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BEFA-UNIT-1 Notes

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Dimple Gulla
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77 views

BEFA-UNIT-1 Notes

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Dimple Gulla
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Business Econvmis 4 Financial Arolyin UNIT 2 Jofroduclkey te Businus and Econom Rus iNESS > - —> Shectinr of Resiow firm 2 Troy of frm > Type of Besious caUuees 2 Limited Wabilily Compete D> Sources of Copied por > come > Non Convuttional Sources of pose Econionues — Signipeonce + Lcenon'a — pricve & Maw Economis Concept > Concepts & (mportone of NeIienel Inveme > Inplelion > Money supply in Inflation > Businus eycle — Fealuy — phos husind economies > Nol 4 cup of > Role of Busines ecomonut > mo btidiseplinaty nati of Businey Cronemess THEORY oF FIRM ee He thecy ' of firm" hay been lev aw. eloped on the basi ee: rationrad fons <7 PErsve the the anumption ther fubject to the Teehnical objective of profit maximise tion , and market ConsOoiG. The basic propositions eof the at J pm > ; ; ; Firm fs @ onit which ctrarsformt valid fopstt inte ostpsy of ow Rane value, given the Slote 4 Renee PoThe firm ohive Towards tre achievemest of 10 goal — ear pore moximication P? the market Condilimn CUkL Compctitcen , menopely tT) =| are giv. a firm -to operate > pthile choosing betwun allirnetive , the Fiver prefers the Otlenative which helps it te Consistently achieve port Moximisation che primary concun of the theory, ef firm *s te analyse Changer In the pricey anol quartiver of inputy and ovtputy, Assumptiory,— ae OA firm hor a icgle foal — prot moximirction Aationally te purive ib youd. Bogle owmethip, one — Eneprineer. © firm act Ome firm the tum ‘profit maximisation’ re vsvatty taker to Mead the Jerration of loxgut absolute amounts of profits over te tine period aa analyted, 7 Short run profit moa, —? time porvod * berg nun Me Short zen fs a bined os a ptriod where adjustment, to changed Cenoitions ave only partiad, £9} Lh ckmand fer the product fer a Firm increases; in the Short ren te Can met the Wercased armarel merry > Changes in marhovss ~? pAlnsive vee of Pa eeaiee aA tae aun prott Cen only marin sed thro h eae Chang tt iA producti capacit, & setting op additionad plast . Critveisms tH © Rorof ettroctny nival in the, bosinces a © Ror of Provoking governs ange on egaldtaainn giends pend perhaps, also to avoid attaction of Auoike Lsaltien move fem The politica) Axamce Arto | @ 40 maintacy good prblrc relations. ray be thoyg ht ao bette, then to have moariaum thet some prefre prepa. Sole proprietor ship | Sole trace The tele tracts meow toni? Own of The busines, Chouulieg 1 - 4 Uolimibel Les: 4 High hegre of flexibility Neo» Clove Co CesTmery DIA Dvan TAGES '- ADvan TAGES 4s Volimited Veability ge Limited amount of capitel 3 Ne spreilactiny | No civic 4+ Ceerrewry - Small copie a eu Me leg od foros oF ebon 4 Unutteey > perwal pouch ewith Coste af pos Hoch we) rey tone quate fos gs i e- Beneefit op, inertial 9 rockarll eepentcen, LB 4 y MERE Competition, nL ; boas Pengosniog powes Cleat). Je High hegren of plerbilily 96 Minimnuny interferes + a 10: Taamaperobélily ~ wea. A besinus > en untuprire otich ae Conauneel aisectey A edly ow tndixecti, wi The