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Oswaal Karnataka PUE, Mind Maps, business studies, I PUC 1
To know about more useful books for class-11 click here
Classif
icatio
n N
atur
e &
Pur
pose
of
Bus
ines
s
Bus
ines
s
–
invo
lves
pro
duct
ion
and
exch
ange
of
go
ods
& s
ervi
ces
to e
arn
prof
itPr
ofes
sion
–
incl
udes
ren
deri
ng o
f per
sona
lized
expe
rt s
ervi
ces
in s
peci
fic fi
eld
in
ex
chan
ge o
f fee
sEm
ploy
men
t – r
efer
s to
the
occu
patio
n in
whi
ch
pe
ople
wor
k fo
r ot
hers
and
get
rem
uner
ated
• A
rise
due
to u
ncer
tain
ties
• Es
sent
ial p
art o
f eve
ry b
usin
ess
• D
epen
ds u
pon
the
natu
re a
nd
s
ize
of b
usin
ess
(e.g
., co
mpe
titio
n, p
rice
1. N
atur
al c
ause
s (e
.g.,
natu
ral c
alam
ities
)2.
Hum
an c
ause
s (e
.g.,
dish
ones
ty, n
eglig
ence
of
e
mpl
oyee
s, s
trik
es, p
ower
failu
re, e
tc.
3. E
cono
mic
cau
ses
fl
uctu
atio
ns, h
ighe
r ta
xes,
cha
nge
of
te
chno
logy
, etc
.)4.
Oth
er c
ause
s (e
.g.,
polit
ical
unr
est,
burs
ting
of
b
oile
r, flu
ctua
tions
in e
xcha
nge
rate
s, e
tc.)
Soci
al
• Fu
lfilm
ent o
f Soc
ial R
espo
nsib
ility
• En
viro
nmen
t pro
tect
ion
• Em
ploy
men
t to
disa
ble
pers
ons,
etc
.Ec
onom
ic•
Surv
ival
• G
row
th•
Prof
it(R
ole
of p
rofi
t in
busi
ness
)•
Rew
ard
to b
usin
essm
an•
Sour
ce o
f fin
ance
to m
eet e
xpan
sion
of b
usin
ess
• In
dica
tor
of b
usin
ess
effic
ienc
y•
Soci
ety
’s a
ppro
val o
f th
e ut
ility
of b
usin
ess
• In
crea
ses
good
will
• A
n ec
onom
ic a
ctiv
ity
• Pr
oduc
tion
Proc
urem
ent o
f goo
ds
a
nd s
ervi
ces
• Sa
le o
r ex
chan
ge o
f goo
ds a
nd s
ervi
ces
• D
ealin
g in
goo
ds a
nd s
ervi
ces
on
a r
egul
ar b
asis
• Pr
ofit
mot
ive
• U
ncer
tain
ty o
f ret
urn
• El
emen
t of r
isk
Busi
ness
is a
n ec
onom
ic a
ctiv
ity in
volv
ing
prod
uctio
n an
d sa
le o
f goo
ds a
nd s
ervi
ces
for
earn
ing
prof
its b
y sa
tisfy
ing
hum
an w
ants
Indu
stry
Busi
ness
Com
mer
ce
Prim
ary
Seco
ndar
yTe
rtia
ryTr
ade
Aux
iliar
ies
to T
rade
Gen
etic
Extr
activ
eIn
tern
alEx
tern
al
Man
ufac
turi
ngC
onst
ruct
ion
Impo
rtEx
port
Entr
epot
Synt
hetic
alA
naly
tical
Proc
essi
ngA
ssem
blin
g
Who
lesa
le T
rade
Ret
ail T
rade
Bank
ing
Tran
spor
tatio
nA
dver
tisin
gW
areh
ousi
ngIn
sura
nce
Busi
ness
• Pr
ofit
is th
e re
war
d fo
r ri
sk ta
king
Insu
rabl
e ri
sk
Non
insu
rabl
e
CHAP
TER
: 1 N
atur
e & p
urpo
se
of
busines
s
2 Oswaal Karnataka PUE, Mind Maps, business studies, I PUC
To know about more useful books for class-11 click here
Meaning
Types
Limita
tions
Mea
ning
Feat
ures
Form
s of
Bus
ines
s O
rgan
isat
ions
R
efer
s to
a fo
rm o
f Bus
ines
s o
rgan
isat
ion
whi
ch is
ow
ned,
m
anag
ed a
nd c
ontr
olle
d by
a
sin
gle
indi
vidu
al
The
coop
erat
ive
soci
ety
is a
vol
unta
ry
ass
ocia
tion
of p
erso
ns w
ho jo
in to
geth
er
with
the
mot
ive
of w
elfa
re o
f mem
bers
A
com
pany
is a
n as
soci
atio
n of
pers
ons
form
ed fo
r ca
rryi
ng o
ut
bu
sine
ss a
ctiv
ities
and
has
a le
gal
St
atus
Inde
pend
ent f
rom
its
m
embe
rs
Part
ners
hip
refe
rs to
the
rela
tion
bet
wee
n th
e pe
rson
s w
ho h
ave
agr
eed
to s
hare
the
prof
it of
B
usin
ess
carr
ied
on b
y th
em
• N
o se
para
te la
w to
form
• So
le r
isk
bear
er•
All
the
cont
rol i
n on
e ha
nd•
No
sepa
rate
ent
