evolution and fundamentals of business · inconsistancy:-not per manent • inseparability:-not...
TRANSCRIPT
Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 1
Multiple
Obj
ecti
ves
of
Bu
sin
ess
Nat
ure
of
Bu
sin
ess
Ris
ksTyp
esof
Act
ivity
BasicfactorsofstartingaBusiness
Ch
ara
cte
rist
ics
of
Bu
sin
ess
Act
ivit
ies
•S
elec
tio
n o
f li
ne
of
Bu
sin
ess
•S
ize
of
the
firm
•C
ho
ice
of
form
of
ow
ner
ship
•L
oca
tio
n o
f B
usi
nes
s en
terp
rise
•Ta
x p
lan
nin
g
•P
lan
t L
ayo
ut
•F
inan
cin
g t
he
pro
po
siti
on
•P
hy
sica
l fa
cili
ties
•B
usi
nes
s ri
sks
aris
e d
ue
to u
nce
rtai
nti
es
•R
isk
is
an e
ssen
tial
par
to
f B
usi
nes
s
•D
egre
e o
f ri
sk d
epen
ds
on
th
e n
atu
re a
nd
size
of
Bu
sin
ess
•P
rofi
t is
rew
ard
of
risk
tak
ing
•S
ura
ble
ris
k
�B
etw
een
1&
7ce
ntu
ry C
Est
th
Ind
ia h
ad
la
rgest
eco
no
my
In m
id 1
8ce
ntu
ry,
bri
tish
ers
�th
ruin
ed
In
dia
n d
om
est
ic a
nd
fore
ign
tra
de
Aft
er
Ind
ep
en
den
ce I
nd
ia�
beg
un
to
re-i
nd
ust
ria
list
Tod
ay
In
dia
n e
con
om
y i
s o
ne
�o
f th
e f
ast
est
gro
win
geco
no
mie
s in
th
e w
orl
d
�H
igh
ly p
rosp
ero
us
do
mes
tic
& i
nte
rnat
ion
altr
ade.
Dev
elo
ped
in
dig
eno
us
ban
kin
g s
yst
em�
Usi
ng
hu
nd
ies
& c
hit
ti�
Ris
e o
f In
term
edia
ries
- p
rov
idin
g f
inan
cial
�se
curi
ty t
o m
anu
fact
ure
rsW
ell
dev
elo
ped
lan
d &
wat
er t
ran
spo
rt�
stre
ng
then
ed i
nte
rnat
ion
al t
rad
eP
atli
pu
tra,
Pes
haw
ar, T
axil
a, M
adu
ra,
�Ta
mra
lip
ti, e
tc. w
ere
maj
or
trad
e ce
nte
rs.
•In
sura
ble
ris
k
•R
efer
s to
th
e o
ccu
pat
ion
in w
hic
h p
eop
le w
ork
fo
ro
ther
s an
d g
etre
mu
ner
atio
n
•It
mea
ns
a st
ate
of
bei
ng
bu
sy i
n E
con
om
ic a
ctiv
ity
•A
n e
con
om
ic a
ctiv
ity
•P
rofi
t ea
rnin
g m
oti
ve
•D
ea
lin
gs
of
go
od
s a
nd
serv
ices
on
reg
ula
r b
asi
s
•U
nce
rta
inty
of
retu
rn
•P
rod
uct
ion
or
Pro
cure
men
to
f g
oo
ds
an
d s
erv
ices
•S
ale
or
exch
an
ge o
f g
oo
ds
an
d s
erv
ices
•P
rese
ncy
of
risk
Ma
rket
sta
nd
ing
Inn
ov
ati
on
Pro
du
ctiv
ity
Ph
ysi
cal
an
d f
ina
nci
al
reso
urc
es
Ea
rnin
g p
rofi
ts
So
cia
l re
spo
nsi
bil
ity
fulf
il
It i
ncl
ud
es t
ho
se a
ctiv
itie
sw
hic
h r
equ
ire
spec
ial
kn
ow
led
ge
and
sk
ills
to
be
app
lied
to
ear
n f
ees
Type
ofB
uis
nes
sR
isk
Evo
luti
on a
nd
Fu
nd
am
enta
ls o
fB
usi
nes
s
Man
ufa
ctu
rin
g
Pri
mar
yS
eco
nd
ary
Tert
iary
Co
nst
ruct
ion
Trad
eA
uxi
liar
ies
