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.

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.

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.

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

Grade

Term

First term

Competencies and competency levels

Competency level 1.1 to competency level 4.6

( 19 competency levels )

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 )

Competency level 14.5 to competency level 16.7

( 23 competency levels)

Competency level 16.8 to competency level 18.11

( 23 competency levels)

Grade 12 Second term

Grade 13 Second term

Third term

3.0 Syllabus
3.1 Grade 12
Competencies, competency levels, subject content and No. of periods.
Competency

Competency levels

Examine the
foundation of
1.1
business to make
an active contribution
to businesses.

1.2

Subject content

No. of Periods
40

Analyses the concept of

business

Definition of business
Needs and wants
Products
Demand
Production
Market
Necessity of business
Aims of business

06

Forecasts trends in business

while examining the
evolution of business.

06

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.

Competency

Subject Content

Competency levels

No. of Periods

1.3 Classifies business in terms of

different criteria.

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

05

1.4 Evaluates the contribution of each

sector of production to the Gross
Domestic Product of Sri Lanka.

Different sectors of gross national product.

Agriculture
Industry
Services

05

1.5Analyses business as an input

output process.

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

06

Competency

Competency levels

Subject Content

No. of Periods

1.6

Classifies different products that

fulfil needs and wants.

Classification of goods and services

Classification of goods
According to durability
According to usage
Classification of services
Business services
Direct services

06

1.7

Examines reasons for the interest

of stakeholders in business.

Stakeholders in business
Owners/ shareholders
Managers
Employees
Customers
Potential investors
Creditors
The Government
The Public
Others
Reasons for the interest of stakeholders in business

06

2. Confirms that the

business
environment
influences the
existence of
business

Subject Content

Competency levels

Competency

No. of Periods
20

2.1

Classifies the business

environment to facilitate
analysis of the business
environment.

Business environment
Definition
Necessity of study
Classification
Internal environment
External environment
Task environment
General/ Macro environment

04

2.2

Analyses the influence of

internal environmental
forces on business.

Internal environmental forces

Owners
Managers
Employees
Culture
Organization structure
Resources
Strengths and weaknesses related to internal
environmental forces

05

Competency

Competency levels

Subject Content

2.3

Analyses the influence of task

environmental forces on business.

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

2.4

Analyses the influence of macro

environmental forces on business.

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.

No. of Periods
05

06

Competency

Competency levels

3. Considers social
responsibilities and
ethics of business to 3.1
adapt to dynamic
business
environment.

3.2

Subject Content

No. of Periods
15
07

Evaluates the importance of

social responsibilities of
business.

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

Confirms the necessity for a

code of ethics for the success
of business.

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

10

08

Competency

Competency levels

4.Confirms the
necessity of
maintaining
4.1 Investigates how the
relationships with
government influence business.
the government in
the process of
conducting
business.

4.2 Shows how business contributes

to the achievement of the economic
aims of the government.

Subject Content

No. of Periods
35

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

05

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 aims
of 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 and
business

06

11

Competency

Competency levels

Subject Content

No. of Periods

4.3

Confirms the importance of

conducting business according to
fiscal policies of the government.

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

06

4.4

Evaluates the importance of

conducting business according to
government monetary policies.

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

06

4.5

Shows the necessity of

conducting business in
accordance with the steps taken
by the government to protect
consumers.

Consumer protection
definition
necessity
importance
to consumers
to businessmen
rights of consumers
responsibilities of consumers

06

12

Competency

Competency levels
4.6

5. Confirms that
Business
organizations are 5.1
essential to
commence and
conduct
businesses
formally.

5.2

Examines the role of

government institutions acting
for consumer protection.

Subject Content
Consumer protection authority
Aims
Role
Powers vested to formalize trade
Sri Lanka Institute of Standards
Aims
Role

No. of Periods
06

45
04

Classifies business
organizations according to
ownership.

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

Compares comparatively the

advantages and limitations
of sole-proprietorship
examining the
characteristics

Sole- proprietorship
Definition
Specific characteristics
Advantages and limitations
Registration of sole proprietorship

13
.

04

Competency levels

Competency

Subject Content

No. of Periods

5.3

Compares comparatively the

advantages and limitations of
partnerships examining the
characteristics of partnerships.