ity•
Qui
ck d
ecis
ion
mak
ing
• C
usto
mer
’s c
oope
rativ
e so
ciet
y•
Prod
ucer
's co
oper
ativ
e so
ciet
y •
Mar
ketin
g co
oper
ativ
e so
ciet
y •
Farm
er's
coop
erat
ive
soci
ety
• C
redi
t coo
pera
tive
soci
ety
• A
ctiv
e pa
rtne
r•
Dor
man
t par
tner
•
Secr
et p
artn
er•
Nom
inal
par
tner
• Pa
rtne
r by
est
oppe
l •
Part
ner
by h
oldi
ng
o
ut
• • • • • • • • • •
Sele
ctio
n of
line
of b
usin
ess
Size
of b
usin
ess
Cho
ice
of fo
rm o
f org
anis
atio
nLo
catio
n of
bus
ines
s en
terp
rise
s Fi
nanc
ing
of b
usin
ess
Phys
ical
faci
litie
sPl
ant l
ayou
tC
ompe
tent
wor
k fo
rce
Tax
plan
ning
Laun
chin
g th
e en
terp
rise
s
• • • • • • •
Cos
t and
eas
e Li
abili
ty
Con
tinui
ty
Man
ager
ial a
bilit
y C
apita
l con
side
ratio
nD
egre
e of
con
trol
N
atur
e of
bus
ines
s
• C
ompa
ny is
an
artif
icia
l
per
son
crea
ted
by la
w•C
ompa
ny h
as s
epar
ate
lega
l
entit
y •
Com
pany
form
atio
n is
a
leng
thy
proc
ess
• It
has
per
petu
al s
ucce
ssio
n
• Vo
lunt
ary
mem
bers
hip
• Le
gal s
tatu
s of
the
Ass
ocia
tion
• Li
mite
d lia
bilit
y of
all
pers
ons
• Eq
ualit
y in
vot
ing
stat
us•
Lim
ited
liabi
lity
of a
ll•
Stab
le e
xist
ence
• Li
mite
d re
sour
ces
avai
labl
e•
Inef
ficie
ncy
in m
anag
emen
t•
Lack
of s
ecre
cy•
Gov
ernm
ent c
ontr
ol
• Li
mite
d re
sour
ces
• Li
mite
d lif
e of
Bus
ines
s •
Unl
imite
d lia
bilit
y of
ow
ner
• Li
mite
d m
anag
eria
l abi
lity
• Fo
rmed
acc
ordi
ng to
Par
tner
ship
Act
193
2•
Ris
ks is
bor
ne b
y al
l par
tner
s•
Dec
isio
ns a
re ta
ken
by th
e m
utua
l con
sent
• M
inim
um-2
and
max
imum
50
part
ners
• Ea
se o
f for
mat
ion
and
clos
ure
• Ba
lanc
ed d
ecis
ion
mak
ing
• M
ore
fund
s to
be
utili
sed
• Sh
arin
g of
ris
ks
• U
nlim
ited
liabi
lity
of p
artn
ers
• Li
mite
d re
sour
ces
• Po
ssib
ility
of c
onfli
ct•
Lack
of c
ontin
uity
• D
irec
t inc
entiv
e•
Sens
e of
acc
ompl
ishm
ent
• Ea
se o
f for
mat
ion
and
clos
ure
Features
Mer
its
• Pa
rtne
rshi
p at
will
• Pa
rtic
ular
par
tner
ship
• G
ener
al p
artn
ersh
ip•
Lim
ited
part
ners
hip
• Li
mite
d lia
bilit
y of
shar
ehol
ders
• Pe
rpet
ual e
xist
ence
•
Mor
e sc
ope
for
expa
nsio
n
• Pr
ivat
e Lt
d. C
ompa
ny•
Publ
ic C
ompa
ny•
One
Per
son
Com
pany
Hav
e to
pay
hig
her
s
alar
y to
pro
fess
iona
l•
Com
plex
ity in
form
atio
n•
Lack
of s
ecre
cy
•
Merits
P
Join
t Sto
ck
P
Com
pany
CHAP
TER
: 2 f
orm
s o
f bu
sines
s o
rgan
isat
ions
Oswaal Karnataka PUE, Mind Maps, business studies, I PUC 3
To know about more useful books for class-11 click here
Government Company
• H
uge
capi
tal r
esou
rces
• Fo
reig
n co
llabo
ratio
n•
Adv
ance
d te
chno
logy
• Pr
oduc
t inn
ovat
ion
• C
entr
alis
ed c
ontr
ol
• M
arke
ting
stra
tegy
• Ex
pans
ion
of m
arke
t ter
rito
ry
Dev
elop
men
t of
infr
astr
uctu
reR
egio
nal b
alan
ceEc
onom
ies
of s
cale
Che
ck o
ver
conc
entr
atio
n of
econ
omic
pow
erIm
port
sub
stitu
tion
Priv
ate
sect
or
Thes
e ar
e br
ough
t int
o ex
iste
nce
by a
Spe
cial
Act
of t
he P
arlia
men
t.Th
e A
ct d
efin
es it
s po
wer
s an
dfu
nctio
ns a
nd r
ules
& r
egul
atio
nse.
g., R
BI, L
.I.C
. etc
.
A g
over
nmen
t com
pany
mea
nsan
y co
mpa
ny in
whi
ch n
ot le
ssth
an 5
1 pe
rcen
t of t
he p
aid
upca
pita
l is
held
by
the
gove
rnm
ent,
e.g.
, BSN
L, e
tc.
