CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus


CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

Paper 4*: Business Economics & Business and Commercial Knowledge (100 Marks)

Part I: Business Economics (60 Marks)

1.  Introduction to Business Economics

(a)     Meaning of Business Economics

(b)     Objectives of Business Firm- Profit Maximization, Sales Maximization, Growth Maximization.

2.   Theory of Demand and Supply

(a) Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity (b) Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach (c) Meaning and determinants of supply, Law of supply and Elasticity of supply.

(d)  Demand Forecasting

3.   Theory of Production and Cost

(a)     Meaning and Factors of production

(b)     Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium

(c)     Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

4. Price Determination in Different Markets

(a) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly (b) Price determination in these markets.

5.     Business Cycles

  • Meaning of Business Cycles
  • Phases of  Business Cycles
  • Features of Business Cycles.
  • Causes behind these Cycles.

Paper 4 Part II Business and Commercial Knowledge

Objectives

  1. Have a basic knowledge of common business and commercial concepts.
  2. Inculcate a habit to remain updated about developments in the business and commercial world.

Students are expected to read at least one financial newspaper and one business magazine on a regular basis.  They may also watch a business channel to remain updated about the developments related to commercial world.

Contents

  1. Introduction to Business

Nature of Business, Profession and Employment. Objectives of Business. Business and Commercial Knowledge. Economic and Non-Economic Activities.

  1. Business Environment

Micro     and     Macro     Environment,     Elements     of     Micro     Environment     –

Consumers/Customers, Competitors, Organization, Market, suppliers, Intermediaries, Elements of Macro Environment – Demographic, Economic, Political-legal, Sociocultural, Technological, Global Environment.

  1. Business organizations Top Indian and Global Companies.
  2. Government Policies for Business Growth

Policies creating conducive business environment – Startups,E-commerce.

Liberalization, Privatization, Foreign Direct Investment.

  1. Organizations facilitating Business

Indian regulatory bodies – SEBI, RBI, IRDA, CCI, FMC, CBDT, CBEC Indian Development Banks – IFCI, IDBI, SIDBI, EXIM Bank,NABARD

Global organizations and world trade bodies – IMF, ADB, WTO, OECD, SAARC, ASEAN, OPEC.

Accounting Bodies – IFAC,IASB, IESB, CAPA, SAFA, AOSSG.

  1. Common Business and Commercial Terminologies

CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

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CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

PAPER –3: Business Mathematics Logical Reasoning and Statistics

(One Paper- Three hours- 100 Marks) 

OBJECTIVES: The Objective of this course is to familiarize students with basic Mathematical and Statistical tools with emphasis on applications to Business, Finance and Economic situations .Logical reasoning tests helps the students thinking power and mental applicability skills.

The whole syllabus of Business Mathematics Logical Reasoning and Statistics shall be divided into two broad areas.

  • Business Mathematics Logical reasoning (60 Marks)
  • Business Statistics (40 Marks)

Business Mathematics and Logical reasoning (60 marks)

Business Mathematics: 40 marks

  • Chapter-1(Ratio and proportion, Indices and Logarithms ) o Ratio and proportion and Time and work related problems, Laws of Indices, Exponentsand Logarithms and Anti Logarithms.
  • Chapter-2 (Equations and Matrices) o Equations: Linear Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable. o Algebra of Matrices, Inverse of a Matrix anddeterminants, solving system of equations using matrix method (Cramer’s rule) involving not more than three variables.
  • Chapter-3 (Inequalities) o Inequalities: Linear Inequalities in one variable and the solution space
  • Chapter -4 Time value of Money (Financial Mathematics) o Time value of Money Simple Interest
  • Compound interest
  • Effective Rate of Interest
  • Present Value
  • Net Present Value
  • Future Value
  • Perpetuity
  • Annuities
  • Sinking Funds
  • Calculating of EMI Calculations of Returns:

o Nominal Rate of Return

  • Effective Rate of Return
  • Compound Annual growth rate (CAGR)
  • Chapter -5 (Sets Functions and Relations)
  • Chapter -6 (Basic applications of Differential and Integral calculus (Excluding the trigonometric applications)
  • Chapter-7 (Permutations and Combinations) o Basic concepts of Permutations and combinations: Introduction, the factorial, permutations, results, circular permutations, permutations with restrictions, Combinations with standard results.
  • Chapter-8 (Sequence and Series ) o Introduction Sequences, Series, Arithmetic and Geometric progression,

Relationship between AM and GM and Sum of n terms of special series.

