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Preface to Model Solved Scanner____________________________

We feel great pride and pleasure in presenting before you the Twenty fourthedition of “Model Solved Scanner Paper - 1 Business Environment andEntrepreneurship”.

The style and pattern of CS Foundation examination has undergone acomplete change in the year 2012.

The pure objective set-up of the paper in multiple choice question formrequires a complete different study methodology.

The book has been designed keeping in mind the need of the studentsfor home study and distance learning. The book will be very handy forclassroom teaching and quick revision/practice also.

The book contents are as per the need of handling the MCQ’s and acomplete, comprehensive coverage of the syllabus.The main features of the book are as under :- The entire syllabus has been divided into 57 chapters. The whole content has been prepared in bullet form “keeping in mind the

MCQ pattern of study”. In each chapter, the topic has been covered in a step by step approach.

The text has been explained, where appropriate through illustrations andpractical problems. You should go through the chapter carefullyensuring that you understand the topic and then can tackle theexercises.

A Question Bank has been included after each chapter as well aspractice questions have been provided in MCQ form.

Important Definitions, equations and formulae have been given beforeeach topic for quick recapitulation.

Important and crucial points have been provided in blocks and chartform for easy grasping and revision.

Solved illustrations have been given at relevant places in each chapterfor better understanding of the concept.

Aims to prove to be the “best friend” throughout your study cycle and onexamination days.

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Your feedback is like a guiding light for us. Hence, we seek thesuggestions of our readers with all humbleness.

We would also like to place on record our sincere thanks to thePublishers – “Shuchita Prakashan (P) Ltd.” for their endless support andhardwork to present this edition well in time before you.With best wishes, we would sign-off by quoting:-

“One must have strategies to execute his dreams”Happy Reading, Best Wishes !!

24/147 1st Floor, CA AMAR OMARPlaza Kalpana, Birhana Road, CA RASIKA GOENKAKanpur – 208001 You can reach us at

cruxacademy@gmail.comcaamaromar@gmail.com

msg@09335506888

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Green EditionCS Foundation Programme

(New Syllabus)Paper - 1

Business Environment and Entrepreneurship

CA Amar OmarCA Rasika Goenka

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Shuchita Prakashan (P) Ltd.25/19, L.I.C. Colony, Tagore Town,

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Price : ` 210.00

Model

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Information _________________________________________________

Model Solved Scanner is published in India by Shuchita Prakashan (P) Ltd.25/19, L.I.C. Colony, Tagore Town, Allahabad 211002.Editor-in-chief : Mrs. Anjali'Model Solved Scanner' is registered trade mark of Shuchita Prakashan(P) Ltd.Copyright © of the content is exclusive property of the authors CA AmarOmar and CA Rasika Goenka.Trade mark 'Scanner' is being lent to the content provided by the authorsunder exclusive arrangement for publication of the content by the owner oftrade mark 'Shuchita Prakashan (P) Ltd'.Trade mark 'Scanner' cannot be used by any otherperson/organisation/agency with the content of this book or otherwise.

First edition : January 2009Twenty fourth edition : January 2017

"Scanner is a living document and is being updated after everyexamination since its inception"Every effort has been made to avoid errors or omissions in this publication.Inspite of this, errors may creep in. Any mistake, error or discrepancy notedmay be brought to the notice to the publisher or authors which shall be takencare of in the next edition. It may however, be noted that neither thepublisher nor the authors or seller will be responsible for any damage or lossof action to any one, of any kind, in any manner, therefrom. It is suggestedthat to avoid any doubt, the reader should cross-check all the facts, laws andcontents of the publication with original publication or notification.

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Students Acknowledgment

Dear Students,

Hope you all have performed brilliantly at the examinations and ourloads of luck to you for the future.

We would like to thank all the students who have played a role in theirindividual capacity for contributing questions. The respective students havebeen adequately rewarded as promised.Following is the list of all those students who have contributed the questions:

S. No. Student’s Name1. Ms. Bharti Sharma2. Ms. Vibha Maheshwari3. Ms. Roopali Agarwal

Our sincere thanks to all the above students. Our message to student community: “Is it not good to sweat, if it smells success”.

24/147,1st Floor,Plaza Kalpana, Birhana Road,Kanpur – 208001

CA AMAR OMARCA RASIKA GOENKA

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Contents _________________________________________________Paper-1 Business Environment and Entrepreneurship

Part A - Business EnvironmentChapter Name Page No.

Line Chart Showing Relative Importance of Chapters 1.3 Table Showing Important Chapters on the Basis of their

Frequency 1.41. Business Environment 1.52. Forms of Business Organization 1.433. Scales of Business 1.844. Emerging Trends in Business 1.1135. Business Functions 1.140

Part B - Business LawsChapter Name Page No.

6. Introduction to Law 1.1757. Elements of Company Law Part I 1.2088. Elements of Company Law Part II 1.2689. Elements of Law Relating to Partnership 1.324

10. Elements of Law Relating to Indian Contract 1.37611. Elements of Law Relating to Sale of Goods 1.50912. Elements of Law Relating to Negotiable Instruments 1.567

Part C - EntrepreneurshipChapter Name Page No.

13. Entrepreneurship 1.62114. Entrepreneurship - Creativity and Innovation 1.65415. Growth & Challenges of Entrepreneurial Venture 1.699

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Syllabus _________________________________________________

PAPER - 1Business Environment and Entrepreneurship

Level of Knowledge: Basic KnowledgeObjective: To give orientation about different forms of organizations,functions in organizations, business strategies and environment, along withan exposure to elements of business laws and entrepreneurship.