Pri
vate
, Pub
lic a
ndG
loba
l Ent
erpr
ises
Part
ners
hip
Join
t - S
tuck
Com
pany
Publ
ic L
tdPr
ivat
e Lt
d
Publ
ic s
ecto
r
Dep
artm
enta
lun
dert
akin
gG
over
nmen
tco
mpa
nies
Stat
utor
yco
rpor
atio
nSo
lepr
oper
ieto
rshi
pJo
int H
indu
fam
ily
Coo
pera
tive
soci
ety
Mul
tinat
iona
lco
rpor
atio
n
Two
Busi
ness
es c
ome
toge
ther
for
mut
ual g
ain
Can
be
priv
ate,
pub
lic o
r fo
reig
n co
mpa
ny
Thes
e en
terp
rise
s ar
e es
tabl
ishe
d as
dep
artm
ents
of
the
min
istr
y an
d ar
e co
nsid
ered
pa
rt
or
anex
tent
ion
of
the
min
istr
y its
elf
• In
crea
sed
reso
urce
s •
Acc
ess
to n
ew m
arke
t•
Acc
ess
to te
chno
logy
•
Inno
vatio
n •
Low
cos
t of p
rodu
ctio
n
Est
ablis
hed
bran
d na
me
•
e.g.
, Ind
ian
Rai
lway
CHAP
TER
: 3 p
riva
te, pu
blic a
nd g
loba
l en
terp
rises
4 Oswaal Karnataka PUE, Mind Maps, business studies, I PUC
To know about more useful books for class-11 click here
•
Acc
epta
nce
of d
epos
its•
Lend
ing
of fu
nds
• C
hequ
e fa
cilit
y •
Rem
ittan
ce o
f fun
ds•
Oth
er A
llied
ser
vice
s
Who
le li
fe p
olic
y En
dow
men
t life
assu
ranc
e po
licy
Join
t life
pol
icy
Ann
uity
pol
icy
-Agr
icul
ture
tral
• C
omm
erci
al B
anks
-IC
ICI
• C
oope
rativ
e Ba
nks
coop
erat
ives
• Sp
ecia
lised
Ban
ks-E
CG
C, N
ABA
RD
• C
enBa
nk-R
.B.I
or s
een
Inta
ngib
ility
: can
't be
touc
hed
Inco
nsis
tanc
y: n
ot s
tand
ardi
sed
In
sepa
rabi
lity:
sim
ulta
neou
s pr
oduc
tion
and
cons
umpt
ion
Inve
ntor
y: s
tock
of s
ervi
ces
can
not
be p
ossi
ble
Invo
lvem
ent:
Part
icip
atio
n of
cus
tom
er
at th
e tim
e of
del
iver
y of
ser
vice
s
• • • • •
ouse
s: U
.P. W
areh
ouse
ouse
s: S
atis
h an
d C
o.
war
eh
war
eh
men
• Pr
ivat
e w
areh
ouse
s: S
. Cha
nd W
areh
ouse
• Pu
blic
•
Bode
d w
areh
ouse
s: P
artic
ular
War
ehou
se•
Gov
ern
• C
oope
rativ
e w
areh
ouse
s: F
arm
er’s
War
ehou
seB
usin
ess
Serv
ices
Utm
ost g
ood
faith
Insu
rabl
e in
tere
stIn
dem
nity
Prox
imat
e ca
use
Subr
ogat
ion
Con
trib
utio
nM
itiga
tion
• To
cov
er fr
om fi
re c
ause
s
• Sh
ip o
r hu
ll in
sura
nce
• C
argo
insu
ranc
e•
Frei
ght i
nsur
ance
• G
oods
des
troy
ed b
y fir
e
• Pr
emis
es d
estr
oyed
by
fire
Firee Insuranc
Marine Insurance
• M
ail
• R
egis
tere
d Po
st•
Parc
el•
Spee
d Po
st
• C
ouri
er
Faci
litat
e di
gita
l pay
men
t 24
× 3
65 d
ays
serv
ices
C
onve
nien
ce
• • • ••Se
nse
of fi
nanc
ial d
isci
plin
eU
nlim
ited
acce
ss to
ban
ks•
Com
petit
ive
adva
ntag
e•
Cen
tral
ized
dat
a ba
nk
•
Unl
imite
d ne
twor
k to
ban
k
• Fi
nanc
ial a
ssis
tanc
e•
Gra
ding
and
sta
ndar
disa
tion
• Sa
fety
• M
eetin
g fu
ture
dem
and
• D
TH S
ervi
ces
• V
SAT
Serv
ices
• R
adio
Pag
ing
Serv
ices
• C
ellu
lar
mob
ile S
ervi
ces
• Fi
xed
line
Serv
ices
CHAP
TER
: 4 b
usines
s s
ervice
s
Oswaal Karnataka PUE, Mind Maps, business studies, I PUC 5
To know about more useful books for class-11 click here
• Fo
cusi
ng o
f att
entio
n•
Que
st fo
r ex
celle
nce
• C
ost r
educ
tion
• G
row
th th
roug
h al
lianc
eIt
ref
ers
to a
long
- ter
mco
ntra
ctin
g ou
t gen
eral
lyth
e no
n-co
re a
nd o
f lat
eev
en s
ome
of th
e co
reac
tiviti
es to
thir
d pa
rty
spec
ialis
t
e- b
usin
ess
may
be
defin
edas
the
cond
uct o
f ind
ustr
y,tr
ade
and
com
mer
ceus
ing
the
com
pute
rne
twor
k.