production, robe, orufec 4 exchange of Jords $ Aewiees or cegalar basin wit profit mote Chasecliutice >- oy ID beonemie ime, ID ve set Conard with produc , tole, Tromifer by Otharye oF Gow & Aavreey IB psec mobive Feo] pours bvsnus Cnlisprive —-—-———- t prbhic SeTet %) Dept ogo Dplbic Corporation Qeevl Compania I) Foint sock Compon OWT SeevoR owned by pve pyr secroR PUBLIC SecTOR POINT oF DIFFERENCE hy QWNERSHIP. Ousned by put Cured by i Sterprice & gout paohorddale Govt esterp d » onsecTive prepet Social 5 prot with tocol prapit profuioral ov Toint momagumt momagess, vt opps eovntabl ty pull to proaes ls. MANA EMENT Botn public ¢ pve ys ACCOUNT AaIL ITY PARTNERSHIP Draw : Her portreubnip At, 1982 pas PUTuship os the Arteliowhip oelvean yy ot ova puuny : ue agree to deem prope of Che burned coud on ty alt ot amy me yf Tham naling feu ke. Crrarecrersries + fa ; : pre ; Reletionship i Te tn e setatioahin Aetelting at oh on eagrumact , 2 Taso ot , AID eS Meu pul 1 Thee Should be toe ot mou. peor, Ts mute be ow quilt agreement ame Wu poetry — Pextnecthip cuad, He Unlinitesd Hability 3 te Lrabilits of pastry sn exlintiol to ee permed prepuly 3+ Agreement s— & Ae of porTud 3 minimem—2 Mossiowm - 10 fe bank 20 fpr thar Fectoy AS thee ae mou ne. of parrey wwe 8 Divisdam of labeue )— can be civicled Ts putored Cortact with Cuitomer & Flexibililg 9: Inplicd author, of thoes + No~ without Consert of Hers lo: Fromapecabilify We Taxabion 1 patruibip prot k income ef partes ose Tared ie depcetely, 12+ Dissol ion *— Chenre ch poilauning ADVANTALES:— Dyaovantaues S- geet en eon teas pe Vaiimited Fabilily More turns g toll ge Hah AOS ge pppealty in tami eb Lim tein + Di P a ie indus ; Hee la peserap artatiin ee aby 908 ge pene Luk co remporeag HE ‘ fered | yt a Sota ear a ae cok ob nitive DIFFERENCE BETWEEN PARTNERSHIP AND SoLE TRADER Potreu: hp Sole Rader Point of Dippeiree steht a lished eee bh Legoteliion Bea aAUee | creed an lega la te partruship wet, 1952 Min = 2 2+ Jo + cy mumbers Max-10— Beve?ng Single Qo- cley Ds Agrament hae must 6e agremet No cagresenent ts amy pertaty RepODCH 4 Dil btion ofp pre i shoud ancey ate prpa ~~ prope — et ger i a alone S* Capita Te hot mou capilat, bees timid copies tee ata meth menbes ee fees Borines Keeey canact — Burinees tectecy hye mountatd moun tained , T nad fovee pve FE Rounst herve purmup Tt WW Leecled Tinh ob much as cre Guid Convment, kele Cede har with hi, tit hey perme) ConTncl wh Cext Corer SIOWNT STOCK Company A joint Teck Company wn an abficlel attoeetins of Crroticl Sy Las with a pixel Capital, Hivisibls into oS & ep 2 pros BomiperaBle sree with popes secures § cena Ace FIONN ComPAnies ACT, 1956, DePiannrienst- 'A jeint slo Comporg “> ® voluntary anedeti th peers for Prfrt Hen copetas in olivicled iste trentpeaaste wre £ aunuubip 1 Apind por cs Tembeuhip . CHARECTERSTICS }- D An, aLificiel prawns QSeprote Lapa! x4 Gree seceetinn Bs perpetiop Te Ouneship & rynt 1prelad 19. Winding up Ute Ve the Kame enol with 1a. Pormotim — Drcian Compants Act, 195% ADUANTAUES | bh Mobilisation of Cars sxsovress 2 pate Lapel entity B+ Atnied Liability y Teomspre biUi6, of Sheau. 