Business Studies GCE Advanced Level Complete Syllabus

1

General Certificate of Education ( Advanced Level )BUSINESS STUDIES SYLLABUS

Grades 12 and 13( Implemented from year 2009 )

Department of Business Studies

Faculty of Science and Technology

National Institute of Education.

2

1.0 Introduction

Entrepreneurial studies and Business and Accounting Studies were introduced as competency based syllabuses for the G.C.E.( O/L ) Examination in

2007 and 2008 respectively. The syllabus of the G.C.E (A/L) curriculum was subject to revision with a competency base taking into consideration the

changes effected in these syllabi as well as the global trends that continue to take place.

Business Studies is a very popular commerce subject. Also it is a practical subject. This subject is fostered through subjects such as Economics,

Management and Social Studies.The students of the A/L commerce stream as well as the Arts stream can select this subject. The knowledge, skills and

attitudes obtained by studying this subject is useful in day to day life, higher education and also for professional education in the commerce stream.

A teaching-learning process which supports the creation of a citizen with knowledge, skills and attitudes, in other words, competencies necessary to

adapt to the changes in the business world, is proposed here.

It is expected that this syllabus will provide, competencies required for a profession or for self employment to those who do not pursue higher education,

entrepreneurial skills necessary to contribute effectively to the economic development of Sri Lanka as well as qualitative and effective development in

personal life.

Also, it is expected to develop competencies required to creatively generate, improve and effectively employ the physical and human resources

necessary for the national development of Sri Lanka. Therefore, it is recommended that the teaching- learning methodologies described here are

implemented in and outside the classroom since businesses are very practical. Teachers are expected to pay attention to the rapid changes in business

practices and update their knowledge accordingly.

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2.0 Objectives of the subject

• Focuss on different ways of finding solutions for the problems related to the satisfaction of human needs and wants with respect to institutions

or organizations.

• Prepare the student to adept oneself to the dynamic business environment by understanding it.

• Direct the student to the practical use of theoretical knowledge.

• Provide competencies to study concepts and principles related to business and to grasp complex subject matter simply.

• Provide opportunities to develop entrepreneurial and management skills.

• Indicate the integration among the functions of a business system.

• Provide the basic competencies necessary for involvement locally, regionally and globally in business.

• Provide opportunities to develop attitudes conducive to building up a sound business culture in Sri Lanka.

• Provide the practice necessary to start and conduct businesses according to a plan.

• Provide competencies necessary to perform professional roles successfully.

• Provide skills in the use of management and modern technology for socio economic development.

• Provide access to higher education.

4

Proposed plan for the division of the syllabus according to school terms.

Grade Term Competencies and competency levels

First term Competency level 1.1 to competency level 4.6 ( 19 competency levels )

Grade 12 Second term Competency level 5.1 to competency level 7.3 ( 19 competency levels )

Third term Competency level 7.4 to competency level 11.7 ( 19 competency levels )

First term Competency level 12.1 to competency level 14.4 (24 competency levels )

Grade 13 Second term Competency level 14.5 to competency level 16.7 ( 23 competency levels)

Third term Competency level 16.8 to competency level 18.11 ( 23 competency levels)

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3.0 Syllabus3.1 Grade 12

Competencies, competency levels, subject content and No. of periods.

Competency Competency levels Subject content No. of Periods

Examine the foundation of business to make an active contribution to businesses.

40

06

06

1.1 Analyses the concept ofbusiness

1.2 Forecasts trends in businesswhile examining theevolution of business.

• Definition of business• Needs and wants• Products• Demand• Production• Market

• Necessity of business• Aims of business

• Selfsufficient economy/ direct production• Personal specialization• Indirect production• Barter system• Trade• Usage of money and the evolution of money• Agricultural economy• Industrial economy

• Auxiliary services/ Business support services• Commerce

• Knowledge based economy (Information economy)• Electronic business (e.- business)• Electronic Commerce (e. -commerce)

• New trends in business.

6

Competency Subject Content

• Business classification criteria.• according to the nature of production• according to the sector of production• according to the ownership• according to the aims• according to the scale

• Different sectors of gross national product.• Agriculture• Industry• Services

• Inputs (resources )• Land• Labour• Capital• Entrepreneurship• Information• Time• Knowledge

• Functions of business• Administration• Operations (production )• Marketing• Financing• Human resources activities• Research and development

• Output• Goods• Services

No. of Periods

05

05

06

Competency levels

1.3 Classifies business in terms ofdifferent criteria.

1.4 Evaluates the contribution of each sector of production to the Gross Domestic Product of Sri Lanka.

1.5Analyses business as an inputoutput process.

7

No. of Periods

06

06

Competency levels

1.6 Classifies different products that

fulfil needs and wants.

1.7 Examines reasons for the interest

of stakeholders in business.

Competency

.

Subject Content

• Classification of goods and services

• Classification of goods

• According to durability

• According to usage

• Classification of services

• Business services

• Direct services

• Stakeholders in business

• Owners/ shareholders

• Managers

• Employees

• Customers

• Potential investors

• Creditors

• The Government

• The Public

• Others

• Reasons for the interest of stakeholders in business

8

Competency

2. Confirms that the

business

environment

influences the

existence of

business

Subject Content

• Business environment

• Definition

• Necessity of study

• Classification

• Internal environment

• External environment

• Task environment

• General/ Macro environment

• Internal environmental forces

• Owners

• Managers

• Employees

• Culture

• Organization structure

• Resources

• Strengths and weaknesses related to internal

environmental forces

No. of Periods

20

04

05

Competency levels

2.1 Classifies the business

environment to facilitate

analysis of the business

environment.

2.2 Analyses the influence of

internal environmental

forces on business.

No. of Periods

05

Competency levels

2.3 Analyses the influence of task

environmental forces on business.