• B2
B co
mm
erce
= B
usin
ess
to B
usin
ess
• B2
C c
omm
erce
= B
usin
ess
to c
usto
mer
s•
Intr
a-B
Com
mer
ce=
Tran
sact
ions
with
in a
giv
en b
usin
ess
firm
• C
2C c
omm
erce
= c
usto
mer
to c
usto
mer
Con
fiden
tialit
ySw
eat s
hopp
ing
Ethi
cal c
once
rns
Res
entm
ent i
n th
eho
me
coun
trie
s
Emer
ging
Mod
esof
Bus
ines
s
• Ea
se to
form
:ver
y ea
sy to
sta
rt•
Con
veni
ence
:24
hour
s av
aila
ble
• Sp
eed:
very
fast
tran
sact
ions
• G
loba
l rea
ch:r
each
ing
thro
ugho
ut th
e ea
rth
• Pa
perl
ess
soci
ety:
No
pape
r nee
ded
• Lo
wer
inve
stm
ent r
equi
red
of fo
rmat
ion
• Fi
llip
to e
cono
mic
dev
elop
men
t
• Lo
w p
erso
nal t
ouch
• In
cong
ruen
ce b
etw
een
orde
r tak
ing
/ giv
ing
• N
eed
for t
echn
olog
yca
pabi
lity
• • R
esis
tanc
e by
peo
ple
Incr
ease
d ri
sk d
ue to
non-
trac
eabi
lity
of p
artie
s
• E
thic
al fa
llout
s
• R
egis
trat
ion
• P
laci
ng a
n or
der
• P
aym
ent m
echa
nism
(
a) -
Cas
h on
del
iver
y
(b)
- C
hequ
e
(c)
- N
et b
anki
ng T
rans
fer
(
d) -
Dig
ital c
ash
• T
rans
actio
n ri
sk•
Dat
a st
orag
e an
d
tran
smis
sion
risk
• R
isk
of tr
eat t
o
int
elle
ctua
l pro
pert
y
and
pri
vacy
Nee
d
Con
cern
Meaning
O
utso
urci
ng
Chap
ter
5 : e
merg
ing m
ode
s o
f bu
sines
s
CHAP
TER
: 5 e
merg
ing m
ode
s o
f bu
sines
s
6 Oswaal Karnataka PUE, Mind Maps, business studies, I PUC
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Soci
al R
espo
nsib
ility
of B
usin
ess
and
Bus
ines
s Et
hics
Soci
al r
espo
nsib
lity
of b
usin
ess
refe
rs to
its
obl
igat
ion
to ta
keth
ose
deci
sion
s w
hich
are
des
i-ra
ble
in te
rms
of th
e ob
ject
ives
and
valu
es o
f our
soc
iety
• Ju
stifi
catio
n fo
r ex
iste
nce
and
grow
th
• Lo
ng-t
erm
inte
rest
of t
he fi
rm
• A
void
ance
of g
over
nmen
tre
gula
tions
• M
aint
enan
ce o
f soc
iety
Ava
ilabi
lity
of r
esou
rces
with
busi
ness
Be
tter
env
iron
men
t for
doi
ngbu
sine
ss
Ref
ers
to th
e so
cial
ly d
eter
min
ed m
oral
pri
ncip
les
whi
ch s
houl
d go
vern
bus
ines
s ac
tiviti
es e
.g.,
char
ging
fair
pri
ces,
fair
trea
tmen
t to
wor
kers
etc
.
• V
iola
tion
of p
rofit
max
imis
atio
n ob
ject
ive
• Bu
rden
on
cust
omer
s
• La
ck o
f soc
ial s
kills
• La
ck o
f bro
ad p
ublic
supp
ort
• A
ir p
ollu
tion
• W
ater
p
• F
air
retu
rns
• S
afet
y of
inve
stm
ent
• R
egul
ar, a
ccur
ate
full
in
form
atio
n ab
out
c
ompa
ny
• F
air
wag
es
• E
qual
opp
ortu
nitie
s •
Res
pect
to tr
ade
unio
ns•
Goo
d w
orki
ng c
ondi
tions
• S
ocia
l sec
urity
• R
ight
qua
lity
good
s in
rig
ht q
uant
ity a
t rig
ht p
rice
• N
o ad
ulte
ratio
n •
No
mis
lead
ing
and
dish
ones
t
adv
ertis
emen
t •
Pro
mpt
red
ress
al o
f gri
evan
ces
• R
espe
ct th
e la
ws
of c
ount
ry
• P
ay ta
xes
hone
stly
and
reg
ular
ly
• T
o be
have
and
act
as
good
citi
zen
• P
rote
ct n
atur
al e
nvir
onm
ent
• P
artic
ipat
e in
eco
nom
ic d
evel
opm
ent
prog
ram
mes
of g
over
nmen
t
ollu
tion
• La
nd p
ollu
tion
• N
oise
pol
lutio
n
• Th
reat
of p
ublic
reg
ulat
ion
• Pr
essu
re o
f lab
our
mov
emen
t •
Impa
ct o
f con
sum
er c
onsc
ious
ness
• D
evel
opm
ent o
f soc
ial s
tand
ard
for
busi
ness
• D
evel
opm
ent o
f Bus
ines
s ed
ucat
ion
• D
evel
opm
ent o
f pro
fess
iona
l man
ager
ial c
lass
• R
educ
tion
of h
ealth
haz
ards
• R
educ
ed r
isk
of li
abili
ty•
Cos
t sav
ings
• Im
prov
ed p
ublic
imag
e•
Soci
al b
enef
its
• To
p m
anag
