NATIONAL UNIVERSITY

First Year Syllabus

Department of Finance & Banking

Four-Year BBA (Honours) Course

Effective from the Session: 2013–2014 National University

Subject: Finance & Banking

Syllabus for Four Year BBA Honours Course

Effective from the Session: 2013-2014
Year-wise Papers and marks distribution.

First Year

Paper Paper Title Marks Credits

Code
212401 Principles of Accounting 100 4
212403 Principles of Finance 100 4
212405 Principles of Marketing 100 4
212407 Principles of Management 100 4
212409 Micro Economics 100 4
211501 History of the Emergence of Independent 100 4
Bangladesh
Total = 600 24

Detailed Syllabus

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

212401
Paper Title: PRINCIPLES OF ACCOUNTING

1. Accounting-The Language of Business: Definition and Scope of

Accounting, Its role and functions, History of Accounting, Purpose and

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 Nature of Accounting Information-Users of Accounting Information.
Branches of Accounting-Nature of Business and Accounting.
2. Conceptual Framework for Financial Accounting: FASB Conceptual
Frame for Financial Accounting-First Level: Basic Objectives (SFAC-1);
Second Level: Qualitative Characteristics of Accounting Information
(SFAC-2); Third Level: Operational Guidelines.

3. The Accounting Process: Double Entry-Accounting System vis-a-vis

Incomplete System, Accounting Equation-Effects of Transactions on the
Accounting Equation. The Accountant-Classification of Accounts-Selection
of Account titles-Chart of Accounts-Coding-Rules of Debit and Credit –
Balancing and Normal Balance-Recording (Bookkeeping), Aspect of
Accounting Cycle: Documentary Evidence and Identification, Analysis, and
Recording of Transactions and Other Events-Journalization-Posting to the
Ledger-Preparation of Trial Balance-Limitations of Trial Balance, Errors and
their Rectification.

4. The Adjustment Process and Completing the Accounting Process: Key

aspects of the Accrual basis of Accounting, Cash Accounting, and Break-up
basis of Accounting-Adjustments-Adjusted Trial Balance-Preparation of
Work Sheet-Closing Entries-Post-Closing Trial Balance-Reserving Entries.

5. Merchandising Operations and Accounting System: Merchandising

Operations and Classifying Inventory-Purchases, Sales, Other use of Loss
and Returns of Merchandise Inventory-Periodic and Perpetual Inventory
Systems and Journal Entries-Specific Identification Method and Inventory
Cost Flow Assumption (FIFO, LIFO, and Average Cost).
6. Accounting Systems and Special Ledgers: Manual and Computerized
Accounting Systems and their Effectiveness Voucher System-General
Ledgers and Subsidiary Ledgers: General Ledger Control Accounts and
Subsidiary Ledger Individual Accounts. Special Journals: Advantages of
Special Journals-Cash Receipts Journal-Sales Journals-Purchase Journal-
Cash Payments Journal and General Journal.
7. Control of Cash: Controlling cash, Internal Control, The Bank cheque
account, Petty Cash, and Bank Reconciliation Statement.
8. Accounting for Receivable and Current Liabilities: Receivable-Types of
Receivables valuing and disposing of Uncollectible accounts-Allowance for
doubtful accounts, Accounting for temporary investments-Marketable
Securities-Accounting for current liabilities.
9. Financial Statements as a Reporting Device: Idea on a Complete Set of
Financial Statements. Purpose and interrelationship of the Financial
Statement. Importance, Limitations, and Preparation of Financial Statements.
Supplementary Statements/Schedules. Preparation of Statements according

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 to the Nature of Business. Statements for Nonprofit Organizations.
Preparation of Financial Statements according to Legal Form of Business:
Sole-proprietorship Organizations, Partnership Firms & Companies
(Introductory Idea).

Books Recommended:
1. Weygandt, Jerry J., Kimmel, Paul: Accounting Principles (latest edition),
John
D. and Kieso Donald Wiley & Sons. Inc.

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

212403
Paper Title: PRINCIPLES OF FINANCE

1. Introduction: Conceptual framework, Financial Decision making, Role of

Finance in a firm. The goal of financial management of a firm is finance as a
discipline.

2. Short-Term Financing: Characteristics and sources, spontaneous sources,

unsecured and secured short-term loans, Assignment and factoring of
accounts receivables, and inventory financing.

3. Intermediate-Term Financing: Characteristics and sources, different

methods, repayment method, and effective interest calculation.

4. Time value of Money: Basic concepts, computing present value, and future
value: Single amounts-Annuities-Mixed streams.

5. Long-Term Financing: Characteristics and uses, Common stock capital,

Preferred Stock Capital and Bond, Valuation of Stock and Bond.

6. Risk and Return: Risk and Return fundamentals, Measuring risk;

Probability distribution, Expected value, Standard deviation, and coefficient
of variation. The risk premium, Risk and required rate of return, CAPM.
Leverage and Risk-Financial Risk, Business Risk.

7. Capital Budgeting Cash Flows: The Capital Budgeting Decision The

relevant cash flows, finding initial investment, finding the operating cash
inflows, finding the terminal cash flow, summarizing the relevant cash
flows.

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8. Capital Budgeting Techniques: Overview of capital budgeting techniques
Back Period, Net Present Value (NPV), Internal Rate of Return (IRR),
Comparing NPV and IRR.

9. Capital Structure Decision: The firm’s capital structure EBIT-EPS

approach to capital structure, Choosing the Optimal Capital Structure.

Book Recommended:

1. Gitman Lawrence G: Principles of Managerial Finance, 10th edition

Reference Book:

1. Brigham Eugene F, Ehrhardt: Financial Management Theory and Practice,

Michael C, 11th edition, South-Western

2. Lawrence D, Schall & Charls: Introduction to Financial Management

W. Haley

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

212405
Paper Title: PRINCIPLES OF MARKETING

1. Creating and Capturing Customer Value: What is marketing?

Understanding the marketplace and customer needs. Designing a customer
driven marketing strategy. Preparing an integrated marketing plan and
program Building customer relationships. Capturing value from customers.
The changing marketing landscape.

2. Company and Marketing Strategy-Partnering to Build Customer

Relationships: Company-wide strategic planning. Planning marketing.
Marketing strategy and the marketing mix. Managing the marketing effort.
Measuring and managing return on marketing investment.

3. Analyzing the Marketing Environment: The Company's

Microenvironment. The company's macro environment. Responding to the
marketing environment.

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 4. Markets and Their Buyer Behavior: Consumer Markets and Consumer
Buyer Behavior: Consumer market Model of consumer behavior.
Characteristics affecting consumer behavior. Types of buyer decision
behavior. The buyer decision process. The Buyer decision process of new
products. Business Markets and Business Buyer Behavior; Business market.
Business buyer behavior. Institutional and government markets.

5. Customer-Driven. Marketing Strategy: Creating value for Target

Customers: Market segmentation. Market targeting. Differentiation and
positioning.

6. Products, Services, and Brands: Building Customer Value: What is a

Product? Product and service decisions. Branding strategy: building strong
brands. Services marketing: nature and characteristics of a service--
Marketing strategies for service firms.

7. New Product Development and Product Life Cycle Strategies: New

product development strategy and new product development process.
Product life cycle strategies. Additional product and service considerations.

8. Pricing: Understanding and Capturing Customer Value and Pricing

Strategies: What is a price? Factors to consider when setting prices. New
product pricing strategies. Product mix pricing strategies. Price adjustment
strategies. Price changes.

9. Marketing Channels: Delivering Customer Value & Relating and

Wholesaling: Supply chains and the value delivery network. The nature and
importance of marketing channels. Channel behavior and organization.
Channel design decisions. Channel management decisions. Retailing-
Wholesaling.

10.Communicating Customer Value: Integrated Marketing Communications

Strategy: The promotion mix. Integrated marketing communications. A view
of the communication process. Steps in developing effective marketing
communication. Setting the total promotion budget and mix. Socially
responsible marketing communication.
11.The Global Market Place: Global marketing today. Deciding whether to go
global. Deciding which markets to enter. Deciding how to enter the market.
Deciding on the global marketing program. Deciding on the global
marketing organization.

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 12.Sustainable Marketing: Social Responsibility and Ethics: Sustainable
Marketing. Social criticisms of marketing. Consumer actions toward
sustainable Marketing. Business actions toward sustainable marketing.

Books Recommended:

1. Philip Kotler & Gary Armstrong: Principles of Marketing, Pearson Prentice

Hall, Upper Saddle River, New Jersey

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

212407
Paper Title: PRINCIPLES OF MANAGEMENT

1. Introduction: Meaning; Scope; Importance; Principles; Functions; Rules of

managers; Is Management Science or Art? Is Management a Profession?
Management as a Career; Global management.