2.4 Analyses the influence of macro

environmental forces on business.

06


• Forces of the task environment

• Customers/ consumers

• Suppliers

• Competitors

• New businessmen hoping to enter the market

• Producers of substitute goods

• Opportunities and threats related to task environmental

forces

• Forces of the general/ macro environment

• Economic environment

• Political and legal environment

• Technological environment

• Demographic environment

• Natural environment

• Socio-cultural environment

• Global environment

• Influences of macro environmental forces on task

environmental forces

• Interaction between macro environmental forces.

9

10

Competency levels

3.1 Evaluates the importance ofsocial responsibilities ofbusiness.

3.2 Confirms the necessity for acode of ethics for the successof business.

Competency

3. Considers socialresponsibilities andethics of business toadapt to dynamicbusinessenvironment.

Subject Content

• Social responsibilities of businesses• Definition• Necessity of meeting social responsibilities• Parties with respect to whom social responsibilities should

be met.• Owners• Employees• Customers• The Government• The Public• Environment

• Business ethics• Definition• Importance of conformity to business ethics• Factors that should be considered when formulating a

code of ethics• the business• the customer• the employee• competitors• social culture• organization culture• practicability

.

No. of Periods

1507

08

11

Competency levels

4.1 Investigates how the government influence business.

4.2 Shows how business contributesto the achievement of the economicaims of the government.

Competency

4.Confirms thenecessity ofmaintainingrelationships withthe government inthe process ofconductingbusiness.

Subject Content

• The government• Central government• Provincial councils• Local government bodies/ institutions

• The government's influence on business• providing infrastructural facilities• becoming a competitor• being a customer• drawing up policies• formulating rules and regulations• providing incentives• being a tax collector

• The Economic aims of a government• Economic growth and development• Full employment• Economic stability• Fair income distribution• Good international trade

• The contribution of business to the achievement of the aimsof the government• paying taxes• use of local resources• conformity to policies implemented by government• conformity to rules and regulations• contributing towards employment• minimization of damage to the environment

• Importance of inter- relationships between the government andbusiness

No. of Periods

35

05

06

Competency levels

4.3 Confirms the importance ofconducting business according tofiscal policies of the government.

4.4 Evaluates the importance ofconducting business according togovernment monetary policies.

4.5 Shows the necessity ofconducting business inaccordance with the steps takenby the government to protectconsumers.


• Fiscal policies of the government• Aims• Government income and expenditure

• taxes• types of taxes

• direct taxes• indirect taxes

• non-tax income• The influence of government fiscal policies on business

• Monetary policies of the government• Aims• Instruments used to implement monetary policies

• Interest rates• Changing reserve requirements• Open market operations• Changing discount rates• Impose credit limits

• The influence of government monetary policies on business

• Consumer protection• definition• necessity• importance

• to consumers• to businessmen

• rights of consumers• responsibilities of consumers

No. of Periods

06

06

06

12

13

Competency levels

4.6 Examines the role ofgovernment institutions actingfor consumer protection.

5.1 Classifies businessorganizations according toownership.

5.2 Compares comparatively theadvantages and limitationsof sole-proprietorshipexamining thecharacteristics

Competency

5. Confirms thatBusinessorganizations areessential tocommence andconductbusinessesformally.

Subject Content

• Consumer protection authority• Aims• Role• Powers vested to formalize trade

• Sri Lanka Institute of Standards• Aims• Role

• Business organizations.• Basic characteristics of a formal organization.• Types of business organizations

• Private sector business organizations• Sole proprietorships• Partnerships• Incorporated companies• Cooperatives• Special businesses

• Public sector businesses• Departments• State corporations• Businesses under local authorities• State companies

• Sole- proprietorship• Definition• Specific characteristics• Advantages and limitations

• Registration of sole proprietorship

.

No. of Periods

06

45

04

04

14

Competency levels

5.3 Compares comparatively theadvantages and limitations ofpartnerships examining thecharacteristics of partnerships.

5.4 Confirms the necessity of apartnership deed to start andconduct a partnership.

5.5 Compares the advantages andlimitations of co-operativesexaming their characteristics

5.6 Forecasts the trends inco-operatives verifing theevolution of co-operatives.

5.7 Verifies the specificcharacteristics of incorporatedcompanies.


• Partnerships• Definition• Specific characteristics• Advantages and limitations

• Registration of partnerships

• Ways of forming a partnership agreement• By implication• Verbally• In written form

• Partnership deed• Importance of partnership deed• Contents of a partnership deed

• Partnership Ordinance of 1890 and section 24 of it• Duties and rights of partners

• Co-operatives• Definition• Specific characteristics• Advantages and limitations

• Registration of co-operatives

• Evolution of co-operatives• Policies of co-operatives• Contribution of co-operatives to the economic development in

the country• Trends in co-operatives

• Incorporated companies• Definition• Specific characteristics• Advantages and limitations

• Incorporation of companies.

No. of Periods

04

05

04

05

04

15

Competency levels

5.8 Compares the specialcharacteristics of various types ofcompanies.

5.9 Compares the advantages andlimitations of franchises verifing theirspecific features.

5.10 Inquires the characteristics ofpublic sector business organizationsand points out their importance.


• Types of incorporated companies• Limited companies

• Private limited companies• Public limited companies• Off-shore companies

• Unlimited companies• Companies limited by guarantee• Overseas companies

• Criteria used to compare different types of companies• Number of members• Liability• Sources of capital

• Shares• Debentures

• Control and management

• Franchises• Franchiser• Franchisee• Facilities provided to frachisee by the franchiser• Types of franchises• Advantages and limitations of franchises

• Reasons to conduct businesses under the government.• Public sector business organizations

• State corporations/ statutory boards• Government departments• Businesses under local authorities

• Characteristics of public sector businesses• Privatisation and related issues

.