5 Liquidiby of lovutment 6 Incubate tr, nose of fovatmet § favings ameng tame man, 7 Bemineccey in RAE: © Eoomonis ef lage scok producliny qs Contiinced cxistree (or INST AT) Compiclinee 1, propettionsd an ay Ne 12. Kqeusth £ expanses , DISADUAN TAGES |- Sa 16 Pamelion of Compony + 0 lop prow. a Phigh degree of yee ICen fence + Inorchinoste eelay 19 heetycon one, + promo speculation with govt: depth Io. Lobby in v7 b Tendy te mumepoly, + Hhighes Carey « Dipttene So Tse $ partrushyp Pe ae cf Seah oink stock pe one Pastousrys ° Meateny : Comparis ou foncol — paTnuuhy fi vedi Troan componics mud dite Grdcan porlnushiy l 19.32, fet, 1956, Pub — min ~Q oon saad Mox - 10- Bonk“n: 20 - OThae Pix — 50 Pob = Min -7 Max - valimited Aimiled Lo The pace lubed Vebue of Phos He Tramifis op shee tales polis canart Company one Froryjecobl , Tromper abrere 9 es fim’, 5s Pam agiomete Bead of diteLow Crclettd aprenolalie: puta th terttoldes) be Lazo Alaliiny Ditincé tepel sel eh Hep doe ently Alot Compulbery- compoltory prlArg ow fanplied agente A menty in art ow toxplid agent a Peli of Poctemert Tra Company mut fle oll Bee copies Cpinarcicl fandiley, spotty Lo apes tear Private a f company Push. Company, The inna numb Differ blac. private ¢ pane Pre minim ne: ef an Jere p the membas fn privet Comper maxionum numbu ts volmited oh mang 04 the numbu 2+ Tromyebilly ay The reilitelry om he Laryper range atl shor au ter +e Shes he privale. Company aernct — Prespectas ot sTalioust tn betes of propel must be imud. 10 2 BAd mexinen cn so rIssve f prospeclog tee prespecliy ot Mtatemert in Ue of prospectus « 4 Mideremt oft The private. Company makes ie public Company cory eed alletmet of shacs after make atletret Receiving cactipiel ofr ee s intmpetalinn , inten tekeciyieg et nerd rot be teceived be i Ncseoluemn) bel pexsted pe Ree" Hosted aftr Pe busi sinha HU cetificela of neerporetion Cediperte te @ has been seeived, e+ Sa Liley meetings 'o Le ineeecrinee) ze Holding Golsley mutiny § “Fling | latest me bli stati mpert an “Pry Alatialory xp not segered, wr rteurary 2 3 7: Minion 70 + oe Airtel Yard mutt velce by Be Reficmen€ ofp diveeleu Es not meee sotabinn Cannel exted 6094 a Paxinwm age of divelas car exceed) FY he ddecley aed The dizeclou of probe Det pubeeuhe for company mut tubrerbe qualifrivation sheuy, por quetificeliny sheru. lor pualificatire thauy PUBLIe SecroR| PeBLIC ENTERPRISC Pobhe Wtupnise |poblic xecter, ileprite ere send, managed § Conctotid by the goverrmnt, TE may be cartial govennut, Bate gornernect et loot Kady Inndividuenlty on jolly, Me port of capital in ContribTeat by tar gove- Crtate on mrgjet CHARECTERSTIC bh Ceutinment cwmeihip $ contol Lo Setipying barca needs. 3: Frwutiret of heavy prted coptat te Suter mobic S public Pataat arapertance | necp | ebrecTIve \ — (Economic need, 0) Availabiluy of eurtial commodilis of tupe 20 suppieant qanll, at heape Kets b) Pstabtishoert of bane induutus C) Belameed cegerrel che rcateprect 3. polificed wtotic 4, Racluesol Uvilefel experditisre S Drppostvctar > Prpelmertah epee king Forms ef f> Stalin, Coeorelirn pobliec vecloe hrevewmect Comportes "DEPARTMENTAL UNDERTAK IAI. 2 Dt eackt a4 the murtiley o a ——————— clepostmet of Te govern, He budget op Mer aypeiimectat orgonisebion An procDid to Ue porlionsct gut Ute st mens letees i Dadian railwoys post + ELgaph , Derr, Chae leer ley 2 I Department of govermert More proenctsD Grecclorn — Govt Trsomy. 