COMMERCE (857)

Aims:
1. To develop an interest in the theory and 3. To provide a study of the more important
practice of business, trade and industry. aspects of the commercial world.
2. To familiarise candidates with theoretical 4. To provide knowledge of the activities of
foundations, organising, managing and commerce in the marketing of goods and
handling operations of a business firm. services.
CLASS XI
There will be two papers in the subject: 2. Forms of Business Organisations
Paper I - Theory: 3 hours ……80 marks (i) Introduction to business organizations.
Paper II- Project Work ……20 marks Meaning, characteristics, types (private
sector, public sector, Public Private
PAPER - I (THEORY) – 80 Marks Partnership (PPPs) /Joint Sector).
1. Nature and Purpose of Business Comparison between different types of
organizations.
(i) Classification of human activities -
(ii) Sole trader - objectives; formation; merits
economic and non-economic. and demerits.
Classification of human activities - Meaning and definition of sole trader;
economic and non-economic. Types of characteristics and objectives of sole
economic activities. trader; merits and demerits.
Distinction between business, profession (iii) Partnership
and employment.
(a) Meaning, features; types of partners
(ii) Definition and concept of business; and partnership firms.
classification of business activities. Meaning and definition of partnership;
Definition of business. Characteristics of features of partnership firms; types of
business. Classification of business partners and partnerships.
activities: (b) Registration of Partnership firms.
(a) Industry: types of industries on the Formation, meaning and contents of
basis of activity (primary and partnership deed; registration and
secondary) and on the basis of size consequences of non-registration.
(micro, small, medium and large). (c) Evaluation of partnership; merits and
Role of small businesses in India. demerits.
(b) Commerce: branches of Commerce. Self-explanatory.
Commerce - its nature and functions; (d) Comparison of sole proprietorship and
importance of Commerce. Branches of partnership.
Commerce - trade and aids to trade. Self-explanatory.
Relationship between commerce, trade (iv) Corporate Organisations.
and industry.
(a) Joint Stock Company: meaning,
(iii) Business objectives. features, merits, demerits and
Business objectives: economic; social; objectives.
human and national. Role of Profit in
(b) Stages of Formation of a Company.
business.
(c) Promotion, meaning, role and types of
promoters.

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 (d) Incorporation of a company -Meaning 3. Social Responsibility of Business and Business
and steps of incorporation (including Ethics
filing of documents), certificate of
Concept and need for social responsibility.
incorporation.
(e) Memorandum of Association and Responsibility towards owners, investors,
Articles of Association (excluding consumers, employees, government and
alterations) and distinction between the community; Responsibility of business towards
two documents. protection of environment; Meaning and
importance of Business ethics.
Meaning and contents of MOA and
AOA. Distinction between the MOA 4. Emerging Modes of Business
and AOA. (i) E-business.
(f) Commencement of business. Scope and benefits, Resources required for
Steps, Certificate of Commencement. successful e-business implementation,
(g) Prospectus and statement in lieu of online transactions, payment mechanisms,
prospectus – meaning and contents security and safety of business transactions.
only. (ii) Outsourcing.
(h) Types of companies- Classification of Concept, need and scope of BPO and KPO.
companies on the basis of mode of (iii) Smart Cards.
incorporation, liability of members,
public interest, ownership, control and Meaning and utility.
nationality. 5. Stock Exchange
Public and private companies and their (i) Meaning and importance.
comparative studies, privileges of
private companies. (ii) Functions and services.
(iii) Major Stock Exchanges in India (BSE,
(i) Global enterprises – Meaning,
NSE, DSE, ASE) – types and locations.
characteristics, merits and demerits of
Global Enterprises. (iv) Types of operators – Brokers, Jobbers,
Bulls and Bears.
(v) Public Sector Undertakings.
(v) Terms used in Stock Exchange - ex-
(a) Meaning; characteristics, objectives, dividend, cum dividend, spot delivery,
role and forms of Public Sector forward delivery.
Undertakings (Departmental
Undertakings, Public Corporations and (vi) SEBI – functions and objectives.
Government Companies). Self-explanatory
Public Sector Undertakings – meaning; 6. Trade
characteristics, objectives, role
and criticisms. Forms of Public (i) Wholesalers.
Sector Undertakings (Departmental Meaning and services of wholesaler to
undertakings; Public Corporations and retailer, customer and producer.
Government companies – definitions, (ii) (a) Retail trade – Meaning and
features, merits and demerits). characteristics.
(b) Public Private Partnerships. Retail trade - meaning, characteristics
Meaning and features of PPPs. of retail trade. Distinction between
wholesale and retail trade.
(vi) Co-operative organisations - meaning;
characteristics and types. (b) Types of retail trade - Itinerant and
small scale fixed shops: departmental
Co-operative organizations - meaning; store, chain store, mail order houses,
characteristics, advantages and disadvantages; tele shopping, franchise, consumer
Types of cooperative organizations, distinction cooperative stores, hypermarkets and
between joint stock companies and cooperative automatic vending machines.
organizations.

