COMMERCE (857)

CLASS XI

There will be two papers in the subject: (iii) Business objectives.

Paper I - Theory: 3 hours ……80 marks Business objectives: economic; social;
human and national. Role of Profit in
Paper II- Project Work ……20 marks business.

PAPER - I (THEORY) – 80 Marks 2. Forms of Business Organisations

Part I (20 marks) will consist of compulsory (i) Introduction to business organizations.
short answer questions testing knowledge, Meaning, characteristics, types (private
application and skills relating to elementary/ sector, public sector, Public Private
fundamental aspects of the entire syllabus. Partnership (PPPs) /Joint Sector).
Comparison between different types of
Part II (60 marks) will consist of eight questions
organizations.
out of which candidates will be required to
answer five questions, each carrying 12 marks. (ii) Sole trader - objectives; formation; merits
and demerits.
Meaning and definition of sole trader;
1. Nature and Purpose of Business
characteristics and objectives of sole
(i) Classification of human activities - trader; merits and demerits.
economic and non-economic. (iii) Partnership
Classification of human activities - (a) Meaning, features; types of partners
economic and non-economic. Types of
and partnership firms.
economic activities.
Meaning and definition of
Distinction between business, profession
partnership; features of partnership
and employment.
firms; types of partners and
(ii) Definition and concept of business; partnerships.
classification of business activities. (b) Registration of Partnership firms.
Definition of business. Characteristics of Formation, meaning and contents of
business. Classification of business partnership deed; registration and
activities: consequences of non-registration.
(a) Industry: types of industries on the
basis of activity (primary and (c) Evaluation of partnership; merits and
secondary) and on the basis of size demerits.
(micro, small, medium and large). Self-explanatory.
Role of small businesses in India. (d) Comparison of sole proprietorship
(b) Commerce: branches of Commerce. and partnership.
Commerce - its nature and functions; Self-explanatory.
importance of Commerce. Branches
of Commerce - trade and aids to (iv) Corporate Organisations.
trade. Relationship between (a) Joint Stock Company: meaning,
commerce, trade and industry. features, merits, demerits and
objectives.

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 (b) Stages of Formation of a Company. 3. Social Responsibility of Business and
Business Ethics
(c) Promotion, meaning, role and types
of promoters. Concept and need for social responsibility.
(d) Incorporation of a company - Responsibility towards owners, investors,
Meaning and steps of incorporation consumers, employees, government and
(including filing of documents), community; Responsibility of business
certificate of incorporation. towards protection of environment; Meaning
and importance of Business ethics.
(e) Memorandum of Association and
Articles of Association (excluding
4. Emerging Modes of Business
alterations) and distinction between
the two documents. (i) E-business.
Meaning and contents of MOA and Scope and benefits, Resources required
AOA. Distinction between the MOA for successful e-business implementation,
and AOA. online transactions, payment
mechanisms, security and safety of
(f) Commencement of business. business transactions.
Steps, Certificate of Commencement. (ii) Outsourcing.
(g) Prospectus and statement in lieu of Concept, need and scope of BPO and
prospectus – meaning and contents KPO.
only. (iii) Smart Cards.
(h) Public and private companies and Meaning.
their comparative studies, privileges
of private companies. 5. Stock Exchange

(v) Public Sector Undertakings. (i) Meaning and importance.

(ii) Functions and services.
(a) Meaning; characteristics, objectives,
role and forms of Public Sector (iii) Major Stock Exchanges in India (BSE,
Undertakings (Government NSE, DSE, ASE) – types and locations.
Companies). (iv) Types of operators – Brokers, Jobbers,
Public Sector Undertakings – Bulls and Bears.
meaning; characteristics, objectives, (v) Terms used in Stock Exchange -
role and criticisms. ex-dividend, cum dividend, spot delivery,
Forms of Public Sector forward delivery.
Undertakings (Government (vi) SEBI – functions and objectives.
companies – definitions, features,
merits and demerits). Self-explanatory
(b) Public Private Partnerships.
6. Trade
Meaning and features of PPPs.
(i) Wholesalers.
(vi) Co-operative organisations – meaning
Meaning and services of wholesaler to
and characteristics.
retailer, customer and producer.
Co-operative organizations - meaning;
(ii) (a) Retail trade – Meaning and
characteristics, advantages and
characteristics.
disadvantages.
Retail trade - meaning,
characteristics of retail trade.

