Syllabus - Foundation Course
Paper 1 : Organisation and Management Fundamentals
(One Paper: 3 hours: 100 marks)
Section I - Organisation (30 marks)
- Functional areas of
organisation - different organisation structures, operations of
main functional areas of business, the organisation and the activities of
different functions. Formal and informal organisation – principles of
organisation, criteria for grouping activities.
Schools of organisation theory - classical, behavioural and
systems, current trends and approaches, behaviour in organisation, role of
Organisational management - objectives (missions, goals and
targets), conflict between the objectives; appropriate strategy formulation;
the determinants of culture – the different models available for
categorising cultures; different models of organisational management
available to achieve goal congruence.
Section II - Management (70 marks)
- Human resource management - human resource plan; the
human issues relating to recruitment, dismissal, retirement and redundancy.
Models of human behaviour and motivation and their application (e.g. Taylor,
McGregor, Maslow, Hertzberg, etc); training, development and design of
- Management of relationship - process of management
covering planning, organising, staffing, directing, motivating,
communicating and control; the concepts of power, authority, responsibility
and delegation; the characteristics of leaders and managers; management
style theories, contingency approach. Theories of group development,
behaviour and roles. The sources of conflict in organisations and the ways
in which the conflict can be managed.
- Management of change - The stages in the process of
management change, approaches to the management of organisational
development and major cultural and structural change; the importance of
managing critical period of change and the ways in which these periods can
be managed effectively.
- Pattern of management - broad policies and functions,
structural pattern of the Board of Directors; concept of public sector,
social objectives; public sector management. Current management thoughts.
Paper 2: Financial Accounting Fundamentals (One
Paper: 3 hours: 100 marks)
i. Basics of bookkeeping and
accounting - definition and its usefulness. Financial accounting
principles, concepts and convention - measurement of business income. Position
Statement. Accounting Standards - national and international (basic knowledge).
System of book keeping - double entry
system, books of prime entry, subsidiary books, recording of cash and bank
transactions, preparation of ledger accounts, preparation of trial balance -
interpretation and usefulness.
Bank reconciliation statement - Need for
reconciliation between cashbook and bank pass book and problems relating to the
preparation of bank reconciliation statement.
Accounting mechanics (including computerization.), bill of
exchanges, consignment and joint venture.
- Concept of capital, revenue and deferred revenue
expenditure, opening entries, closing entries, adjustment entries and
rectification entries, trading, manufacturing and profit and loss account
and balance sheet. Bad debts and reserves for bad debts - its accounting
treatment. Depreciation - its significance and accounting.
- Concept of single entry vis-à-vis double entry
system of accounting, their interrelationship and conversion from single
entry system to double entry system. Preparation of receipts and payments
accounts and income and expenditure account. Significance of reserves and
provisions. Preparation of profit and loss account and balance sheet of
- Partnership Accounts - Admission, Retirement, Death,
- Joint stock company accounts - issue, forfeiture and
redemption of preference shares and debentures, profits prior to
incorporation and company profit and loss account and balance sheet as per
provision of the Companies Act, 1956 (1 of 1956).
Paper 3: Economics and Business Fundamental (One
Paper: 3 hours: 100 marks)
Section I - Economics (50 marks
- Basics of economics - definition, scope and subject
matter of economics - a few fundamental concepts like utility, wealth,
factors of production, demand and supply, elasticity, equilibrium, land and
the laws of diminishing returns.
Theory of employment - types of unemployment, concepts of full employment
and how it can be achieved.
Labour and population theories, definition of capital and growth of capital,
steps in capital formation.
Market forms - value under perfect competition and under imperfect
National Income - Gross National Product, Net National Product, measurement
of national income, economic growth and fluctuations, consumption, savings
Distribution - income determination and equilibrium relating to rent, wages,
interest and profit.
- Money - definition and functions of money, quantity
theory of money, inflation, effects of inflation on production and
distribution of wealth, control of inflation, money supply, liquidity
preference and managerial efficiency, rate of interest and investment.
Banking - definition, functions and utility of banking, the principles of
commercial banking, multiple credit creation, essentials of a sound banking
Central bank - Functions, weapons of credit control and the money market.
- International trade - basic features of import -
National and International Financial Institutions - Industrial Finance
Corporation of India (IFCI), Industrial Credit and Investment Corporation of
India (ICICI), Industrial Development Bank of India (IDBI), Export-Import
Bank (EXIM), Asian Development Bank, International Monetary Fund,
International Bank for Reconstruction and Development (World Bank).
Public finance - direct and indirect taxes, principles of taxation, effects
of taxation on production and distribution, taxable capacity, deficit
Section II: Business Fundamentals (50 marks)
- Types of business units -
sole proprietorship, partnership, companies, co-operatives, Hindu Undivided
Family, joint stock companies, public utility services and state
Company organisation and management - types of companies -
their formation, incorporation and commencement of business, memorandum of
association and articles of association, prospectus, shares and debentures,
Board of directors and general meetings.
- Business objectives - concept and
rationale of social responsibility, business and its environment, interface
with legal, political, economic, social and cultural aspects.
Stock exchange and its workings - dealers and brokers’
transactions, economic significance, conditions of membership, role of stock
Business communication and report writing - commercial correspondence and
Paper 4: Business Mathematics and Statistics
Fundamentals (One Paper: 3 hours: 100 marks)
Aim: To ensure a basic understanding a
quantitative tool and their elementary application of business problems.
Level of knowledge: Basic knowledge.
Arithmetic (15 marks)
Average, mixtures, computation of interest, discounting of bills,
percentages, ratios and proportions.
Algebra (25 marks)
- Number systems – real, imaginary, rational and
- Elementary knowledge of sets and the operations on
them. Simple applications and solution by the use of Venn diagram. Truth
table and its applications to statements.
- Indices and surds, variation, logarithms, permutations
and combinations, compound interest.
- Solution and systems of linear simultaneous equations
(3 variables only). Quadratic equations, solution of linear inequalities (by
geometrical method only).
Mensuration (30 marks)
Area and perimeter of triangles, circles, parallelogram,
regular polygon, volume and surface of cube, prism, cylinder, pyramid, cone,
frustums and spheres (including zone and segments). Plain Co-ordinate Geometry
(Rectangular Cartesian co-ordinates only). Length of line segments, section
ratio, gradient of a line, equations of straight lines, circles, parabolas,
Ellipse and hyperbolas (standard forms only).
Elementary Statistics (30 marks)
Graphical presentation of statistical data, frequency
distribution, measures of central tendency (mean, median, mode) measures of
dispersion (range, mean deviation, standard deviation, variance), measures of
skewness and kurtosis.