• More focus on strengths

• B2B (Business to Business)

Emerging Modes • C2C (Customer to Customer)
• Intra B
of Business • B2C (Business to Customer)
It provides services
related to marketing,
human resource,
transcription etc., • Easy to start
• No huge capital required
• Less use of paper
6 ] Oswaal ISC Mind Maps, COMMERCE, Class-XI

It is subset of BPO.

• A well designed website

• Efficient and effective
telecommunication system

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• Qualified and responsible workforce
Small size card used for payment
and storing information
• Setting up of request special crime cells
by government
• Used in mobile communication • Use of digital signature
• Used for pay phones • Authorization by credit card to provide
• Used in electronic banking a sense of security

• Debit Card
• Credit Card
• Digital Wallet
• Mobile Paymemt
• Electronic Fund Transfer
 • Bombay Stock Exchange It is a market place where stock, shares and
Location : Maharashtra Mumbai securities are bought and sold.

• It helps in regulating capital market.

• National Stock Exchange
• It builds confidence of the invertors in share
Location : Mumbai (Maharashtra) market.
• It creates a continuous market where
• Delhi Stock Exchange securities are sold in large volume.
Location : Delhi • It performs the evaluation of securities functions.
• It is an indicator of future economic situation.
Stock Exchange
• Ahmedabad Stock Exchange
Location : Ahmedabad • It creats a continuous market where
securities are sold in large volume.
• It performes the evaluation of securities
• He buys or sells securities on behalf of function.
investors. • It is an indicator of future economic situation.

• It is a financial market of securities • Important source for raising money for companies.
whose prices are expected to rise. • It provides liquidity to investors.

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• It also provides the servies of clearing house.

e
• It is just opposite to bull market.

ang
• It prohibits insider trading.

ch
• It promotes training of the intermediories

Ex
of the security market.

ck
to
• He is a dealer who deals with buying • It made underwriting option which reduces
S
and selling of securities with brokers. cost.
• It register and regulates the working of
mutual funds etc.
• It conducts enquiries and audit of stock
exchanges.

• To protect investor’s interest

• To regulate stock market
Securities sold are • To generate uniform laws in stock
delivered after market
It is a time period It means with Securities are
transaction is • To provide smooth functioning to
between text is not dividend which is delivered after
made stock market
visible. related to future. expires date
Oswaal ISC Mind Maps, COMMERCE, Class-XI [ 7
 It is used to inform buyer that the amount
Documents sent by sellers in reponse to enquiry payable has been reduced.

Written by potential buyer to seller to enquire It describes the goods offered by seller.
about goods or services for sale
It is sent by seller to buyer to demand for
It is used to inform buyer that the amount payments.
payable has been increased. In v oice
D e b it N o t e

Buys or sells goods in large quantities for

the purpose of resale or intermediate use

Internal
• Helps in marketing of goods
Trade • Provide credit facility
8 ] Oswaal ISC Mind Maps, COMMERCE, Class-XI

•Provides goods at cheaper

price
•Supplies adequate quantity
of goods

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store • Provides valuable information
ain Autom • Arranges finance
Ch atic
Ven
din
g Retail trade means to buy goods
M from wholesaler in large quantity
It refers to the network

ac
and to sale it to customer in small

hi
of retail shops

ne
quantity
owned and managed
by the same organisation.

Departmental St
• Chain between wholesaler and
customer

ore
Retaiting products
• Sells goods to customer in small
It is a large retail to customers via
quantities
that offered a vending machine
• Proper demonstration of goods is
vareity. needed

• Wholesaler sells large

quantity of goods but it sells
small quantity of goods
• Wholesaler is a link between
producer and retailer while
retailer is a link between
wholesaler and customer
 • World Trade Organisation (WTO) cares into existence Manufacturing and trading beyond geographical
on 1st January 1995. boundaries of a country is known as Foreign Trade
• It is concerned with solving trade problems between or International Trade.
the countries.
• Its head quarter is in Geneva, Switzerland.

• Large scale production

• Integration of International economics
• To remove barriers of International Trade
• To act as Dispute Settlement Body
• To lay down common code of conduct for
international peace
• It creates jobs.
• It also make companies more efficient.