No. of Periods

05

05

05

16

Competency levels

6.1 Exhibits interest in being anentrepreneur by studying theimportance and benefits ofentrepreneurship.

6.2 Studies the reasons behind theemergence of entrepreneurs.

6.3 Exhibits ability to act as anentrepreneur by developingentrepreneurial competencies.

Competency

6. Shows thecontribution of

entrepreneurshipin economic andpersonaldevelopment.

Subject Content

• Entrepreneurship• Definition• Importance

• Benefits of entrepreneurship• Personal• Social and economic

• Entrepreneurship and economic development• Trends in entrepreneurship

• Entrepreneur• Background reasons to becoming an entrepreneur

• Involvement in invention• Family background• Socio-economic background• Education and training• Social problems

• Entrepreneurial competencies• Innovative• Initiative• Risk taking• Opportunity seeking• Organizing resourses• Leadership• Networking• Visionary• Independence• Dedication• Self awareness• Self confidence• Achieving goals

No. of Periods

35

06

06

06

17

Competency level

6.4 Examines the contribution of smallbusinesses to economic

development.

6.5 Investigates the incentivesavailable for the success of smallscale businesses.


• Optimistic• Flexibility• Bearability• Resilience• Consistancy• Social friendly• Eco friendly

• Ways of developing entrepreneurial competencies• Self assessments• Training• Education• Experiences

• Small businesses• Definition• Characteristics• Importance

• Relationship between small businesses and entrepreneurship• Factors to be considered by small businessmen

• when starting the business• when running the business

• Reasons for failures of small businesses and the way to success.

• Steps taken by the government to assist small businesses• Financial• Non-financial

• Institutions and individuals that provide incentives.

No. of Periods

06

05

18

Competency levels

6.6 Inquires about special projects setup

for the success of small businesses.


• Types of incentives provided

• Consultancy services

• Research and technological services

• Financial facilities

• Marketing facilities

• Infrastructure facilities

• Projects that provide aid

• Currently active projects

• Suwana

• Sumadi

• Sahanya

• Competency development project

• Gami pubuduwa program

• Sanasa loans scheme

• Co-operative rural bank loans

• Samurdhi development credit scheme

• Agricultural banking pilot project

• Other timely projects

No. of Periods

06

19

Competency levels

7.1 Confirms the necessity of moneyto facilitate transactions.

7.2 Evaluates the manner in whichthe system of financial institutionsin Sri Lanka contribute to theoperation and growth ofbusiness.

Competency

7. Appreciates thecontribution of moneyand financial institu-tions for the existenceand growth ofbusinesses

Subject Content

• Money• Definition• Evolution• Functions• Characteristics of money• Types

• Currency• Bank money• Near money• Electronic money

• System of financial Institutions in Sri Lanka• Banking sector

• Central Bank of Sri Lanka• Licensed Commercial banks• Licensed specialized banks

• Other financial institutions that accept deposits• Registered finance companies• Co-operative Rural Banks• Thrift and credit co-operative societies.

• Other specialized financial institutions• Specialised leasing companies• Primary dealers• Merchant banks• Share brokering companies• Unit trusts• Venture capital companies• Credit rating institutions

No. of Periods

40

06

06

20

Competency levels

7.3 Shows the impact of variousdeposits and lendings of commercialbanks for the operation and growthof businesses.

7.4 Shows the impact of other servicesprovided by commercial banks onthe business operations.


• Contractual savings institutions• Insurance companies• Employees' provident fund• Employees' trust fund• Other provident funds• Government services provident funds

• The importance of the financial institutions in a country as a business service

(Source:- Central Bank Report - 2007 )

• Types of deposits in commercial banks• Current accounts (demand deposits)• Savings accounts• Fixed deposits

• Importance of various types of deposits to businessmen.• Loans provided by commercial banks.

• Overdrafts• Loans

• Business loans• Consumer loans

• Other services of commercial banks• Agency services• Leasing services• Home banking• Tele banking• Pawning services

No. of Periods

06

06

21

Competency levels

7.5 Shows how transactions can be facilitated through the use of cheques.


• Safety lockers• Buying and selling of foreign exchange• Credit card services• Cash remittence activities• Issue of travellers cheques• Automated banking facilities• E-banking• Issue of letters of credit• Other services

• The influence of other services of commercial banks onbusiness activities

• Cheques• Types of cheques

• Order cheques• Bearer cheques

• Parties invloved in cheques• Drawer• Drawee• Payee

• Factors to be considered when writing a cheque• Crossing of cheques

• General crossing• Special crossing

• Endorsement of cheques• Dishonouring of cheques

No. of Periods

06

22

Competency levels

7.6 Shows how transactions can befacilitated through the use of

e-money.

7.7 Examines the role of theCentral Bank of Sri Lanka.

8.1 Examines the importance ofinsurance that supports theexistence of businesses.

8.2 Investigates the principles ofinsurance that help in thepractical use of insurance.

Competency

8. Confirms thenecessity ofinsurance for theexistence ofbusinesses

No. of Periods

05

05

2005

05

Subject Content

• Electronic money• Types of e-money• Parties involved in e-money• Characteristics of an e-money card• Advantages and disadvantages of e- money transactions

• The Central Bank of Sri Lanka• Aims• Functions

• Impact of functions of the Central Bank on the success of business.

• Insurance• Definition

• Risk• Definition• Insurable risks• Non-insurable risks

• Necessity of insurance• Insurance agreement

• Parties invloved in an insurance agreement• Insurance policy

• Principles of insurance• Insurable interest• Utmost good faith• Indemnity• Subrogation• Contribution• Proximate cause

23

Competency levels

8.3 Investigates various types ofinsurance policies which covervarious risks of businesses.

8.4 Finds out the parties in the insurance market who

contribute to the existence of insurance business.