emen
t com
mitm
ent
• Pu
blic
atio
n of
a ‘c
ode’
• Es
tabl
ishm
ent o
f com
plia
nce
mec
hani
sm•
Invo
lvin
g em
ploy
ees
at a
ll le
vels
•
Mea
suri
ng r
esul
ts
• •
• U
se o
f CN
G v
ehic
les
• R
ecyc
ling
of in
dust
rial
was
te•
Scie
ntifi
c tr
eatm
ent o
f
em
issi
on b
efor
e th
eir
r
elea
se
• Pr
omot
ing
awar
enes
s ab
out e
colo
gica
l bal
ance
• C
reat
ing
awar
enes
s ab
out c
ause
s an
d af
fect
s of
env
iron
men
t pol
lutio
n
• Pr
omot
ing
affo
rest
atio
n
•
Ass
istin
g go
vern
men
t
agen
cies
and
NG
O’s
Chap
ter
6 : s
ocial
Res
pons
ibility
of
Busines
s A
nd B
usines
s E
thics
CHAP
TER
: 6 s
ocial
res
pons
ibility
of
busines
s a
nd b
usines
s e
thics
Oswaal Karnataka PUE, Mind Maps, business studies, I PUC 7
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Form
atio
nof
a C
ompa
ny
•Pub
lic a
nd P
riva
te C
ompa
nies
not
hav
ing
shar
e ca
pita
l, c
an s
tart
bus
ines
s af
ter
obta
inin
g C
ertif
icat
e of
Inco
rpor
atio
n.•P
ublic
and
pri
vate
com
pani
es h
avin
g sh
are
capi
tal,
is r
equi
red
to
obt
ain
Cer
tific
ate
of C
omm
ence
men
t of b
usin
ess
from
Reg
istr
ar
to s
tart
bus
ines
s.
Mem
oran
dum
of A
ssoc
iatio
n-D
efin
esth
e ob
ject
ives
of f
orm
atio
n of
a c
ompa
ny.
Art
icle
of A
ssoc
iatio
n-D
efin
es th
e
A le
gal d
ocum
ent p
ublis
hed
by a
com
pany
,of
feri
ng it
s se
curi
ties
to p
ublic
and
req
uire
dto
be
filed
with
SEB
I.• N
ame
clau
se•
Reg
iste
red
offic
e cl
ause
• O
bjec
ts c
laus
e•
Liab
ility
cla
use
• C
apita
l cla
use
• A
ssoc
iatio
n cl
ause
•D
isco
very
of
Idea
an
(iden
tify
oppo
rtun
ity i
n re
spec
tof
intr
odu
cin
gne
wp
rodu
ct,
new
met
hod
,et
c).
(in
ves
tiga
tete
chn
ical
,•
Det
aile
dIn
ves
tig
atio
nec
onom
ical
th
e fe
asib
ility
).and
finan
cial
as
pect
s of
ide
a to
kno
w
(sel
ect
a na
me
for
com
pany
an
d•
Nam
e A
ppro
val
subm
itap
plic
atio
nto
regi
stra
rof
the
com
pan
y).
(dec
ide
mem
bers
to s
ign
MO
A).
• Fi
up
Sign
ator
ies
• •Pr
epar
atio
n of
Nec
essa
ry D
ocum
ents
(MO
A,
AO
A,
(det
erm
ine
how
a c
ompa
ny w
ill a
ffor
d•
Fina
ncia
l Pl
an
its s
trat
egic
goa
ls a
nd o
bjec
tives
).
Con
sent
of D
irect
ors)
.
App
oint
men
t of P
rofe
ssio
nals
(ce
rtai
n pr
ofes
sion
als
such
as
mer
cant
ile b
anke
rs,
audi
tor,
sec
reta
ry,
etc.
),
•F
ilin
gne
cess
ary
docu
men
tsw
ith
Reg
istr
atio
n by
regi
stra
r an
d pa
ymen
t•
Cer
tific
ate
of In
corp
orat
ion
(con
clus
ive
•ev
iden
ce
of l
egal
en
tity
of c
ompa
ny
issu
ed b
y re
gist
rar o
f com
pany
).
regi
stra
r of c
ompa
ny.
of re
gist
ratio
n Fe
es.
•SE
BI
Ap
pro
val
(req
uir
edw
hen
fun
ds
are
rais
edfr
omp
ub
lic
top
rote
ctin
ves
tors
).
Filin
gfo
rP
rosp
ectu
s(s
tate
men
tin
lieu
of•
pro
spec
tus
can
als
ob
efi
led
incl
ud
ing
not
ice,
circ
ula
r,ad
vert
isem
ent,
etc.
invi
tin
g
App
oint
men
t of
Ban
kers
, B
roke
rs a
nd
Und
er-
•
Min
imum
Sub
scrip
tion
(90%
of t
he s
ize
of is
sue)
. •
App
licat
ion
to S
tock
Exc
hang
e (a
pplic
atio
n to
•
Allo
tmen
t of S
hare
s.
•
writ
ers.
dep
osits
from
pub
lic).
deal
in it
s sh
ares
).
rule
s of
inte
rnal
man
agem
ent.
Chap
ter
7 : f
orm
ation
of
a co
mpan
yCH
APTE
R : 7
form
ation
of
a co
mpan
y
8 Oswaal Karnataka PUE, Mind Maps, business studies, I PUC
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• R
etai
ned
Earn
ing,
e.g
., - E
arni
ngs t
hat
are
kept
ret
aine
d by
bus
ines
s fir
ms.
