Faculty of Management

The Faculty of Management (FOM), Tribhuvan University has its ultimate objective of educating students for
professional pursuits in business, industry and government. It is further dedicated to contributing to an
increase in the knowledge and understanding of business and public administration. FOM aims to develop a
networking with management institutes in the country and abroad to exchange new knowledge, technology,
and methods of achieving higher level efficiency in management of business and public entities. It also aims
to continuously innovate and promote cost-effective, socially relevant, modern technology based educational
programs in Nepal.

The FOM offers dynamic and cutting edge multidisciplinary disciplines such as: Bachelor of Business
Administration (BBA), Bachelor of Information Management (BIM), Bachelor of Business Management
(BBM), Bachelor of Public Administration (BPA), Bachelor of Hotel Management (BHM), Bachelor of
Travel and Tourism Management (BTTM), Bachelor of Business Administration in Finance (BBA-F),
Bachelor of Business Studies (BBS - 4 year annual system) , Post Graduate Diploma in Police Sciences
(PGDPS), Master of Business Administration (MBA), Master of Business Administration in Information
(MBA-IT), Master of Business Management (MBM), Master of Public Administration (MPA), Master of
Hospitality Management (MHM, Master of Travel and Tourism Management (MTTM), Master of Business
Administration in Global Leadership and Management (MBA-GLM), Master of Finance and Control (MFC),
Master of Business Studies (MBS) and The FOM also offers Master of Philosophy in Management (M. Phil.)
and doctoral program in management leading to a Degree of Doctor of Philosophy (Ph.D.)

FOM’s GOALS

 Prepare professional managers capable of handling business in a dynamic global environment.

 Produce socially responsible and creative entrepreneurs capable of promoting business and industry
for the socio-economic development of Nepal.
 Conduct research and management development programs for updating the knowledge and skill base
of academics and practicing managers.
 Innovate and promote management programs catering to the various social and economic sectors of
Nepal.
 Establish linkages with leading universities and management institutes abroad and collaborate with
them in program development and implementation.

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 Bachelor of Business Studies (BBS)

Programme Objective
The objective of the BBS programme at the FOM is to develop students into competent managers for any
sector of organized activity. The programme is based on the principle that graduates will spend a major
portion of their life in a constantly changing environment. Therefore, the student should have an opportunity
to obtain a broad knowledge of the concepts and reality- based skills underlying the operation and
management of organizations.
Upon graduation, students should be equipped to function as a manager in business, industry and government.
The graduate should also have a variety of career opportunities in different sectors of business including
entrepreneurship and create much needed jobs for others.

The BBS programme specially attempts to:

1. Equip the students with the required conceptual knowledge of business and administration to develop
a general management perspective in them.
2. Develop required attitudes, abilities and practical skill in students, which constitute a foundation for
their growth into competent and responsible business managers.
3. Encourage entrepreneurial capabilities in students to make them effective change agents in the
Nepalese society.
4. Develop necessary foundation for higher studies in management and thereafter take up careers in
teaching, research and consultancy.

Curricular Structure
The FOM recognizes the need for both breadth and depth in the total academic pattern. Therefore, the
curriculum for BBS degree comprises four separate and distinct course components:
1. A strong foundation allied areas of business such as language, economic analysis, legal environment
and quantitative method to prepare graduates to understand, analyze and comprehend the
management concepts, theories and practices.
2. Core business studies encompassing and integrating all functional areas to provide graduates with and
appreciation of the diversity and inter-relationship of business and management issues.
3. The opportunity to concentrate in one area of specialization such as accounting, finance, human
resources management and marketing in order to provide graduates with some degree of functional
expertise.

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Course Composition
Compulsory Courses
MGT 201: Business English
MGT 202: Business Statistics
MGT 207: Microeconomics for Business
MGT 204: Business Law
MGT 205: Business Communication
MGT 209: Macroeconomics for Business

Core Courses
MGT 211: Financial Accounting and Analysis
MGT 212: Cost and Management Accounting
MGT 213: Principles of Management
MGT 214: Fundamentals of Marketing
MGT 215: Fundamentals of Financial Management
MGT 223: Organizational Behavior & Human Resource Management
MGT 217: Business Environment and Strategy
MGT 224: Taxation in Nepal
MGT 225: Entrepreneurship
MGT 221: Business Research Methods
MGT 226: Foundation of Financial Systems

Concentration Area
(Three courses from any one of the following five functional areas)

Accounting
ACC 250: Accounting for Banking
ACC 251: Accounting for Business
ACC 252: Advanced Financial Accounting
ACC 255: Auditing
ACC 256: Advance Cost and Management Accounting

Finance
FIN 250: Fundamentals of Corporate Finance
FIN 251: Commercial Bank Management
FIN 255: Management of Financial Institutions
FIN 253: Fundamentals of Investment
FIN 254: Insurance and Risk Management