2. Schools of Management: History of management; Early contribution to

Management; Various Approaches to Management; Taylor's Scientific
Management; Functional or Process Approach; Fayol’s Principles of
Management; Human Relations; Behavioral Science Approach; Quantitative
Approach; Systems Approach; Contingency Approach; Other Contemporary
Approaches to Management.

3. Planning: Meaning; Importance; Nature; Types; Steps; Factors Affecting

Planning; Planning Techniques; Limits of Planning; Making Planning
Effective.

4. Organizing: Meaning; Nature; Importance; Span of Management;

Departmentation Authority and Responsibility; Types of Organization at
Structure; Delegation of Authority; Decentralization of Authority; Problems
in Organizing.

5. Staffing: Meaning; Purpose; Importance; Recruitment; Selection; Training;

Promotion; Developing Managers; Using Manager Inventory Chart.

6. Leading: Meaning; Importance; Ingredients of Leadership; Styles of

Leadership: Autocratic, Democratic and Free-reign- Likerts' System;
Managerial Grid Approach; Theories of Leadership.

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7. Motivating: Meaning; Motivation and Motivator; Importance; The Need -
Want - Satisfaction - Chain; Theory Motivation; Mc-Gregor’s Theory X and
Theory Y’ Maslow’s Need Hierarchy Theory, Hergberg’s Two Factor
Theory; Vroom’s Expectancy Theory; McClelland’s Achievement;
Motivation Theory: Various Motivation Techniques.

8. Controlling: Meaning, Nature; Importance; Controlling Process,

Requirements of an Effective Control System, Controlling Techniques.

Book Recommended:

1. Harold Koontz and Heinz: Management A Global Perspective

Reference Book:1. S.P. Robbinn: Management
2. Griffin: Management
3. M M Islam and A A Khan: Fundamentals of Management

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

212409
Paper Title: MICROECONOMICS

1. The Fundamentals of Economics: Scarcity and Efficiency-The Twin

Themes of Economics-The Logic of Economics-The Three Problems of
Economic Organization: Market, Command and Mixed Economies-Society’s
Technological Possibilities: Inputs and Outputs-The Production Possibility
Frontier.

2. Markets and Government in a Modern Economy: The Mixed Economy-

What is a Market? Trade, Money and Capital-The Economic Role of
Government.

3. Basic Elements of Supply and Demand: The Demand Schedule: The

Demand Curve-The Supply Schedule: The Supply Curve-Equilibrium of
Supply and Demand.

4. Applications of Supply and Demand: Price Elasticity of Demand and

Supply: Price Elasticity of Demand, Elasticity and Revenue, Price elasticity
of Surplus-The Indifference Curve & Budget Line-Deriving the Demand
Curve.

5. Demand and Consumer Behavior: Choice and Utility Theory-

Equimarginal Principle-Substitution Effect and Income Effect-Consumer

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 Surplus-The Indifference Curve & Budget Line-Deriving the Demand
Curve.

6. Production and Business Organization: Theory of Production and

Marginal Products: Basic Concepts Returns to Scale-Short Run and Long
Run, Technological Change, Productivity and the Aggregate Production
Function-Business Organizations: The Nature of the Firm; Big Small and
Infinitesimal Business.

7. Analysis of Costs: Economic Analysis of Costs-Economic Costs and

Business Accounting-Opportunity Costs-Production, Cost Theory and
Decisions of Firms.

8. Analysis of Perfectly Competitive Markets: Supply Behavior of the

Competitive Firm-Supply Behavior in Competitive Industries-Special Cases
of Competitive Markets-Efficiency and Equity of Competitive Markets.

9. Imperfect Competition and Monopoly: Pattern of Imperfect competition-

Marginal Revenue and Monopoly.

10.Oligopoly and Monopolistic Competition: Behavior of Imperfect

Competitors-Innovation and Information-A Balance Sheet on Imperfect
Competition.

11.How Markets Determine Incomes: Income and Wealth-Input Pricing by

Marginal Productivity.
12.The Labor Market: Fundamentals of Wage Determination-Labor Market
Issues and Policies.
13.Land and Capital: Land and Rent-Capital and Interest-Markets and
Economic Efficiency.
Books Recommended:

1. Ahuja, H. L.: Modern Micro Economics, S. Chand & Co.

Ltd.
2. Dewett, K. K.: Modern Economic Theory

Paper Code: 211501 Marks: 100 Credits: 4 Class Hours: 60

Paper Title: History of the Emergence of Independent
Bangladesh

History of the Emergence of Independent Bangladesh

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 Introduction: Scope and description of the emergence of Independent
Bangladesh.
Writing on this topic.

1. Description of the country and its people.

a. Geographical features and their influence.
b. Ethnic composition.
c. Language.
d. Cultural syncretism and religious tolerance.
e. Distinctive identity of Bangladesh in the context of undivided Bangladesh.

2. Proposal for undivided sovereign Bengal and the partition of the

Subcontinent, 1947.
a. Rise of communalism under the colonial rule, Lahore Resolution 1940.
b. The proposal of Suhrawardi and Sarat Bose for undivided Bengal:
Consequences
c. The creation of Pakistan in 1947.

3. Pakistan: Structure of the state and disparity.

a. Central and provincial structure.
b. Influence of Military and Civil Bureaucracy.
C . Economic, social, and cultural disparity

4. Language Movement and the quest for Bengali identity

a. Misrule by the Muslim League and Struggle for democratic politics.
b. The Language Movement: context and phases.
c. United front of Haque – Vasani – Suhrawardi: election of 1954,
consequences.

5. Military rule: the regimes of Ayub Khan and Yahia Khan (1958-1971)
a. Definition of military rules and its characteristics.
b. Ayub Khan’s rise to power and characteristics of his rule (Political
repression, Basic democracy, Islamisation)
c. Fall of Ayub Khan and Yahia Khan’s rule (Abolition of one unit, universal
suffrage, the Legal Framework Order)

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 6. Rise of nationalism and the Movement for self determination.
a. Resistance against cultura l aggression and resurgence of Bengali culture.
b. Sheikh Mujibur Rahman and the six point movement
c. Reactions: Importance and significance
d . The Agortola Case 1968.

7. The mass- the upsurge of 1969 and 11-point movement: background,

program, and significance.

8. The election of 1970 and the Declaration of Independence by

Bangobondhu
a. Election results and centers' refusal to comply
b. The non-co-operation movement, the 7th March, Address, Operation
Searchlight
c. Declaration of Independence by Bangobondhu and his arrest

9. The War of Liberation 1971

a. Genocide, repression of women, refugees
b. Formation of Bangladesh government and Proclamation of Independence
c. The spontaneous early resistance and subsequent organized resistance
(Mukti Fouz, Mukti Bahini, guerillas, and frontal warfare )
d. Publicity Campaign in the War of Liberation (Shadhin Bangla Betar Kendra,
the Campaigns abroad, and the formation of public opinion )
e. Contribution of students, women, and the masses (Peoples war)
f. The role of superpowers and the Muslim states in the Liberation War.
g. The Anti-liberation activities of the occupation army, the Peace Committee,
Al-Badar, Al-Shams, Rajakars, pro-Pakistan political parties, and Pakistani
Collaborators, killed the intellectuals.
h. Trial of Bangabandhu and Reaction of the World Community.
i. The Contribution of India in the Liberation War
j. Formation of Joint Command and the Victory
k. The overall contribution of Bangabandhu in the Independence struggle.

10. The Bangabandhu Regime 1972-1975

a. Homecoming

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 b. Making of the constitution
c. Reconstruction of the war-ravaged country
d. The murder of Bangabandhu and his family and the ideological turn-
around.

NATIONAL UNIVERSITY

Second Year Syllabus

Department of Finance & Banking

Four-Year B.B.A. Honours Course

Effective from the Session: 2013–2014
National University

Subject: Finance & Banking

Syllabus for Four Year BBA Honours Course

Effective from the Session: 2013-2014
Year-wise Papers and marks distribution.

Second Year

Paper Paper Title Marks Credits

Code
222401 Business Statistics (In English) 100 4
222403 Macro Economics 100 4
222405 Business Mathematics 100 4
222407 Law and Practices of Banking and Insurance 100 4
222409 Computer and Information Technology 100 4
222411 Legal Aspects of Business 100 4
222413 Business Communication and Report Writing 100 4
(In English)
Total = 700 28

11
 Detailed Syllabus

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

222401
Paper Title: Business Statistics (In English)

1. Introduction: Meaning and Concepts; Nature; Scope; Nature/characteristics

of Statistical Data; Classification; Tabulation; Frequency Distribution;
Graphical Presentation of Data.

2. Measures of Central Tendency: Meaning and concepts; Arithmetic Mean;

Geometric Mean; Harmonic Mean; Weighted Arithmetic Mean; Mode;
Median; Quartiles; Deciles; Percentiles; Properties of a Good Average;
Empirical Relation Among the Averages.

