Join Your Exam WhatsApp group to get regular news, updates & study materials HOW TO JOIN

Details About CBSE Class 11 Commerce Business Studies Sources of Business Finance

Details About CBSE Class 11 Commerce Business Studies Sources of Business Finance

CBSE Class 11 Commerce Business Studies Sources of Business Finance : CBSE is a renowned educational Board, which comes under the Union Government of India. This eminent board was formed in 1952 and associated with the Board of High School and Intermediate Education, Rajputana. The Central Board of Secondary Education or CBSE is a prestigious board of education and it provides affiliation to public and private schools. Apart from this, all Jawahar Navodaya Vidyalayas and kendriya vidyalayas are affiliated to this board.

CBSE Syllabus is well-structured as several proficient subject experts are associated with this board. The syllabi of CBSE Maths, CBSE Science along with other syllabi are amended from time to time to make students up-to-date with current information so that they can meet all educational demands confidently.

The CBSE academics unit is formed with training, academic, Innovation and research unit of CBSE and it looks after some important fields to maintain its standard of education. This unit incorporates different policies and also monitors their operational activities to achieve academic excellence in all aspects.

Details About CBSE Class 11 Commerce Business Studies Sources of Business Finance

CBSE Class 11 Commerce Business Studies Sources of Business Finance :CBSE is a reputed educational board of India and it provides updated syllabus for different classes. Several proficient subject experts are associated with this board and based on current research; they evaluate the syllabus of each subject from time to time. Thus, they make students up-to-date with current information and also maintain its standard in all respects. All essential subjects including Math, Chemistry, Physics, Biology, History, Geography, English and other language subjects are included in the syllabus designed for different classes. CBSE syllabus is known for its standard educational pattern and comprehensive marking scheme. The most important thing is that each subject gets equal focus in the entire syllabus so that students can get adequate information on different subjects.

Details About CBSE Class 11 Commerce Business Studies Sources of Business Finance

CBSE Class 11 Commerce Business Studies Sources of Business Finance : Business Studies can be taken as part of the General Certificate of Secondary Education (GCSE) option for Year 9, Year 10 and Year 11 at secondary school, and also can be taken as part of a GCE Advanced Level (A-level) course in Year 12 and Year 13. It includes a range of subjects, which give the student general understanding of the various elements of running a business. Subjects covered include, but are not limited to: Business Organization, People in Business, Marketing, Operations & Production, Finance, and Strategic Management.

You have chosen to study a dynamic subject that will stretch your knowledge and challenge your ideas. This is an introductory course, which is designed to engage you with the key concepts, models, debates and problems in the study of business and management. Developing this foundation will be beneficial to your subsequent study of specialized subjects, because you will be able to make connections between different issues. This introductory course is also a chance for you to develop your academic skills, in particular your critical approach to the ideas you are presented with. Studying at this level means actually engaging with what you are reading: considering what is being said in relation to other theories, practical examples, and your own reflections. The subject of business and management offers an ideal opportunity to develop this academic approach, as a wide variety of groups, individuals and organisations offer diverse opinions and theories regarding the workings of business and successful management.

It 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.

When we look around us, we observe that most of the people are engaged in various activities. Teachers teach in the schools, farmers work in the fields, workers work in the factories, drivers drive vehicles, shopkeepers sell goods, doctors attend patients and so on. In this way, people are busy during the day and sometimes during the night throughout the year. Now the question arises as to why we all keep ourselves busy. The answer is to satisfy our wants. By doing so, we either discharge various obligations or earn money through which we can buy goods and avail services. In this lesson let us learn more about various types of activities in which we all keep ourselves busy to satisfy our wants. We shall learn in detail about ‘Business’ as a human activity.

