CWA ICWA - Foundation : Economics and Business Fundamentals

ICWAICWA ICWA (2008)FoundationSyllabus and Recommended Books • Economics and Business Fundamentals

ICWA :: Foundation
Paper 3 : Economics and Business Fundamentals
[One paper: Three Hours – 100 marks]

Objective . . .

To gain basic knowledge of economics
To understand different structures of organization
To know how stock exchange functions

A. ECONOMICS (60 marks) :

1.Basic Concepts of economics10%
The Fundamentals of Economics & Economic Organizations
Utility, Wealth,
Basic Elements of Supply and Demand, elasticity
Theory of Production
Cost of production.
2.Forms of Market5%
Perfect competition and Imperfect competition
Pricing in perfect and imperfect competition
3.National Income5%
Gross National Product
Net National Product
Measurement of National Income
Economic growth and fluctuations
Consumptions, savings and investments
4.Theory of Employment5%
Type of unemployment
Concepts of full employment
Labour and Population theories
Definition of capital and growth of capital
Steps in capital formation
Definition and functions of money
Quantity theory of money
Inflation and effect of inflation on production and distribution of wealth
Control of inflation
Money supply
Liquidity preference and marginal efficiency
Rate of interest and investment
Functions and utility of Banking
Principle of commercial banking
Essentials of sound banking system
Multiple credit creation
Functions of Central Bank
Weapons of credit control and money market
National & International Financial Institutions
7.International Trade5%
Basic feature of export and import
Competitive advantage of trade
8.Public Finance10%
Direct and indirect taxes
Principle of taxation
Effect of taxation on production and distribution
Deficit financing system

B. Business Fundamentals (40 marks) :

9.Type of Business Unit10%
Sole proprietorship, Partnership, Companies, Cooperatives
Hindu Undivided Family
Joint Stock Companies
Public Utilities services
State Enterprises
Limited Liability Partnership
10.Company Organization and Management10%
Types of companies and their formation
Incorporation and commencement of business
Memorandum of Association, Articles of Association and Prospectus
Shares and debentures
Board of Directors and General Meeting
11.Business Objectives5%
Concept and rationale of social responsibility
Business and its environment, interface with legal, political, economic, social and cultural aspects
12.Stock Exchange and its workings10%
Dealers and brokers transactions
Economic significance, condition of membership
Role of stock exchanges , Depository participant
13.Business Communication and Report Writing5%

Recommended Books

Fundamentals of Business EconomicsC.B.GuptaSultan Chand
EconomicsJ. K. MitraWorld Press
EconomicsP. A. Samuelson McGraw Hill International
Modern Economic TheoryK. K. DewettS.Chand & Co.
Fundamentals of Business OrganizationSultan Chand Y. K. Bhusan
Modern Business Organisation and ManagementSherlekar and SherlekarHimalaya Publishing
Company LawEastern Book Co.Avtar Singh
SEBI Guidelines
Modern Economic TheoryS.MukherjeeNew Age International