9.1Compares the advantages andlimitations of various methods oftransportation that can be usedfor the success of businessactivities.

Competency

9. Shows the neces-sity of using transpor-tation effectively forthe success ofbusiness activities

Subject Content

• Classification of insurance• Life insurance• General insurance

• Fire insurance• Theft and burglary insurance• Natural disaster insurance• Marine insurance• Motor vehicle insurance• Employers liability insurance• Goods in transist insurance• Cash in transist insurance

• Composition of the insurance market• Insurance Board of Sri Lanka• Insurance companies• Insurance brokers• Insurance agents

• Underwriters• Re insurers

• Transportation• Transport systems• Elements of a transport system

• Way• Mode• Power• Terminal

• Various methods of transport• Highway transport• Railway transport• Waterway transport• Airway transport

No. of Periods

05

05

1005

24

Competency levels

9.2 Selects an effective mode oftransport by inquiring into thecharacteristics of a transport system.

10.1 Verifies the factors which enhancethe effectiveness of a communicationprocess

Competency

10. Confirms thenecessity of

using communication effectively for the success of business.

Subject Content

• Advantages and limitations of various methods of transport.• Importance of transportation

• Factors to be considered when selecting a mode oftransport.

• Features of an efficient mode of transport• Documents used in transportation• New trends in transport

• Communication• Importance of communication

• For business activities• For social activities

• Communication process• Elements of a communication process

• Sender• Message• Mode• Receiver• Response• Feedback

• Characteristics of effective communication• Correctness/ Accuracy• Conciseness• Completeness• Clarity• Courtesy• Concreteness• Consideration• Cost effectiveness• Speed

No. of Periods

05

10

05

25

Competency levels

10.2 Selects effectivecommunication services byinvestigating various methods ofcommunication.

11.1 Investigates how retail tradetakes place while takingtypes of trade intoconsideration.

Competency

11. Verifies thecontribution oftrade indistributing

products.

Subject Content

• Methods of communication.• Verbal• Written• Signals and symbols

• Electronic communication• Internal and external communication• Barriers to effective communication and ways of overcomingthem

• Trade• Definition• Distribution channels• Trade intermediaries

• Types of trade• Home trade

• Wholesale trade• Retail trade

• Foreign trade• Import• Export

• Retail trade• Definition• Characteristics• Services provided by retail traders

• to the producer• to the wholesaler• to the consumer

No. of Periods

05

4006

26

Competency levels

11.2 Selects retail stores suited for the satisfaction of needs considering the

upliftment of home trade.

11.3 Examines wholesale trade.

11.4 Examines international trade alongwith the benefits and barriers relatedto it.


• Types of retail stores• Mobile retailers• Fixed retailers

• New trends in retail trade

• Wholesale trade• Definition• Characteristics• Services provided by the wholesaler

• To the producer• To the retail trader

• Agents• Advantages and limitations to the use of intermediaries in trade.

• International trade• Definition• Basic factors• Types

• Import• Export• Entrepot

• Benefits• Free trade

• Definition• Barriers to free trade

• Tariffs• Non-tariffs

No. of Periods

05

06

06

27

Competency levels

11.5 Exhibits the readiness to enter into international trade by examing

the import and export procedures.

11.6 Investigates how the performanceof trade blocs and internationalorganizations contribute to theupliftment of foreign trade.


• Import and export procedures• Documents and methods used• Payments

• Bank drafts• Letters of credit• Electronic payment methods• Foreign mail and telex transfers

• Trade blocse.g.:• European Union• ASEAN

( Association of South East AsianNations )• SAARC

( South Asian Association for Regional Co-operation )• NAFTA ( North America Free Trade Agreement)

• Organizations eg:

• WTO ( World Trade Organization )• IBRD

(International Bank for Rehabilitation and Development ) • IMF ( International Monetary Fund ) • G.8 Group

• Trade agreements/ organizations ( New establishments )• Impact of trade agreements on foreign trade• New trends in international trade

No. of Periods

06

06

28

Competency levels

11.7 Points out the contribution of

electronic commerce for the

upliftment of trade.


• Electronic commerce

• Definition

• Procedures

• Advantages and limitations

• Ways of electronic commerce

• Business to Business (B 2 B)

• Business to Consumer (B 2 C)

• Consumer to Consumer (C 2 C)

• Government to citizen (G 2 C)

No. of Periods

05

310

29

Competency levels

12.1 Examines managementprocess to confirm the needand importance ofmanagement.

12.2 Analyses various managerialroles to identify the functions ofmanagers.

Competency

12. Shows the necessity and importance of management in

achieving the overall goals of an

organization.

Subject Content

• Management.

• Management process.

• Planning.

• Organizing.

• Leading

• Controlling.

• Efficiency and effectiveness.

• The need and importance of management.

• Manager

• Functions of managers

• Roles of a manager

• Interpersonal role

• Informational role

• Decisional role

No. of Periods

4545454545

04

04

3.2 Grade 13

30

Competency levels

12.3 Examines the management

skills needed for various

management levels.

12.4 Follows a formal method of

decision making and solving

problems successfully


• Various levels of management.

• Top managers.

• Middle managers.

• First line managers.

• Skills of managers.

• Conceptual skills.

• Interpersonal skills/ Human skills.

• Technical skills.

• Planning.

• Forecasting.

• Plan.

• Concept of decision making and problem solving.

• Identification of the problem.

• Developing alternatives.

• Evaluation of alternatives.

• Selecting the best alternative.

• Implementing.

No. of Periods

04

04

31

Competency levels

12.5 Prepares plans to achievegoals effectively.


• Planning process and decision making.

• Steps in the planning process

• Environment analysis.

• Identification of strengths, weaknesses,

opportunities and threats.