3+ eating govt- mead 4 CLO pceruitmect setuice C#8e, LPse) Aeluanlape Eppectic cotteet Dis advenlog ts Decincens dileysd RB Leait pafit corning Venta 3+ Rect tapiter A Lack of Compttert wokex 2 Peporvieble exteubicy 5 les beope of eevtilication of furdy, HH dae to gout: revewe 5. Seaver motive 5. politica evil, 6: hack of Competiftenn, k2 STATUTORY [PLBLIC CORPORATION)! ~ Poblic Corporelions oa fered by thee Bre special act of parliament o Mpilalic ounbl, etiithe, Jn apucate pon the govt Tak te chy, Bhar enyporliog Ubke teporeliion ino tembinclion of pec arc cou le bili, & busines og bev poe wd! Le, Indian Pictines Ke ow call Core aoniuihip, £g:- sar, Artec, CHARECTERITICN 2 fh Crelnd 6 postion ge an Jae Sepecotte entiGy '- 7. a a eustine. Agprote pope “pb /state Lagirtolne te select + Crovenmect tnitot. we blie, celery att te Arpporatmant. ofp employees = PPE oy Lat hove thee oun *. employes. They “OF opera aie Corporates hove foonciad adem 1 Francia entenomy + ta US ound budge ety govenret- ore Pet Shown ond Bg winipls , 8. Ron on Commercial p ITAUES = Apy Ay he nde prrcbrer , Ini edie g preabilily Seope op Pat Tp Br poriouen mioioning 9s Ua hase preaibinly operations « 3 = Pubhe Intaust protected *— Hy Employes brediy WOK OMVivenmert S Competitive preys ou it ¢ AE con afford with mininem profit maspin “7 8, neato Te Yue & 4G cpuciey 4 can achueve economics é oh tage Beale epualioy 7. Poblic’ actouttabilily :- ZF hos to submit iff onnad uprt om ob wrong masclty DISADVaNTAUES © Contioved politvceb intafemru :— the autonomy A on pap in reotty Abe Continusd politica) inlperru oifrbs my and lene umik enviroamutt Tt taky tim te unecasth Un mien ef pore lg Misuse ef power i= Bs Burd of gowrment:— inere the publi Corpordtion ignores the Commucial. pynciply & whpr losses CoveRrNMENT COMPANY !— Section 61F ep Us Indian companies net Aapins o government company oy “amy company in uitith no dg SIX of pord ~P shore Capilad in held ty the cerliol Tol gouunmut % gouinmeit o pac a 4 r pousomet o by oY oma A mete of the alate govt by conctnnl goverment § paclly ty and Held A company Bubricliony of gots company.” CHARECTERSTICS 1 ges ar alae TE ts We Sthu regi s © s co Rh segs mea vad Indian Companies, Ack 1856 @® Shoves ove had beg State | Aad govevmmest in tre nome ch pruidast ef Todin © Lor: mominsis Good efy Directors Se has cdminiswotive g finential byecdomn TE WwW Avhjtet te Minislwral Cedtrol equ ADVANTALE pos o bill, oud Ose ts emay Te PP > Ge re re ts w xeprct gol kG Dre nes seilsty to Compe @ Cleat than drpestmertal Crderteking g publ: Cov povslliins Oqvice & prompt Aci moeing Privette pexticpelion pocilitelid PIS ADVANTAUES !— Ns Centsnvedl government intacberente ao Bin dagqees ot govt. Contvet Commitmurt or attachmest Bs Poor ARN fy Pledbillg only eo pap Evedu comttutimal seypentibil b Dividad fegatittes, 4 DEPARTMENTAL eae : wnbentaticts “| CSVERNTERT ConPorarion comeany mrt tg on | Ee ete | car icd gy ee Rat aa, [ob Pow Vomut ot) tan Compania Ad a | ete Negistetoe [ase iuwed Gada Jas Legod AN MK “Le | Spuste Lage pouitnn | govt. dapettmet | enti ee | | roinely | Budget of Conternal Govt: providy | Cet proidys | iniiad Capiteb | minum Srl. ety | cremate capi tad, | i oe nil york) geod | Heyh | roar pexrou Ct will make ws sy) Prove flexible Ste own reaeuk sep own Acad bond, nominats | Lrout- aprointe | controlkd by the| crovt | dizecteu fficcale of tonund | re luncTou rrinei toy | # Te