CUET UG Business Studies Syllabus

List the major effects of liberalisation, privatisation and globalisation (1991 New Economic Policy) on Indian business.

Increasing competition, more demanding customers, rapidly changing technology, need for change, need for developing human resources, market orientation, and loss of budgetary support to the public sector.

Define planning and state its importance.

Planning is deciding in advance what to do and how to do it—setting objectives and developing courses of action. It provides direction, reduces risk of uncertainty, reduces overlapping activities, promotes innovation, facilitates decision-making, and establishes standards for controlling.

List the steps in the planning process.

Setting objectives, developing premises, identifying alternatives, evaluating alternatives, selecting an alternative, implementing the plan, and follow-up action.

Differentiate between a policy, a procedure and a rule.

A policy is a general guideline for decision-making; a procedure is a defined sequence of steps to perform an activity; a rule is a specific statement of what must or must not be done, allowing no discretion.

Define organising and list the steps in the organising process.

Organising is identifying and grouping activities, assigning duties, and establishing authority relationships. Steps: identification and division of work, departmentalisation, assignment of duties, and establishing reporting relationships.

Differentiate between functional and divisional organisation structure.

Functional structure groups jobs of a similar nature into departments (e.g., production, finance); divisional structure groups activities by product lines into self-contained divisions, suitable for multi-product firms.

Differentiate between formal and informal organisation.

Formal organisation is the deliberately designed structure of authority and responsibility; informal organisation is the network of personal and social relations arising spontaneously among members.

What is delegation of authority and what are its three elements?

Delegation is the downward transfer of authority from a superior to a subordinate. Its three elements are authority, responsibility, and accountability.

Differentiate between delegation and decentralisation.

Delegation is the assignment of authority to one subordinate (a process and individual relationship); decentralisation is the systematic dispersal of authority throughout all levels of the organisation (an outcome and overall philosophy).

Define staffing and list the steps in the staffing process.

Staffing is filling and keeping filled the positions in an organisation. Steps: estimating manpower requirements, recruitment, selection, placement and orientation, training and development, performance appraisal, promotion and career planning, and compensation.

Differentiate between recruitment and selection.

Recruitment is the positive process of searching for and inducing prospective candidates to apply; selection is the negative process of choosing the most suitable candidates and rejecting the rest.

Differentiate between training and development.

Training is the process of increasing knowledge and skills for a specific job; development is the broad, long-term growth of an employee's overall personality and managerial ability.

Define directing and list its elements.

Directing is instructing, guiding, counselling, motivating and leading people to achieve organisational goals. Its elements are supervision, motivation, leadership, and communication.

Name the needs in Maslow's hierarchy of needs (lowest to highest).

Basic physiological needs, Safety/security needs, Affiliation/belonging (social) needs, Esteem needs, and Self-actualisation needs.

Differentiate between financial and non-financial incentives, giving examples of each.

Financial incentives are monetary rewards (pay, bonus, profit sharing, perquisites); non-financial incentives satisfy psychological/social needs (status, career advancement, job security, employee recognition, job enrichment).

Differentiate between formal and informal communication.

Formal communication flows through officially established channels (e.g., scalar chain); informal communication (grapevine) flows through unofficial social channels among members.

Define controlling and list the steps in the controlling process.

Controlling is ensuring activities conform to plans. Steps: setting performance standards, measuring actual performance, comparing actual with standards, analysing deviations, and taking corrective action.

What is management by exception?

A principle of control whereby a manager focuses attention only on significant deviations that go beyond the permissible limit, rather than every minor deviation—'control by exception'.

Explain how planning and controlling are interrelated.

Planning is the basis of controlling (standards come from plans) and controlling is the end of planning (it checks whether plans were achieved); planning is prospective while controlling is both backward- and forward-looking. They are inseparable twins.

Define financial management and state its three key decisions.

Financial management is the planning, organising, directing and controlling of an enterprise's financial activities. Its three decisions are the investment decision, the financing decision, and the dividend decision.

What is the primary objective of financial management?

Wealth maximisation, i.e., maximising the market value of the equity shareholders' wealth (shareholder value).