Partnerships
Definition
Specific characteristics
Advantages and limitations
Registration of partnerships

04

5.4

Confirms the necessity of a

partnership deed to start and
conduct a partnership.

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

05

5.5

Compares the advantages and

limitations of co-operatives
examing their characteristics

Co-operatives
Definition
Specific characteristics
Advantages and limitations
Registration of co-operatives

04

5.6

Forecasts the trends in

co-operatives verifing the
evolution 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

05

5.7

Verifies the specific

characteristics of incorporated
companies.

Incorporated companies
Definition
Specific characteristics
Advantages and limitations
Incorporation of companies.

04

14

Competency

Subject Content

Competency levels

No. of Periods

5.8

Compares the special

characteristics of various types of
companies.

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

05

5.9

Compares the advantages and

limitations of franchises verifing their
specific features.

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

05

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

05

5.10 Inquires the characteristics of

public sector business organizations
and points out their importance.

15

Competency

Competency levels

6. Shows the
contribution of
entrepreneurship 6.1
in economic and
personal
development.

Subject Content

No. of Periods
35

Exhibits interest in being an

entrepreneur by studying the
importance and benefits of
entrepreneurship.

Entrepreneurship
Definition
Importance
Benefits of entrepreneurship
Personal
Social and economic
Entrepreneurship and economic development
Trends in entrepreneurship

06

6.2

Studies the reasons behind the

emergence of entrepreneurs.

Entrepreneur
Background reasons to becoming an entrepreneur
Involvement in invention
Family background
Socio-economic background
Education and training
Social problems

06

6.3

Exhibits ability to act as an

entrepreneur by developing
entrepreneurial competencies.

Entrepreneurial competencies
Innovative
Initiative
Risk taking
Opportunity seeking
Organizing resourses
Leadership
Networking
Visionary
Independence
Dedication
Self awareness
Self confidence
Achieving goals
16

06

Competency level

Competency

Subject Content

No. of
Periods

Optimistic
Flexibility
Bearability
Resilience
Consistancy
Social friendly
Eco friendly
Ways of developing entrepreneurial competencies
Self assessments
Training
Education
Experiences
6.4

6.5

Examines the contribution of small

businesses to economic
development.

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.

Investigates the incentives

available for the success of small
scale businesses.

Steps taken by the government to assist small businesses

Financial
Non-financial
Institutions and individuals that provide incentives.

17

06

05

Competency

Competency levels

Subject Content

No. of Periods

Types of incentives provided

Consultancy services
Research and technological services
Financial facilities
Marketing facilities
Infrastructure facilities
6.6 Inquires about special projects setup
for the success of small businesses.

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

18

06

Competency

Competency levels

7. Appreciates the
contribution of money
and financial institu- 7.1 Confirms the necessity of money
tions for the existence
to facilitate transactions.
and growth of
businesses

7.2 Evaluates the manner in which

the system of financial institutions
in Sri Lanka contribute to the
operation and growth of
business.

Subject Content

No. of Periods
40

Money
Definition
Evolution
Functions
Characteristics of money
Types
Currency
Bank money
Near money
Electronic money

06

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

06

19

Competency

Competency levels

Subject Content

No. of
Periods

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 )
7.3 Shows the impact of various
deposits and lendings of commercial
banks for the operation and growth
of businesses.

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

7.4 Shows the impact of other services

provided by commercial banks on
the business operations.

Other services of commercial banks

Agency services
Leasing services
Home banking
Tele banking
Pawning services

20

06

06

Competency

Competency levels

Subject Content

No. of
Periods

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 on
business activities
7.5 Shows how transactions can be
Cheques
facilitated through the use of 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

21

06

Competency

Competency levels
7.6

7.7
8. Confirms the
necessity of
insurance for the
existence of
businesses

Subject Content

Shows how transactions can be Electronic money

facilitated through the use of
Types of e-money
Parties involved in e-money
e-money.
Characteristics of an e-money card
Advantages and disadvantages of e- money transactions

Examines the role of the

Central Bank of Sri Lanka.

The Central Bank of Sri Lanka

Aims
Functions
Impact of functions of the Central Bank on the success
of business.

No. of Periods
05

05

20
05
8.1

Examines the importance of

insurance that supports the
existence of businesses.

