Foundation of Business

14 September 2021 14:08

1) Business systems and contemporary business environment. Rules of business globally and
in India
2) Planning and Decision making SWOT analysis
3) Organization
4) Foundations in Accounting Goal of any business -
5) Financial Management to achieve maximum
6) Investment Management sales
7) Foundation in Economics
8) Business Goals
9) Intro to HRM and Organizational Behavior
10) Leadership and Motivation
11) Controlling
12) Introduction to Business Ethics
13) Management of operations
14) Introduction to Entrepreneurships
15) Hospitality and Tourism Management

Business - owner's perspective and employee's perspective.

Types of startups
1)One man show
2)Partnership
3)Company mode

Banking business- under RBI IFRS- International Financial Reporting Standards

Non-banking business - not under RBI
NBFCs(non-banking financial companies) - Muthoot finance, Tata Consultancy etc.

Startup - complex process, many rules and regulation to be followed.

Types of companies - Public(govt has 51% shares), Private, Limited liability, unlimited liability

Land Labor capital enterprise

HR, Man power, other employees, production, office staff, clerical staff,
Capital - assets in cash or in kind (personal car in business use)
Enterprise - land, labor and capital
Business Environment
Hindu undivided family business - joint family business

External and internal environment of a business

Internal environment- employees, coworkers, boss, subordinates, factory, warehouse
External environment - uncontrollable, government , investors and shareholders, loan givers,

Shared capital and borrowed capital

Dividends- some return of the profit for shareholders

Pro rata allotment refers to the allotment of shares in proportion of the shares applied for.

Equity share- fluctuating dividend

Preference share - dividend fixed ex 8%

Equity shareholder - attend annual meeting

Bankrupt- capital back on winding up (first preference shareholders will get, then equity only if money
is remaining)

https://www.angelone.in/knowledge-center/online-share-trading/difference-between-equity-share-
and-preference-share
https://www.shaalaa.com/question-bank-solutions/distinguish-between-equity-shares-preference-shares-types-shares_718
#z=7Mcu4dGq
https://keydifferences.com/difference-between-debt-and-equity.html

Liability and Dues Secured Dues

Closing company legally- winding up Collateral
Mortgage-
4 types of dues Papers-
1.Secured Lean-
2.Unsecured Pledge- keeping in custody
3.Equity shares Hypothecation-
4.Preference shares Title deed - important in property.

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1.Secured Lean-
2.Unsecured Pledge- keeping in custody
3.Equity shares Hypothecation-
4.Preference shares Title deed - important in property.

Preference shareholders get limited voting rights

A par value for a stock is its per-share value assigned by the company
Preference shares listed on the stock market, equity shares is not-
equity shareholders get dividend last

Right Shares
- Existing shareholders will get first right to buy when new issue is made(buy, it is not free)
Bonus Shares
-A bonus issue is an offer to give existing shareholders of the company to subscribe for additional
shares
Without paying anything to the company, they can declare - ex: one for three held

Redemption of preference shares

Debenture - debt capital or loan, used to raise capital funds from the market

Equity financing or Debt financing

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