Part A BUSINESS ENVIRONMENT (30 Marks)

1. Business Environment– Introduction and Features– Concepts of Vision & Mission Statements– Types of Environment:

– Internal to the Enterprise– Value System, Management Structure and Nature, Human

Resource, Company Image and Brand Value, PhysicalAssets, Facilities, Research & Development, Intangibles,Competitive Advantage

– External to the Enterprise– Micro: Suppliers, Customers, Market Intermediaries– Macro: Demography, Natural, Legal & Political,

Technological, Economy, Competition, Socio-cultural andInternational

– Business Environment with reference to Global Integration2. Forms of Business Organization

Concept and Features in relation to following business models:– Sole Proprietorship– Partnership– Company– Statutory Bodies and Corporations– HUF and Family Business– Cooperatives, Societies and Trusts– Limited Liability Partnership– Other Forms of Organizations

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3. Scales of Business– Micro, Small and Medium Enterprises– Large Scale Enterprises and Public Enterprises– MNCs

4. Emerging Trends in BusinessConcepts, Advantages and Limitations:– Network Marketing– Franchising– Business Process Outsourcing (BPO)– E-Commerce– M-Commerce

5. Business Functions– Strategic: Planning, Budgetary Control, R&D, Location of a

Business, Factors affecting Location, Decision Making andGovernment Policy

– Supply Chain: Objectives, Importance, Limitations, Steps, VariousProduction Processes

– Finance: Nature, Scope, Significance of Financial Management,Financial Planning (Management Decisions – Sources of Funds,Investments of Funds, Distribution of Profits)

– Marketing: Concept, Difference Between Marketing and Selling,Marketing Mix, Functions of Marketing

– Human Resources: Nature, Objectives, Significance– Services: Legal, Secretarial, Accounting, Administration, Information

and Communication Technology

Part B BUSINESS LAWS (40 Marks)

6. Introduction to Law– Meaning of Law and its Significance; Relevance of Law to Modern

Civilized Society; Sources of Law; Legal Terminology and Maxims;Understanding Citation of Cases

7. Elements of Company Law– Meaning and Nature of Company; Promotion and Incorporation of

a Company; Familiarization with the Concept of Board of Directors,

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Shareholders and Company Meetings; Company Secretary; E-Governance8. Elements of Law relating to Partnership

– Nature of Partnership and Similar Organizations - Co-Ownership,HUF; Partnership Deed; Rights and Liabilities of Partners: NewAdmitted, Retiring and Deceased Partners; Implied Authority ofPartners and its Scope; Registration of Firms; Dissolution of Firmsand of the Partnership

9. Elements of Law relating to Contract– Contract - Meaning; Essentials of a Valid Contract; Nature and

Performance of Contract; Termination and Discharge of Contract;Indemnity and Guarantee’ Bailment and Pledge; Law of Agency

10. Elements of Law relating to Sale of Goods– Essentials of a Contract of Sale; Sale Distinguished from Agreement

to Sell, Bailment, Contract for Work and Labour and Hire-Purchase;Conditions and Warranties; Transfer of Title by Non-Owners;Doctrine of Caveat Emptor; Performance of the Contract of Sale;Rights of Unpaid Seller

11. Elements of Law relating to Negotiable Instruments– Definition of a Negotiable Instrument; Instruments Negotiable by

Law and by Custom; Types of Negotiable Instruments; Parties to aNegotiable Instrument - Duties, Rights, Liabilities and Discharge;Material Alteration; Crossing of Cheques; Payment and Collectionof Cheques and Demand Drafts; Presumption of Law as toNegotiable Instruments

Part C ENTREPRENEURSHIP (30 Marks)

12. Entrepreneurship— Introduction to Concept of Entrepreneurship, Traits of

Entrepreneur, Entrepreneurship: Who is an Entrepreneur, WhyEntrepreneurship

— Types of Entrepreneurs: Idealist, Optimizer, Hard Worker,Sustainer, Improver, Advisor, Superstar, Artiste, Visionary, Analyst,Fireball, Juggler, Hero, Healer.

— Distinction Between Entrepreneur and Manager

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— Entrepreneurship and Intrepreneurship : Definition, Features,Examples and Difference

13. Entrepreneurship - Creativity and Innovation— Entrepreneurial Venture Initiation : Sensing Entrepreneurial

Opportunities, Environment Scanning, Market Assessment— Assessment of Business Opportunities : Identification of

Entrepreneurial Opportunities, Selection of an Enterprise, Steps insetting up of an Enterprise

— Entrepreneurial Motivation : Meaning and Concept, Process ofAchievement Motivation, Self-efficacy, Creativity, Risk Taking,Leadership, Communication and Influencing Ability, Mentoring andPlanning Action

— Developing Effective Business Plan14. Growth & Challenges of Entrepreneurial Venture

— Strategic Planning for Emerging Venture : EntrepreneurialOpportunities in Contemporary Business Environment

— Financing the Entrepreneurial Business : Resource Assessment -Financial and Non - Financial, Fixed and Working CapitalRequirement, Funds Flow, Sources and Means of Finance.

— Managing the Growing Business : Effecting Change,Modernization, Expansion, and Diversification.

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Model Solved Scanner CS FoundationProgramme (New Syllabus) Paper-1

Business Envoirment andEntrepreneurship Green Edition (Dec-

2016)

Publisher : Shuchita PrakashanAuthor : CA Amar OmarAnd CA Rasika Goenka

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