Insurance
Definition
Risk
Definition
Insurable risks
Non-insurable risks
Necessity of insurance
Insurance agreement
Parties invloved in an insurance agreement
Insurance policy

8.2

Investigates the principles of

insurance that help in the
practical use of insurance.

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

05

22

Competency

Subject Content

Competency levels

No. of Periods

8.3 Investigates various types of

insurance policies which cover
various risks of businesses.

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

05

8.4 Finds out the parties in the

insurance market who
contribute to the existence of
insurance business.

Composition of the insurance market

Insurance Board of Sri Lanka
Insurance companies
Insurance brokers
Insurance agents
Underwriters
Re insurers

05

9. Shows the necessity of using transportation effectively for

9.1Compares the advantages and
the success of
limitations of various methods of
business activities
transportation that can be used
for the success of business
activities.

10
05
Transportation
Transport systems
Elements of a transport system
Way
Mode
Power
Terminal
Various methods of transport
Highway transport
Railway transport
Waterway transport
Airway transport
23

Competency

Competency levels

Subject Content

No. of Periods

Advantages and limitations of various methods of transport.

Importance of transportation
9.2 Selects an effective mode of
Factors to be considered when selecting a mode of
transport by inquiring into the
transport.
characteristics of a transport system. Features of an efficient mode of transport
Documents used in transportation
New trends in transport
10. Confirms the
necessity of
using
10.1 Verifies the factors which enhance Communication
communication
the effectiveness of a communication Importance of communication
effectively for the
process
success of
For business activities
For social activities
business.
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

24

05

10
05

Competency

11. Verifies the

contribution of
trade in
distributing
products.

Competency levels

Subject Content

10.2 Selects effective

communication services by
investigating various methods of
communication.

Methods of communication.
Verbal
Written
Signals and symbols
Electronic communication
Internal and external communication
Barriers to effective communication and ways of overcoming
them

No. of Periods
05

40
06
11.1 Investigates how retail trade
takes place while taking
types of trade into
consideration.

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

25

Competency

Competency levels

Subject Content

No. of Periods

11.2 Selects retail stores suited for the

Types of retail stores
satisfaction of needs considering the
Mobile retailers
upliftment of home trade.
Fixed retailers
New trends in retail trade

05

11.3 Examines wholesale trade.

06

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.

11.4 Examines international trade along

International trade
with the benefits and barriers related
Definition
to it.
Basic factors
Types
Import
Export
Entrepot
Benefits
Free trade
Definition
Barriers to free trade
Tariffs
Non-tariffs
26

06

Competency

Competency levels

Subject Content

No. of Periods

11.5 Exhibits the readiness to enter

Import and export procedures
into international trade by examing
Documents and methods used
the import and export procedures.
Payments
Bank drafts
Letters of credit
Electronic payment methods
Foreign mail and telex transfers

06

11.6 Investigates how the performance

of trade blocs and international
organizations contribute to the
upliftment of foreign trade.

06

Trade blocs
e.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

27

Competency

Competency levels
11.7 Points out the contribution of
electronic commerce for the
upliftment of trade.

Subject Content
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

28

3.2 Grade 13
Competency

Competency levels

12. Shows the necessity and

importance of
management in
12.1
achieving the overall
goals of an
organization.

12.2

Subject Content

No. of
Periods
45

Examines management
process to confirm the need
and importance of
management.

Management.
Management process.
Planning.
Organizing.
Leading
Controlling.
Efficiency and effectiveness.
The need and importance of management.

Analyses various managerial

roles to identify the functions of
managers.

Manager
Functions of managers
Roles of a manager
Interpersonal role
Informational role
Decisional role

29

04

04

Competency levels

Competency

Subject Content

12.3

Examines the management

skills needed for various
management levels.

Various levels of management.

Top managers.
Middle managers.
First line managers.
Skills of managers.
Conceptual skills.
Interpersonal skills/ Human skills.
Technical skills.

12.4

Follows a formal method of

decision making and solving
problems successfully

Planning.
Forecasting.
Plan.
Concept of decision making and problem solving.
Identification of the problem.
Developing alternatives.
Evaluation of alternatives.
Selecting the best alternative.
Implementing.

30

No. of Periods
04

04

Competency

Competency levels
12.5

Prepares plans to achieve

goals effectively.

Subject Content
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.

31

No. of Periods
04

Competency

Competency levels
12.6

12.7

Subject Content

Confirms the necessity of

organizing resources for
successful management.