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 Distinction between wholesale and 8. Insurance
retail trade. (i) Insurance – Meaning, objectives and
(b) Types of retail trade - Departmental purpose.
store, chain store, automatic vending Meaning, objectives and purpose of
machines. insurance; Concept of re-insurance and
Meaning, features, merits and double insurance.
demerits to be covered. (ii) Principles of insurance.
(c) Documents used in home trade.
Fundamental principles to be explained:
Documents used in home trade – utmost good faith; insurable interest;
inquiry; quotation; catalogues; indemnity; contribution; doctrine of
order; invoice; debit note; credit subrogation; causa proxima. mitigation
note. of loss.
Price quotations - cash discount and (ii) Types of insurance: life and non-life.
trade discount.
Types of insurance – life, health, fire,
7. Foreign Trade marine, motor, social and fidelity
(i) Meaning, difference between internal insurance (Meaning and importance
trade and external trade. only).
Meaning and characteristics of
international trade; advantages and PAPER II – PROJECT WORK – 20 Marks
disadvantages of international trade. Candidates will be expected to have completed
(ii) Export trade – Meaning and objectives. two projects from any topic covered in Theory.
Self-explanatory. Mark allocation for each Project [10 marks]:
(iii) Import trade – Meaning, objectives and Overall format 1 mark
purpose.
Content 4 marks
Meaning and functions of import trade;
objectives and purpose. Findings 2 marks

(iv) Documents involved in international Viva-voce based on the Project 3 marks

trade.
Documents involved in export trade, such A list of suggested Projects is given below:
as: letter of credit, shipping order, 1. Select a daily use consumer product. Trace
shipping bill, mate’s receipt, bill of its origin right from the primary industry
lading, certificate of origin, consular through the secondary and tertiary industries.
invoice, documentary bill of exchange
Draw a flow chart to include all the business
(DA/DP), all need to be explained.
activities in its path from the producer to the
Documents involved in import trade, consumer.
such as: import license, indent, letter of 2. Assume you are starting a partnership firm
credit, documentary bill of exchange, bill
with your friend/friends. Develop a business
of entry, bill of sight, port trust dues
receipt, application to import, advice plan covering the following aspects:
note, bill of lading, all need to be − Formation of this partnership firm – rules
explained. and steps that would be followed
(v) World Trade Organisation. including the partnership deed

WTO-meaning and objectives. − Choice of types of partners involved and

your justification for the same.

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3. Select two infrastructure projects of public 8. Identify any trade association and chamber of
sector undertakings that have been recently commerce headquartered in your town/city.
commissioned. Study each in terms of:
Analyze each project in terms of: − Its objectives.
− Objectives − Services provided to members.
− Profitability − Help given to the business community.
− Adherence to the time schedule for 9. Contact an insurance agent and collect
project completion. information about 5 different types of life
− Social utility insurance policies provided by different
− Conclusion. companies. Include information as per details
4. Identity two Public Private Partnership given below for every insurance plan and
projects. make a comparative analysis.
Find out: − Premium of insurance
− The equity participation of both the − Terms of inclusions and exclusions of
partners. each policy
− Objectives of the partnership
− Term of the policy
− Strengths both partners bring into the
venture. − Withdrawal of money from the insurance
scheme (surrender / foreclosure)
5. Select one consumer cooperative and one
housing cooperative. − Advantages/disadvantages of the plan
For each of the cooperatives: 10. Study the BPO and KPO industry in India.
− State the objectives. Collect newspaper/magazine articles on
− The organizational structure. BPOs and KPOs.
− Details of surplus distribution and the Prepare a report highlighting:
form of government support. − Their contribution to the business
6. Study real time cases in which organizations community and the nation.
did not show responsibility towards − Their growth over the past 10 years in
investors/ consumers/ employees/ India.
government/ community. Take at least two Comment on the social cost of such
such cases. For each case prepare a report organisations.
based on the following: 11. Visit a company that is involved in
− A brief about of the case. e-business (which offers online services) or a
consultancy, which helps in developing
− Different issues involved in the case. websites for such companies.
− Who was at fault and why? Study different aspects they keep in mind
while preparing business plans for
− What should the company have done to
e-business. Include information regarding the
stand by the business ethics?
payment mechanisms, security and safety of
− Do you agree with the company’s business transactions. The risks involved in
viewpoint? Give reasons. e-business should also be covered. Also
7. Document and analyze the Corporate Social include the steps they follow while
Responsibility activities of a pharmaceutical implementing the plan and starting the
company and a five-star hotel. business.
Comment on the changing role assumed by
Corporates towards business ethics and social
responsibility in the last two decades.