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Marketing
MKT 250: Fundamentals of Selling
MKT 251: Customer Relationship Management
MKT 252: Foreign Trade and Export Management in Nepal
MKT 253: Fundamentals of Advertising
MKT 254: Fundamentals of Services Marketing

Management
MGT 251: International Business
MGT 256: Small and Medium Enterprises
MGT 257: Event Management
MGT 258: Project Management
MGT 259: Technology & Information Management

The First Year Programme

The purpose of the first year programme is to build a strong foundation in students to prepare them to
comprehend the business concepts, theories and practices. The first year programme is organized into the
following compulsory and core courses:

First Year (500)

MGT 201: Business English 100
MGT 202: Business Statistics 100
MGT 207 : Microeconomics for Business 100
MGT 211 : Financial Accounting and Analysis 100
MGT 213: Principles of Management 100

The Second Year Programme

The purpose of the second year programme is to provide basic concepts, tools and understanding of the
foundation and core courses. The foundations courses are required to develop understand business practices.
The core courses provide essentials of learning which are basic in the broad area of business studies. The
second-year programme is therefore organized into the following core and compulsory courses:

Second Year (500)

MGT 205: Business Communication 100
MGT 209: Macroeconomics for Business 100
MGT 212: Cost and Management Accounting 100
MGT 223: Organizational Behavior & Human Resource Management 100
MGT 215: Fundamentals of Financial Management 100

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The Third Year programme
The purpose of the third year programme is to provide basic concepts, tools and understanding of the
fundamentals of business studies. The core courses provide essentials of learning which are basic to
understand broader area of business studies. The third programme is therefore organized into the following
core and compulsory courses:
Third Year (500)
MGT 204: Business Law 100
MGT 226 : Foundation of Financial Systems 100
MGT 217: Business Environment and Strategy 100
MGT 224 : Taxation in Nepal 100
MGT 214: Fundamentals of Marketing 100

The Fourth Year Programme

In fourth year, the students are encouraged to focus on a particular functional and concentration area of
business studies. Building on the foundation laid in the first, second and third years, the principal mission of
the fourth year twofold:
1) To enable the students to concentrate in one functional areas of business. FOM offers four stream of
concentration courses:
a) Accounting
b) Finance
c) Management
d) Marketing
2) To provide opportunity to students to engage in research and final project presentation.

Fourth Year (500)

MGT 225: Entrepreneurship 100
Concentration I 100
Concentration II 100
Concentration III 100
MGT 221: Business Research Methods 50
MGT 401: Final Project 50

Eligibility Conditions for Admission

The candidate applying for admission to the BBS programme:
1. Must have successfully completed the 10+2 in business/ commerce or an equivalent course from a
Higher Secondary School Board or from Tribhuvan University or from other University/ Board
recognized by T.U
2. Must satisfy any other entry requirements or criteria as prescribed by the Faculty Board or the
campus.

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Final Project Work
The education of future manager will be incomplete without exposure to organizational reality. Therefore, the
final project work is made an essential academic requirement for the fourth year students in all concentration
courses. To write a project work students will undergo a field work and spend four weeks studying and
learning from the organization during the time fixed by the campus/college. After the field work, the student
will write a project report on the format prescribed by the FOM and submit it to the college/campus for
evaluation. The student may also be asked to present the report to the general class and/ or faculty members.
The evaluation of the report will be made by a team of external and internal examiners appointed by the by
the Research committee of the respective campus/ college. The final viva-voce examination will be conducted
by Research committee of the concerned campus/ college. After the completion of the project report will be
submitted to the Office of Controller of examinations (Balkhu) for final scrutiny.
A student will have to pass the theoretical, practical and project work examinations separately in all the
courses having theoretical, project work and or practical components.

Minimum General Requirements

The minimum general requirement for the 4 - year BBS programme are as follows:
1. An academic year will consist of a minimum of 150 teaching days excluding the days taken for
admission and annual examinations.
2. The total instructional hours in an academic year will be 615 (150 day *4:10 hours a day.
3. A paper of 100 marks will have 150 lectures each of 50 minutes. However for practical works, extra
class hours will be required as fixed by the Faculty Board.
4. There will be a minimum of five periods (i.e class hours) each teaching day. The campus/college
running morning or evening shifts will also be required to meet this minimum class requirement.

Attendance, Evaluation and Grading System

The final evaluation of students is done through the annual examination conducted by the office of the
Controller of Examinations, Tribhuvan University. However for qualifying to aapear in the annual
examinations, students must meet the following requirements:
a) The student must have a minimum of 70 percent attendance of the classes actually held.
b) No student will be allowed to appear in the second year final examinations without first appearing in
the first year final examinations.
The grading system in the annual examinations is as follows:
Third Division 35 percent
Second Division 45 percent
First Division 60 percent
Distinction Division 75 percent

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Methods of Instruction
The campuses offering the BBS programme should use the methods of instruction which help prepare the
student for the realities of Nepalese business, industry and government in which he/she has to work. A
combination of lecture, group discussions, problem- solving exercises, guest lectures, practical work, and
project work will be used as approaches to learning. The campuses are also encouraged to use the case
method of instruction whenever required and wherever possible.