• When goods are purchased outside the boundaries

of nation it is called import trade Foreign Trade
• It leads to job outsourcing
• Loss of forming base
• Subsidization of agri-business
• To make adjustment in objective the adverse balance
of payments
• To conserve scarce foreign exchange resources of
the country
• Stabilization of price level Selling of goods and services
outside the nation is termed as export

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• Collect information about procedure importing countries
• Placing an import order
• To sell surplus production
• Obtaining letter of credit
• To develop foreign alliances
• Arranging funds
• To develop market globally
• Dispatch of shipping advice to the importer
• When goods reached importer's country, goods are send
at the dock to be received by importer

• Receives order by buyer

• Enquiry about creditworthiness of buyer
• Import License • Indent • Obtaining export license
Letter of credit • Obtaining preshipment finance
• Indent •
• Payment of excise duty
• Letter of Credit • Shipping order
• Bill of Exchange Shipping bill • Packaging and marking of goods
•
• Bill of Sight • Mate's Receipt • Insurance from the insurance company
• Bill of Entry • Bill of Lading • After loading into ship, obtaining mate's receipt
• Port Trust Dues Receipts • Bill of exchange and giving it to shipping company
• Advice Note • Consular Invoice • Importer have to collect invoice, bill of lading
• Bill of Lading Certificate of Origin certificate of origin etc to get the goods from the custom
•
Oswaal ISC Mind Maps, COMMERCE, Class-XI [ 9
 • It confirms to the norms and conditions It is a contract where one party takes the responsibility
of the insurance policy risk. of other in exchange of some fixed fee.
• It takes place at a known time.

• It provides certainity of payment against risk.

• It provides coverage against mishappening.
• The funds received from insurer are invested in
It is a situation in which the insurance reliable funds which results is good return.
would be against law.
E.g. : Natural Calamity

• Reinsurance : It is a practice where by insurer

transfer portion of risk on other parties to avoid
large obligation when exposed to risk
Insurance • Double Insurance : It is a practice where by insurer
gets insured with more than once with different
10 ] Oswaal ISC Mind Maps, COMMERCE, Class-XI

insurer.

It refers that no information is to cancelled by both

It protects against the uncertainity of life.
the parties.

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It provides protection of goods against loss It refers that there must be some relationship between
by fire. insured and subject matter of insurance.

It is a protection against loss by marine perils When the loss is due to more than one cause then
or perils of sea dominant cause is to be considered.

It covers whole or part of medical expenses If insured is compersate than all rights are transferd
whether its pre or post hospitalization to the insurer.

It covers expenses of vehicle damage and It refers that loss will be shared by all insurer in case
injuries to driver of more than one.

It is a protection against old age, It refers that insured should try to minimize the loss
unemployment or any other economic hazards of the insurer.

It protects against the loss due to dishonest It refers that insurer will only get compensate not any
acts of employees. share is profit.
 Syllabus

Latest Syllabus
Commerce (857)
CLASS 11
There will be two papers in the subject:
Paper I : Theory (3 hours) ……80 marks
Paper II: Project Work ... 20 marks