to t
rad
e
Ext
ract
ive
Gen
etic
Inte
rnal
Ext
ern
al
Wh
ole
sale
Ret
ail
Imp
ort
Exp
ort
An
aly
tica
lS
yn
thet
ical
Pro
cess
ing
Ass
emb
lin
gTr
ansp
ort
atio
nW
areh
ou
sin
gIn
sura
nce
Ban
kin
g
En
trep
ot
Classific
atio
n
Bu
sin
ess
Bu
sin
ess
Empl
oym
ent
Profe
ssio
n
•E
con
om
ic a
ctiv
ity
→B
usi
nes
s
•N
on
-Eco
no
mic
Act
ivit
y→
Pra
yer
to G
od
Position
ofIndia
nsu
bcon
tin
ent
inw
orl
dec
on
om
y
Ad
ver
tisi
ng
Co
mm
erce
Ind
ust
ry
Unit - 1 e
volu
tion
and
fund
amen
tals
of
busines
s
2 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XIUn
it - 2
form
s o
f bu
sines
s o
rgan
isat
ions
Join
tsto
ckco
mp
any
For
ms
of B
usi
nes
s
Org
anis
ati
ons
•R
efer
s to
a f
orm
of
Bu
sin
ess
org
anis
atio
n w
hic
h i
s o
wn
ed,
man
aged
an
d c
on
tro
lled
by
a
sin
gle
in
div
idu
al
•T
he
coo
per
ativ
e so
ciet
y i
s a
vo
lun
tary
asso
ciat
ion
of
per
son
s w
ho
jo
in t
og
eth
er
wit
h t
he
mo
tiv
e o
f w
elfa
re o
f m
emb
ers
•A
co
mp
any
is
an a
sso
ciat
ion
of
per
son
s fo
rmed
fo
r ca
rry
ing
ou
t
bu
sin
ess
acti
vit
ies
and
has
a l
egal
stat
us
ind
epen
den
t o
f it
s m
emb
ers
•R
efer
s to
a f
orm
of
Bu
sin
ess
wh
ich
is
ow
ned
an
d c
arri
ed o
n
by
th
e m
emb
ers
of
H.V
.F
•P
artn
ersh
ip r
efer
s to
th
e re
lati
on
bet
wee
n t
he
per
son
s w
ho
hav
e
agre
ed t
o s
har
e th
e p
rofi
t o
f
Bu
sin
ess
carr
ied
on
by
th
em
Mer
its
Feat
ure
s
•N
o s
epar
ate
law
to
fo
rm•
So
le r
isk
bea
rer
•A
ll t
he
con
tro
l in
on
e h
and
•N
o s
epar
ate
enti
ty•
Qu
ick
dec
isio
n m
akin
g
•C
ust
om
ers
coo
per
ativ
eso
ciet
y•
Pro
du
cer'
s co
op
erat
ive
soci
ety
•M
ark
etin
g c
oo
per
ativ
eso
ciet
y•
Far
mer
's c
oo
per
ativ
eso
ciet
y•
Cre
dit
co
op
erat
ive
soci
ety
•L
imit
ed r
eso
urc
esav
aila
ble
•In
effi
cien
cy i
nm
anag
emen
t•
Lac
k o
f se
crec
y•
Go
ver
nm
ent
con
tro
l
•H
ave
to p
ay h
igh
ersa
lary
to
pro
fess
ion
al•
Co
mp
lexi
ty i
n f
orm
atio
n•
Lac
k o
f se
crec
y
•C
om
pan
y i
s an
art
ific
ial
per
son
•C
om
pan
y h
as s
epar
ate
leg
alen
tity
•C
om
pan
y f
orm
atio
n i
s a
len
gth
y p
roce
ss•
It h
as p
erp
etu
al s
ucc
essi
on
•V
olu
nta
ry m
emb
ersh
ip•
Leg
al s
tatu
s o
f th
eA
sso
ciat
ion
•L
imit
ed l
iab
ilit
y o
f al
lper
son
s
•E
qu
alit
y i
n v
oti
ng
sta
tus
•L
imit
ed l
iab
ilit
y o
f al
l•
Sta
ble
exi
sten
ce
•L
imit
ed r
eso
urc
es a
vai
lab
le•
Inef
fici
ency
in
man
agem
ent
•L
ack
of
secr
ecy
•G
ov
ern