Logical Reasoning: (20 marks)

  • Chapter -9
  • Number series coding and Decoding and odd man out.
  • Chapter -10
  • Blood Relations,
  • Chapter-11
    • Seating Arrangements,
    • Chapter-12
    • Direction Tests
    • Chapter-13

Business Statistics (40 marks)

  • Chapter -14 (Statistical description of Data)
  • Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution – Histogram, Frequency Polygon, Ogive, Pie-chart.
  • Chapter -15 (Measures of Central tendency and Dispersion )
  • Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation.
  • Chapter-16 (Correlation and Regression)

    • Correlation and Regression: Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations, Regression coefficients.
    • Chapter -17 (Theoretical Distributions)
    • Theoretical Distributions: Binomial Distribution, Poisson distribution – basic application and Normal Distribution – basic applications.
  • Chapter-18 (Probability)

    • Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability; Bayes’ theorem; and Mathematical Expectation.
    • Chapter-19 (Index Numbers and Time Series)
  • Index Numbers:Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of Index Numbers.
  • Time Series Analysis – basic application including Moving Average, Moving Average Method, and Method of Least Squares.
  • Chapter-20 (Sampling Theory and Testing of Hypothesis)

(a)Sampling theory: Basic Principles of Sample survey, Comparison between sample survey and enumeration, errors in Sample survey, some important terms associated with sampling, types of sampling.

(b)Testing of Hypothesis, Large sample tests (Test for means, test for proportions and test for Standard deviations) and sample tests applications of t, F-distribution (Variance ratio test) and Chi-square test.

CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

Old SchemeNew Scheme
CA CPTCA Foundation
200 Marks400 Marks
Fundamental of Accounting(60 Marks)ObjectivePrinciples and Practices of Accounting(100 Marks)Subjective
Mercantile Law (40 Marks)Objective Business Law (60 Marks = ICA + SOGA + PA = 45 Marks + LLP + Companies Act = 15 Marks) and (40 Marks) Business Correspondence and Reporting Subjective
General Economics (50 Marks)ObjectiveBusiness Economics (60 Marks) and Business and Commercial Knowledge (40 Marks)Objective
Quantitative Aptitude (50 Marks)ObjectiveBusiness Mathematics (40 Marks), Logical Reasoning (20 Marks) and Business Statistics (40 Marks)Objective

CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

Paper 1Principles and Practices of Accounting100 Marks Descriptive /Subjective Type
Paper 2Business Law & Business Correspondence and Reporting100 MarksDescriptive/Subjective Type
Section A: Business Law – 60 Marks
Section B: Business Correspondence and Reporting – 40 Marks
Paper 3Business Mathematics Logical Reasoning and Statistics100 MarksObjective Type
Paper 3 – Part I: Business Mathematics and Logical Reasoning (60 Marks)
Paper 3 – Part II: Statistics (40 Marks)
Paper 4Business Economics & Business and Commercial Knowledge100 MarksObjective Type
Paper 4 – Part I: Business Economics (60 Marks)
Paper 4 – Part II: Business and Commercial Knowledge (40 Marks)
Note :
1. Passing percentage:Aggregate- 50% and Subject-wise- 40% at one sitting.
2. Objective type question of 1 or more marks.
3. Examination: In the month of November and May after passing Class XII

CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

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CA Foundation Paper 4 Business Economics Business and Commercial Knowledge syllabus

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