3. Measures of Dispersion: Significance of Measuring Dispersion; Properties

of A Good Average Dispersion; Range-Inter-Quartile Range and quartile
Deviation; Mean Deviation; Standard Deviation; Co-efficient of, Variations
and Their Application.

4. Moments, Skewness and Kurtosis: Concepts; Moments from Arbitrary

Value; Moments from Mean; Relation between Moments; Measures of
Skewness and its Uses, Measures of Kurtosis and Its Application.
5. Correlation Analysis: Meaning and concept; Significance of the Study of
Correlation and Causation; Types of Correlation; Scatter Diagram Method;
Karl Pearson's Co-efficient of Correlation; Rank Correlation Co-efficient.

6. Regression Analysis: Concept; Difference between Correlation and

Regression Analysis; Simple Regression Lines; Regression Equation;
Regression Co-efficient.

7. Probability: Meaning of Probability, Elements of Set Theory; Sample

Space; Events; Theorems of Total and Compound Probability; Conditional
Probability and Statistical Independence; Expected value of Random
Variable.

8. Index Number: Price Index; Quantity Index; Value Index; Cost of Living
Index Numbers; Chain index Numbers; Base Shifting-Splicing and Deflating
the Index; Test of Index Numbers; Limitations and Uses.

9. Sampling Distribution: Student's Distribution; Chi-square Distribution;

Fisher's Z-Distribution; F-Distribution; Their Properties and Uses.

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 10.Test of Hypothesis: Procedure of Testing Hypothesis; Null Hypothesis–
Alternative Hypothesis-Type I and Type II Errors; Level of Significance;
Degree of Freedom; One-Tailed and Two-Tailed Tests; Power of Test; Tests
About Mean; Tests about the Difference between Two Means; Tests about
the Difference between Two Means with Dependent Samples; Tests about
the Correlation Coefficient; Tests of Equality of Two Variances; Testing for
Equality of Several Means; Test of Independence; Test of Goodness of Fit.

11.Analysis of Variance: Assumption in Analysis of Variance; Computation of

Analysis of Variance; One way and two ways Classification.

Books Recommended:
1. S.P. Gupta and M.P. Gupta: Business Statistics
2. Levin & Lubin: Modern Business Statistics
3. Spiegel M.R. : Statistics-Schaum’s Outline Series

Paper Code: 222403 Marks: 100 Credits: 4 Class Hours: 60

Paper Title: Macro Economics

1. Overview of Macroeconomics: Key concepts of macroeconomics -

Aggregate supply and demand, aggregate output and prices, Production and
income, Unemployment rate, inflation rate, etc.

2. Measuring economic activity: Yardstick of an economy's performance -

Gross domestic product, Gross national product, the national accounts - the
balance of trade, the balance of payments, foreign reserve, and currency
accounts.

3. The short run: Goods market, the composition of GDP, the demand for
goods, determination of equilibrium output, investment and savings,
financial market, monetary policy, demand for money, determination of
interest rate, goods market, and is relation, Financial Market and LM
relation, IS-LM model.

4. The medium run: The labor market, movements in unemployment, wage

determination, price determination, the natural rate of unemployment,
business cycle theories, the AS-AD model, equilibrium in the short run and
medium run, the effects of a monetary expansion, the natural rate of
unemployment and the Phillips curve; inflation, activity, and nominal money
growth, etc.

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5. The long run: The factors of economic growth; saving, capital accumulation
and output, technological progress and growth, the relationship of
technological progress with wages and unemployment, etc.

6. Economic growth and stability: Theories of economic growth, patterns of

growth in developing countries, alternative models for development, price
stability and inflation, the impact of inflation, modern inflation theory,
dilemmas of anti-inflation policy, economic consequences of government
debt, theories and practices of fiscal policies, economic prospect for
Bangladesh.

Books Recommended:

1. N. Gregory Mankiw: Principles of Macroeconomics

2. Abel, Andrew B., Ben S. Bernanke: Macroeconomics

and Dean Croushore

Paper Code: 222405 Marks: 100 Credits: 4 Class Hours: 60

Paper Title: Business Mathematics

1. Number System: Introduction, Prime, Rational and Irrational number, even

and odd numbers and their properties. Imaginary and complex numbers;
sequence, series, Divergence of a sequence, sigma notation, Sum of natural
numbers.

2. Indices and Logarithms: Indices, laws of indices, positive and fractional

indices, operation with power functions. Introduction, Laws of operations,
use of logarithm tables, Anti-logarithm, Exponential series, logarithmic
series.

3. Theory of Sets: Different types of sets, union, difference intersection,

Cartesian products, Venn diagram, Application in business problems.

4. The Straight Lines & Linear Equations: Different forms of Equations-

Parallel and perpendicular form of Equations-Point of the intersection of
lines-Interpretation of Slope of different business problems and Marginal
Concept analysis, Solution of linear equations, solution of simultaneous
linear equations.

5. Quadratic Equations: Relationship between roots+- and coefficients of a

quadratic equation, Nature of roots, Solution of quadratic equations,

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 formation of quadratic equations with given roots. Curve sketching of
different linear and nonlinear equations.

6. Permutations and Combinations: Fundamental principles of permutations,

permutations of things, all different and things, not all different, repeated and
circular permutations. Combinations, the relationship between permutation
and combinations.

7. Progression: Introduction, Sum of Series in AP and GP, Use of the concept

of progression to find the present value and future value, Business problem
solution.

8. Mathematics of Finance: Introduction, Annuities, Sinking Fund, Discount,

Compound interest, Simple interest, Amortization.

9. Matrices & Determinants: Introduction, Types of matrices, operation on

matrices. Solution of simultaneous linear equations. Introduction, properties
of determinants, operations on determinants. Expansions of determinants
Sarrus diagram and Crammer's rule and use in business. Leontiff input-
output model analysis. Application to a business problem.

10.Differentiation, Integration & Use in Business: Differentiation of

Algebraic functions, transcendental function. Definition of transcendental
functions interruption of dy/dx and marginal concept analysis. Introduction,
Different rules of integration. Indefinite and Definite integral. Determination
of maxima and minima of different functions using differentiation rules.
Business problem solution. Conditions of maxima and minima, Test for
maxima and minima. Point of inflection.

Books Recommended :
1. Zameer Uddin, Kazi: Business Mathematics

2. Sanchetti & Kapoor: Business Mathematics

3. Rafiqul Islam, Md: Business Mathematics

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

222407
Paper Title: Law And Practices of Banking And Insurance

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 1. The financial system of Bangladesh: Formal Sector (Banks, NBFIs,
Insurance Companies, Capital Market Intermediaries; Micro Finance
Institutions (MFIs)., Semi-Formal Sector (specialized Financial Institutions),
Non-Governmental Organizations (NGOs and discrete government
programs), Informal sector (private intermediaries which are completely
unregulated)

2. Relationship between Banker and Customer: Definition of Banking and

Customer. General relationship between banker and customer. Obligations of
a banker, Garnishee order, Bankers right.

3. Customer's accounts with the Banker: Types of deposit accounts, closing

of a bank account, insurance of bank deposit, Facility of nomination, legal
status of the nominee.

4. Negotiable Instruments: Definition of negotiable instruments, Essential

features of negotiable instruments, holder and holder in due Paper, payment
in due Paper, holder for values
5. Bills of exchange and Promissory Notes: Kinds of bills of exchange,
presentment of negotiable instruments and acceptance, dishonor of
negotiable instruments, drawee in case of need, acceptance and payment for
honor.

6. The Liquid Assets: Significance of liquidity in banking, cash balance,

statutory cash reserve with the central bank, balance with other banks,
money at call, and short notice.

7. Loans and Advances: Principles of sound lending, creditworthiness of

borrowers, factors limiting the level of a bank's advances, consortium
advances.

8. Letters of Credit and Guarantees: Definition of letters of credit, types of

letters of credit, the opening of letters of credit, uniform customs, and
practice for documentary credits. Liability of the surety, rights of surety.

9. E-banking: Electronic payment systems and electronic banking, ATMs,

EFT, online banking, internet banking, PC banking, home banking, any
branch banking, SMS banking, Mobile banking, SWIFT, data
communication network,

10.History and Development of Insurance: Origin, history, and development

of insurance, development in Bangladesh: risk management-elimination and
spreading of risk.

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 11.Insurance Contract and Functions of Insurance: Law of contract, the
contract of insurance, insurance and wagering, assignment, the functions of
insurance, specific functions, and general functions.

12.Principles of Insurance: Principle of utmost good faith: the doctrine-

representations and warranties, application of the doctrine in underwriting
and claims-breaches of the duty-void, voidable, and unenforceable contracts.
Principle of insurable interest, principle of indemnity, principle of
subrogation, principle of proximate cause

13.Reinsurance: Definition of reinsurance, reasons for reinsurance, types of

reinsurance, application of reinsurance to various branches of insurance,
certain legal considerations, and hazards in insurance.

