NEB Class 11 Business Finance Curriculum

Basic Business Finance (Fin. 417)
Syllabus

Full marks: 75 (Pass marks: 24)

Course Contents:

Unit 1: Introduction to Business Finance

1. Describe the meaning of business finance.
2. Explain the finance functions.
3. Describe the goal of a firm.
4. Identify finance functions in organization structure

Unit 2: Business Entity and Financial Environment

1. List out key features of sole proprietorship, partnership, and company.
2. Differentiate company from sole proprietorship and partnership.
3. Describe the financial environment.
4. Explain various types of financial institutions.
5. Describe the role of financial institutions.

Unit 3: Financial Assets

1. Explain various types of financial assets.
2. Distinguish between financial assets and real assets.
3. Differentiate ownership versus creditorship; fixed versus variable; and long-term versus short-term financial assets.
4. Describe different types of short-term and long-term instruments.

Unit 4: Financial Markets

1. Explain the concept, types and roles of financial markets.
2. Identify the differences between primary market and secondary market.
3. Identify the differences between money market and capital market.
4. Explain the meaning of organized securities, exchanges and over-the-counter markets.
5. Write the meaning of IPO, FPO, and rights offering.
6. Describe the process of buying and selling securities in secondary markets.
7. Explain the stock market quotations.
8. Describe the functions of NEPSE and SEBON.

Unit 5: Commercial Banks

1. Explain the meaning, types, and functions of banks.
2. Describe types of accounts/ deposits.
3. Classify the bank loans/ credits in various categories.
4. Explain the innovations in banking technology.
5. Explain the meaning and functions of Nepal Rastra Bank.
6. Describe the various classes of financial institutions by NRB.

Unit 6: Micro Finance and Cooperatives

1. Explain the concept, importance, and functions of microfinance.
2. Differentiate between banks and microfinance.
3. Explain the meaning and types of cooperatives.
4. Differentiate between microfinance and saving credit cooperatives.

Unit 7: Risk and Insurance

1. Describe the meaning of risk and classify its types.
2. Explain the meaning and objectives of risk management.
3. Explain the meaning and identify basic characteristics of insurance.
4. Describe the evolution, functions, and types of insurance.
5. Appreciate the benefits of insurance.
6. Identify the nature of insurable risk.
7. Understand fundamental legal principles of insurance.
8. Explain the features of insurance contract.
9. Understand the meaning and objectives of reinsurance.
10. Describe the methods of reinsurance.
11. Describe the role of Nepal Insurance Board.

Unit 8: Life and non-life Insurance

1. Explain the concept and importance of life insurance and non-life insurance.
2. Explain the types of life insurance and non-life insurance.
3. Identify and explain the basic elements of life insurance contract.
4. Explain the procedures of affecting life insurance policy.
5. Calculate life insurance premium.
6. Describe the concept of microinsurance.

Unit 9: Mutual Fund, Pension Fund, and other Financial Service Companies

1. Describe the concept, advantages and drawbacks of mutual fund.
2. Calculate net asset value (NAV) of mutual fund.
3. Distinguish between open- and closed-end funds.
4. Explain the growth of different types of mutual funds in Nepal.
5. Describe the role of pension fund companies and their prospect.
6. Describe the meaning and functions of merchant bankers.
7. Describe the meaning and importance of credit rating agency, Deposit and Credit Guarantee Corporation, Credit Information Bureau.

Unit 10: Time value of money

1. Explain the concept of time value of money.
2. Use the cash flow timeline to represent cash flows occurred in different time period.
3. Explain the types of cash flows.
4. Calculate the present and future value of a present sum of money.
5. Explain the meaning of annuity cash flows.
6. Calculate the future value and present value of annuity cash flows.
7. Calculate the present value of perpetuity.
8. Calculate the present value and future value of uneven cash flows stream.
9. Compare nominal and effective rate.
10. Prepare amortization schedule for amortized term loan.