CA Foundation in Laxmi Nagar, Delhi – Paper 4 – Business Economics & Business and Commercial Knowledge

& Business
& Commercial
Demand and Supply Production and Cost Price
Introduction to
CA Foundation
Paper 4

CA Foundation Paper4

What is the correct answer for 30 - 15

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Paper Details
Paper Title Faculty Name No. of Classes
CA Foundation – Paper 4 (4A & 4B) Faculty Name 20 Classes
Foundation Paper 4A: Business Economics (60 Marks)
Sections Weightage Content Area
I 15%-20% 1. Introduction to Business Economics
    (i) Meaning of Business Economics

(ii) Objectives of Business Firm- Profit Maximization, Sales Maximization, Growth Maximization.
II 35%-40% 2. Theory of Demand and Supply
    (i) Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity

(ii) Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach

(iii) Meaning and determinants of supply, Law of supply and Elasticity of supply.

(iv) Demand Forecasting
    3. Theory of Production and Cost
    (i) Meaning and Factors of production

(ii) Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium

(iii) Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
III 25%-30% 4. Price Determination in Different Markets
    (i) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

(ii) Price determination in these markets.
IV 15%-20% 5. Business Cycles
    (i) Meaning

(ii) Phases

(iii) Features

(iv) Causes
Foundation Paper 4B: Business & Commercial Knowledge (40 Marks)
Sections Weightage Content Area
I 15%-18% 1. Introduction to Business
    (i) Nature of Business, Profession and Employment

(ii) Objectives of Business.

(iii) Economic and Non-Economic Activities

(iv) Forms of Business Organizations
II 15%-18% 2. Business Environment
    (i) Micro and Macro Environment

(ii) Elements of Micro Environment – Consumers/customers, Competitors, Organization, Market, Suppliers, Intermediaries

(iii) Elements of Macro Environment – Demographic, Economic, Political-legal, Socio-cultural, Technological, Global Environment
III 15%-20% 3. Business Organizations
    (i) Overview of selected Indian and Global Companies.
IV 15%-18% 4. Government Policies for Business Growth
    Policies creating conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
V 15%-18% 5. Organizations Facilitating Business
    (i) Indian Regulatory Bodies – RBI, SEBI, CCI, IRDA.
(ii) Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD.
V 15%-18% 6. Common Business Terminologies
    (i) Finance and Stock & Commodity Markets Terminology

(ii) Marketing Terminology

(iii) Banking Terminology

(iv) Other Business Terminology