Books Recommended:
1. P.N. Varshney, H.C. Sarkar: Banking Law and Practice
2. Azizul Huq Chowdhury: Elements of Insurance, Bangladesh Insurance
Academy

Paper Code: 222409 Marks: 100 Credits: 4 Class Hours: 60

Paper Title: Computer And Information Technology

Overview; Input Hardware; Processing Hardware; Storage Hardware; Output

Hardware; Software: Software development and programming language;
Communications and connectivity;
Systems Development; Database Management; Information Management;
Ethics, Privacy and Security.

Books Recommended:
1. Hutchinson & Sayers : Computer & Information System
2. Norton Peter: Introduction to Computers, 5th Edition, Boston
McGraw Hill Technology Education, 2003
3. O’Leary and O’Leary: Computing Essentials

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

222411
Paper Title: Legal Aspects of Business

1. Law and legal system: Definition of law and legal environment, why study
business law, nature of law and legal theory, components of the legal system,
types of legal system tasks of the legal system, classification of law.

17
 2. Law of contract: Essential elements of contract, offer and acceptance,
consideration, void and voidable agreement, free consent, capacity of parties,
termination of contract, law of agency.

3. The law relating sale of goods: Definitions, transfer of ownership,

performance of the contract of the sale.

4. Laws relating to carriage of goods: Carriage of goods by sea, carriage of

goods by road, carriage of goods by rail, carriage of goods by air.

5. Law of partnership: Nature of partnership, Rights and liabilities of partners,

dissolution of firms.

6. Law relating to Negotiable Instrument: Acceptance and negotiation, rights

and liabilities of parties, dishonor of negotiable instrument, hundis.

7. Company Law: Definition of company, feature, and classification of

companies, formation of company, memorandum, articles of association, the
commencement of business, management, and winding up of the company.

8. Industrial Law: The Bangladesh Labour Act 2006.

Books Recommended:
1. Sen, Arun Kumar & Mitra: Commercial Law and Industrial Law, The
World Press
Jitendra Kumar Private Ltd., 1998

2. Khan A.A.: Bangladesh Labor and Industrial Law, Pravati

Prakashani, Dhaka, 2002
3. Henry Cheeseman Rs: Business Law Legal, Ethical and International
Environment, Prentice Hall Inc., New Jersey,
1992

Paper Code: Marks: 100 Credits: 4 Class Hours: 60

222413
Paper Business Communication And Report Writing (In English)
Title:

1. Introduction: Meaning of communication and business communication,

Scope, Purpose, Processes, Principals, Functions, importance and models of
Communication.
2. Types of Communication: oral, Written, Non-verbal, Downward, Upward,
Horizontal, mess Communication.

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 3. Major Media of Written Communication: Letter, Memos, Reports- Style
and Structure, Advantages and disadvantages of different media.
4. Major media of Oral Communication: Speech-face-to-face conversation
interviews, meetings, advantages and disadvantages of different media.
5. Non-verbal communication: Symbols, Gestures, body language, Visual
communication.
6. Internal communication: Meaning, importance of communication within
the organization and small groups, media of internal communication style,
office memos.
Technology in modern communication: Electronic media in oral and written
communication, Telephone, Fax, ISD, Computer, Internet, E-mail, and
Multimedia.

7. Communication Skills: Improving Skills in non-verbal and verbal

communication effective listening skills and reading skills, and effective writing
skills, and technical.
8. Business Report writing: Types of Reports, Characteristics, and importance
of different types, purpose, Scope, different styles of writing reports.
9. Letter writing: Types of letter- circular letter inquiry- letter of Complaints –
dunning letter adjustments- letter of order.
Books Recommended :

1. Raymond V. Lesiker: Basic Business Communication

2. A.C. "Buddy" Krizan, Patricia: Business Communication

Merrier, Joyce P. Logan
Karen Schneiter Williams.
NATIONAL UNIVERSITY

Third Year Syllabus

Department of Finance & Banking

Four-Year B.B.A. (Honours) Course

Effective from the Session:
National University

Subject: Finance & Banking

Syllabus for Four-Year BBA Honours Course

Effective from the Session: 2013-2014

19
 Year-wise Papers and marks distribution.

Third Year

Paper Paper Title Marks Credits

Code
232401 Portfolio Management 100 4
232403 Financial Analysis & Control 100 4
232405 Entrepreneurship 100 4
232407 Management Accounting 100 4
232409 Auditing 100 4
232411 Islamic Banking 100 4
232413 Marketing of Financial Service 100 4
232415 Financial Management 100 4
Total = 800 32

Detailed Syllabus

Paper Code: 232401 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title : PORTFOLIO MANAGEMENT

1. History of Interest Rates and Risk Premiums: Determination of levels of

interest rates; Risk and risk premiums; Real versus nominal risk; Return
distribution and value at risk.

2. Risk and Risk Aversion: Risk and risk aversion; portfolio risk; Portfolio
Mathematics.

3. Capital Allocation between Risky and Risk-free Assets: Capital allocation

across risky and risk-free portfolios, Portfolios of one risky and one risk-free
asset; Risk tolerance and asset allocation; the capital market line.

4. Optimal Risky Portfolios: Diversification and Portfolio risk, Portfolio of

two risky assets: Asset allocation; The Markowitz Portfolio Selection Model;
The Spreadsheet Model; Optimal portfolios with restrictions on risk-free
assets.

5. The Capital Asset Pricing Model: The CAPM; Extensions of the CAPM;
The CAPM and liquidity.

20
6. Index Models: A single-index security market; The CAPM and the Index
Model; The industry version of the Index Model; Index Models and tracking
portfolios.

7. Arbitrage Pricing Theory and Multifactor Models of Risk and Return:

Overview of Multifactor Models; APT; Individual Assets and APT; A
Multifactor Apr; where to look for factor.

8. Market Efficiency and Behavioral Finance: Random Walk and EMH;

Implications of EMH; Event studies and market efficiency dilemma;
Behavioral interpretation of market efficiency.

9. Macro-economic and Industry Analysis: The global versus domestic

economy; Demand and supply shocks; Business cycle; Industry analysis;

10.Portfolio Performance Evaluation: Measuring investment returns; The

conventional theory of performance evaluation; Performance measurement
with changing portfolio composition; market timing; Performance attribution
process; Style analysis.

11.International Diversification: Global market for equities, Risk return, and

benefit of factors in international investing and diversification.

12.The Theory of Active Portfolio Management: Meaning and objectives of

active portfolio management; Market timing; Security selection.

Book Recommended :
1. Bodie, Kane, and Marcus: Investments,
McGraw-Hil
2. Robert A. Haugen: Modern Investment Theory

Paper Code: 232403 Marks: 100 Credits:4

Class Hours: 60
hrs.
Paper Title: FINANCIAL ANALYSIS & CONTROL

1. A Framework for Business Analysis and Valuation Using Financial

Statements: The Role of Financial Reporting in Capital Markets; From
Business Activities to Financial Statements; From Financial Statements to
Business Analysis.

2. Strategy Analyses: Industry analysis; Degree of Actual and Potential

Competition; Relative Bargaining power in input and output markets;
Applying industry Analysis; The personal computer industry; Competitive

21
 strategy Analysis; Applying competitive strategy Analysis; corporate
strategy Analysis.

3. Overview of Accounting Analysis: The industry framework for financial

reporting; Doing Accounting Analysis; Accounting Analysis pitfalls; Value
of Accounting data and Accounting Analysis.

4. Asset Analysis: Historical cost and conservatism; Asset reporting challenges;

common misconceptions about asset accounting.

5. Liability and Equity Analysis: Liability definition and Reporting

Challenging; Common Misconception about liability Accounting; Equity
definition and Reporting challenges.

6. Financial Analysis: Ratio Analysis; Cash flow analysis.

7. Prospective Analysis: Forecasting: Relation of Forecasting recasting to

other analyses; The techniques of forecasting; Elements of the detailed
forecast; Sensitive Analysis.

8. Equity security Analysis: Investor objectives; Equity security and market

efficiency; Approaches to fund management and securities analysis: The
process of a comprehensive security analysis; Financial statement

9. Credit Analysis and Distress Prediction: The market for credit; The credit
analysis process; Financial statement analysis and public debt; prediction of
distress and turnaround.

10.Corporate financing policies: Factors that determine a firm's debt policies;

the optimal long-term mix of debt and equity; the financing of new projects;
and factors that determine the firm's dividend policies.

Book Recommended:

1. Palepu, Healy & Bernard South: Business Analysis and Valuation, South-
Western College Publishing
2. George Foster: Financial Statement Analysis, 2nd edition
3. S.H. Penman: Financial Statement Analysis and Security
Valuation

Paper Code: 232405 Marks: 100 Credits: 4 Class Hours: 60

hrs.