What is financial leverage (trading on equity)?

The proportion of debt in the overall capital structure; using fixed-cost debt to increase the earnings per share (EPS) of equity shareholders. It is favourable when ROI exceeds the cost of debt.

Define working capital and distinguish gross from net working capital.

Working capital is the capital required for day-to-day operations. Gross working capital is total investment in current assets; net working capital is current assets minus current liabilities.

List the factors affecting the dividend decision.

Amount of earnings, stability of earnings, stability of dividends, growth opportunities, cash flow position, shareholders' preference, taxation policy, stock market reaction, access to capital markets, legal constraints, and contractual constraints.

Define a financial market and name its two main types.

A financial market is a market for the creation and exchange of financial assets, channelling savings into investment. Its two types are the money market (short-term) and the capital market (long-term).

Differentiate between the money market and the capital market.

The money market deals in short-term funds (maturity up to one year, e.g., T-bills, commercial paper); the capital market deals in medium- and long-term funds (e.g., shares, debentures, bonds).

Name the main instruments of the money market.

Treasury Bills (T-bills), Commercial Paper, Call Money, Certificate of Deposit, and Commercial Bill (Trade Bill).

Differentiate between the primary market and the secondary market.

The primary (new issue) market is where companies issue new securities directly to investors to raise fresh capital; the secondary (stock) market is where existing securities are traded among investors.

State the functions of SEBI.

Regulatory functions (registering intermediaries, regulating mutual funds/takeovers, prohibiting fraudulent and insider trading), developmental functions (training intermediaries, promoting fair practices), and protective functions (protecting investor interests, investor education).

What is dematerialisation in the stock market?

The process of converting physical share certificates into electronic form held in a Demat account with a depository (NSDL or CDSL), enabling paperless trading.

Define marketing and distinguish it from selling.

Marketing is the social process of identifying and satisfying customer needs at a profit, covering the entire process from before production to after sale; selling is only one part—transferring ownership of a product for a price.

Name the elements of the marketing mix (4 Ps).

Product, Price, Place (physical distribution), and Promotion.

Name the elements (tools) of the promotion mix.

Advertising, Personal selling, Sales promotion, and Publicity (public relations).

List the functions of a label/labelling and the functions of packaging.

Labelling identifies the product, describes contents/grade, helps in promotion and provides legally required information. Packaging provides product identification, protection, facilitates use/handling, and promotes the product.

What are the consumer's rights under the Consumer Protection Act?

Right to safety, right to be informed, right to choose, right to be heard, right to seek redressal, and right to consumer education.

Name the three-tier redressal machinery under the Consumer Protection Act, 2019 and their pecuniary jurisdictions.

District Commission (claims up to Rs 1 crore), State Commission (above Rs 1 crore up to Rs 10 crore), and National Commission (above Rs 10 crore).

Define business, profession and employment as economic activities.

Business is producing/exchanging goods and services for profit; profession involves rendering personalised services of a specialised nature requiring expertise and a code of conduct, earning fees; employment is working for others under a contract of service for wages/salary.

Differentiate between industry, commerce and trade.

Industry covers activities of producing/processing goods (primary, secondary, tertiary); commerce covers trade and the auxiliaries (aids) to trade; trade is the buying and selling of goods, a part of commerce.

Name the auxiliaries to trade.

Transportation and communication, banking and finance, insurance, warehousing, and advertising.

What is the difference between business risk and the concept that 'profit is a reward for risk'?

Business risk is the possibility of inadequate profits or losses due to uncertainties; profit is regarded as the reward (incentive) a businessperson earns for assuming these risks.

List the main forms of business organisation in India.

Sole proprietorship, Joint Hindu Family business, Partnership, Cooperative society, and Joint stock company (private and public).

State the features of a sole proprietorship.

Single ownership, no separate legal entity, unlimited liability, sole risk-bearer and profit recipient, no legal formalities for formation, and lack of business continuity (limited life).

What governs a Joint Hindu Family business and who is its head?

It is governed by Hindu Law; membership is by birth into the family. The head/manager is called the Karta, who has unlimited liability while other members (coparceners) have liability limited to their share in the family property.