men
t co
ntr
ol
•E
ffec
tiv
e co
ntr
ol
of
the
bu
sin
ess
•L
imit
ed l
iab
ilit
y o
f p
artn
ers
exce
pt
kar
ta•
Co
nti
nu
ed B
usi
nes
sE
xist
ence
•L
imit
ed r
eso
urc
es•
Lim
ited
lif
e o
f B
usi
nes
sco
nce
rn•
Un
lim
ited
lia
bil
ity
•L
imit
ed m
anag
eria
l ab
ilit
y
•F
orm
ed a
cco
rdin
g t
o p
artn
ersh
ip A
ct 1
932
•R
isk
s is
bea
red
by
all
par
tner
s•
Dec
isio
ns
are
tak
en b
y t
he
mu
tual
co
nse
nt
•M
inim
um
-2 a
nd
max
imu
m 5
0 p
artn
ers
•E
ase
to f
orm
atio
n a
nd
clo
sure
•B
alan
ced
dec
isio
n m
akin
g•
Mo
re f
un
ds
to b
e u
tili
sed
•S
har
ing
of
Ris
ks
•U
nli
mit
ed l
iab
ilit
y o
f p
artn
ers
•L
imit
ed R
eso
urc
es•
Po
ssib
ilit
y o
f co
nfl
ict
•L
ack
of
con
tin
uit
y
•D
irec
t in
cen
tiv
e•
Sen
se o
f ac
com
pli
shm
ent
•E
ase
to f
orm
atio
n a
nd
clo
sure
Meaning
Limita
tion
s
Partn
ersh
ipFe
atu
res
Mea
ning
Merits
Limitations
Meaning Fea
ture
s
Mer
its Coopera
tive
soci
ety
Lim
itat
ion
s
Solepro
prietorsh
ip
TypesofPartnersinpartnersh
ip
Mea
nin
g
Hin
duundivided family
Feat
ure
s
Mer
its
Lim
itat
ion
s
•A
tlea
st t
wo
mem
ber
s o
f fo
rm•
Un
lim
ited
Lia
bil
ity
of
kar
ta•
Co
ntr
oll
ed b
y k
arta
•C
on
tin
ued
ev
en a
fter
dea
th o
fk
arta
Typ
esof
par
tner
ship
•L
imit
ed r
eso
urc
es f
or
the
bu
sin
ess
•U
nli
mit
ed l
iab
ilit
y o
f k
arta
in b
usi
nes
s•
Do
min
ance
of
Kar
ta i
n t
his
fo
rm
•P
artn
ersh
ip a
t w
ill
•P
arti
cula
r p
artn
ersh
ip•
Gen
eral
par
tner
ship
•L
imit
ed p
artn
ersh
ip
Typesofcoop
erat
ive
soci
ety
Fea
ture
sMea
nin
g
Merits
Limitations
•L
imit
ed L
iab
ilit
y o
fsh
areh
old
ers
•P
erp
etu
al e
xist
ence
•M
ore
sco
pe
for
exp
ansi
on
Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI [ 3
Joint ventu
reGlobalenterprise
sFeutures
•H
ug
e ca
pit
al r
eso
urc
es
•F
ore
ign
Co
llab
ora
tio
n
•A
dv
ance
d t
ech
no
log
y
•P
rod
uct
in
no
vat
ion
•C
entr
alis
ed c
on
tro
l
•M
ark
etin
g s
trat
egy
•E
xpan
sio
n o
f m
ark
et t
erri
tory
Dev
elo
pm
ent
of
In
fras
tru
ctu
re
Reg
ion
al B
alan
ce
Eco
no
mic
s o
f sc
ale
Ch
eck
ov
er c
on
cen
trat
ion
of
eco
no
mic
po
wer
Imp
art
sub
stit
uti
on
•R
edu
ctio
n i
n t
he
nu
mb
er o
f In
du
stri
esre
serv
edfo
r th
e p
ub
lic
sect
or
fro
m 1
7 to
8
•D
isin
ves
tmen
t o
f sh
ares
in p
ub
lic
sect
or
•P
oli
cy r
egar
din
g s
ick
un
its
Pri
vat
e se
cto
r
•T
hes
e ar
e b
rou
gh
t in
to e
xist
ence
by
a s
pec
ial
Act
of
the
par
liam
ent.
