The Board of Studies (BoS) of the Institute of Chartered Accountant of India (ICAI) has now assigned weightage of marks to various sections of a subject. This facility would help students to plan their studies in a structured manner for the coming ICAI examinations.
Accordingly, each subject has been divided into various topics and topics have been grouped into sections and weightage range has been assigned to these sections. The question paper would take into consideration the weightage range assigned to different sections.
Following are the detail section wise weightage of marks assigned to the Paper-4 Business Economics and Business & Commercial Knowledge of CA Foundation course examination to be held in May 2018 under New Scheme of Education and Training.
Section wise Weightage of Marks for Paper 4
Foundation Paper 4: Business Economics and Business & Commercial Knowledge (100 Marks)
Foundation Paper 4A: Business Economics (60 Marks)
Section I (9 Marks to 12 Marks)
- Introduction to Business Economics
(i) Meaning of Business Economics
(ii) Objectives of Business Firm- Profit Maximization, Sales Maximization, Growth Maximization.
Section II (21 Marks to 24 Marks)
- 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
- 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.
Section III (15 Marks to 18 Marks)
- Price Determination in Different Markets
(i) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
(ii) Price determination in these markets.
Section IV (9 Marks to 12 Marks)
- Business Cycles
Foundation Paper 4B: Business & Commercial Knowledge (40 Marks)
Section I (6 Marks to 7 Marks)
- 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
Section II (6 Marks to 7 Marks)
- 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
Section III (6 Marks to 7 Marks)
- Business Organizations
(i) Overview of selected Indian and Global Companies.
Section IV (6 Marks to 7 Marks)
- Government Policies for Business Growth
(i) Policies creating conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
Section V (6 Marks to 7 Marks)
- Organizations Facilitating Business
(i) Indian Regulatory Bodies – RBI, SEBI, CCI, IRDA.
(ii) Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD.
Section VI (6 Marks to 8 Marks)
- Common Business Terminologies
(i) Finance and Stock & Commodity Markets Terminology
(ii) Marketing Terminology
(iii) Banking Terminology
(iv) Other Business Terminology