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 Meaning, features, merits and demerits Meaning, objectives and purpose of
to be covered. insurance; Concept of re-insurance and
(c) Documents used in home trade. double insurance.
Documents and procedure used in (ii) Risks in business - insurable and non-
home trade – inquiry; quotation; insurable.
catalogues; order; invoice; debit note; Risks in business - insurable and non-
credit note. insurable - meaning and examples of both.
Price quotations - cash discount and Characteristics of insurable risks.
trade discount. (iii) Principles of insurance.
(iii) Role of Chambers of Commerce and Fundamental principles to be explained:
Industry and Trade Associations. utmost good faith; insurable interest;
Meaning and functions of Chambers of indemnity; contribution; doctrine of
Commerce and trade associations. subrogation; causa proxima. mitigation of
loss.
7. Foreign Trade
(iv) Types of insurance: life and non-life.
(i) Meaning, difference between internal trade
Types of insurance – life, health, fire,
and external trade.
marine, motor, social and fidelity insurance
Meaning and characteristics of (Meaning and importance only).
international trade; problems of
international trade; advantages and
disadvantages of international trade. PAPER II – PROJECT WORK – 20 Marks
(ii) Export trade – Meaning, objectives and Candidates will be expected to have completed two
procedure of export trade. projects from any topic covered in Theory.
Self-explanatory. Mark allocation for each Project [10 marks]:
(iii) Import trade – Meaning objectives purpose
Overall format 1 mark
and procedure.
Content 4 marks
Meaning and functions of import trade;
objectives, purpose and procedure. Findings 2 marks
(iv) Documents involved in international trade. Viva-voce based on the Project 3 marks
Documents involved in export trade, such
A list of suggested Projects is given below:
as: indent, letter of credit, shipping order,
shipping bill, mate’s receipt, bill of lading, 1. Select a daily use consumer product. Trace its
certificate of origin, consular invoice, origin right from the primary industry through
documentary bill of exchange (DA/DP), all the secondary and tertiary industries. Draw a
need to be explained. flow chart to include all the business activities
Documents involved in import trade, such in its path from the producer to the consumer.
as: import license, indent, letter of credit,
2. Assume you are starting a partnership firm with
documentary bill of exchange, bill of entry,
your friend/friends. Develop a business plan
bill of sight, port trust dues receipt,
application to import, advice note, bill of covering the following aspects:
lading, all need to be explained. − Formation of this partnership firm – rules
(v) World Trade Organisation. and steps that would be followed including
WTO-meaning and objectives. the partnership deed
− Choice of types of partners involved and
8. Insurance
your justification for the same.
(i) Insurance – Meaning, objectives and
purpose. 3. Select two infrastructure projects of public
sector undertakings that have been recently
commissioned.