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Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

CBSE Class 11 Commerce Business Studies Part B Finance and Trade : CBSE Class 11 Commerce Business Studies Part B Finance and Trade Study materials available in pdf format in this article. Cakart team members gave complete information about CBSE Class 11 Commerce Business Studies Part B Finance and Trade here so check the information and and download the file read well.

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

CBSE Class 11 Commerce Business Studies Part B Finance and Trade : The CBSE envisions a robust, vibrant and holistic school education that will engender excellence in every sphere of human endeavour. The Board is committed to provide quality education to promote intellectual, social and cultural vivacity among its learners. It works towards evolving a learning process and environment, which empowers the future citizens to become global leaders in the emerging knowledge society. The Board advocates Continuous and Comprehensive Evaluation with an emphasis on holistic development of learners. The Board commits itself to providing a stress-free learning environment that will develop competent, confident and enterprising citizens who will promote harmony and peace.

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

CBSE Class 11 Commerce Business Studies Part B Finance and Trade : CBSE Class 11 Commerce Business Studies  is an indispensable part of society. It satisfies our wants by providing variety of goods and services through wide networking of business activities. This module has been designed to enable the learners to be aware of the world of business, recognize its importance, objectives, understand the different types of business activities and new developments like e-commerce as well as appreciate the responsibilities of business towards different stakeholders

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

CBSE Class 11 Commerce Business Studies Part B Finance and Trade : Trade Finance has been reviewing the global trade and export finance markets since 1983 and what constitutes trade finance has gone from a basic letter-of-credit product to highly structured combined bond and debt ECA financings.The following is a guide for those of you new to the market or those just looking for some clarification. The following sections have been written by our own editorial staff and include contributions from our internal trainers and other official sources.

What is trade finance?

There are various definitions to be found online as to what trade finance is, and the choice of words used is interesting. It is described both as a ‘science’ and as ‘an imprecise term covering a number of different activities’. As is the nature of these things, both are accurate. In one form it is quite a precise science managing the capital required for international trade to flow. Yet within this science there are a wide range of tools at the financiers’ disposal, all of which determine how cash, credit, investments and other assets can be utilised for trade.

In its simplest form, an exporter requires an importer to prepay for goods shipped. The importer naturally wants to reduce risk by asking the exporter to document that the goods have been shipped. The importer’s bank assists by providing a letter of credit to the exporter (or the exporter’s bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporter’s bank may make a loan to the exporter on the basis of the export contract. The type of document used in the process depends on the nature of the transaction and how evidence of performance can be shown (i.e. bill of lading to show shipment). It is useful to note that banks only deal with documents and not the actual goods, services or performance to which the documents may be relating to.

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

CBSE Class 11 Commerce Business Studies Part B Finance and Trade : Download CBSE Class 11 Commerce Business Studies Part B Finance and Trade study material in PDF format. We  provides solved papers, board question papers, revision notes and NCERT solutions for CBSE Class 11 Commerce Business Studies Part B Finance and Trade . The topics included Sources of Business Finance, Small Business, Internal Trade, International Business and Project Work.

CBSE Class 11 Commerce Business Studies Part B Finance and Trade

Concept includes meaning and features
Unit 7: Sources of Business Finance

Concept of Business Finance

Owners funds- equity shares, preferences, share, Global Depository receipt (GDR), American Depository Receipt (ADR), International Depository Receipt (IDR) and retained earnings

Borrowed funds: debentures and bonds, loan from financial institution, loans from commercial banks, public deposits, trade credit, Inter Corporate Deposits (ICD).

Download here CBSE Class 11 Commerce Business Studies   Sources of Business Finance

Unit 8: Small Business

Small scale enterprise as defined by MSMED Act 2006 (Micro, Small and Medium Enterprise Development Act)

Role of small business in India with special reference to rural areas

Government schemes and agencies for small scale industries (National Small Industries Corporation) and District Industrial Centre (DIC) with special reference to rural, backward and hilly areas

Download here CBSE Class 11 Commerce Business Studies   Small Business

Unit 9: Internal Trade

Service Rendered by a wholesaler and a retailer

Types of retail-trade-Itinerant and small scale fixed

Shops

Large scale retailers-Departmental stores, chain stores, mail order business.

Concept of automatic vending machine.

Chambers of Commerce and Industry: Basic Functions

Main documents used in internal trade: Performa invoice, invoice, debit note, credit note. Lorry receipt (LR) and Railways Receipt (RR).

Terms of Trade: Cash on Delivery (COD), Free on Board (FOB), Cost, Insurance and Freight (CIF), Errors and Omissions Excepted (E&OE).

Download here CBSE Class 11 Commerce Business Studies   Internal Trade

Unit 10: International Trade

Meaning, difference between internal trade and external trade: Meaning and characteristics of international trade

International trade: Advantages and disadvantages of international trade

Export trade- Meaning, objective and procedure of Export Trade

Import Trade- Meaning, objective and procedure; Meaning and functions of import trade; purpose and procedure.

Documents involved in International Trade; documents involved in export trade, indent, letter of credit, shipping order, shipping bills, mate’s receipt(DA/DP), specimen, importance

World Trade Organization (WTO) meaning and Objectives

Download here CBSE Class 11 Commerce Business Studies    International Business- I and  International Business-II

Unit 11: Project Work

Download here CBSE Class 11 Commerce Business Studies Part C Project Work and read well 

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

CBSE Class 11 Commerce Business Studies Part B Finance and Trade :  Trade finance relates to the process of financing certain activities related to commerce and international trade. Trade finance includes such activities as lending, issuing letters of credit, factoring, export credit and insurance. Companies involved with trade finance include importers and exporters, banks and financiers, insurers and export credit agencies, and other service providers.

BREAKING DOWN ‘Trade Finance’

Repayment terms relating to trade finance activities are generally short-term with the majority being used solely for the completion of a particular financial transaction. This financing forms a safety net, helping to protect the interests of buyers and sellers in an international marketplace and assisting in the completion of transactions that may involve multiple currencies.

Although international trade has been in existence for centuries, trade finance developed as a means of facilitating it further. The widespread use of trade finance is one of the factors that has contributed to the enormous growth of international trade. Trade finance is of vital importance to the global economy, with the World Trade Organization (WTO) estimating that 80 to 90% of global trade relies on this method of financing.

Trade Finance, Solvency and Liquidity

General financing may be used to cover an issue of solvency or liquidity, but trade financing may not necessarily indicate a lack of funds or liquidity on the buyer’s part. Instead, it may be used to protect against the unique risks present in international trade, such as currency fluctuations, political instability, issues of non-payment or questions regarding the creditworthiness of one of the involved parties.

International Trade Financing

In its simplest form, trade finance works by reconciling the divergent needs of an exporter and importer. While an exporter would prefer to be paid upfront by the importer for an export shipment, the risk to the importer is that the exporter may simply pocket the payment and refuse shipment. Conversely, if the exporter extends credit to the importer, the latter may refuse to make payment or delay it inordinately.

A common solution to this problem in the area of trade finance is through the issuing of a letter of credit, which is opened in the exporter’s name by the importer through a bank in his home country. The letter of credit essentially guarantees payment to the exporter by the bank issuing the letter of credit upon receipt of documentary proof that the goods have been shipped. Although this is a somewhat cumbersome process, the letter of credit system is one of the most popular trade finance mechanisms.

Details About CBSE Class 11 Commerce Business Studies Part B Finance and Trade

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