Con DOr , poverte | funject te TE con bovrew | re ole borrow | apprevad of fort from govt trebhe! prom gout & P | | T | | ye 1 eee beiewealline geass on Ce 1. Suitability | conte over Van qeteu | moseet environment BHEL w.Exampl4 — paoo NTPC | mina ome Hee ndion rol. | = dere Bone Poor dosion eae 1 ete GOERCES OF FINANCE There are three Common Methods ef fine ~~ Long Tum fome —> Midliom tum foo > Sbort tum preree Methods th finer ! iF 4 2 Ppcij etuies Irene Medivm team froance Short tem g Pirencl Saeko, pty > Bare loary ae gurus), Papa SD Hire perthose > Shore Capit} > Leeting > Rank over cteaft > Retard popt = cbt we Vente Copitel BT ts = oy lum = loart SD pot factory > Advan pom Colter 2 Mbntay > Coveramat geal 4, (oars Lon TERM EINANCE 3 SS Own Capital r= the owoen f He betinuts have to invest HAR wn prnanus Xo Start with, Money ioveyled by the owns, partrur or promolky ts pomennt 4 will STay wrty the betinus throvghot the Life of Hae businas —> Shore Capitol '- The Capital + Aatied hon isiee of Shores Sita Ciebility + Shaseholle wv Aimrilfeol te the exlert of Ain eae tictinn th Th Stet Capital qe Pee Corey st t Wo ChUTUd To dividend. the Shore Capital ic op we Pm Equity Show capleed — prepa Shace copite) => Aitainag propia, [= Pu aeteved ou the PYG merwetning after = ett he clatru > bog ~ fem foau:- The axe sptctolind financics inittion of pey co tn hoard, providkd Ahe Getinuy proposal 4 probe > Deberrting:- Dibortueey ane the Loa Byer by the Compary Th iy we Cectificate oC LHL eed by the company ender we cea = ate! Acknewlestging Un acuipt of laan, A Atbutine bolder cr Bue Cuclitee of Ur Compey, tt is Cited to a fred rete of intaat. ? Gowermmnt got hlowus— Geveramext aS provi tum fpaenw eectly Ro the busincg hors ov by long indivertly Subscribing to the Shoes of the Comparies, The Gomernmurt Givd lea ent Co te te Prope Zeki fies Cectadcy tnolition , MEDIUM TERM PINO NICE )— Aa ee > Bork foane '— Barks in tut . fort Cre tered at O fxd rote 4 Repoymet of Ue lear ano (Alea our tdaduled ot Un Ce a Hite perthow > Tt ig x ports, to ey A freed asset otite paying The prin ovr a tong poviod of tee The possusces tp the amet Car be Coker by ee Orideatoelpa tas: qd 8 port of tre price amd tt betante will be repaid With a fired rote of intinst in cgrecct number ef fostaltmet , ss Pes al ed ay LAM fo fred OUT, the anset act to be purchased, Pe cen be Takin Om leone o& ert foo apteiped ne of pte, a jeels— ain form bf finernte +n eveilace cary bs LniGd Cenpartu, for a project when Tune fs ow hey her ora oe Auk murschat sents may parlicipote ogre epi te provide prentis anistance , [ SHoRe teen eraapie Shs ~~ ——-~ Snot ~? Commercial popu l~ he proucdy Of the ——_ $$$ of Commucee Pep~ Ore UG “le frraamte Cuenrt Morwyackio een D> Bank overdiaft 3 min in a gpeccab coer eae with te bork whi Un item con diao mer thea, whet he thos ian hin pow Cutint aceovnt whyect Te O maximum limit . P Fracle Cridit!