22
 Paper Title: ENTREPRENEURSHIP

1. Introduction to Entrepreneurship: Meaning of entrepreneurship,

entrepreneur and entrepreneurship-historical background of the concept of
entrepreneurship- entrepreneurial process-causes for interest in
entrepreneurship, climate for entrepreneurship-establishing entrepreneurship
in the organization of entrepreneurship-classification of entrepreneurs-
entrepreneurs background and characteristics- common qualities of an
entrepreneur-role of entrepreneurs in developing countries like Bangladesh-
entrepreneurial careers and education- ethics and social responsibility of
entrepreneurs-methods of assessing self entrepreneurial qualities-Theories of
entrepreneurship: Psychological theories, Socio-psychological theories and
cultural theories and models of entrepreneurship.

2. Entrepreneurial Environment and business Opportunity identification:

Analysis of business environmental, economic, legal and technical aspects of
the environment, environmental scanning procedure, SWOT analysis, and
techniques of environmental analysis.

3. Introducing Small Business: Definition, Types, Forms of Small Business,

Advantages and Disadvantages of Small Business.

4. Planning of Small Business: Definition, Importance, uses and features of a

business plan, how to prepare a business plan, pitfalls to avoid in making a
business plan.

5. Franchising: Meaning, purpose of franchising, franchise agreement, cost of

franchise.

6. Financing Small Enterprises: Planning financial needs, using capital in

small business, Sources of financing for small firms, working capital and
request for institutional loan.

7. Entrepreneurship and Small Business Development in Bangladesh: Role

of SME foundation, BSCIC and other organizations under the
entrepreneurship small business development in Bangladesh-Women
entrepreneurship in Bangladesh.

8. Business Documents Collection Procedure and Maintenance: Issuing

trade licenses, collecting TIN Numbers, VAT registration, Opening business
accounts with banks and other non-banking financial institutions, collecting
association membership, partnership agreements, registration of joint stock
companies, registration of cooperative society, registration of foundation,

23
 registration of NGO-IRC, ERC, opening an L/C, export documentations-
import documentations-Insurance-fire-environment-intellectual property-
trade mark Patents, Copyrights and Trade secrets, and other relevant
business documents collection procedure and maintenance.

9. Writing a Business Plan: Assignment for internal evaluation (Marks:

20)
Books Recommended:

1. Dr. A H M Habibur Rahman: Entrepreneurship (Latest Edition)

2. Robert D. Hisrich & Others : .......................................................6th
edition, McGraw Hill

Paper Code: 232407 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: MANAGEMENT ACCOUNTING

1. Introduction: Definition of Management Accounting and its Relation with

Financial and Cost Accounting. Management Accounting and Decision
Making. Importance of Ethics, Management Accounting in Service and
Nonprofit Organizations, Cost-Benefit and Behavioral Considerations,
Management Process and Accounting, Planning and Control for Production
Life Cycle and the Value Chain. Career Opportunities in Management
Accounting. Changes in Business Process and Management Accounting.
Management Accounting Profession.

2. Cost Concepts and Classifications: General Cost Classifications-Cost

Classifications on Financial Statements-he Flow of Cost in Manufacturing
Company-Cost Classifications Predicting Cost Behavior-Cost Classifications
for Decision Making.

3. Absorption and Variable Costing: Variable and Absorption Costing.

Variable vs. Absorption Costing. Operating Income and Income Statements,
Absorption Costing and Performance Measurement. Comparing Inventory
Costing Methods: Absorption, Variable & Throughput/Super-Variable
Costing, and Actual, Normal & Standard Costing. Denominator –Level
Capacity Concepts and Fixed-Cost Capacity Analysis, Choosing a Capacity
Level for different purposes. Planning and Control of Capacity Costs.

4. Cost-Volume-Profit Relationships: Identifying Resources, Activities,

Costs, and Cost Drivers, Variable ad Fixed Costs, CVP Analysis: Computing
the Break-Even Point (BEP), Graphing the BEP, Changes in Fixed
Expenses. Changes in Unit Contribution Margin. Target Net Profit and an

24
 Incremental Approach. Multiple Changes in Key Factors; Additional Uses of
CVP Analysis: Best Cost Structure, Operating Leverage. Margin of Safety,
Contribution Margin, and Gross Margin: Nonprofit Application of CVP
Analysis, Sales-Mix Analysis, Impact of Income Taxes.

5. Relevant Costs for Decision Making: Management’s Decision-making

Process-Identifying Different Costs and Benefits-Different Costs for
Different Purposes-The Incremental Analysis Approach-Types of
Incremental Analysis-Accept an Order at a Special Price-Make or Buy-Sell
or Process further or Replace Equipment-Eliminate an Unprofitable Business
Segment Allocate Limited Resources.

6. Budgeting and Budgetary Control: Budgets and the Organization;

Potential Problems in Implementing Budgets, Planning Horizon (Strategic
Plan and Long-Range Planning); Types of Budgets: Master Budget (Pro
Forma Statements) and Continuous Budgets (Rolling Budgets); Components
of a Master Budget: Operating Budget/Profit Plan (Sales budget, Purchase
budget. Cost of goods sold budget, Operating expenses budget, Budgeted
income statement), and Financial budget (Capital budget, Cash budget,
Budgeted balance sheet); Preparing the Master Budget; Activity-Based
Master Budgets (Functional Budgets and Activity-Based Budgets)

7. Flexible Budget: Flexible Budget and Fixed Budget-Characteristics of

Flexible Budget-Advantages of Flexible Budget-Segregation of semi-
variable Cost-Preparation of Flexible Budget.

8. Standard Costing: Concepts-Standards and Budgets-Advantages of

Standard Costing-Analysis of Material, Labor, and Overhead Variances.

Books Recommended :

1. C.T. Horngren, G.L. Sundem, W.O.: Introduction to Management

Accounting (Latest
Stratton, J. Schatzberg and David Edition), Upper Saddle River, New
Jersey: Prentice
Burgstahler Hall.

2. Rah H. Garrison, Eri w. Noreen and: Managerial Accounting (Latest

Edition), Boston:
Peter C. Brewer McGraw-Hill and Irwin

3. Prof. Shanti Naraya Ghosh, Prof.: Management Accounting, Nadi

Publications

25
 Swapan Kumar Bose & Prof.
Jalal Uddin Ahmed

Paper Code : 232409 Marks : 100 Credits : 4 Class Hours : 60

hrs.
Paper Title : AUDITING

1. The Demand for Audit and Other Assurance Services: Definition of

auditing, Nature of Auditing, Distinction Between Auditing and Accounting,
Economic Demand for Auditing, Assurance Services, Types of Audits and
Auditors.

2. The Auditing Profession: Chartered Accounting (CA) Firms and their

Activities, Structure of CA Firms, Role of BSEC in relation to auditing,
BSEC’s Corporate Governance Guidelines and Audit vs. Non-audit
Activities, ICAB, US GAAS, International Standards on Auditing (ISA) and
Bangladesh Standards on Auditing (BSA), Statutory Cost Audit.

3. Audit Reports: Part of the Audit Report, Categories of Audit Reports,

Report on Internal Control Over Financial Reporting, Unqualified Audit
Report with Explanatory Paragraph or Modified Wording, Conditions
Requiring a Departure from Unqualified Opinion, Audit Reports Other Than
Unqualified; Qualified Auditors’ Reports (Qualified, Adverse and
Disclaimer) and Auditors Reports with emphasis on materiality.

4. Legal Liability: The legal environment of audit profession, Auditors’

Liability to clients, Auditors’ Liability to third parties under common law,
Auditors’ Civil liability, Auditors’ Criminal liability, Profession’s response
to liability.

5. The Audit Responsibilities and Objectives: Objective of Conducting an

Audit of Financial Statements, Steps to Develop Audit Objectives,
Management’s Responsibilities, Objectives of the Auditor, Auditor’s
Responsibilities, Financial Statement Cycles, Setting Audit Objectives,
Management Assertions, Transaction-Related Audit Objectives, Balance-
Related Audit Objectives, Presentation and Disclosure-Related Audit
Objectives, How Audit Objectives are Met, Phases of a Financial Statement
Audit.

6. Audit Evidence: Definition of Evidence, Distinguishing among scientific,

legal and audit evidence, Audit Evidence Decisions, Audit Program,
Persuasiveness of Evidence, Types of Audit Evidence, Application of Types

26
 of evidence to the Evidence Decisions, Audit Documentation, Audit File
Contents and Organization.

7. Audit Planning Analytical Procedures: Steps in Planning an Audit and

Designing an Audit Approach, Initial Audit Planning, Obtaining an
Understanding with the Client, Developing Overall Audit Strategy,
Understanding of the Client’s Business and Industry, Assess Client Business
Risk, Preliminary Analytical Procedures, Analytical Procedures.