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

Analyses concepts to be
considered for successful
organizing.

Chain of command/ Unity of command

Span of control
Power and authority
Centralization
Decentralization
Organizational Structure
Organizational chart

32

No. of
Periods
04

04

Competency

Competency levels

Subject Content

No. of Periods

12.8

Exhibits the characteristics of

leadership needed for leading.

Leading
Leadership
Motivation
Communication
Leadership as a function of leading
Definition
Importance
Leadership styles
Characteristics of leadership

04

12.9

Proposes suitable methods of

motivation for a successful
leading.

Motivation as a function included in leading

Definition
Importance
Methods of motivation
Monetary
Non-monetary

04

33

Competency

Subject Content

Competency levels
12.10 Shows how effective
communication helps for
successful leading.

Communication as a function of leading

Necessity

12.11 Examines the necessity of

controlling in order to
confirm whether the
expected goals are
achieved.

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

Importance
Ways in which communication occurs
Downward communication
Upward communication
Horizontal communication
Formal communication
Informal communication

34

05

Competency
Competency levels
13.Evaluates the
contribution of
13.1 Exhibits readiness to
operations management
prepare operational plans to
for the success of
achieve institutional
businesses.
and consumer goals.

13.2 Proposes a suitable method of

production by examining
various methods of production.

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 long- term production programms
Research and Development
Production methods
Definition
Classification
Job production
Definition
Advantageous and
Disadvantageous features

35

No. of Periods
45
05

05

Competency

Competency levels

Subject Content

No. of Periods

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

13.3 Calculates the Break Even

Point comparing total
income and total production
cost.

Total cost
Fixed cost
Variable cost
Total income
Break Even Point Analysis
Using equation
Using graph
Advantages of break even point analysis

36

05

Competency

Competency levels

Subject Content

13.4 Points out the facts to be

considered in the successful
purchase of materials.

Purchasing
Materials
Services
Purchasing process
Facts to be considered in purchasing

13.5 Decides on suitable methods

for stock control.

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

37

Competency

Competency levels

Subject Content

No. of Periods

13.6 Decides on the necessary stock Stock levels

levels to maintain optimum
Maximum stock level
stock.
Minimum stock level
Reorder level
Calculation of stock levels
Graphical representation of stock levels

05

13.7 Calculates Economic Order

Quantity considering costs of
stock.

Total costs of stock

Stock ordering cost
Stock holding cost
Economic Order Quantity
Calculation
Graphical method
Mathematical method

05

13.8 Examines suitable quality

control methods to confirm
quality of products.

05
Quality
Total quality management
Quality control
Importance of quality control
Quality control techniques.

38

Competency

Competency levels
13.9 Proposes procedures for the
improvement of productivity.

14.

Appreciates the
contribution of
14.1 Examines basic concepts on
marketing
which marketing is based,
management for the
to get optimum results.
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

No. of Periods
05

45
Marketing
Definition
Importance
Core concepts of marketing
Needs, wants and demand
Products
Value, satisfaction and quality
Exchange, transactions and relationships
Market

39

04

Competency

Competency levels

Subject Content

14.2 Selects the suitable marketing

concept while examining the
evolution of marketing
concepts.

Marketing concepts
Evolution of marketing concepts
Production concept
Product concept
Selling concept
Marketing concept
Customer concept
Societal marketing conept
Holistic Marketing concept

14.3 Decides on the segment of

consumers the products should
be offered to.
.

Market
Market segmentation
Definition
Benefits of market segmentation
Bases of consumer market segmentation
Necessities for productive market segmentation
Target Market

40

No. of Periods
04

04

Competency

Subject Content

Competency levels

No. of Periods

Marketing mix from the point of view of the

14.4 Examines marketing mix and
businessman (4Ps)
its variables from the point of
Product
view of the businessman and the
Price
customer
Place
Promotion
Marketing mix for services (7Ps=4Ps+3Ps)
People
Process
Physical evidence
Marketing mix from the point of view of the customer
(4Cs)
Consumer needs and wants
Cost
Convenience
Communication

05

14.5 Decides on a product that can Product

Goods
satisfy the consumer.
.
Services
.
Product levels
Core benefits
Basic product
Expected product
Augmented product
Potential product

04

41

Competency

Subject Content

Competency levels

No. of Periods

14.4 Creates a suitable brand and

trade mark for a 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

04

14.5 Designs an attractive package

and a label for the product.
.