PAPER I (THEORY) – 80 Marks

1. Nature and Purpose of Business partnerships.
(i) Classification of human activities - economic and (b) Registration of Partnership firms.
non-economic.  Formation, meaning and contents of partnership
Classification of human activities - economic and non- deed; registration.
economic. Types of economic activities. (c)   Evaluation of partnership; merits and
 Distinction between business, profession and demerits.
employment.
Self-explanatory.
(ii) Definition and concept of business; classification
(iv) Corporate Organisations.
of business activities.
(a) Joint Stock Company: meaning, features, merits
 Definition of business. Characteristics of business.
and demerits.
Classification of business activities:
(b) Stages of Formation of a Company.
(a) Industry: types of industries on the basis of
activity (primary and secondary) and on the (c) Promotion, meaning, role and types of promoters.
basis of size (micro, small, medium and large). (d) Incorporation of a company -Meaning and steps
Role of small businesses in India. of incorporation (including filing of documents),
(b) Commerce: branches of Commerce. certificate of incorporation.
Commerce - its nature and functions; importance (e)  Memorandum of Association and Articles
of Commerce. Branches of Commerce - trade and of Association (excluding alterations) and
aids to trade. Relationship between commerce, distinction between the two documents.
trade and industry.  Meaning and contents of MOA and AOA.
(iii) Business objectives. Distinction between the MOA and AOA.
 Business objectives: economic; social; human and (f) Commencement of business.
national. Role of Profit in business. Steps, Certificate of Commencement.
2. Forms of Business Organisations (g) Prospectus and statement in lieu of prospectus –
(i) Introduction to business organizations. meaning and contents only.
 Meaning, characteristics, types (private sector, (h) Types of companies- Classification of companies
public sector, Public Private Partnership (PPPs) / on the basis of mode of incorporation, liability of
Joint Sector). Comparison between different types of members, public interest, ownership, control and
organizations. nationality.
(ii) Sole trader: Meaning, merits and demerits.  Public and private companies and their
 Meaning and definition of sole trader; characteristics comparative studies, privileges of private
merits and demerits. companies.
(iii) Partnership (i)  Global enterprises – Meaning, characteristics,
(a)  Meaning, features; types of partners and merits and demerits of Global Enterprises.
partnership firms. (v) Public Sector Undertakings.
 Meaning and definition of partnership; features
(a)  Meaning; characteristics, objectives, role
of partnership firms; types of partners and
and forms of Public Sector Undertakings

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 Syllabus
(Departmental Undertakings, Public (ii) (a) Retail trade – Meaning and characteristics.
Corporations and Government Companies).  Retail trade - meaning, characteristics of retail
 Public Sector Undertakings – meaning; trade. Distinction between wholesale and retail
characteristics, objectives and role. Forms of trade.
Public Sector Undertakings (Departmental (b) Types of retail trade - Itinerant and small
undertakings; Public Corporations and scale fixed shops: departmental store, chain
Government companies – definitions, features, store, mail order houses and automatic
merits and demerits). vending machines.
(b) Public Private Partnerships. Meaning and features to be covered.
Meaning and features of PPPs. (c) Documents used in home trade.
(vi)  Co-operative organisations - meaning;  Documents and procedure used in home trade
characteristics and types. – inquiry; quotation; catalogues; order; invoice;
 Co-operative organizations - meaning; characteristics, debit note; credit note.
advantages and disadvantages; Types of cooperative (iii) Role of Chambers of Commerce and Industry
organizations. and Trade Associations.
3. 
Social Responsibility of Business and Business  Meaning and functions of Chambers of Commerce and
Ethics trade associations.
Concept and need for social responsibility. 7. Foreign Trade
 Responsibility towards owners, investors, consumers, (i) Meaning, difference between internal trade and
employees, government and community; Responsibility of external trade.
business towards protection of environment; Meaning of  Meaning and characteristics of international trade;
Business ethics. problems of international trade; advantages and
4. Emerging Modes of Business disadvantages of international trade.
(i) E-business. (ii) Export trade – Meaning, objectives and procedure
 Scope and benefits, Resources required for successful of export trade.
e-business implementation, online transactions, Self-explanatory.
payment mechanisms, security and safety of business (iii) Import trade – Meaning objectives purpose and
transactions. procedure.
(ii) Smart Cards.  Meaning and functions of import trade; objectives,
Meaning and utility. purpose and procedure.
5. Stock Exchange (iv) Documents involved in international trade.
(i) Meaning and importance.  Documents involved in export trade, such as: indent,
(ii) Functions and services. letter of credit, shipping order, shipping bill, mate’s
(iii) Major Stock Exchanges in India (BSE, NSE, DSE, receipt, bill of lading, certificate of origin, consular
ASE) – types and locations. invoice, documentary bill of exchange (DA/DP), all
(iv) Types of operators – Brokers, Jobbers, Bulls and need to be explained.
Bears. Documents involved in import trade, such as: import
(v)  Terms used in Stock Exchange - ex-dividend, license, indent, letter of credit, documentary bill of
cum dividend, spot delivery, forward delivery. exchange, bill of entry, bill of sight, port trust dues
(vi) SEBI – functions and objectives. receipt, application to import, advice note, bill of
(vii) DEMAT Account- Meaning. lading, all need to be explained.
Self-explanatory (v) World Trade Organisation.
6. Trade  WTO-meaning and objectives.
(i) Wholesalers. 8. Insurance
 Meaning and services of wholesaler to retailer, (i) Insurance – Meaning, objectives and purpose.
customer and producer.  Meaning, objectives and purpose of insurance; Concept
of re-insurance and double insurance.

