evolution and fundamentals of business · inconsistancy:-not per manent • inseparability:-not...

10
Oswaal CBSE Chapterwise Mind Maps, BUSINESS STUDIES, Class – XI [ 1 M u lti p l e O b je c t iv e s o f B u s i n e s s N a t u r e o f B u s i n e s s R i s k s T y p e s of A c ti vity B a s i c f a c t o r s o f s ta r ti n g a B u s i n e s s C h a r a c t e r i s t i c s o f B u s i n e s s A c t i v i t i e s Selection of line of Business Size of the firm Choice of form of ownership Location of Business enterprise •T ax planning Plant Layout •Financing the proposition Physical facilities Business risks arise due to uncertainties Risk is an essential part of Business Degree of risk depends on the nature and size of Business Profit is reward of risk taking Surable risk · Between 1 & 7 century CE st th India had largest economy In mid 18 century, britishers · th ruined Indian domestic and foreign trade After Independence India · begun to re-industrialist T oday Indian economy is one · of the fastest growing economies in the world · Highly prosperous domestic & international trade. Developed indigenous banking system · Using hundies & chitti · Rise of Intermediaries - providing financial · security to manufacturers Well developed land & water transport · strengthened international trade Patliputra, Peshawar , T axila, Madura, · T amralipti, etc. were major trade centers. Insurable risk •Refers to the occupation in which people work for others and get remuneration It means a state of being busy in Economic activity •An economic activity •Profit earning motive •Dealings of goods and services on regular basis •Uncertainty of return Production or Procurement of goods and services Sale or exchange of goods and services •Presency of risk Market standing Innovation Productivity Physical and financial resources Earning profits Social responsibility fulfil It includes those activities which require special knowledge and skills to be applied to earn fees T y p e o f B u i s n e s s R i s k Evolution and Fundamentals of Business Manufacturing Primary Secondary T ertiary Construction T rade Auxi liaries to trade Extractive Genetic Internal External Wholesale Retai l Import Export Analytical Synthetical Processing Assembling T ransportation Warehousing Insurance Banking Entrepot C l a s s i f i c a ti o n Business B u s i n e ss E m p l o y m e n t P r o fe s si o n Economic activity Business Non-Economic Activity Prayer to God P os itio n of In di an s ub co nti ne nt in w orl d eco no my Advertising Commerce Industry Unit - 1 evolution and fundamentals of business

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Page 1: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 1

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ecti

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and

sk

ills

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Type

ofB

uis

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isk

Evo

luti

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am

enta

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usi

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ufa

ctu

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mar

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nd

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nst

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Trad

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uxi

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rad

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Ext

ract

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Gen

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Wh

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ail

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ort

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ical

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ing

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emb

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ou

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trep

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n

Bu

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Bu

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con

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→B

usi

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Pra

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to G

od

Position

ofIndia

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bcon

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inw

orl

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on

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y

Ad

ver

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Co

mm

erce

Ind

ust

ry

Unit - 1 e

volu

tion

and

fund

amen

tals

of

busines

s

Page 2: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

2 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XIUn

it - 2

form

s o

f bu

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rgan

isat

ions

Join

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ckco

mp

any

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ms

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anis

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ons

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efer

s to

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orm

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Bu

sin

ess

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anis

atio

n w

hic

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s o

wn

ed,

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aged

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on

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idu

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he

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per

ativ

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ciet

y i

s a

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ciat

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of

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son

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ho

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wit

h t

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e o

f w

elfa

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emb

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co

mp

any

is

an a

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ciat

ion

of

per

son

s fo

rmed

fo

r ca

rry

ing

ou

t

bu

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ess

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and

has

a l

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epen

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emb

ers

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ich

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.F

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artn

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lati

on

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agre

ed t

o s

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e th

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ess

carr

ied

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epar

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ll t

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ick

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exce

pt

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nti

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932

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inim

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ase

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ansi

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Page 3: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 3

Joint ventu

reGlobalenterprise

sFeutures

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ug

e ca

pit

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eso

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ent

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bal

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eof

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ifica

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Unit - 3

pub

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terp

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Page 4: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