• Tr
ade
cred
it, e
.g.,:
Cre
dit
Purc
hase
of g
oods
.
• Fa
ctor
ing:
dis
cou
nti
ng
of b
ills
of
exch
ange
• Pu
blic
dep
osits
: the
dep
osits
by
publ
ic w
ith p
ublic
com
pani
es
• C
omm
erci
al p
aper
: iss
ued
by a
com
pany
to o
ther
bus
ines
s fir
ms
to m
eet o
f wor
king
cap
ital r
equi
rmen
ts
• Is
sue
of s
hare
s
• D
eben
ture
s: B
orro
wed
cap
ital f
rom
pub
lic b
y a
com
pany
• C
omm
erci
al B
anks
: e.g
., : S
tate
Ban
k of
Indi
a
• Fi
nan
cial
Inst
itutio
ns: e
.g.,
: Mut
hoot
fina
nce
• C
omm
erci
al B
anks
• In
tern
atio
nal A
genc
ies a
ndD
evel
opm
ent B
ank
• In
tern
atio
nal C
apita
l Mar
kets
• A
mer
ican
Dep
osito
ry R
ecei
pts
• G
loba
l Dep
osito
ry R
ecei
pts
• Fo
reig
n C
urr
ency
Con
vert
ible
Bond
s
The
cash
req
uire
men
tto
ope
rate
the
busi
ness
for
long
term
and
shor
tte
rm is
Bus
ines
s Fi
nan
ce
Sour
ces
of B
usin
ess
Fina
nce
Equi
ty s
hare
s
Pref
eren
ce s
har
es
Long
term
Shor
t ter
m
Mid
term
Inte
rnal
sou
rce
Exte
rnal
sou
rce
• C
ost o
f ret
urn
• Fi
nanc
ial s
tren
gth
and
stab
ility
of o
pera
tions
• Fo
rm o
f org
anis
atio
n an
d le
gal
stat
us•
Purp
ose
and
tim
elim
it
• C
ontr
ol•
Effe
ct o
n cr
edit
wor
thin
ess
• Ta
x be
nefit
s
• R
isk
Prof
ile
• Fl
exib
ility
and
eas
e
Fixe
d C
apita
l Req
uire
men
ts:
-To
purc
hase
fixe
d as
sets
Wor
king
Cap
ital R
equi
rem
ents
:- T
o pa
y cu
rren
t Exp
ense
s lik
esa
larie
s, w
ages
, e.t.
c.
• Eq
uity
sha
res
• R
etai
ned
earn
ings
• Pr
efer
ence
sha
res
• D
eben
ture
s•
Loan
s fr
om F
inan
cial
in
stitu
tions
• Lo
ans
from
ban
ks•
Publ
ic d
epos
its•
Leas
e fr
om fi
nanc
ial
in
stitu
tions
• Tr
ade
cred
it•
Fact
orin
g•
Bank
s•
Com
mer
cial
pap
er•
Equi
ty s
hare
s •
Ret
aine
d ea
rnin
gs
• D
eben
ture
s •
loan
s •
Leas
e Fi
nanc
ing
• C
omm
erci
al p
aper
s
• Eq
uity
sha
re c
apita
l•
Ret
aine
d ea
rnin
gs
• Lo
ans
from
ban
ks•
Pref
erab
le s
hare
s •
Trad
e cr
edit
• Pu
blic
dep
osit,
deb
entu
res,
leas
e fin
anci
ng fa
ctor
ing,
com
mer
cial
pap
ers.
CHAP
TER
: 8 s
our
ces o
f bu
sines
s f
inan
ce
Oswaal Karnataka PUE, Mind Maps, business studies, I PUC 9
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d
Smal
l Bus
ines
s
· In
depe
nden
t man
agem
ent
· D
omin
ance
of l
abou
r·
Lim
ited
inve
stm
ent
· Li
mite
d ar
ea o
f ope
ratio
n·
Prod
uces
ligh
t con
sum
er g
oods
of m
ass
cons
umpt
ion
·
Loca
ted
in s
emi u
rban
and
rur
al a
reas
Subs
idie
s tr
ansp
ort,
capi
tal,
infr
astr
uctu
re s
ubsi
dy
Serv
ice
₹10
lakh
• Em
ploy
men
t gen
erat
ion
• Ba
lanc
ed r
egio
nal d
evel
opm
ent
• O
ppor
tuni
ty fo
r en
trep
rene
ursh
ip•
Acc
eler
ates
indu
stri
al g
row
th in
r
ural
are
as•
Red
uctio
n in
inco
me
ineq
ualit
ies
• N
CEU
S : N
atio
nal C
omm
issi
on
fo
r En
terp
rise
s in
Uno
rgan
ised
Sec
tor
• W
ASM
E : W
orld
Ass
ocia
tion
for
S
mal
l and
Med
ium
Ent
erpr
ises
Man
ufac
turi
ng
se
10
S
₹2 c
rore
₹5 c
rore
CHAP
TER
: 9 s
mall
bus
ines
s
10 Oswaal Karnataka PUE, Mind Maps, business studies, I PUC
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Dep
artm
enta
l sto
res
Inte
rnal
Tra
de
Buyi
ng a
nd s
ellin
g of
goo
ds a
nd
serv
ices
with
in th
e bo
unda
ries
of
a na
tion
is re
ferr
ed to
as
Inte
rnal
trad
e
Who
lesa
le tr
ade
is c
once
rned
with
th
e ac
tiviti
es o
f buy
ing
and
selli
ng o
fgo
ods
and
serv
ices
in la
rge
quan
titie
s fo
r the
pur
pose
of r
esal
e or
inte
rmed
iate
us
e.