8. Audit of Internal Control and Control Risk: Internal Control Objectives,

Management’s Responsibilities for Establishing Internal Control,
Management’s Assessment of Internal Controls, Auditor Responsibilities for
Understanding Internal Control and Testing Internal Control, Components of
Internal Control, Process for Understanding Internal Control and Assessing
Control Risk, Obtain and Document Understanding of Internal Control,
Assessing Control Risk.

9. Overall Audit Plan and Audit Program: Audit Test, Types of Audit Tests:
Risk assessment procedures and Further audit procedures, Relationship
between Further Audit Procedures and Evidence, Audit Assurance at
Different Levels of Internal Control Effectiveness, Impact of Information
Technology on Audit Testing, Audit Program.

10.Completing the Audit: Performing audit tests related to presentation and

disclosure, Review for contingent liabilities, Post-balance-sheet review for
subsequent events, issuing the Audit Report, Communicate with the audit
committee and Management.

Books Reference:
1. Alvin A. Arens, Randal J. Elder and Mark S. Beasley. Auditing and
Assurance Services (Latest Edition) Upper Saddle River, New Jersey:
Prentice Hall.
2. ICAB (Institute of Chartered Accountants of Bangladesh). Assurance-
Study Manual, CA Professional Stage Knowledge Level (Latest Edition).
Dhaka: ICAB.
3. ICAB Audit and Assurance- Study Manual, CA Professional Stage
Application Level (Latest Edition) Dhaka: ICAB.

Paper Code: 232411 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: ISLAMIC BANKING

27
 Foundation of Islamic Banking; Evolution of Islamic Banking and Financial
Markets, Islamic Banking-Concepts, Basic Features and Objectives; Funding an
Islamic Bank, Mobilization of Deposits; Liquidity Management; Islamic Modes
of Investment; Working Capital, Import and Export financing by Islamic
Banks; Rural Financing under Islamic Banks, Risk Management by Islamic
Banks; Central Banking in Islamic Framework; Islamic Micro Finance
Institutions, Implementation of Islamic Banking; Experience from different
countries.

Books Recommended:

1. M. Kabir Hasan (Editor): Text Book on Islamic Banking, Islamic

Research
2. Mohammad Abdul Hamid: Islamic Economics
3. Sudin Haron Bala Shanmugam: Islamic Banking System Concepts and
Approach

Paper Code: 232413 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: MARKETING OF FINANCIAL SERVICE

Changing Patterns of Financial Institutions Strategy; Competitor Analysis;

Global Competitiveness of Financial Institutions; Information for Financial
Institutions Services; Formulation if Optimum Strategy for Financial
Institutions in view of Changing Environment of Financial Sector; Financial
Service Environment; Financial Service Consumers; Identifying and Targeting
Financial Prospects: Development and Management of Financial Products;
Traditional Channels of Distribution; Technology-driven Distribution Channels;
Pricing of Financial Services (Communication and Promotion: Building
Customer Relationships; Customer Retention and Loyalty; Corporate Financial
Services.

Books Recommended:

1. Tina Harrison: Financial Services Marketing, Pearson

Education Limited, Essex, England
2. Derek F. Channon: Bank Strategic Management and Marketing
3. Andrew Nuttey: Selling Financial Service Products in the
Era of the Euro

Paper Code: 232415 Marks: 100 Credits: 4 Class Hours: 60

hrs.

28
 Paper Title: FINANCIAL MANAGEMENT

1. Goals and Functions of Finance: Meaning of Financial Management,

Financial Goal, Maximize Shareholders, Wealth, Maximization of EPS,
Corporate decisions, Importance of Financial Management, Factors
influencing financial decisions, Agency Problems, Dealing with Agency
Problems, Principle of Financial Management, Social Responsibility,
Corporate governance.

2. Capital Budgeting and Risk Analysis: Risk Evaluation approaches

Equivalents (CE), Risk-adjusted Discounted Rates (RADR), CE vs RADR,
Probability Distribution Approach, Decision Tree Approach, Behavioral
Approach for Dealing with Risk-Sensitivity Analysis, and Simulation.

3. Theory of Capital Structure: Introduction to the Theory, Assumptions and

Definitions, NI Approach, NOI approach and Traditional Approach,
Modigliani-Miller (MM) Position, Arbitrage process, Taxes Capital
Structure, Corporate plus Personal Taxes, Merton Miller’s Equilibrium,
Effects of Bankruptcy Costs, Tradeoff model, Packing order theory.

4. Dividend Policy: Procedural Aspects of Paying Dividends, Types of

Dividend Policies, Factors Affecting Dividend Policy, Dividend Payout
Irrelevance, Arguments for Dividend Payout Mattering, Impact of Other
Imperfections, Financial Signaling, Share Repurchase, Method of
Repurchase, Repurchasing as Part of Dividend Decision, Stock Dividends,
Stock Splits.

5. Capital Market financing: Public Offering of Securities, Traditional

Underwriting, Best Efforts Offering, Making a Market, Shelf Registrations,
Flotation Costs, Government Regulations for Issuing Securities, SEC
Review, SEC Regulations in the Secondary Market, Selling Common Stock
Through a Rights Issue, Value of Rights, Success of the Offering, Standby
Underwriting, Oversubscriptions, Rights Issue vs. Public Offering, Green
Shoe Provision, Financing a Fledgling, Initial Public Offerings, Information
Effects of Announcing a Security Issue, Types of Long-term Debt
Instruments, Retirement of Bonds, Preferred Stock and its Features,
Common Stock and its Features, Bond Refunding.

6. Lease Financing: Definition of Lease, Types of Lease, Leasing

Arrangements, Advantages and Disadvantages of Lease, Lease versus
Purchase Decision, Leasing in Bangladesh-Problems and Prospects.

29
7. Working Capital Management: Importance, Determinants of Working
Capital, policies for Financing Current Assets, Operating Cycle and Cash
Conversion Cycle, Estimating Working Capital Requirement.

Books Recommended:
1. James C. Van Horne: Financial Management and Policy
2. James C. Van Horne &: Fundamentals of Financial Management
John M. Wachowicz
3. Ghosh, Biswas, Bala, Sath: Financial Management, Nadi Publications
Hoques & Manik

NATIONAL UNIVERSITY

Fourth Year Syllabus

Department of Finance & Banking

Four-Year B.B.A. (Honours) Course

Effective from the Session : 2013–2014

30
 National University

Subject: Finance & Banking

Syllabus for Four-Year BBA Honours Course

Effective from the Session: 2013-2014
Year-wise Papers and marks distribution.

Fourth Year

Paper Paper Title Marks Credits

Code
242401 International Trade and Finance 100 4
242403 Public Finance and Taxation 100 4
242405 Financial Market and Institutions 100 4
242407 Comparative Financial System 100 4
242409 Human Resource Management 100 4
242411 Business Research Methodology 100 4
242413 SME and Micro Finance 100 4
242415 E-Banking & E-Commerce 100 4
242417 Central Banking 100 4
242418 Viva-Voce 100 4
Total = 1000 40

Detailed Syllabus

Paper Code: 242401 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: INTERNATIONAL TRADE AND FINANCE

1. International Trade Model: The basic trade model; application of basic

trade model and the pattern of trade. Theory of comparative advantage and
absolute cost advantage.

2. International Trade Policy: The instruments of trade policy and welfare;

trade policies in developing countries. Regional trade integration: SAPTA,
European Common Market, ASEA, and OPEC.

3. Financing International Trade: Payment methods for international trade;

prepayment, letters of credit, drafts, consignment, open account trade finance

31
 methods; accounts receivable financing, factoring, letters of credit. Agencies
that motivate international trade

4. International Flow of Funds: Balance of payments, current account, capital

account, Factors affecting international trade flows, correcting a balance of
trade deficit.

5. Exchange Rate Determination: Measuring exchange rate movements,

exchange rate equilibrium, factors that influence exchange rates

6. Government Influence on Exchange Rates: Exchange rate systems,

government intervention, reasons for government intervention, direct
intervention, indirect intervention, and how central bank intervention can
affect an MNC's value.

7. Direct Foreign Investment: Motives for direct foreign investment revenue-

related motives, cost related motives. Benefits of international
diversification, diversification benefits during a global crisis, diversification
benefits of multiple projects.

8. Multinational capital Budgeting: subsidiary vs. parent perspective, tax

differentials, restricted remittances, excessive remittances, exchange rate
movements, factors to consider in multinational capital budgeting; exchange
rate fluctuation, inflation, financing arrangement, blocked funds, etc.,
adjusting project assessment for risk.

9. International Cash Management: Cash flow analysis: subsidiary

perspective, subsidiary expenses, subsidiary revenue, subsidiary dividend
payments, and subsidiary liquidity management. Techniques to optimize
cash flows.

