Business Economics And Management (FBEM) (Paper-4) CMA Foundation

SECTION A: FUNDAMENTALS OF BUSINESS ECONOMICS [70%]

1. Basic Concepts - 15%

• The Fundamentals of Economics
• Utility, Wealth, Production
• heory of Demand (Meaning, Determinants of Demand, Law of Demand, Elasticity of Demand- Price, Income and Cross Elasticity, Theory of Consumer Behaviour, Demand Forecasting) and Supply (Meaning, Determinants, Law of Supply and Elasticity of Supply), Equilibrium
• Theory of Production (Meaning, Factors, Laws of Production - Law of Variable Proportion, Laws of Returns to Scale)
• Cost of Production (Concept of Costs, Short-run and Long-run Costs, Average and Marginal Costs,Total, Fixed and Variable Costs)
• Means of Production

2. Forms of Market - 20%

• Pricing of Products and Services in Various Forms of Markets – Perfect Competition, Duopoly, Oligopoly, Monopoly, Monopolistic Competition
• Price Discrimination

3. Money and Banking - 20%

• Money - Types, Features and Functions
• Banking - Definition, Functions, Utility, Principles
• Commercial Banks, Central Bank
• Measures of Credit Control and Money Market

4. Economic and Business Environment - 15%

• PESTEL (Political, Economic, Societal, Technological and Legal) Analysis
• Emerging Dimensions of VUCAFU (Volatility, Uncertainty, Complexity, Ambiguity, Fear of Unknown and Unprecedentedness)

SECTION B – FUNDAMENTALS OF MANAGEMENT [30%]

5. Fundamentals of Management - 30%

• Introduction to Management
• Stewardship Theory and Agency Theory of Management
• Planning, Organizing, Staffing and Leading
• Communication, Co-ordination, Collaboration, Monitoring and Control
• Organisation Structure, Responsibility, Accountability and Delegation of Authority
• Leadership and Motivation – Concepts and Theories
• Decision-making – Types and Process