• Establishment of vision, mission, goals and

objectives.

• Identification of strategies.

• Implementation of plan.

• Measurement and control of success.

• Principles of planning.

• Importance of planning.

• Problems and limitations of planning.

No. of Periods

04

32

Competency levels

12.6 Confirms the necessity of

organizing resources for

successful management.

12.7 Analyses concepts to be

considered for successful

organizing.

Competency No. of Periods

04

04

Subject Content

• Organizing

• Definition

• Importance

• Steps of organizing

• Identification of work

• Division of work

• Departmentalization

• Delegation of authority and responsibility

• Establishment of standards for work

• Allocation of resources

• Co- ordination

• Chain of command/ Unity of command

• Span of control

• Power and authority

• Centralization

• Decentralization

• Organizational Structure

• Organizational chart

33

Competency levels

12.8 Exhibits the characteristics ofleadership needed for leading.

12.9 Proposes suitable methods ofmotivation for a successfulleading.


• Leading

• Leadership

• Motivation

• Communication

• Leadership as a function of leading

• Definition

• Importance

• Leadership styles

• Characteristics of leadership

• Motivation as a function included in leading

• Definition

• Importance

• Methods of motivation

• Monetary

• Non-monetary

No. of Periods

04

04

Competency levels

12.10 Shows how effectivecommunication helps forsuccessful leading.

12.11 Examines the necessity ofcontrolling in order toconfirm whether theexpected goals areachieved.


• Communication as a function of leading

• Necessity

• Importance

• Ways in which communication occurs

• Downward communication

• Upward communication

• Horizontal communication

• Formal communication

• Informal communication

• Controlling

• Functions of controlling

• Establishing standards

• Measurement of performance

• Identification of deviations

• Taking corrective actions.

• Controlling techniques

• Preventive

• Corrective

• Process Control

• Importance of controlling

No. of Periods

04

05

34

35

Competency levels

13.1 Exhibits readiness to

prepare operational plans to

achieve institutional

and consumer goals.

13.2 Proposes a suitable method of

production by examining

various methods of production.

Competency

13.Evaluates the

contribution of

operations management

for the success of

businesses.

Subject Content

• Concept of operations

• Operations management

• Definition

• Functions

• Oprations as a transformation process

• Inputs

• Process

• Outputs

• Value added

• Production planning

• Preparation of short-term production programms

• Preparation of longterm production programms

• Research and Development

• Production methods

• Definition

• Classification

• Job production

• Definition

• Advantageous and

Disadvantageous features

No. of Periods

45

05

05

36

Competency levels

13.3 Calculates the Break Even

Point comparing total

income and total production

cost.


• Batch production

• Definition

• Advantageous and disadvantageous features.

• Flow production

• Definition

• Advantageous and disadvantageous features

• Selection of a production method

• Factors to be considered when selecting a

production method.

• Factory layout plan

• Total cost

• Fixed cost

• Variable cost

• Total income

• Break Even Point Analysis

• Using equation

• Using graph

• Advantages of break even point analysis

No. of Periods

05

37

Competency levels

13.4 Points out the facts to be

considered in the successful

purchase of materials.

13.5 Decides on suitable methods

for stock control.


• Purchasing

• Materials

• Services

• Purchasing process

• Facts to be considered in purchasing

• Stock controlling

• Definition

• Necessity

• Stock control methods

• Method of deciding stock levels

• ABC Analysis

• Two bin System

• Computer programmes

• Continuous stock reporting method

• JIT method

No. of Periods

05

05

38

Competency levels

13.6 Decides on the necessary stock

levels to maintain optimum

stock.

13.7 Calculates Economic Order

Quantity considering costs of

stock.

13.8 Examines suitable quality

control methods to confirm

quality of products.


• Stock levels

• Maximum stock level

• Minimum stock level

• Reorder level

• Calculation of stock levels

• Graphical representation of stock levels

• Total costs of stock

• Stock ordering cost

• Stock holding cost

• Economic Order Quantity

• Calculation

• Graphical method

• Mathematical method

• Quality

• Total quality management

• Quality control

• Importance of quality control

• Quality control techniques.

No. of Periods

05

05

05

39

Competency levels

13.9 Proposes procedures for the

improvement of productivity.

14.1 Examines basic concepts on

which marketing is based,

to get optimum results.

Competency

14. Appreciates the

contribution of

marketing

management for the

success of business.

Subject Content

• Productivity

• Importance

• Measurement

• Methods for improvement

• New techniques

• Benefits of the use of new technology

• Problems in the use of new technology

• Marketing

• Definition

• Importance

• Core concepts of marketing

• Needs, wants and demand

• Products

• Value, satisfaction and quality

• Exchange, transactions and relationships

• Market

No. of Periods

05

45

04

40

Competency levels

14.2 Selects the suitable marketing

concept while examining the

evolution of marketing

concepts.

14.3 Decides on the segment of

consumers the products should

be offered to.

.


• Marketing concepts

• Evolution of marketing concepts

• Production concept

• Product concept

• Selling concept

• Marketing concept

• Customer concept

• Societal marketing conept

• Holistic Marketing concept

• Market

• Market segmentation

• Definition

• Benefits of market segmentation

• Bases of consumer market segmentation

• Necessities for productive market segmentation

• Target Market

No. of Periods

04

04

41

Competency levels

14.4 Examines marketing mix andits variables from the point ofview of the businessman and thecustomer

14.5 Decides on a product that cansatisfy the consumer. .

.


• Marketing mix from the point of view of thebusinessman (4P

s)

• Product• Price• Place• Promotion

• Marketing mix for services (7Ps=4P

s+3P

s)

• People• Process• Physical evidence

• Marketing mix from the point of view of the customer(4Cs)• Consumer needs and wants• Cost• Convenience• Communication

• Product• Goods• Services

• Product levels• Core benefits• Basic product• Expected product• Augmented product• Potential product

No. of Periods

05

04

42

Competency levels

14.4 Creates a suitable brand and

trade mark for a product.