Books Recommended :
1. Jeff Madura: International Financial Management, 8th Edition

2. Soderstein, Board reed: International Economics

Paper Code: 242403 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: PUBLIC FINANCE AND TAXATION

32
1. Introduction: Definition, Scope, functions, objectives, public goods and its
classifications' public goods vs. private goods, Normative and subjective
approach, pure public goods.

2. Efficiency, optimality and the allocation of resources: Pareto optimality

and social optimality. Pareto optimality and the competitive situation:
efficiency in consumption and production, efficiency in relative allocation of
factors to various goods, Pareto optimality, competition and social
optimality, Competition and govt. action.

3. Pure public goods: The characteristics of public goods, the optimal

provision of public goods' Public goods and a free market allocation, The
nature of the political process, the citizen voters: political parties and elected
representatives, the decision-making role of executive and bureaucracy.

4. Externalities and the role of Government: Consumption externalities,

production externalities, Pecuniary, technological' negative externalities, and
spillover effects. Direct negotiation' The need for govt. intervention.

5. Government and income distribution: The need for governmental

redistribution, Pareto optimal redistribution' ethical income redistribution,
Distributive shares, and wage differentials. Income distribution and poverty,
The role of govt. and the income distribution.

6. Budget system and cost-benefit analysis: Budget system: nature of

budgets, the budget cycle. Operation of the budgetary process' cost-benefit
analysis, the elements in a cost-benefit study, the need for discounting'
merits and limitations of cost-benefit analysis.

7. Tax system in Bangladesh: Definition of tax, characteristics of tax. The

scheme of income tax law: an overview, structure of income tax ordinance,
l984. A brief history of income tax law in Bangladesh, Rights and obligation
of a taxpayer under the ITO, 1984: types of income tax authorities' Taxes
Appellate tribunal.

8. Basics of Income tax: Definition and principles of income tax, Income

year, Definition of Assessee, Computation of total income, the charge of tax,
a charge of surcharge, a charge of additional tax, tax rates, a charge of
minimum tax for individuals and companies.

9. Effects of Taxation: The approaches to consumption taxation, Relative

economic effects of two forms of taxes, the relative supply of labor in

33
 various occupations, effects of savings, capital formation, and major
problems of expenditure taxes.

10.Public Finance and the developing economies: The characteristics of the

LDCs, the primary determinants of economic growth, goals of the
developing economies, the tax structure in LDCs.

Books Recommended:
1. Jhon F. Due and Ann F.: Government Finance
Friedlaender

2. Harvey S. Rosen: Public Finance, 7th Edition

3. Dr. Monjur Morshed Mahmud: Taxation in Bangladesh

Paper Code: 242405 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: FINANCIAL MARKET AND INSTITUTIONS

1. Introduction: Role, function and Types of financial markets. Securities

traded in financial market, Derivative securities, Valuation of securities in
financial markets, Market efficiency, Globalization of financial market.

2. Financial Assets and Financial Transactions: Creation of financial assets,

characteristics of financial assets, Types of financial transaction.

3. Determination of Interest Rates: Loanable Fund Theory, Household

demand, Business demand, Govt. demand and Foreign demand for loanable
funds, Aggregate demand and aggregate supply of loanable funds,
Equilibrium interest rate, and Economic forces that affect interest rates.
Relationship between interest rate and security price.

4. Money Markets: Money Market Securities: Treasury bills, Commercial

paper, Negotiable certificate of deposit, Repurchase agreement, Bankers
acceptance. Institutional use of money market, Valuation of money market
securities.

5. Bond markets: Background of bonds, Bond yields, Treasury bond, Treasury

bond auction, Corporate bonds, Characteristics of corporate bonds.

34
 6. Equity Market: Primary and Secondary markets, Definition, role, and
functions, IPO: Process of going public, Investment banker, ICB, Merchant
banker, Secondary market liquidity, Elements of liquidity, Intermediation.
Broker, Dealer, Specialists, Trading arrangements, Margin trading, Short
selling, Market disorder-Wash sale, insider trading, pool, Organized
exchanges, DSE, & CSE, Third and Fourth markets, Regulatory body BSEC.

7. Thrift Operations: Background on savings Institutions, Sources and use of

funds, and Performance of savings institutions.

8. Finance Operations: Types of Finance companies, Sources and use of

Finance Companies funds, Risks faced by Finance Companies, Participation
in financial markets.

9. Mutual Fund Operations: Background on Mutual Funds, Types of funds,

Corporate control by Mutual Funds, Stock Mutual Fund categories, Specialty
Funds, Bond Mutual Fund Categories, Growth and Size of Mutual Funds,
and Money market funds.

Books Recommended:

1. Jeff Madura: Financial Institutions and Markets, 9th Edition

2. Peter S. Rose: Money and Capital Markets
3. DSE Fact Book-Various issues
4. Annual Reports of Financial Institutions

Paper Code: Marks: 100 Credits: 4

Class Hours: 60
242407 hrs.
Paper Title : COMPARATIVE FINANCIAL SYSTEM

1. Overview of financial systems: The main functions and structures of

modern financial systems

2. Financial Structures and Regulations: Comparative financial structures

and regulations in developed, developing and emerging economies;
Financial Repression and Evolving Financial Systems, Banking Reforms in
Russia, China and India

3 Financial globalization in a historical perspective: The origins of financial

globalization, trade and international capital flows, The political/systemic

35
 roots of financial globalization, international monetary and financial
regulation

4. The new global financial actors: Emergence of global actors, money and
capital markets, stock markets, Islamic banking practices.

5. The impact of financial globalization: Economic growth and stability,

financial globalization and economic development, financial globalization
and stability

6. Diversification of Banking Activities: The Expansion of Banks into Non-

banking Financial Services, the Effect of Non-interest Income on Banks,
Total Income, Global Markets and Centers, International Banking, and
Banking Issues in the 21st Century.

7. Global Regulation of Financial Institutions: Significance of financial

regulations, International Regulation, Basel Accord II and III,
Complementary Approaches to Basel, International Financial Architecture.

8. Financial crisis: Definitions and controversies, Financial crisis of 2008,

European sovereign debt crises, The south East Asian Financial crisis, 1997-
99; The Japanese Banking Crisis, Scandinavian Banking Crises, Long Term
Capital Management (LTCM)

Books Recommended:
1. Burton and Lombra: The financial system and the economy
2. M. Umar Chopra: Toward a just monetary system

Paper Code: 242409 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: HUMAN RESOURCE MANAGEMENT

1. Introduction to Human Resource Management: Definition, importance,

functions, models, environment-influencing HRM, globalization and its
impact on HRM.

2. Acquisition of Human Resources: Human Resource Planning, its

importance, steps, and effects of retirement on Human Resource planning.
Job analysis, definition, methods, purposes, recruitment sources, factors
affecting recruitment constraints and sources, Selection process, benefits of
proper selection, discrete and comprehensive selection process,
characteristics of good selection devices, Selection devices, application

36
 forms, tests interview, background investigations, socializing new employee,
meaning, process, consideration in developing a socializing program.

3. Development of Human Resources: Meaning of training and management

development, training and learning determining needs for training, training
methods, methods of developing managers, Career development, meaning,
importance, stages, techniques, and Institutions criteria for distribution.

4. Motivation of Human Resources: Motivation, meaning, process, theories,

applications, Performance appraisals, process, methods, factors, distorting
appraisals, suggestions for improved appraisals, Rewards, types qualities,
criteria for distribution.

5. Maintenance of Human Resources: Compensation Administration, factors

affecting salary structure, job evaluation, incentive compensation plans, and
executive compensation. Benefits and Services, impact on motivation, legal
requirements, voluntary benefits and services, impact on motivation, legal
requirement, voluntary benefits and services provided, current trends
Employee discipline, definition, types of disciplinary problems, factors
determining disciplinary actions, guidelines for administering discipline,
disciplinary actions available for managers. Safety and Health, Safety
programs, health programs, work stress, employee burnout, Employee
relations, formation and registration of trade unions, and institutional
methods of maintaining good relations. Grievance handling process,
collective bargaining and other methods of resolving disputes and industrial
democracy.

Books Recommended:

1. David A Decenzo and: Human Resource Management, John Wiley and

Sons, Inc
Stephen P Robbins New York
2. Gary Dessler: Human Resource Management, Prentice-Hall of
India, New Delhi

Paper Code: Marks: 100 Credits: 4

Class Hours: 60
242411 hrs.
Paper Title: BUSINESS RESEARCH METHODOLOGY

Research Methodology:

37
1. Introduction to Business Research: What is business research, Why study
research, Value of acquiring research skills, types of studies used to do
research, What is good research, Manager-Researcher relationship, Manager-
Researcher Conflicts, When Research should be avoided.