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

05

42

Competency

Subject Content

Competency levels

No. of Periods

14.8 Examines ways of setting a

suitable price for a product.

Price
Pricing objectives
Surviving in the market
Profit maximization
Increasing market share
Market skimmings
Product quality leadership
Pricing methods/strategies
Selecting a pricing method

05

14.9 Selects suitable distribution

channels for the distribution of
products to consumers.
.

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.

05

43

Competency

15.Examines ways of
using financial
management for
success of businesses

Competency levels
14.10 Proposes suitable promotion
strategies to market the
products.

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

No. of Periods
05

45
15.1 Examines the role of
financial management.
.

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

44

05

Competency levels

Competency

15.2 Assesses alternative sources

of finance to fulfil financial
requirements of a business.

Subject Content

No. of Periods

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

05

45

Competency levels

Competency

Subject Content

No. of Periods

15.3 Analyses financial position of

a business using financial ratios

Financial analysis of a business

Financial statements
Financial ratios
Liquidity ratios
Profitability ratios
Activity ratios
Leverage ratios
Analysis of financial ratios

04

15.4 Selects suitable investment

opportunities by examining
alternatives

Investment decisions
Investments in longterm assests
Short term investments
Stock
Trade investments
Debtors
Cash balance

04

46

Competency

Competency levels
15.5 Examines participation of a
financial market in relation to
financial management.

Subject Content
Financial system of Sri Lanka
Definition
Composition
Financial Institutions
Financial Instruments
Financial infrastructural facilities
Financial Market
Central Bank

No. of Periods
04

15.6 Examines the performance of

Financial Market
the financial market in Sri Lanka
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

05

15.7 Examines the activities of the

Colombo Stock Exchange

04

Colombo Stock Exchange

Definition
Importance

47

Competency

Subject Content

Competency levels

No. of Periods

Listing procedures
Public issue
Offer for sale
Introduction
Primary and secondary markets
15.8 Examines the securities traded in Securities traded on the colombo stock exchange
Ordinary shares
the share market and their
Preference shares
benefits.
Share warrants
Corporate debentures
Government securities
Benefit of investing in securities
Direct benefits
Dividends
Interests
Reserves capitalization
Right issues
Capital gains
Indirect benefits

48

05

Competency

Subject Content

Competency levels

15.8 Examines the related institutions Colombo Stock Exchange Ltd. and its composition
Central Depositary System
and their functions in the
Functions
Colombo Stock Exchange.
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)
15.10 Evaluates performance of the
stock exchange.

Stock market indices

All share price index (ASPI)
Milanka price index (MPI)
Total return index (TRI)
Importance of share market indices.

49

No. of Periods
05

04

Competency

Competency levels

16.Investigates the way of

using human
resources efficiently to 16.1 Examines the importance of
human resource management
achieve business
goals effectively

Subject Content

No. of Periods
45

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

50

05

Competency

Subject Content

Competency levels

16.2 Evaluates necessity of job

designing and analysis as a
function of human resource
management.

Job design
Job analysis
Job description
Job specification

human power planning

16.3 Prepares human power plan
necessary for the existence of an Steps in human power planning
Forecasting human resource demand
organization
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.

51

No. of Periods

04

05

Competency

Competency levels
16.4 Examines ways of recruiting
suitable people for employment
in an organization.

Subject Content
Recruiting employees
Ways of recruiting
Internal
External
Advantages and disadvantages of each way

16.5 Prepares a job advertisement to

recruit employees.

Job advertisement
Places where jobs are advertised
Newspaper
Internet
Television
Radio
Other

04

16.6 Proposes suitable methods

of selection of suitable
applicants from the applicants
recruited.