Th
e A
ct d
efin
es i
ts p
ow
ers
and
fun
ctio
ns
and
ru
les
& r
egu
lati
on
s
•A
go
ver
nm
ent
com
pan
y m
ean
san
y c
om
pan
y i
n w
hic
h n
ot
less
than
51
per
cen
t o
f th
e p
aid
up
cap
ital
is
hel
d b
y t
he
go
ver
nm
ent
•T
hes
e en
terp
rise
s ar
ees
tab
lish
ed a
s d
epar
tmen
tso
f th
e m
inis
try
an
d a
reco
nsi
der
ed p
art
or
anex
ten
tio
n o
f th
em
inis
try
its
elf
Pu
blic
, P
riva
te a
nd
Glo
bal
Ente
rpri
ses
Gov
ern
men
tp
oli
cyto
war
ds
pu
bli
c
sect
or
sin
ce19
91
Ch
ang
ing
Rol
eof
publ
icse
ctor
In
dian
Eco
no
my
class
ifica
tio
n
Par
tner
ship
Co
mp
any
Pu
bli
cP
riv
ate
Pu
bli
c se
cto
r
Dep
artm
enta
lu
nd
erta
kin
gG
ov
ern
men
tco
mp
anie
s
Sta
tuto
ryco
rpo
rati
on
So
lep
rop
erie
tors
hip
Join
t H
ind
ufa
mil
y
Co
op
erat
ive
soci
ety
Mu
ltin
atio
nal
corp
ora
tio
n
Publicen
terp
rise
s
Government company
Departm
enta
l
Underta
kin
g
Statutory corporation
Two
Bu
sin
esse
sco
me
tog
eth
er
Pri
vat
e,p
ub
lic
or
fore
ign
com
pan
y
Unit - 3
pub
lic, p
riva
te a
nd g
loba
l en
terp
rises
4 ] Oswaal CBSE Chapterwise Mind Maps, Business studies, Class – XI
Typ
esof
Insu
ran
ceCommunicatio
nse
rvic
esTypeofWarehousin
gTypes of se
rvic
es
Na
ture
of
serv
ices
•P
riv
ate
war
eho
use
s: S
. Ch
and
War
eho
use
•P
ub
lic
war
eho
use
s: S
atis
h a
nd
Co
.
•B
ou
nd
edw
areh
ou
ses:
Par
ticu
lar
War
eho
use
•G
ov
ern
men
tw
areh
ou
ses:
U.P
. War
eho
use
•C
oo
per
ativ
e w
areh
ou
ses:
Far
mer
’s W
areh
ou
se
•A
ccep
tan
ce o
f d
epo
sits
•L
end
ing
of
fun
ds
•C
heq
ue
faci
lity
•R
emit
tan
ce o
f fu
nd
s
•O
ther
All
ied
ser
vic
es
Utm
ost
go
od
fai
th
Insu
rab
le i
nte
rest
Ind
emn
ity
Pro
xim
ate
cau
se
Su
bro
gat
ion
Co
ntr
ibu
tio
n
Mit
igat
ion
Co
nso
lid
atio
n
Bre
ak t
he
bu
lk
Sto
ck p
ilin
g
Val
ue
add
ed s
erv
ices
Pri
ce S
tab
iliz
atio
n
Fin
anci
ng
Wh
ole
lif
e p
oli
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
•C
oo
per
ativ
e-A
gri
cult
ure
coo
per
ativ
es
•S
pec
iali
sed
-EC
GC
•C
entr
al-R
.B.I
•In
tan
gib
ilit
y:
they
are
in
tan
gib
lein
nat
ure
•In
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
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
•Q
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
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
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
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
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
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
lar
ges
t E
con
om
yin
th
e w
orl
d a
nd
th
e fa
stes
t g
row
ing
Eco
no
my,
nex
t o
nly
to
ch
ina.