(7)
 Syllabus
(ii) Risks in business - insurable and non-insurable. 4. Identity two Public Private Partnership projects.
 Risks in business - insurable and non-insurable - Find out:
meaning and examples of both. Characteristics of − The equity participation of both the partners.
insurable risks. − Objectives of the partnership
(iii) Principles of insurance. − Strengths both partners bring into the venture.
 Fundamental principles to be explained: utmost good 5. Select one consumer cooperative and one housing
faith; insurable interest; indemnity; contribution; cooperative.
doctrine of subrogation; causa proxima. mitigation of
For each of the cooperatives:
loss.
− State the objectives.
(iv) Types of insurance: life and non-life.
− The organisational structure.
 Types of insurance – life, health, fire, marine, motor,
−  etails of surplus distribution and the form of
D
social and fidelity insurance (Meaning and importance
government support.
only).
6. Study real time cases in which organizations did not
PAPER II – PROJECT WORK – 20 Marks
show responsibility towards investors/ consumers/
Candidates will be expected to have completed two
employees/ government/ community. Take at least
projects from any topic covered in Theory.
two such cases. For each case prepare a report based
Mark allocation for each Project [10 marks]:
on the following:
Overall format 1 mark
− A brief about of the case.
Content 4 marks − Different issues involved in the case.
Findings 2 marks − Who was at fault and why?
Viva-voce based on the Project 3 marks − What should the company have done to stand by
A list of suggested Projects is given below: the business ethics?
1. Select a daily use consumer product. Trace its − Do you agree with the company’s viewpoint?
origin right from the primary industry through the Give reasons.
secondary and tertiary industries. Draw a flow chart 7. 
Document and analyze the Corporate Social
to include all the business activities in its path from Responsibility activities of a pharmaceutical company
the producer to the consumer. and a five-star hotel.
2. Assume you are starting a partnership firm with your Comment on the changing role assumed by Corporates
friend/friends. Develop a business plan covering the towards business ethics and social responsibility in
following aspects: the last two decades.
− Formation of this partnership firm – rules and 8. 
Identify any trade association and chamber of
steps that would be followed including the commerce headquartered in your town/city. Study
partnership deed each in terms of:
− Choice of types of partners involved and your − Its objectives.
justification for the same.
− Services provided to members.
3. Select two infrastructure projects of public sector
− Help given to the business community.
undertakings that have been recently commissioned.
9. Contact an insurance agent and collect information
Analyze each project in terms of:
about 5 different types of life insurance policies
− Objectives
provided by different companies. Include information
− Profitability
as per details given below for every insurance plan
− Adherence to the time schedule for project
and make a comparative analysis.
completion.
− Premium of insurance
− Social utility
− Terms of inclusions and exclusions of each policy
− Conclusion.
− Term of the policy

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 Syllabus
− Withdrawal of money from the insurance scheme 11. Visit a company that is involved in e-business (which
(surrender / foreclosure) offers online services) or a consultancy, which helps in
− Advantages/disadvantages of the plan developing websites for such companies.
10. Study the BPO and KPO industry in India. Collect  Study different aspects they keep in mind while
newspaper/magazine articles on BPOs and KPOs. preparing business plans for e-business. Include
Prepare a report highlighting: information regarding the payment mechanisms,
− Their contribution to the business community security and safety of business transactions. The risks
and the nation. involved in e-business should also be covered. Also
− Their growth over the past 10 years in India. include the steps they follow while implementing the
Comment on the social cost of such organisations. plan and starting the business.


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