14.5 Designs an attractive package

and a label for the product.

.


• Brand and trade mark

• Brand

• Trade mark

• Difference and relationship between brand and

trade mark.

• Characteristics of a brand

• Types of brands

• Benefits of branding

• Packging

• Package

• Types of packages

• Primary package

• Secondary package

• Transportation package

• Benefits of packaging of a product

• Factors to be considered when designing a package

• Labeling

• Label

• Contents of a label

No. of Periods

04

05

43

Competency levels

14.8 Examines ways of setting a

suitable price for a product.

14.9 Selects suitable distribution

channels for the distribution of

products to consumers.

.


• Price

• Pricing objectives

• Surviving in the market

• Profit maximization

• Increasing market share

• Market skimmings

• Product quality leadership

• Pricing methods/strategies

• Selecting a pricing method

• Distribution

• Importance

• Distribution channels

• Distribution channels for consumer goods

• Distribution channels for industrial goods.

• Factors to be considered when selecting a suitable

channel of distribution.

No. of Periods

05

05

44

Competency levels

14.10 Proposes suitable promotion

strategies to market the

products.

15.1 Examines the role of

financial management.

.

Competency

15.Examines ways of

using financial

management for

success of businesses

Subject Content

• Promotion

• Importance

• Promotion mix

• Advertising

• Sales promotion

• Personal selling

• Public relations

• Direct Marketing

• Advantages and limitations of each variable of the

promotion mix

• Financial management

• Goal of financial management

• Financial management decisions

• Investment decisions

• Financing decisions

• Financial planning and controlling of a business

• Budgeting

• Cash budget

• Capital budget

• Cash flow statement

No. of Periods

05

45

05

45

Competency levels

15.2 Assesses alternative sources

of finance to fulfil financial

requirements of a business.

.


• Financial requirements of a business

• Long-term financial requirements

• Short -term financial requirements

• Reasons for long-term financial requirements of a

business.

• Reasons for short term financial requirements of a

business

• Sources of finance

• Classification of sources of finance

• Internal - External

• Direct - Indirect

• Long term - Short term

• Factors to be considered when fulfilling financial

requirements

• Advantages and disadvantages of alternative sources of

finance

No. of Periods

05

46

Competency levels

15.3 Analyses financial position of

a business using financial ratios

15.4 Selects suitable investment

opportunities by examining

alternatives

.


• Financial analysis of a business

• Financial statements

• Financial ratios

• Liquidity ratios

• Profitability ratios

• Activity ratios

• Leverage ratios

• Analysis of financial ratios

• Investment decisions

• Investments in longterm assests

• Short term investments

• Stock

• Trade investments

• Debtors

• Cash balance

No. of Periods

04

04

47

Competency levels

15.5 Examines participation of a

financial market in relation to

financial management.

15.6 Examines the performance of

the financial market in Sri Lanka

15.7 Examines the activities of the

Colombo Stock Exchange


• Financial system of Sri Lanka

• Definition

• Composition

• Financial Institutions

• Financial Instruments

• Financial infrastructural facilities

• Financial Market

• Central Bank

• Financial Market

• Money market

• Capital Market

• Composition of the financial market

• Inter bank call money market

• Domestic foreign exchange market

• Government securities/Debentures market

• Corporate credit securities market

• Share market

• Colombo Stock Exchange

• Definition

• Importance

No. of Periods

04

05

04

48

Competency levels

15.8 Examines the securities traded in

the share market and their

benefits.


• Listing procedures

• Public issue

• Offer for sale

• Introduction

• Primary and secondary markets

• Securities traded on the colombo stock exchange

• Ordinary shares

• Preference shares

• Share warrants

• Corporate debentures

• Government securities

• Benefit of investing in securities

• Direct benefits

• Dividends

• Interests

• Reserves capitalization

• Right issues

• Capital gains

• Indirect benefits

No. of Periods

05

49

Competency levels

15.8 Examines the related institutions

and their functions in the

Colombo Stock Exchange.

15.10 Evaluates performance of the

stock exchange.


• Colombo Stock Exchange Ltd. and its composition

• Central Depositary System

• Functions

• Operations

• Brockers

• Securities and Exchange Commission of Sri Lanka.

• Relationship of the above parties to the CSE

• Transaction methods of securities in the CSE'

• Automated trading system (ATS)

• The debt securities trading system (DEX)

• Stock market indices

• All share price index (ASPI)

• Milanka price index (MPI)

• Total return index (TRI)

• Importance of share market indices.

No. of Periods

05

04

50

Competency levels

16.1 Examines the importance of

human resource management

Competency

16.Investigates the way of

using human

resources efficiently to

achieve business

goals effectively

Subject Content

• Human resource management

• Definition

• Specialities of human resource in comparison to other

resources

• Aims

• Increase of productivity of employees

• Employee development

• Employee welfare

• Recruitment of right people at the right time

• Retention of suitable employees

• Motivation of employees

• Control of cost of employees

• Fulfilment of the legal conditions related to

employees

No. of Periods

45

05

51

Competency levels

16.2 Evaluates necessity of job

designing and analysis as a

function of human resource

management.

16.3 Prepares human power plan

necessary for the existence of an

organization


• Job design

• Job analysis

• Job description

• Job specification

• human power planning

• Steps in human power planning

• Forecasting human resource demand

• Analyzing existing human power

• Planning internal supply of employees.

• Planning external supply of employees

• Importance of human power planning

• Factors to be considered when planning human power.

No. of Periods

04

05

52

Competency levels

16.4 Examines ways of recruiting

suitable people for employment

in an organization.

