“Fundamentals of Economics” and “Mercantile Law” are the second paper of CAP-I. Mercantile Law is the part A paper which covers 50 marks on total out of which 25 are MCQs and 25 marks from subjective questions. Likewise, Fundamentals of Economics is the part B paper which covers 50 marks in total out of which 25 are MCQs and 25 marks from subjective questions. The syllabus of both the subject are as follows:
Part A: Mercantile Law (50 marks)
Level of Knowledge : General
Course Objectives : The syllabus is designed with an objective to impart fundamental knowledge and understanding of the elements of Mercantile Laws.
Nepalese Partnership Act- 2020
1.1. Introduction, Meaning & Definition of Partnership, Characteristics of Partnership
1.2. Family Business vs. Partnership
1.3. Procedures of Registration, Formation of Partnership
1.4. Kinds of Partners, Relationship of Partners
1.5. Assets held in Partnership, Capital Contribution, Nomination of Proxy, Participation in Business
1.6. Inspection of Records, Remuneration & Interest, Accounting & Interest, Accounting of Profit made by partner, Sharing of Profit and Loss, Relationship between Firm and Third Person
1.7. Dissolution of Partnership Forms, Modes of Dissolution, Automatic Dissolution
1.8. Liabilities to third parties, Continuation after dissolution, Duties of Partners on Dissolution, Appointment of Liquidator
1.9. Appeal, Penalties
Law of Contract
2.1. Meaning, Essentials of Valid Contract, Types of Contract
2.2. Persons Qualified to enter into Contract , Offer and Acceptance
2.3. Consideration, Free Consent
2.4. Legality of Object and Consideration, Void Agreement and other Contracts
2.5. Performance of Contract
2.6. Termination of Contract
2.7. Breach of Contract and its Remedies
2.8. Special Contracts
- Bailment, Pledge, Contract of Guarantee, Contract of Indemnity
- Contract of Subrogation, Contract of Agency, Sales of Goods
- Transportation of Goods
- Relevant provisions of Contract Act, 2056
- Mercantile Law – Study Material, ICAN
Part B: Fundamentals of Economics (50 marks)
Level of Knowledge : General
Course Objectives : The syllabus is designed with an objective to impart fundamental knowledge and understanding the elements of micro economics, macroeconomics and Nepalese economy.
Introduction to Microeconomics
- Meaning of economics
- Basic issues in economics: scarcity, efficiency and alternatives
- Introduction to microeconomics
- Scope and use of microeconomics in business decision making
- Microeconomics and macroeconomics – basic differences.
Demand and Supply Analysis
- Concept of demand: factors affecting demand, demand schedule, individual and market demand, law of demand
- Concept of supply: factors affecting supply, supply schedule, individual firms and market supply, law of supply
- Elasticity of demand: concepts and measurement of price, income and cross elasticity of demand
- Concept of utility: cardinal and ordinal
- Basic concepts of total, average and marginal utility and understanding of the law of diminishing marginal utility.
Theory of Production
- Concept of production, factors of production and production functions
- Production with one variable input: concepts of total, average and marginal; production
- Law of variable proportions
- Concept of returns to scale.
Costs and Revenues
- Concept of costs: economic costs, accounting costs, sunk costs
- Short-run and long-run costs: total, average and marginal costs
- Concept of revenues: total, average and marginal revenues under conditions of perfect and imperfect competition.
- Perfect competition: features, pricing and production decisions in the short-run and long-run
- Monopoly: features, pricing and production decisions in the short-run and long-run time periods
- Monopolistic competition: features, pricing and production decisions in the short-run and long-run time periods
- Oligopolistic competition: features and basic distinction with monopolistic competition.
- Meaning and advantages of international trade
- Concept of balance of trade and balance of payments
- Problems of international trade.
- Characteristics of the Nepalese economy
- Economic sectors : agriculture, industry and services
- Industry: Investment, production and employment.
- Fundamentals of Economics- Study Material, ICAN
- Samuelson, Paul A. and Nordhaus, William D., Economics, Tata McGraw-Hill, India
- Lipsey, Richard G. and K. Alec Chrystal, an Introduction to Positive Economics, Oxford University Press, Great Britain