4 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI

Typ

esof

Insu

ran

ceCommunicatio

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rvic

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rvic

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use

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e p

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cy

En

do

wm

ent

life

assu

ran

ce p

oli

cy

Join

t li

fe p

oli

cy

An

nu

ity

po

licy

•C

om

mer

cial

-IC

ICI

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oo

per

ativ

e-A

gri

cult

ure

coo

per

ativ

es

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pec

iali

sed

-EC

GC

•C

entr

al-R

.B.I

•In

tan

gib

ilit

y:

they

are

in

tan

gib

lein

nat

ure

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con

sist

ancy

:-n

ot

per

man

ent

•In

sep

arab

ilit

y:-

no

t st

arte

d f

or

futu

re•

Inv

ento

ry:-

No

tan

gib

le c

om

po

nen

t

•In

vo

lvem

ent:

-p

arti

cip

atio

n o

fcu

sto

mer

Bu

sin

ess

serv

ices

-B

ank

ing

,In

sura

nce

, tra

nsp

ort

atio

n,

war

eho

usi

ng

and

com

mu

nic

atio

nse

rvic

esS

oci

alse

rvic

es-

Hea

lth

care

and

edu

cati

on

serv

ices

by

NG

OS

Per

son

alse

rvic

es-

Tou

rism

,re

crea

tio

nal

serv

ices

,R

esta

ura

nts

Typesof

Ban

ks

Bu

sines

s S

ervi

ces

Pri

nci

ple

so

fIn

sura

nce

Fun

ctio

ns

ofBan

ks

•To

co

ver

fro

m f

ire

cau

ses

•S

hip

or

hu

ll i

nsu

ran

ce

•C

arg

o i

nsu

ran

ce

•F

reig

ht

insu

ran

ce

•P

ost

al s

erv

ices

•M

ail

serv

ices

•Te

lep

ho

ne

serv

ices

•G

oo

ds

des

tro

yed

by

fir

e

•P

rem

ises

des

tro

yed

by

fir

e

Life

Insu

ranc

e

FireInsurance

MarineInsurance

FunctioningofWarehousing

Unit - 4

bus

ines

s s

ervice

s

Page 5: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 5

Benefitsofe-commerce

Meaningofoutsourc

ing

Concern

s overou

tsou

rcin

g

Sco

pe

of

eB

usi

nes

s

•E

ase

to f

orm

:- v

ery

eas

y t

o s

tart

•C

on

ven

ien

ce:-

24 h

ou

rs a

vai

lab

le•

Spee

d:-

ver

y f

ast

tran

sact

ion

s

•G

lob

al r

each

:- r

each

ing

thro

ug

ho

ut

the

eart

h

•P

aper

less

:- N

op

aper

nee

ded

•L

ov

e p

erso

nal

to

uch

•In

con

gru

ence

bet

wee

no

rder

tak

ing

/ g

ivin

g

•N

eed

fo

r te

chn

olo

gy

cap

abil

ity

•In

crea

sed

ris

k d

ue

ton

on

- tr

acea

bil

ity

of

par

ties

•F

ocu

sin

g o

f at

ten

tio

n

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ues

t fo

r ex

cell

ence

•C

ost

red

uct

ion

•G

row

thth

rou

gh

all

ian

ce

•R

egis

trat

ion

:-o

ne

has

to

reg

iste

r w

ith

th

e o

nli

ne

ven

do

r

•P

laci

ng

an

ord

er:-

ho

wp

lace

an

ord

er

•C

ho

ose

th

e p

aym

ent

op

tio

n

•Y

ou

r it

em i

s b

oo

ked

•Tr

ansa

ctio

n r

isk

s

•D

ata

sto

rag

e an

dtr

ansm

issi

on

ris

ks

•R

isk

s to

th

reat

to

inte

llec

tual

pro

per

ty•

It r

efer

s to

a l

on

g-

term

con

trac

tin

g o

ut

gen

eral

lyth

e n

on

-co

re a

nd

of

late

even

som

e o

f th

e co

reac

tiv

itie

s to

th

ird

par

tysp

ecia

list

•e-

bu

sin

ess

may

be

def

ined

as t

he

con

du

ct o

f in

du

stry

,tr

ade

and

co

mm

erce

usi

ng

th

e co

mp

ute

rn

etw

ork

.