- Ain in a Shot Tem exeetit souls exlindecl by sone, crtctiiens de The CUB Try he “atte lien providing yaw miliink oo tustlk Bord, —? Debt packaving Debt Factoring is arrangement vol thy focte Cher he TAhaolee Ogre to sell ita actount iolised ot GQ discount to the wer Aeciveble & bboy deatece called facts. Advoru _ fon Gene Ceretia ge rs Ss. Ro cColkct full or pat of the ordic amont pon the edlomuy in advent . Short tam Pepe frhom Cuilemect , Ru THE Companies See ee oe ee ee ee ort ley | unit- £ | PT Rope ction: — (ico asattal tconomens Peat ca caus males, fe om thel brah of me Eat Ruue os & Rink ection eho Gand a ca tn ceeenscl with Bre prow af alecatinn J fcosce rasoaccns neg OO potas empote F gy well as Ceonontits erect) Economia 04 @ 4" urcy, Thue probams th alteration O fadiviclrels, hovstolds, cen Definikien | Deport perc 4 sonal wus of rabionol eakee” — Adam Smith. Hit deternes. Deter, teadian been Reker’ on oe Kelatioy: ip petnen ends anne tance. muand whit hove olftinctie uses” — Robbins DECISIOAL PROBLEAD i Decisions g[farmnemne Fanart Jen] te senses Creole 4eemnGD pansies) : [omen sar rs moe mono | i iz — © WILEPTS OF MANAKCRAL Econonicr/— nee, Economic write, orotilem cxtte. dia to Wer nie) facts of eomomee tipe any Do E conor pRo@iem Rise? te Voted woos }— dleman wash ese unlimited. As we sat'y ore wont, pe moe new wast come op. Balde Bi NOOR ¢ oil ratoby pun ene pastinstor, usawct ppt alt sims to comt- gk have also bur eatinited 1. Scexrin WHOS to bY voit wats, AMM poten, he ee My eye dn pret Tees a , po is «pp the Eneen ally pyr cad = ope seonetley erhae mse supely 'T af indivicnels: tate 7 pe te bows au wecAteea native, weed tm pene on rot A ont co AU eoorts ose not egealty jnportont. ® BRANCHES OF Economics I— mieRko Economics s- FE Came from the umd calted pom Trey tpndhtes | eotuceh, ot vale meowt small ov inclividesa), Pt an Pe PL LontuG of Ce study of io a) pra fp we commodity [produc y Inchu/ci.iab- Cantos Sehowviour ) ew predear Y woys 9) Endtustisis Indlivicunlty MAcko Etevonies Mame -ceoenics come fiom the weed Savetret! Wei, means Large. Thin ctenke 9! qris incbenales Eases Bf Re come o) nichion) (aces ) Toted saurys Y Tetad Comconpiior Y gored (rvutre ty 9 Mong ary BD) price feud PY employ mast ste prsend 4 mumalaty pelig Ii eeaneenet pret NATERE ANID SCoPE OF MANALERTAL Economics —_- _- = MATYRE OF MANALERIAL Econonne s:— 1) Clow te Atere Economies: Mamaguca) Ceoremig dn the Windy Ob temomie beroviors of Indivicliiel cacsinn making wall, 40K Os Mndiviclct temiumu, AuovIcE own , burns priors iO fre nbepriten tyler. le. Macro youth T- TAL a tenaesee Reeiicory of ndivictuead bes SS fuck ot aggre tet off ovlpul s emmt, Connumplion jiovsemnt, grunt prea bel rete of nitetnn § Aaa pelt Geta: atcha meee 2 PROTOS, of pace and neg, 1B. Aormectie statment have been. Feonomic it Lshet oygit te be on whet ought 3 ol messes Lo Se Normative rien , becouue it 194% ways ar adoplad fe Cconomce bettiemest of te prope oe pd ey cated Income shell altro ¢ Axed Gy Tran Shorlol not be commaue goods pac preur county Gy private mer shoul be Sacdame ged em acatiatin, tae pa gp Cor ndustuativalion pe be yt said ak managed ees net acthre than ducapiic. pitain Susinus probuare fr Perspective action economies 9 pirupective Bak wae fe GA tgeell euectet Me Bee a. , ones. Manegeeal ston epplicabion of the prinupls ef econeaves “9 test : zt aesaomles Gea nl tay oe cele apt sf Cenc — : 2 Jaterdicet phi ee ee | Plinowy > — Ah : eee fg ak Teds 7 SeOMOMItA a OH ems Lintiplir hi: chaigees , phe, | ? OED ne eer gma gauss sugjets 40cb, os Economiy, a0 40 Minne pee 4 Momogimet, slabinter, metrneal Acconlanty, dociolory and Pig cholegy. AP Auth, fe ts

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