Business Economics and Commercial Knowledge

Introduction to Business Economics:
Meaning and scope of Business Economics
Basic Problems of an Economy and Role of Price Mechanism.
Theory of Demand and Supply:
Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity
Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach
Meaning and determinants of supply, Law of supply and Elasticity of supply. Demand Forecasting

Theory of Production and Cost:
Meaning and Factors of production
Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium
Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
Price Determination in Different Markets:
Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
Price determination in these markets.

Business Cycles: Meaning, Phases, Features, Causes behind these Cycles.
Business and Commercial Knowledge – Nature of Business, Profession and Employment. Objectives of Business. Economic and Non-Economic Activities, Forms of Business Organizations.
Business Organizations Overview of Selected Indian and Global Companies.

Business Environment Micro and Macro Environment, Elements of Micro Environment – Consumers/Customers, Competitors, Organization, Market, suppliers, Intermediaries, Elements of Macro Environment – Demographic, Economic, Political-legal, Socio-cultural, Technological, Global Environment.
Government Policies for Business Growth Policies creating conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.

Organizations Facilitating Business
Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI
Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD
Common Business Terminology
Finance and Stock & Commodity Markets Terminology.
Marketing Terminology.
Banking Terminology.
Other Business Terminology