In
dia
is
an I
mp
ort
ant
Co
un
try
fo
r in
tern
atio
nal
trad
e
• •R
ecei
pt
of
ord
er o
r in
den
t
Rec
eip
t o
f en
qu
iry
an
d s
end
ing
qu
ota
tio
n
•A
sses
sin
g i
mp
ort
er's
cre
dit
wo
rth
ines
s an
dse
curi
ng
a g
uar
ante
e fo
r p
aym
ent
•O
bta
inin
g e
xpo
rt l
icen
ce
•O
bta
inin
g p
re -
sh
ipm
ent
fin
ance
•P
rod
uct
ion
or
pro
cure
men
t o
f g
oo
ds
•E
xcis
e cl
eara
nce
•O
bta
inin
g c
erti
fica
te o
f o
rig
in•
Res
erv
atio
n o
f sh
ipp
ing
sp
ace
•P
ack
ing
an
d F
orw
ard
ing
•In
sura
nce
of
go
od
s•
Cu
sto
ms
clea
ran
ce
•O
bta
in m
ate
rece
ipt
•P
aym
ent
of
frei
gh
t•P
rep
arat
ion
of
inv
oic
e
•S
ecu
rin
g p
aym
ent
•P
re -
sh
ipm
ent
insp
ecti
on
•D
epar
tmen
t o
f co
mm
erce
•E
xpo
rt P
rom
oti
on
co
un
cils
•C
om
mo
dit
y b
oar
ds
•E
xpo
rt i
nsp
ecti
on
co
un
cil
•In
dia
n t
rad
e P
rom
oti
on
org
anis
atio
n
•In
dia
n I
nst
itu
te o
f fo
reig
n
trad
e
•D
uty
dra
wb
ack
sch
eme
•E
xpo
rt m
anu
fact
uri
ng
un
der
bo
nd
sch
eme
•E
xem
pti
on
fro
m p
aym
ent
of
sale
s ta
x•A
dv
ance
lic
ence
sch
eme
•E
xpo
rt o
f se
rvic
es
•E
xpo
rt p
roce
ssin
g z
on
es
•IM
F=
Inte
rnat
ion
al M
on
etar
y F
un
d
•M
IGA
=M
ult
inat
ion
al I
nv
estm
ent
Gu
aran
tee
Ag
ency
•ID
A=
Inte
rnat
ion
al D
evel
op
men
t
Ass
oci
atio
n
•IF
C=
Inte
rnat
ion
al F
inan
ce C
orp
ora
tio
n
•W
orl
d B
ank
•T
rad
e E
nq
uir
y•P
rocu
rem
ent
of
imp
ort
lic
ence
•O
bta
inin
g f
ore
ign
exc
han
ge
•P
laci
ng
ord
er o
r in
den
t•
Ob
tain
ing
let
ter
of
cred
it•A
rran
gin
g o
f fi
nan
ce
•R
ecei
pt
of
ship
men
t ad
vic
e
•R
etir
emen
t o
f im
po
rt d
ocu
men
ts
•A
rriv
al o
f g
oo
ds
•C
ust
om
s cl
eara
nce
an
d r
elea
se
of
go
od
s
Exp
ort
Pro
ced
ure
Benef
itsof
inte
rnat
ion
altr
ade
ton
atio
n
Fore
ign
trad
ep
rom
oti
on
Sch
eme
Ben
efit
sof
inte
rnat
ional
trad
eto
firm
s
Modes of entry into
the international trade
Do
mes
tic
trad
eFo
reig
n t
rad
e
Trad
e w
ith
in t
he
bo
un
dar
yo
f th
e n
atio
nL
ess
cap
ital
nee
ded
to
be
Inv
este
dL
ess
risk
ass
oci
atio
n
(i)
(ii)
(iii
)
Do
es n
ot
earn
fo
reig
ncu
rren
cy(i
v) L
ess
Pro
fit
to b
e E
arn
ed(v
)
tr
(i)Tr
ade
Ou
tsid
e th
e b
ou
nd
ary
of
the
cou
ntr
y
(ii)
Hu
ge
cap
ital
nee
ded
to
be
Inv
este
d
(iii
)H
igh
ris
k a
sso
ssia
tio
n
(iv
)E
arn
s fo
reig
n c
urr
ency
(v)
Hig
h P
rofi
t to
be
Ear
nedUn
it - 10 in
tern
ationa
l tr
ade