16.5 Prepares a job advertisement to

recruit employees.

16.6 Proposes suitable methods

of selection of suitable

applicants from the applicants

recruited.


• Recruiting employees

• Ways of recruiting

• Internal

• External

• Advantages and disadvantages of each way

• Job advertisement

• Places where jobs are advertised

• Newspaper

• Internet

• Television

• Radio

• Other

• Selection

• Selection methods

• Evaluation of applications

• Interviews

• IQ tests

• Personality tests

• Practical tests

• Background tests

• Medical tests

No. of Periods

04

04

04

53

Competency levels

16.7 Prepares formats of a letter of

appoinment.

16.8 Proposes steps to be taken

to develop and retain

human resources for the

organization.


• Hiring employees.

• Letter of appointment

• Contract of employment

• Importance of a letter of appointment

• Content of a letter of appointment

• Format of a letter of appointment

• Induction

• Probationary period

• Performance appraisal

• Training and development

• Training methods

• Benefits of training

• To the employee

• To the employer

• Employee movements

• Promotions

• Transfers

• Layoffs

• Termination of services

No. of Periods

04

05

54

Competency levels

16.9 Examines evaluation criteria forhuman resource managementfunctions

16.10 Evaluates importance ofgood employer- employee

relations.


• Evaluation criteria for human resource managementfunctions• Labour turnover• Absenteeism• Labour productivity• Industrial relations

• Industrial relations• Benefits of good industrial relations• Consequences of bad industrial relations

• Rights of employers and employees• Responsibilities of employers and employees• Industrial disputes• Trade unions

• Trade unions of employees• Trade unions of employers

• Aims of employees trade unions• Actions of trade unions

• Collective bargaining• Work to rule• Go slow• Abstain from working overtime• Strikes

• Token strikes

• Continuous strikes

No. of Periods

05

05

55

Competency levels

17.1 Shows the necessity ofinformation, examining theevolution of communicationtechnology through various eras.

17.2 Classifies information through theexamination of data processing

Competency

17.Examines thecontribution ofinformation systems forthe efficiency andeffectiveness ofbusinesses.

Subject Content

• Necessity of information• Evolution of communication technology• Various economic eras

• Normadic era• Agricultural era• Industrial era• Information era

• Importance of information

• Data• Information• Difference between data and information• Data processing

• Functions• Technology

• Characteristics of information

• Classification of information

No. of Periods

45

05

05

56

Competency levels

17.3 Shows readiness to usecomputer information systems byexamining functions andcomponents of an informationsystem.

17.4 Classifies information systemsaccording to levels of theirusage while examining methodsof classification of informationsystems.


• System• Information systems

• Definition• Functions

• Inputs• Process• Outputs• Storing

• Components• Hardware• Software• Liveware• Data• Procedures

• Classification of information systems• According to the levels of usage• According to the usage• According to the functions

• Information systems according to the levels of usage.• Strategic level• Management level• Knowledge level• Operational level

No. of Periods

05

05

57

Competency levels

17.5 Classifies information systemsaccording to usage.

17.6 Classifies information systemsaccording to functions.

17.7 Reveals benefits throughexamining informationtechnology.


• Information systems according to usage• Transaction processing systems ( TPS )• Knowledge work systems (KWS )• Office automation systems ( OAS )• Management information systems ( MIS )• Decision support systems ( DSS )• Executive support systems ( ESS )

• Information systems according to functions• Marketing management• Financial management• Operations management• Human resource management• Research and development

• Relationship among various information systems

• Information technology• Definition

• Other technologies related to information technology• Computing technology• Communication technology• Information management technology

• Importance of information technology• Benefits of information technology

No. of Periods

05

05

05

58

Competency levels

17.8 Studies computer networks

17.9 Exhibits readiness to useinternet


• Computer networks• Classification of computer networks

• According to linkage of computers• According to geographical distribution• According to users (according to the objective)

• Internet• Services provided by the internet

• World wide web (www)• e mail• File transfer protocol• Chat facilities• News groups• Tele computing

No. of Periods

05

05

59

Competency levels

18.1 Exhibits readiness to preparea business plan suitable for thebusiness idea by examining thecomponents of a business plan.

18.2 Prepares marketing plansuitable for the business idea.

Competency

18 Prepares businessplans to set upbusinesses.

Subject Content

• Business idea• Selecting a business idea

• Macro analysis• Micro analysis

• Business plan• Definition• Importance• Contents of a business plan

• Executive summary• Description of business• Marketing plan• Operational plan• Human resource plan• Financial plan

• Financial analysis

• Marketing plan• Definition• Importance• Content

• Industry and market analysis• Product (Goods or service )• Target market• Analysis of competition

No. of Periods

40

04

04

60

Competency levels

18.3 Prepares operational plan

according to marketing plan


• Target sale

• Marketing strategies of competitors

• Proposed marketing strategies

• Promotional strategies

• Pricing strategies

• Distribution strategies

• Annual sales forecast

• Marketing expenses

• Operational plan

• Definition

• Importance

• Content

• Production plan

• Fixed assets requirements

• Raw material requirements

• Employee requirements

• Annual production overheads

• Factory layout

• Waste disposal and environmental influences

• Total production cost and unit cost

• Operational expences prior to commencing of business.

