CONTENTS
FOREWORD iii
PART I FOUNDATIONS OF BUSINESS 1
CHAPTER 1 Business, Trade and Commerce 2
CHAPTER 2 Forms of Business Organisation 27
CHAPTER 3 Private, Public and Global Enterprises 60
CHAPTER 4 Business Services 83
CHAPTER 5 Emerging Modes of Business 118
CHAPTER 6 Social Responsibilities of Business
and Business Ethics 145
PART II CORPORATE ORGANISATION, FINANCE AND TRADE 164
CHAPTER 7 Formation of a Company 165
CHAPTER 8 Sources of Business Finance 186
CHAPTER 9 Small Business 213
CHAPTER 10 Internal Trade 231
CHAPTER 11 International Business 261
FORM NO. INC-1 Application for reservation of Name 309
2018-19
, CONSTITUTION OF INDIA
Part III (Articles 12 – 35)
(Subject to certain conditions, some exceptions
and reasonable restrictions)
guarantees these
Fundamental Rights
Right to Equality
• before law and equal protection of laws;
• irrespective of religion, race, caste, sex or place of birth;
• of opportunity in public employment;
• by abolition of untouchability and titles.
Right to Freedom
• of expression, assembly, association, movement, residence and profession;
• of certain protections in respect of conviction for offences;
• of protection of life and personal liberty;
• of free and compulsory education for children between the age of six and fourteen years;
• of protection against arrest and detention in certain cases.
Right against Exploitation
• for prohibition of traffic in human beings and forced labour;
• for prohibition of employment of children in hazardous jobs.
Right to Freedom of Religion
• freedom of conscience and free profession, practice and propagation of religion;
• freedom to manage religious affairs;
• freedom as to payment of taxes for promotion of any particular religion;
• freedom as to attendance at religious instruction or religious worship in educational
institutions wholly maintained by the State.
Cultural and Educational Rights
• for protection of interests of minorities to conserve their language, script and culture;
• for minorities to establish and administer educational institutions of their choice.
Right to Constitutional Remedies
• by issuance of directions or orders or writs by the Supreme Court and High
Courts for enforcement of these Fundamental Rights.
2018-19
, PART I
Foundations of Business
2018-19
, CHAPTER 1
BUSINESS, TRADE AND COMMERCE
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
i. Appreciate the development of trade and commerce in historical past;
ii. Understand the role of indigenous banking system in trade and commerce;
iii. Explain the concept and objectives of business;
iv. Discuss types of industries;
v. Explain the activities relating to commerce;
vi. Describe the nature of business risks and their causes; and
vii. Discuss the basic factors to be considered while starting a business.
2018-19
FOREWORD iii
PART I FOUNDATIONS OF BUSINESS 1
CHAPTER 1 Business, Trade and Commerce 2
CHAPTER 2 Forms of Business Organisation 27
CHAPTER 3 Private, Public and Global Enterprises 60
CHAPTER 4 Business Services 83
CHAPTER 5 Emerging Modes of Business 118
CHAPTER 6 Social Responsibilities of Business
and Business Ethics 145
PART II CORPORATE ORGANISATION, FINANCE AND TRADE 164
CHAPTER 7 Formation of a Company 165
CHAPTER 8 Sources of Business Finance 186
CHAPTER 9 Small Business 213
CHAPTER 10 Internal Trade 231
CHAPTER 11 International Business 261
FORM NO. INC-1 Application for reservation of Name 309
2018-19
, CONSTITUTION OF INDIA
Part III (Articles 12 – 35)
(Subject to certain conditions, some exceptions
and reasonable restrictions)
guarantees these
Fundamental Rights
Right to Equality
• before law and equal protection of laws;
• irrespective of religion, race, caste, sex or place of birth;
• of opportunity in public employment;
• by abolition of untouchability and titles.
Right to Freedom
• of expression, assembly, association, movement, residence and profession;
• of certain protections in respect of conviction for offences;
• of protection of life and personal liberty;
• of free and compulsory education for children between the age of six and fourteen years;
• of protection against arrest and detention in certain cases.
Right against Exploitation
• for prohibition of traffic in human beings and forced labour;
• for prohibition of employment of children in hazardous jobs.
Right to Freedom of Religion
• freedom of conscience and free profession, practice and propagation of religion;
• freedom to manage religious affairs;
• freedom as to payment of taxes for promotion of any particular religion;
• freedom as to attendance at religious instruction or religious worship in educational
institutions wholly maintained by the State.
Cultural and Educational Rights
• for protection of interests of minorities to conserve their language, script and culture;
• for minorities to establish and administer educational institutions of their choice.
Right to Constitutional Remedies
• by issuance of directions or orders or writs by the Supreme Court and High
Courts for enforcement of these Fundamental Rights.
2018-19
, PART I
Foundations of Business
2018-19
, CHAPTER 1
BUSINESS, TRADE AND COMMERCE
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
i. Appreciate the development of trade and commerce in historical past;
ii. Understand the role of indigenous banking system in trade and commerce;
iii. Explain the concept and objectives of business;
iv. Discuss types of industries;
v. Explain the activities relating to commerce;
vi. Describe the nature of business risks and their causes; and
vii. Discuss the basic factors to be considered while starting a business.
2018-19
