Business Economics and BCK : Important topics to score 80+ marks

In the CA Foundation Course, Paper 4 is divided into two parts:

1. Business Economics (60 marks):

• This section involves understanding economic concepts related to business.
• You’ll face 60 multiple-choice questions, each carrying 1 mark.
• Be careful, as there’s a negative marking of 0.25 marks for every incorrect answer.

2. Business Commercial Knowledge (BCK) (40 marks):

• This part focuses on general business awareness.
• You’ll be faced with 40 multiple-choice questions, each worth 1 mark.
• Remember, for every wrong answer, 0.25 marks will be deducted.

Note: The provided mark distribution is based on historical trends. However, the Institute of Chartered Accountants of India (ICAI) holds the authority to change it at any time. Now, let’s explore a last minute revision strategy for these sections

Following is a strategy based on the most important chapters and topics of CA Foundation Eco and BCK:

1. Focus primarily on BCK CHP 1,2,4,5,6
2. ⁠Then get back to Economics and focus on chapter 1,2,5
3. ⁠Then go back to Chapter 3 & 4 of Economics
4. ⁠And finally go ahead with BCK Chapter 3

CA Foundation Economics syllabus for Dec 2023 exam

Part A: Business Economics

1. Introduction to Business Economics
Meaning and scope of Business Economics Basic Problems of an Economy and Role of Price Mechanism.
2. 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 behavior – Marshallian approach and Indifference curve approach
Meaning and determinants of supply, Law of supply and Elasticity of supply.
Demand Forecasting
3. 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.
4. Price Determination in Different Markets
Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
Price determination in these markets.
5. Business Cycles
Meaning
Phases
Features
Causes behind these Cycles.

Part B  Business and Commercial Knowledge

1. Introduction to Business
Nature of Business, Profession, and Employment. Objectives of Business. Economic and Non-Economic Activities, Forms of Business Organizations.
2. 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.
3. Business organizations
Overview of leading Indian and Global Companies.
4. Government Policies for Business Growth
Policies creating a conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
5. Organizations facilitating Business
Indian regulatory bodies – SEBI, RBI, IRDA, CCI
Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD
6. Common Business Terminologies
Finance Terminologies
Marketing Terminologies.
Stock & Commodity Markets Terminologies
Banking Terminologies.
Other Business Terminologies.

CA PREETI AGGARWAL