•B

2B c

om

mer

ce=

Bu

sin

ess

to B

usi

nes

s

•B

2Cco

mm

erce

- B

usi

nes

sto

cu

sto

mer

s

•In

tra-

B C

om

mer

ce=

Tran

sact

ion

sw

ith

in a

giv

en b

usi

nes

s fi

r m

•C

2C c

om

mer

ce=

cu

sto

mer

to c

ust

om

er

Co

nfi

den

tial

ity

Sw

eat

sho

pp

ing

Eth

ical

con

cern

s

Res

entm

ent

inth

eh

om

eco

un

trie

s

Meanin

g

ofe-co

mm

erce

ore-

busines

s

Em

ergi

ng M

odes

of B

usi

ness

Need for outsourcing

e-busines

sR

isks

Step

so

fo

nli

ne

tran

sact

ion

s

Lim

itat

ion

sof

e-co

mm

erce

Unit - 5

eme

rging m

ode

s o

f bu

sines

s

Page 6: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

6 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI

Ty

pes

of

soci

alre

spon

sibi

lity

Reality&socialresponsibility

Meaning

ofso

cial

resp

on

sib

ilit

y

Soc

ial

Res

pon

sibi

lity

of B

usi

nes

sa

nd

Bu

sines

s E

thic

s

•S

oci

al r

esp

on

sib

lity

of

bu

sin

ess

refe

rs t

o i

ts o

bli

gat

ion

to

tak

eth

ose

dec

isio

ns

wh

ich

are

des

i-ra

ble

in

ter

ms

of

the

ob

ject

ives

and

val

ues

of

ou

r so

ciet

y

•Ju

stif

icat

ion

fo

r ex

iste

nce

an

dg

row

th

•L

on

g-t

erm

in

tere

st o

f th

e fi

rm

•A

vo

idan

ce o

f g

ov

ern

men

tre

gu

lati

on

s

•M

ain

ten

ance

of

soci

ety

avai

lab

ilit

y o

f re

sou

rces

•E

thic

s ar

e co

nce

rned

wit

h w

hat

is r

igh

t an

d w

hat

is

wro

ng

in h

um

an b

ehav

iou

r

•V

iola

tio

n o

f p

rofi

tm

axim

isat

ion

ob

ject

ive

•B

urd

en o

n c

ust

om

ers

•L

ack

of

soci

al s

kil

ls

•L

ack

of

bro

ad p

ub

lic

sup

po

rt

•E

con

om

ic r

esp

on

sib

ilit

y

•L

egal

res

po

nsi

bil

ity

•E

thic

al r

esp

on

sib

ilit

y

•D

iscr

eati

on

ary

res

po

nsi

bil

ity

•A

ir p

oll

uti

on

•W

ater

po

llu

tio

n

•L

and

po

llu

tio

n

•N

ois

e p

oll

uti

on

Arg

um

ents

for

soci

al

resp

on

sib

ilii

ty

Arguments

agai

nst

soci

alre

spo

nsi

bil

ity

•T

hre

at o

f p

ub

lic

reg

ula

tio

n

•P

ress

ure

of

lab

ou

r m

ov

emen

t

•Im

pac

t o

f co

nsu

mer

co

nsc

iou

snes

s

•D

evel

op

men

t o

f so

cial

sta

nd

ard

fo

r b

usi

nes

s

•D

evel

op

men

t o

f B

uis

nes

s ed

uca

tio

n

•R

edu

ctio

n o

f h

ealt

h h

azar

d

•R

edu

ced

ris

k o

f li

abil

ity

•C

ost

sav

ing

s

•Im

pro

ved

pu

bli

c im

age

•S

oci

al b

enef

its

•To

p m

anag

emen

t co

mm

itm

ent

•P

ub

lica

tio

n o

f a

‘co

de’