• In
ter s
tate
mov
emen
t of g
oods
• O
ctro
i and
loca
l lev
ies
• H
arm
onis
atio
n of
sal
es ta
x•
Mar
ketin
g of
agr
o pr
oduc
ts•
Wei
ghts
& M
easu
res
labo
ur le
gisl
atio
n
A d
epar
tmen
tal s
tore
is a
larg
e es
tabl
ishm
ent
offe
ring
a w
ide
vari
ety
of p
rodu
cts
Itin
eran
t Ret
aile
rsFi
xed
shop
ret
aile
rs
Pedl
ars
and
Haw
kers
Mar
ket t
rade
rs
Stre
et tr
ader
s
Che
ap ja
cks
(i)G
ener
al s
tore
s
(ii)S
peci
ality
sho
p
(iii)
Stre
et s
tall
hold
ers
(iv)S
econ
dhan
d go
ods
shop
(i) (ii)
(iii)
(iv)
Serv
ices
to R
etai
lers
Serv
ices
to m
anuf
actu
rers
Avai
labi
lity
of g
oods
Mar
ketin
g Su
ppor
tG
rant
of c
redi
tSp
ecia
lised
kno
wle
dge
(i)Fa
cilit
atin
g la
rge
scal
e pr
oduc
tion
(ii) B
eari
ng ri
sk
(iii)
Fina
ncia
l ass
ista
nce
(iv) E
xper
t adv
ice
(v) F
acili
tate
Pro
duct
ion
cont
inui
ty
(i) (ii)
(iii)
(iv) R
isk
Shar
ing
(v)
Fixe
d sh
op L
arge
ret
aile
rs
(i) D
epar
tmen
tal s
tore
s(ii
) Cha
in s
tore
s(ii
i) M
ail o
rder
hou
ses
(iv) A
utom
atic
ven
ding
mac
hine
s
Ret
ail t
rade
refe
rs to
buy
ing
of g
oods
from
a w
hole
sale
rs a
nd s
ells
them
toco
nsum
ers
in s
mal
l qua
ntity
.
Serv
ices
to m
anuf
actu
res
and
who
lesa
lers
Se
rvic
es to
cus
tom
ers
Dis
trib
utio
n of
goo
dsPe
rson
al s
ellin
gC
olle
ctin
g m
arke
tin
form
atio
nH
elp
to p
rom
otio
n
(i) (ii)
(iii)
(iv)
Reg
ular
ava
ilabi
lity
of g
oods
New
pro
duct
s in
form
atio
n
Con
veni
ence
in b
uyin
g
Wid
e se
lect
ion
(i) (ii)
(iii)
(iv)
• P
re p
acke
d go
ods
• S
tand
ardi
sed
good
s•
Low
pri
ce g
oods
• H
igh
turn
over
goo
ds
• Li
mite
d se
lect
ion
of g
oods
• La
ck o
f ini
tiativ
e •
Lack
of p
erso
nal t
ouch
• D
iffic
ult t
o ch
ange
dem
and
• Ec
onom
ics
of s
cale
• El
imin
atio
n of
mid
dle
men
• N
o ba
d de
bts
• Tr
ansf
er o
f goo
ds•
Diff
usio
n of
risk
• Lo
w c
ost
• Fl
exib
ility
• H
igh
oper
atin
g co
st
• H
igh
Poss
ibili
ty o
f los
ses
• In
conv
enie
nt lo
catio
ns
• A
ttra
cts
no. o
f cus
tom
ers
• C
onve
nien
ce in
buy
ing
• At
trac
tive
serv
ices
•
Econ
omy
of la
rge
scal
e op
erat
ions
• Pr
omot
ion
of s
ales
• Hig
h In
stal
latio
n an
d
mai
nten
ance
cos
t• N
o pr
e te
stin
g of
goo
ds•
Req
uire
s sp
ecia
l pac
king
mai
nten
ance
Ow
ned,
man
aged
and
con
trol
led
by c
onsu
mer
s th
emse
lves
Thes
e ar
e ne
twor
ks o
f ret
ail s
hops
that
are
ow
ned
and
oper
ated
by
man
ufac
ture
r in
term
edia
ries
Chap
ter
10 :
inte
rnal
tra
de
CHAP
TER
: 10 in
tern
al t
rade
Oswaal Karnataka PUE, Mind Maps, business studies, I PUC 11
To know about more useful books for class-11 click here
Inte
rnat
iona
l B
usin
ess
• Ea
rnin
g of
fore
ign
Exch
ange
• M
ore
effic
ient
use
of r
esou
rces
• Im
prov
ing
grow
th p
rosp
ects
• In
crea
sed
stan
dard
of l
ivin
g
• Pr
ospe
cts
of h
ighe
r Pr
ofits
• In
crea
sed
capa
city
Util
isat
ion
• Pr
ospe
cts
for
grow
th• •
Imp
Way
out
from
inte
nse
com
petit
ion
rove
d Bu
sine
ss v
isio
n
• C
ontr
act m
anuf
actu
ring
- Out
sour
cing
of
Pro
duct
s•
Lice
nsin
g an
d fr
anch
isin
g:- f
irm
gra
nts
acce
ss to
its
pate
nts
to a
noth
er fi
rm in
fo
reig
n co
untr
y•
Join
t ven
ture