No. of Periods

03

61

Competency levels

18.4 Prepares human resourceplan of the business.

18.5 Estimates project cost byexamining the content of thefinancial plan

18.6 Estimates the outcome ofoperations included in thefinancial plan


• Human resource plan• Definition• Importance• Content

• Praticulars about entrepreneures and partners• Basic positions and responsibilities of the

organisational structure• Organisation chart• Annual expences

• Financial plan• Definition• Importance• Contents

• Project cost• Total fixed assets• Total operation cost• Total working capital

• Profit and loss statement ( income statement )• Cash flow statement• Loan repayment schedule• Estimated balance sheet

• Project summary

• Prifit and loss ( income ) statement• Definition• Contents

• Gross sales income• Net sales income• Gross profit• Total indirect cost• Operational profit• Net profit after tax

No. of Periods

03

04

04

62

Competency levels

18.7 Prepares estimated cashflow statement included in thefinancial plan

18.8 Prepares estimated balancesheet included in the financialplan

18.9 Analyses financial statements inrelation to financial plan


• Cash flow statement• Definition• Contents

• Total cash inflows• Total cash outflows• Closing balance

• Balance sheet• Definition• Contents

• Non-current assets• Current assets• Current liabilities• Non-current liabilities• Total input

• Financial statement analysis• Break Even Point analysis• Ratios analysis

No. of Periods

03

03

03

63

Competency levels

18.10 Prepares executive summary.

18.11 Submits business plan.


• Executive summary• Name and address of owner / owners• History of the enterprise• Objectives of the entreprice• Goods or service produced• Market to be competed with• Reasons for the success of the business and

receipt of competitive advantages• Main management team• Total investment

• Owner's contribution• Expected amount borrowings

• Business plan• Cover page• Contents• Executive summary• Description of the business• Product or srevice• Marketing plan• Operational plan• Human resource plan• Financial plan• Annexe

No. of Periods

05

04

310

64

4.0 Learning-Teaching Strategies

Business Studies is a living dynamic subject. It is often subject to change as a result of changes in science and technology and advances in

society. As a result new concepts, principles, approaches and models get added on to this subject. It is essential that the proposed learning- teaching

process should be more practical and student centered. Through such a procedure it will be possible for the student to grasp subject matter more

meaningfully and also provide him / her with pleasure and satisfaction. Consequently, it is necessary that knowledge and skills as well as social ethics

including responsibilities and obligations related to business studies, are employed. The learning-teaching process should be so organized as to ensure

that the various theories, principles and practices that belong to this subject are acquired.

It is expected that the competency-based activities in this syllabus are implemented through activities using an exploratory approach to ensure

that each competency level is reached. The Inquiry Based Learning Approach, the Experiential Learning Approach and the Constructivist Learning

Approach are suggested for the student centered learning - teaching process. Given below are examples of learning-teaching methods with respect to

each learning approach.

• Study of texts and self study. • Tutorials.

• Assignments and Projects. • Drill practice.

• Observation and Exploration. • Field trips.

• Problem solving. • Simulation.

• Brain storming. • Case study.

• Collective group learning method. • Pictorial organization method.

• Games. • Demonstration.

• Debates. • Learning through activity.

• Role Play.

65

The teacher should always perform a very important function as facilitator, monitor and a resource person. It is expected that the student will be

constantly directed to learning-teaching strategies like individual or group activities, assignments and projects with a practical bent that directs him / her

to creative thinking and can connect him / her to the world of business.

5.0 School Policies and Programmes

The success of the learning-teaching activity in the classroom contributes immensely to the effective actualization of the expected aims and

competencies of the subject Business Studies. Therefore, it is important that school policies and programmes are organized with that end in view.

The number of periods assigned for this subject is 310 periods per annum. Although normally, a greater number of periods per annum are

provided for this subject, the present syllabus provides a smaller number of periods for the subject. The additional periods have to be employed for

purpose of implementation instruments of evaluation of the learning-teaching process. Thus, it is anticipated that students will, there by, be provided the

opportunity of further nurturing learning experience. For this purpose attention needs to be paid to the school policies and programmes that can be

utilized.

Programmes that can be implemented

• Market Survey and Research.

• Surveys to identify business opportunities.

• Preparation of a business plan a genuine business opportunity.

• Implementation of a simple suitable business and preparation of a report on it.

• Initiation of a Commercial association or company and its continuation.

• Organization of a Business Day.

66

• Organization of suitable programmes for the maintenance of relations with the local business community.

• Organization of discussions and seminars in order to bring experiences of the field of business into the classroom.

• Organization of Field Trips in order to direct students to the real world of business.

• Directing students to Business Studies for the purpose of conducting the school canteen, Co- operative Store, School Bank etc.

• Directing students to conduct a Wall Newspaper and Periodical specially relevant to new trends in the field of business.

• Organization of field trips to locations considered / important in the field of business and the preparation of a report in that regard.

• Organization of a Trade Fair and through it integrating marketing strategies, accounting and deciding on pricing based on the fair.

• Creation and production of dramas on business ethics and social responsibilities.

• Establishment of a young entrepreneurial success program and commencement of a business to be run for two years.

• Organization of debates.

• Directing students to surf the internet for information on new trends in the world of business.

It is essential that policy specific to each school is built for the purpose of organizing activities and programmes like those above, specific to this

subject. As such, it is appropriate that committee comprising the Commerce teachers and students is courtituted for the preparation of programmes and

policies for this subject with respect to both years as a sub-programme of the annual school programme. It is best that committee decides on the

programmes and policies it proposes to implement concurrently with the subject Business Studies for Advanced Level and combine same with the annual

programme of the school. In all these instances the basis should be the needs of the students and parents, the real stakeholders in education, as well as

state policy. Similarly, it is essential that the relevant resources, funds and relation between the school and community are subject to close study.

67

6.0 Assessment and Evaluation.

The creative preparation and implementation of learning-teaching evaluation programmes to cover prescribed competencies and competency

levels for each term under the School-based Assessment Programme, is expected.

This syllabus is prescribed for the G.C.E. (A/L) examination, the national level evaluation conducted at the end of Grade 13. The national level

examination conducted by the Examinations Department of Sri Lanka, based on this syllabus will be conducted for the first time in 2011. Necessary

details regarding the structure and nature of question papers of this examination will be provided by the Department of Examinations.