•E

stab

lish

men

t o

f co

mp

lian

ce m

ech

anis

m

•In

vo

lvin

g e

mp

loy

ees

at a

ll l

evel

s

•M

easu

rin

g r

esu

lts

Ty

pes

of

po

lluti

on

Nee

do

fp

oll

uti

on

con

tro

lEle

men

tsof

Business ethics

Conceptofbusinessethics

Unit - 6

social

res

pons

ibility

of

busines

s a

nd b

usines

s e

thics

Page 7: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 7

Types of preference sharesSources of fin

ance

Type

s of B

usin

ess

requ

irem

ent

• C

umul

ativ

e an

d N

on-c

umul

ativ

e

• Pa

rtic

ipat

ing

and

Non

-par

ticip

atin

g

• C

onve

rtib

le a

nd N

on-c

onve

rtib

le•

Secu

red

and

Uns

ecur

ed•

Reg

iste

red

and

Bear

er

• C

onve

rtib

le a

nd N

on-c

onve

rtib

le

• Fi

rst a

nd S

econ

d

• C

ost o

f ret

urn

• Fi

nanc

ial s

tren

gth

and

stab

ility

of o

pera

tion

• Fo

rm o

f org

anis

atio

n an

d le

gal

stat

us•

Purp

ose

and

time

limit

• C

ontr

ol a

nd P

ower

• Ef

fect

on

cred

it w

orth

ines

s•

Tax

bene

fits

• R

isk

Prof

ile

• R

etai

ned

Earn

ing

eg.-

Earn

ings

that

are

kept

ret

aine

d by

bus

ines

s fir

ms.

• Tr

ade

cred

it: E

g:C

redi

tPu

rcha

se o

f goo

ds.

• Fa

ctor

ing-

Fac

tori

ng c

ost i

s fo

und

• Pu

blic

dep

osits

:- th

e de

posi

ts b

ypu

blic

with

Ban

ks

• C

omm

erci

al p

aper

• Is

sue

of s

hare

s

• D

eben

ture

s:-B

orro

wed

cap

ital

• C

omm

erci

al B

anks

:- Eg

: Sta

te B

ank

of in

dia

• Fi

nanc

ial I

nstr

uctio

ns E

g:M

utho

ot fi

nanc

e

• C

omm

erci

al B

anks

• In

tern

atio

nal A

genc

ies

and

Dev

elop

men

t Ban

k

• 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

urre

ncy

Con

vert

ible

Bond

s

• Th

e ca

sh r

equi

rem

ent

to o

pera

te th

e bu

sine

ssfo

r lo

ng te

rm a

nd s

hort

term

is B

usin

ess

Fina

nce

• Fi

xed

Cap

ital R

equi

rem

ent:

-To

purc

hase

fixe

d A

sset

s

• W

orki

ng C

apita

l Req

uire

men

t:- T

o pa

y cu

rren

t Exp

ense

s lik

eSa

lari

es, w

ages

e.t.

c.

• O

n th

e ba

sis

of p

erio

d

• O

n th

e ba

sis

of o

wne

rshi

p

• O

n th

e ba

sis

of s

ourc

e of

gen

erat

ion

Types o

f Deb

entu

res

Sour

ces

of B

usin

ess

Fina

nce

Classification of source

s of fu

nds

Meaning of Busin

ess f

inan

ce

Inte

rnat

iona

l fin

anci

ng

Fact

ors

affe

ctin

g th

e cho

ice of

source

of fund

Equi

ty s

hare

s

Pref

eren

ce s

hare

s

Unit - 7

sour

ces o

f bu

sines

s f

inan

ce

Page 8: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

8 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI

Sm

all

Bu

sines

s

and

Ente

rpri

ses

Unit - 8

sma

ll b

usines

s a

nd e

nter

prises

Page 9: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 9

Inte

rna

l T

rad

e

Meaning

ofinte

rnal

trad

e

Rol

eof

com

mer

cein

pro

motio

nof tra

de

Bu

yin

g a

nd

sel

lin

g o

f g

oo

ds

and

serv

ices

wit

hin

th

e b

ou

nd

arie

s o

fa

nat

ion

ref

erre

d t

o a

s In

tern

al t

rad

e

Wh

ole

sale

tra

de

is c

on

cern

ed w

ith

the

acti

vit

ies

of

bu

yin

g a

nd

sel

lin

g o

fg

oo

ds

and

ser

vic

es in

larg

e q

uan

titi

esfo

r th

e p

urp

ose

of

resa

le o

r in

term

edia

teu

se.