2. Research Methodology: Define research methodology, Variable, Attribute,

Indicator, Operational definition, Deductive and inductive thinking,
Research methods Vs. methodology, Criteria of good research, Qualities of
good research, Types of Business Research, Research proposal (technical &v
financial), Steps in research/ Research process. , Deciding on the research
approach and choosing a research strategy, Turning research ideas into
research projects, The importance of theory in writing research questions and
objectives.

3. Sampling: What is sampling, Reasons for sampling instead of census, Errors

in sampling, Sample design (Sample size, Sampling frame, Sampling
technique), Development of instruments, Steps in developing instruments,
Sources of data, Data collecting method, Data collection
procedure/Administering the instruments/Field survey, Quality control &
monitoring, Point estimates, Interval estimates, Standard Error of the sample
means, Constructing general confidence intervals, Finite-population
correction factor.

4. Test of Hypothesis: Hypothesis, Types of hypothesis, methodology errors

and risks in hypothesis testing, Steps in hypothesis testing, Types of tests,
Purposes of various tests.

Econometrics:
5. Review of regression-assumptions-violations-consequences-and corrective
measures. Problems of Heteroskedasticity, autocorrelation and
multicollinearity. (Chapter 3-7 of textbook number l)

6. Exploring data patterns and selection of forecasting techniques: more

arithmetical approaches: moving averages and smothering methods.
(Chapters 3-5 of textbook number 2)

7. Autoregressive process-estimation of AR, MA (moving average), and

ARMA (Autoregressive moving average) The Box-Jenkins (ARIMA)
approach. (Chapter 13 of 'Text Book Number l, and Chapters B-9 of
Textbook Number 2)

Book Recommended:

38
 1. Donald R. Cooper: Business Research Methods, Latest available
edition
Pamela S. Schindler

Reference Books:
1. G.S. Maddala: Introduction to Economics, Latest available
edition
2. J. F,.Hanke, A. G. Reitsch and: Business Forecasting, Latest edition
D. W. Wichern
3. A.K. Koutsoyiannis: Theory of Econometrics (for general reading)

Paper Code: 242413 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: SME AND MICROFINANCE

1. Introduction: Socio-economic background of Bangladesh and its rural

economy; definition and characteristics of small and medium enterprises
(SMEs); sources of SME and microfinance. objectives and policies Govt.
regarding SME financing; emergence of SME and microfinance; Historical
background of microfinance in Bangladesh.

2. Markets for Microfinance: Definition and characteristics of the informal

credit market and formal cooperative credit market Demand and supply of
microfinance; Theories and Approaches of microfinance: Imperfect
Information Paradigm Theory-Credit Rationing, Adverse Selection, Moral
Hazard: market players of microfinance, objectives and policies of both
formal and informal MFIs.

3. Micro Finance Institutions (MFIs): Formal and Informal Rural Financial

Institutions (MFls), Interest- free and Interest-based MFIs, Superiority of
Interest-free MFIs over Interest-based MFLs, Mission and Vision of Formal
and Informal MFIs; Non-government Organizations (NGOs); SME
foundation: its functions, objectives, roles.

4. Microfinance Approaches and Models: World-wide used lending models:

Grameen Group-based Lending Model/Approach, Individual Approach,

39
 Village Banking Model SHGs Approach: Interest-free Micro Investment
Model (RDS of IBBI), Replication of Grameen Model' Analysis of the major
lending methodologies in microfinance; Tooli for measuring poverty and
impact of microfinance services.

5. Performance Evaluation of MFIs: Studies on MF Performance Evaluation;

Repayment Rates, Financial Viability, Profitability, Leverage and Capital
Adequacy, Borrowers Viability and Poverty Alleviation. Indicators of Tools
applied in Performance Evaluation; Performance Measurement indicators
developed by various organizations (AIMs, OECD, CGAR and SWEE'P
Network), performance evaluation of some leading MFIs; Monitoring and
supervision; Subsidy and sustainability of the programs as well as MFIs'

6. Impact Assessment on Microfinance: Existing Theories on Impact

Assessment: Intermediary School of Thoughts, Intended Beneficiary School
of Thoughts; Impact Assessment Models/Techniques: Qualitative and
Quantitative Techniques.

7. Policy and Legal Framework: Regulatory Requirements and Policy

Support for the Development of SME and Microfinance Activities;
Government Policy and Legal Framework Regarding Microfinance in
Bangladesh, Role of Government and Central Bank; Micro Credit
Regulatory Authority (MRA) in Bangladesh.

8. Critics and Challenges of Microfinance: Constraints and challenges in

Micro-credit and microfinance, As per view point of target,
clients/beneficiaries, as per view point of provider of Funds, As per Previous
research, some way outs to overcome the same.

Books Recommended:

1. Maria Otero & Elisabeth Rhyne: The New World of Microenterprise

Finance: Building Healthy Financial
Institutions for the Poor, Kumarian Press,
1994

2. Microfinance Handbook, World Bank, 1999

3. Elisabeth Rhyne and Deborah: Commercialization of Microfinance,
Edited by Elisabeth
Drake Kumarian Press, 2002
3. The Microfinance Revolution: World Bank, 2001

40
 Reference Books:

1. Rural and Micro Finance in Bangladesh: Principles and Practice

2. Joanna Ledgerwood and Iffat: Who Needs Credit?- Poverty and Finance in
Bangladesh
Sharif

3. A.R. Khan: Rural Finance and Banking

4. Joanna Ledgerwood: Microfinance Handbook-An Institutional and

Financial Perspective
5. Marguerite S. Robinson: Annual Reports of BKB, RAKUB, PKSF,
Bangladesh Bank Credit Norms tec.

6. Shahdiur R. Khandker: Fighting Poverty with Micro Credit

7. Iffat Sharif and Geoffrey Wood: Challenges for Second Generation Micro
Finance-Regulation, Supervision and
Resource Mobilization

Paper Code: 242415 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: E-BANKING AND E-COMMERCE

E-Banking: Opportunities, Legal Framework; e-payment Systems; Checks,

Collections, Debit and Credit Cards, Lock Box, Clearing House, Transaction
Processing, Cryptography and Authentication; Recent Trends: World Stage,
Asian Scenario, Bangladesh Perspective; Future of e-banking.

E-commerce: Introduction to e-Business & E-Commerce; E-commerce

Fundamentals; E-Business Infrastructure; E-Business Strategy; E-Marketing;
Issue of risk and security in E-Commerce, E-Commerce and Internet.

Books recommended:

1. David Chaffey: E-Business and E-Commerce Management

2. Graham Field: E-Payment in Financial Services.

3. William Essex: Making Online Banking Pay Upgrading Your E-

Strategy

41
 4. William Frankel: Trade Finance Banking and Electronic
Commerce Sources of Competitive Advantage
in an Era of Technological Upheaval.

5. David Evans, Paying With Plastic: The Digital Revolution in

Buying
Richard Schmalensee and Borrowing

6. Michael Violano, Shimon-: Retail Banking Technology: Strategies and

Resources
Craig Van Collie That Seize the Competitive Advantage

7. Joseph Di Vanna: Future of Retail Banking

8. Professor Shibli Rubayat-Ul-Islam : E-Banking & E-Commerce.

Paper Code: 242417 Marks: 100 Credits: 4

Class Hours: 60
hrs.
Paper Title: CENTRAL BANKING

01. History of Money and Banking: Bank creates money, Gold Standard The
economic history of banking.

02. History and Functions of Central Banks: The history of interbank

settlement arrangements: exploring central banks’ role in the payment system,
the main tendencies in modern central banking, Roles and objectives of modern
central banks, Foreign Trade and Capital Flows, Foreign Exchange Reserve
Management.

03. Monetary Policy (Objectives and Tools): Selection and Use of Monetary
Policy Instruments, Why are Central Banks Pursuing Long-run Price Stability?,
Communication of monetary policy decisions by central banks: what is revealed
and why.

04. Central Bank Independence & Clearing House Function: Central bank
independence, transparency and accountability, Clearing House Function of
Central Bank.

05. Camels & Basel: CAMELS Rating, BIS Capital Requirement for Financial
Risk, Bank Regulations, Basel II & III, Solvency II.

42
 06. Bangladesh Bank Circular & Regulations: Recent Monetary policy
statement, Bangladesh Automated Clearing House, Guidance notes on
prevention of money Laundering, Guidelines to establish a banking company in
Bangladesh, Conventional bank to Islamic bank & Open a separate Islamic
banking division and branches.

Books Recommended:
1. Alan S. Blinder, Central Banking in Theory and Practice, The MIT Press.
2. Mathias Dewatripont & Jean Trirole, The Prudential Regulation of
Banks, MIT Press.
3. Bank for International Settlements (BIS), Issues in the Governance of
Central Banks, A report from the Central Bank Governance Group
4. Bangladesh Bank Website: http://www.bangladesh-bank.org

Paper Code: 242418 Marks: 100 Credits: 4

Paper Title: Viva-Voce

43