-agr
eem
ent b
etw
een
two
firm
s of
two
natio
ns
Man
ufac
turi
ng a
nd tr
ade
beyo
nd th
e bo
unda
ries
of o
ne's
own
coun
try
is
know
n as
inte
rnat
iona
l tra
de
• M
erch
andi
se E
xpor
ts
and
Impo
rts
• Se
rvic
e Ex
port
and
Impo
rt
• Li
cens
ing
and
Fran
chis
ing
• Fo
reig
n in
vest
men
ts
• Ex
port
ing
and
Impo
rtin
g :
send
ing
good
s fr
om o
ne c
ount
ry to
ano
ther
• In
dia
is n
ow th
e 10
th la
rges
t Eco
nom
y in
the
wor
ld a
nd th
e fa
stes
t gro
win
g Ec
onom
y, n
ext o
nly
to c
hina
. Ind
ia is
an
Impo
rtan
t Cou
ntry
for
inte
rnat
iona
l tr
ade
• • R
ecei
pt o
f ord
er o
r in
dent
Rec
eipt
of e
nqui
ry a
nd s
endi
ng q
uota
tion
• A
sses
sing
impo
rter
's cr
edit
wor
thin
ess
and
secu
ring
a g
uara
ntee
for
paym
ent
• O
btai
ning
exp
ort l
icen
ce•
Obt
aini
ng p
re -
ship
men
t fin
ance
• Pr
oduc
tion
or p
rocu
rem
ent o
f go
ods
• Ex
cise
cle
aran
ce•
Obt
aini
ng c
ertif
icat
e of
ori
gin
• R
eser
vatio
n of
shi
ppin
g sp
ace
• Pa
ckin
g an
d Fo
rwar
ding
• In
sura
nce
of g
oods
• C
usto
ms
clea
ranc
e•
Obt
ain
mat
e re
ceip
t•
Paym
ent o
f fre
ight
• Pr
epar
atio
n of
invo
ice
• Se
curi
ng p
aym
ent
• Pr
e - s
hipm
ent i
nspe
ctio
n
• D
epar
tmen
t of c
omm
erce
• Ex
port
Pro
mot
ion
coun
cils
• C
omm
odity
boa
rds
• Ex
port
insp
ectio
n co
unci
l•
Indi
an tr
ade
Prom
otio
n
orga
nisa
tion
• In
dian
Inst
itute
of f
orei
gn
tr
ade
• D
uty
draw
back
sch
eme
• Ex
port
man
ufac
turi
ng u
nder
bon
d sc
hem
e•
Exem
ptio
n fr
om p
aym
ent o
f
sal
es ta
x•
Adv
ance
lice
nce
sche
me
• Ex
port
of s
ervi
ces
• Ex
port
pro
cess
ing
zone
s
• Tr
ade
Enqu
iry
• Pr
ocur
emen
t of i
mpo
rt li
cenc
e•
Obt
aini
ng fo
reig
n ex
chan
ge•
Plac
ing
orde
r or
inde
nt•
Obt
aini
ng le
tter
of c
redi
t•
Arr
angi
ng o
f fin
ance
• R
ecei
pt o
f shi
pmen
t adv
ice
• R
etir
emen
t of i
mpo
rt d
ocum
ents
• A
rriv
al o
f goo
ds•
Cus
tom
s cl
eara
nce
and
rele
ase
of
goo
ds
Dom
esti
c tr
ade
Fore
ign
trad
e
Trad
e w
ithin
the
boun
dary
of
the
natio
nLe
ss c
apita
l nee
ded
to b
e In
vest
edLe
ss ri
sk a
ssoc
iatio
n
(i) (ii)
(iii)
Doe
s no
t ear
n fo
reig
n cu
rren
cy(iv
) Less
Pro
fit to
be
Earn
ed(v
)
(i)Tr
ade
Out
side
the
boun
dary
of
the
natio
n (ii
) Hug
e ca
pita
l nee
ded
to b
e In
vest
ed(ii
i)H
igh
risk
ass
ocia
tion
(iv) E
arns
fore
ign
curr
ency
(v) H
igh
Prof
it to
be
Earn
ed
Expo
rt in
voic
e, c
ertif
icat
e of
ori
gin,
mat
e’s
rece
ipt,
ship
ping
bill
, cer
tific
ate
of in
spec
tion,
bill
of
ladi
ng, l
ette
r of
cre
dit,
ship
ping
ord
er,
bill
of e
xcha
nge.
WTO
is th
e gl
obal
in
tern
atio
nal
orga
nisa
tion
whi
ch
deal
s w
ith th
e ru
les
&
regu
latio
ns o
f tra
de
betw
een
diff
eren
t na
tions
=Pr
omot
es in
tern
atio
nal p
eace
=Se
ttle
s di
sput
es a
mon
g na
tions
=Fr
ames
rul
es a
nd r
egul
atio
ns fo
r sm
ooth
run
ning
of i
nter
natio
nal
trad
es=
Hel
ps in
eco
nom
ic d
evel
opm
ent
of d
evel
opin
g na
tions
=To
take
mea
sure
s th
at im
prov
es
stan
dard
of l
ivin
g, p
rovi
ding
qu
ality
pro
duct
s, c
reat
e em
ploy
men
t, ef
fect
ive
dem
and,
et
c
To
fir
m
)(
CHAP
TER
: 11 inte
rnat
iona
l bu
sines
s