Selection
Selection methods
Evaluation of applications
Interviews
IQ tests
Personality tests
Practical tests
Background tests
Medical tests

04

52

No. of Periods
04

Competency

Competency levels

Subject Content

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

53

No. of Periods
04

05

Competency levels

Competency

Subject Content

No. of Periods

16.9 Examines evaluation criteria for Evaluation criteria for human resource management
human resource management
functions
functions
Labour turnover
Absenteeism
Labour productivity
Industrial relations

05

16.10

05

Evaluates importance of
good employer- employee
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

54

Competency

Subject Content

Competency levels

17.Examines the
contribution of
Necessity of information
information systems for 17.1 Shows the necessity of
Evolution of communication technology
information, examining the
the efficiency and
Various economic eras
evolution of communication
effectiveness of
Normadic era
technology through various eras.
businesses.
Agricultural era
Industrial era
Information era
Importance of information

17.2 Classifies information through the Data

examination of data processing Information
Difference between data and information
Data processing
Functions
Technology
Characteristics of information
Classification of information

55

No. of Periods
45
05

05

Competency

Competency levels

Subject Content

No. of Periods

17.3 Shows readiness to use

computer information systems by
examining functions and
components of an information
system.

System
Information systems
Definition
Functions
Inputs
Process
Outputs
Storing
Components
Hardware
Software
Liveware
Data
Procedures

05

17.4 Classifies information systems

according to levels of their
usage while examining methods
of classification of information
systems.

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

05

56

Competency

Subject Content

Competency levels

No. of Periods

17.5 Classifies information systems

according to usage.

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 )

05

17.6 Classifies information systems

according to functions.

Information systems according to functions

Marketing management
Financial management
Operations management
Human resource management
Research and development
Relationship among various information systems

05

17.7 Reveals benefits through

examining information
technology.

Information technology
Definition
Other technologies related to information technology
Computing technology
Communication technology
Information management technology
Importance of information technology
Benefits of information technology

05

57

Competency

Competency levels

Subject Content

No. of Periods

17.8 Studies computer networks

Computer networks
Classification of computer networks
According to linkage of computers
According to geographical distribution
According to users (according to the objective)

05

17.9 Exhibits readiness to use

internet

Internet
Services provided by the internet
World wide web (www)
e mail
File transfer protocol
Chat facilities
News groups
Tele computing

05

58

Competency
18 Prepares business
plans to set up
businesses.

Subject Content

Competency levels

No. of Periods
40

Business idea
18.1 Exhibits readiness to prepare
a business plan suitable for the Selecting a business idea
Macro analysis
business idea by examining the
Micro analysis
components of a business plan.
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
18.2 Prepares marketing plan
suitable for the business idea.

Marketing plan
Definition
Importance
Content
Industry and market analysis
Product (Goods or service )
Target market
Analysis of competition

59

04

04

Competency

Competency levels

Subject Content

No. of Periods

Target sale
Marketing strategies of competitors
Proposed marketing strategies
Promotional strategies
Pricing strategies
Distribution strategies
Annual sales forecast
Marketing expenses
18.3 Prepares operational plan
according to marketing plan

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.

60

03

Competency

Competency levels

Subject Content

No. of Periods

18.4 Prepares human resource

plan of the business.

Human resource plan

Definition
Importance
Content
Praticulars about entrepreneures and partners
Basic positions and responsibilities of the
organisational structure
Organisation chart
Annual expences

03

18.5 Estimates project cost by

examining the content of the
financial plan

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

04

18.6 Estimates the outcome of

operations included in the
financial plan

Prifit and loss ( income ) statement

Definition
Contents
Gross sales income
Net sales income
Gross profit
Total indirect cost
Operational profit
Net profit after tax

04

61

Competency

Subject Content

Competency levels

No. of Periods

18.7 Prepares estimated cash

flow statement included in the
financial plan

Cash flow statement

Definition
Contents
Total cash inflows
Total cash outflows
Closing balance

03

18.8 Prepares estimated balance

sheet included in the financial
plan

Balance sheet
Definition
Contents
Non-current assets
Current assets
Current liabilities
Non-current liabilities
Total input

03

18.9 Analyses financial statements in Financial statement analysis

relation to financial plan
Break Even Point analysis
Ratios analysis

62

03

Competency

Subject Content

Competency levels

No. of Periods

18.10 Prepares executive summary.

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

05

18.11 Submits business plan.

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

04

310

63

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.

Assignments and Projects.
Observation and Exploration.
Problem solving.
Brain storming.
Collective group learning method.
Games.
Debates.
Role Play.

Tutorials.
Drill practice.
Field trips.
Simulation.
Case study.
Pictorial organization method.
Demonstration.
Learning through activity.

64

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.

65

 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.

66

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.

67