Objective of Business Study CBSE Classes 11 Subject

After studying this lesson, you will be able to:

• define human activities;

• distinguish between economic and non-economic activities;

• define the term ‘business’;

• identify various characteristics of business;

• explain the objectives of business;

• explain the social responsibilities of business; and

• explain the types, causes and effects of pollution and role of business to reduce environmental pollution:

ECONOMIC OBJECTIVES

Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes creation of customers, regular innovations and best possible use of available resources.  Profit Earning Profit is the lifeblood of business, without which no business can survive in a competitive market. Thus, profit making is the primary objective for which a business unit is brought into existence. Profits help businessmen not only to earn their living but also to expand their business activities by reinvesting a part of the profits. In order to achieve this primary objective, certain other objectives are also necessary to be pursued by business, which are as follows:

i) Creation of customers A business unit cannot survive unless there are customers to buy the products and services. Again a businessman can earn profits only when he/she provides quality goods and services at a reasonable price. For this it needs to attract more customers for its existing as well as new products. This is achieved with the help of various marketing activities.

ii) Continuous innovations Business is highly dynamic and an enterprise can continue to be successful only by adopting itself to change in its environment. Innovation means changes, which bring about improvement in products, process of production and distribution of goods. Reduction in cost and increase in sales gives more profit to the businessman. Use of powerlooms in place of handlooms, use of tractors in place of hand implements in farms etc. are the results of innovation.

iii) Best possible use of resources As you know, to run any business you must have sufficient capital or funds. The amount of capital may be used to buy machinery and raw materials, to employ men and have cash to meet day-to-day expenses. Thus, business activities require various resources like men, materials, money and machines. This objective can be achieved by employing efficient workers, making full use of machines and minimizing wastage of raw materials.

Details About CBSE Class 11 Commerce Business Studies Sources of Business Finance

CBSE Class 11 Commerce Business Studies Sources of Business Finance : Business finance is a term that encompasses a wide range of activities and disciplines revolving around the management of money and other valuable assets. Business finance programs in universities familiarize students with accounting methodologies, investing strategies and effective debt management. Small business owners must have a solid understanding of the principles of finance to keep their companies profitable.

 Significance

Financing, simply put, is the act of bringing money into an organization. Businesses can be financed in a number of ways, each of which features its own advantages, disadvantages and unique features. Common methods of financing a business include taking on debt and taking advantage of credit arrangements, financing through equity investment or earning income through investment products that bear interest or increase in value.

Time Frame

Properly managed debt can help a small business to finance steady or rapid expansion. Loans from banks and credit unions can be structured in a number of ways; borrowers with established reputations and high credit scores have access to larger amounts of debt capital at lower interest rates with more friendly fee structures. Small business owners should have a plan for building up their company’s credit score over time.

Types

Equity financing can be obtained via several avenues. Investment from venture capitalists or angel investors can provide a significant influx of capital, not to mention access to expert guidance, for businesses in the startup phase. More established businesses can incorporate and sell shares of stock to the public to raise large amounts of debt-free capital, at the expense of diluting ownership and control of the company among a wider range of individuals and organizations.

Considerations

Making wise and profitable investments can finance business operations with no strings attached. Investing in conservative products such as blue-chip bonds, interest-bearing bank deposits and trusted dividend-paying stocks can help a business to diversify its income, hedging itself against risks in the marketplace.

Warning

Each type of financing should be used with caution and vigilance. Taking on too much debt can dilute company performance metrics such as the debt-to-assets and times-interest-earned ratios, as well as reducing profit margins. Financing too heavily through equity can cause original company founders to lose control of the company completely over time. Investing too much money in risky investments can cause a company to lose its cash reserves quickly.

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

Details About CBSE Class 11 Commerce Business Studies Sources of Business Finance

Cakart.in provides India’s top Class 11 Commerce  faculty video classes – online & in Pen Drive/ DVD – at very cost effective rates. Get Class 11 Commerce  Video classes from www.cakart.in  to do a great preparation for primary Student.

Watch Class 11 Commerce  sample video lectures
Watch Class 11 Commerce  sample lecture books  
Watch Class 11 Commerce   free downloads  

Leave a comment

Your email address will not be published. Required fields are marked *