Define partnership and name the Act that governs it in India.

Partnership is the relation between persons who agree to share the profits of a business carried on by all or any of them acting for all. It is governed by the Indian Partnership Act, 1932.

Name the types of partners.

Active partner, sleeping/dormant partner, secret partner, nominal partner, partner by estoppel, and partner by holding out.

Differentiate between a private company and a public company.

A private company has a minimum of 2 members (max 200), restricts share transfer, and cannot invite the public to subscribe; a public company has a minimum of 7 members (no max), freely transferable shares, and can invite the public to subscribe to its securities.

What is a cooperative society and what is its core principle?

A voluntary association of persons who join together to protect their common economic interests; its core principle is 'one member, one vote' with service motive and limited liability of members.

List the factors to consider when choosing a form of business organisation.

Cost and ease of formation, liability, continuity, management ability, capital considerations, and degree of control.

Classify the sources of business finance on the basis of period of finance.

Long-term sources (more than 5 years, e.g., shares, debentures), Medium-term sources (1 to 5 years, e.g., bank loans, public deposits), and Short-term sources (less than 1 year, e.g., trade credit, commercial paper).

Differentiate between owners' funds and borrowed funds.

Owners' funds are contributed by owners and retained earnings (e.g., equity shares, retained profits)—permanent capital with no fixed repayment; borrowed funds are raised through loans/borrowings (e.g., debentures, bank loans, public deposits) carrying fixed interest and repayment obligation.

Differentiate between equity shares and preference shares.

Equity shareholders are owners with voting rights, variable dividends and residual claims; preference shareholders get a fixed dividend and priority in dividend payment and capital repayment but usually no voting rights.

What are debentures and how do they differ from shares?

Debentures are debt instruments acknowledging a loan to the company carrying a fixed rate of interest; unlike shares, debenture holders are creditors (not owners), get fixed interest regardless of profit, have no voting rights, and are repaid before shareholders.

What is trade credit and a public deposit as a source of finance?

Trade credit is credit extended by one trader to another for goods/services purchased (short-term, interest-free); a public deposit is money raised by a company directly from the public by offering a fixed rate of interest, for a period of 6 months to 36 months.

Differentiate between GDR and ADR (international sources of finance).

A GDR (Global Depository Receipt) is a negotiable instrument issued to raise funds in markets outside the home country (typically Europe); an ADR (American Depository Receipt) is issued specifically to American investors and traded in the US capital market.

Define internal trade and name its two main types.

Internal (domestic) trade is the buying and selling of goods within the boundaries of a country. Its two types are wholesale trade and retail trade.

Differentiate between a wholesaler and a retailer.

A wholesaler buys in bulk from manufacturers and sells in smaller quantities to retailers; a retailer buys from wholesalers and sells in small quantities directly to final consumers.

Classify retail trade into its main types.

On the basis of size: itinerant retailers (e.g., hawkers, peddlers, market traders) and fixed-shop retailers (small-scale like general stores and large-scale like departmental stores, chain/multiple stores, and mail-order houses).

What is a departmental store and how does it differ from a multiple/chain store?

A departmental store is a large retail establishment offering a wide variety of products under one roof at a central location; multiple/chain stores are a network of similar retail shops at different locations selling standardised products of limited lines.

What is e-business (e-commerce) and how does it differ from traditional business?

E-business is conducting industry, trade and commerce using computer networks/the internet. Unlike traditional business, it has ease of formation, lower investment, global reach, 24x7 operation, and is paperless—but lacks personal touch and faces security risks.

Name the types of e-business transactions based on parties involved.

B2B (business to business), B2C (business to consumer), C2C (consumer to consumer), and intra-B (within a business).

What is outsourcing and name two common types.

Outsourcing is contracting out non-core, routine activities to specialised, efficient external agencies. Common types are BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing).

Name the chambers of commerce/trade associations and one role they play in promoting internal trade.

Bodies like FICCI, CII and ASSOCHAM; they promote internal trade by interfacing with the government on policy, helping in tax reforms, weights and measures standardisation, transport coordination, and integration of states for free trade (e.g., supporting GST).