Ser

vic

es t

o m

anu

fact

ure

san

d w

ho

lesa

lers

Ser

vic

es t

o c

ust

om

ers

Dis

trib

uti

on

of

go

od

s

•In

ters

tate

mo

vem

ent

of

go

od

s

•A

dep

artm

enta

l sto

re is

a la

rge

esta

bli

shm

ent

off

erin

g a

wid

ev

arie

ty o

f p

rod

uct

s

•O

ctro

i an

d lo

cal l

evie

s

•H

arm

on

isat

ion

of

sale

s ta

x

•M

arke

tin

g o

f ag

ro p

rod

uct

s

•T

hes

e ar

e n

etw

ork

s o

f re

tail

sh

op

sth

at a

re o

wn

ed a

nd

op

erat

ed b

ym

anu

fact

ure

rso

r in

term

edia

ries

Pers

on

al s

elli

ng

Co

llec

tin

g m

arke

tin

form

atio

n

Hel

p t

o p

rom

oti

on

Reg

ula

r av

aila

bil

ity

of

go

od

s

New

pro

du

cts

info

rmat

ion

Co

nv

enie

nce

in b

uy

ing

Wid

e se

lect

ion

(i)

(ii)

(iii

)

(iv

)

(i)

(ii)

(iii

)

(iv

)

Itin

eran

t R

etai

lers

Fix

ed s

ho

p r

etai

lers

Ped

lars

an

d H

awke

rs

Mar

ket

trad

ers

Stre

et t

rad

ers

Ch

eap

jack

s

(i)

Gen

eral

sto

res

(ii)

Spec

iali

ty s

ho

p

(iii

)St

reet

sto

re h

old

ers

(iv

)Se

con

dh

and

go

od

s sh

op

(i)

(ii)

(iii

)

(iv

)

Ser

vic

es t

o R

etai

lers

Ser

vic

es t

o m

anu

fact

ure

rs

Av

aila

bil

ity

of

go

od

s

Mar

keti

ng

Su

pp

ort

Gra

nt

of

cred

it

Spec

iali

sed

kn

ow

led

ge

(i)

Faci

lita

tin

g la

rge

scal

e p

rod

uct

ion

(ii)

Bea

rin

g r

isk

(iii

)F

inan

cial

ass

ista

nce

(iv

)E

xper

t ad

vic

e

(v)

Faci

lita

te P

rod

uct

ion

co

nti

nu

ity

(i)

(ii)

(iii

)

(iv

)

Ris

k S

har

ing

(v)

Mu

ltip

lesh

ops

Dep

artm

enta

lsto

res

mea

nin

go

fw

ho

lesa

letr

ade

Serv

ices

ofw

holesalers

Type

sof

Ret

ailin

gtr

ade

ServicesofaRetailer

Unit - 9

inte

rnal

tra

de

Page 10: Evolution and Fundamentals of Business · Inconsistancy:-not per manent • Inseparability:-not started for future • Inventor y:-No tangible component • Involvement:-participation

10 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI

Inte

rna

tion

al

Tra

de

•E

arn

ing

of

fore

ign

Exc

han

ge

•M

ore

eff

icie

nt

use

of

reso

urc

es

•Im

pro

vin

g g

row

th p

rosp

ects

•In

crea

sed

sta

nd

ard

of

liv

ing

•P

rosp

ects

of

hig

her

Pro

fits

•In

crea

sed

cap

acit

y U

tili

sati

on

•P

rosp

ects

fo

r g

row

th

•Im

pro

ved

Bu

sin

ess

vis

ion

•C

on

trac

t m

anu

fact

uri

ng

- O

uts

ou

rcin

go

f P

rod

uct

s

•L

icen

sin

g a

nd

fra

nch

isin

g:-

fir

m g

ran

tsac

cess

to

its

pat

ents

to

an

oth

er f

irm

in

fore

ign

co

un

try

•Jo

int

ven

ture

-ag

reem

ent

bet

wee

n t

wo

fir

ms

of

two

nat

ion

s

Ind

ia's

Invo

lvem

ent

inW

orl

d

ade and International trade

Diff

eren

cebetw

een the Domestic

Meaningofinternationaltrade

Man

ufa

ctu

rin

g a

nd

tra

de

bey

on

d t

he

bo

un

dar

ies

of

on

e's

ow

n c

ou

ntr

y i

sk

no

wn

as

inte

rnat

ion

al t

rad

e

•M

erch

and

ise

Exp

ort

san

d I

mp

ort

s•

Ser

vic

e E

xpo

rt a

nd

Im

po

rt

•L

icen

sin

g a

nd

Fra

nch

isin

g

•F

ore

ign

in

ves

tmen

ts

•E

xpo

rtin

g a

nd

Im

po

rtin

g :

sen

din

g g

oo

ds

fro

m o

ne

cou

ntr

y t

o a

no

ther

•In

dia

is

no

w t

he

10th

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