Graduation Requirements
The BBS programme extends over four academic years and the BBS degree is awarded on its successful
completion. All candidates for BBS degree must fulfill the following requirements:
1. The successful completion of 19 courses of 1950 marks and submit a final project report of 50 marks as
prescribed with passing grades in all the courses.
2. The passing scores obtained in all theory and practical components of the courses separately.
3. Completion of courses for the fulfillment of BBS programme must occur within the time limit as
prescribe by Tribhuvan University.

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 MGT: 201: Business English

Lecture hours: 150

Full Marks: 100
Pass Marks: 35

Course Description

This course, through spotlight on building business language competence and improving reading and
writing skills, helps students become successful communicators in business situations. It makes use
of three-pronged approach to enable them to hone their grammar and mechanics, and critical reading
and writing skills.
Objective
The objective of this course is to help students use their general English skills in interdisciplinary
contexts with lessons covering vocabulary and grammar exercises. It also aims to broaden students'
literary readings in order to enrich their linguistic competence, comprehension ability, writing and
presentational skills in business domain.

Course Outcome
The following objectives specify that the business students, at the conclusion of the course, should
be able to:

 improve linguistic competence at lexical, structural/ grammatical levels

 comprehend literary texts and writing modes
 produce correct sentences, cohesive paragraphs and organized texts
 respond the literary and business readings critically and analytically
 boost competence towards global understanding thereby strengthening their confidence in
using English in professional and social scenarios
Unit 1: Grammar and Writing Mechanics 15marks(22 Hrs.)
Sentences: Elements, Varieties, Patterns, Types, Faults; Nouns, Pronouns and Antecedents;
Verbs,
Tenses, Subject-Verb Agreement; Modifier and Connector: Modifiers, Prepositions,
Conjunctions;
Mechanics: Punctuation, Capitalization, Numbers
Unit 2: Using the Business language 5marks (7 Hrs.)
Fundamentals of language; Language and Meaning; Language, Society and Culture; Stylistic
Features; Functions of Language Using Language Effectively; Strong Words; Coherent
Paragraphs; Commonly Confused Words

Unit 3: Business Vocabulary 5 marks (7 Hrs.)

Importance of Business vocabulary; Vocabulary in Use; Business Specific Terminologies,
Idioms and Expressions; Vocabulary in Communication Situations; Vocabularies in Writing
Situation; Vocabularies in Speaking Situation; Ways to Improve Business Vocabulary

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Unit 4: Business Communication Messages 5marks (7 Hrs.)
Written; Oral; Visual Messages; Electronic Messages; Nonverbal messages

Unit 5: Business Writing 15 marks (22 Hrs.)

Brochures: Guidelines and Instructions; Media Stories, Releases and Advertisements: Media
Stories, News Reports; Articles and Stories; Broadcasting Stories; Press Releases; Effective
Media Relations; Advertisements

Unit 6: Reading Strategies and Writing Process 25 marks (40 hrs.)

Reading to Write: Becoming a Critical Reader; Brent Staples. “Cutting and Pasting: A Senior
Thesis”; Note-Making; Summarizing; Invention; Arrangement; Drafting and Revising;
Editing and Proof Reading; Paragraph Writing.

Unit 7: Patterns of Writing 30 marks (45 Hrs.)

Narration: Sandra Cisneros: “Only Daughter”; Bonnie Smith-Yackel: “My Mother never Worked”;
Description: Jhumpa Lahiri: “Rice”; Heather Rogers: “The Hidden Life of Garbage”; Cause and
Effect: Stan Cox: “The Case against Air Conditioning”; Lawrence Otis Graham: “The ‘Black Table’
is still There” Comparison and Contrast: Bharati Mukherjee: “Two Ways to Belong in America”;
Amy Chau: “Why Chinese Mothers are Superior” Definition: Judy Brandy: “I want a Wife”; Gayle
Rosenwald Smith: “The Wife-Beater”; Argumentation: Alex Tabarrok: “The Meat Market”; Daniel
Engber. “Let them Drink Water!”

Prescribed Books:
Kirszner, Laurie G. & Stephen R. Mandell (2012). Patterns for College Writing: A Rhetorical
Reader and Guide. Boston: Bedford/St. Martin’s.
Holmes, H.I. (2019). English for Business Studies. Kathmandu: Buddha Publications

Suggested:
Tickoo, Champa & Jaya Sasikumar (1979). Writing with a Purpose. New Delhi: Oxford.
Guffey, Mary Ellen & Carolyn M. Seefer (2011). Business English. Ohio: Cengage Learning.
Oxford Business English Dictionary for Learners of English. Oxford: OUP.

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 MGT 202: Business Statistics

Lecture Hours:150 Full Marks:100

Pass Marks:35

Course Objective

The basic objective of this course is to provide students an understanding of concepts of business
statistics and to acquaint the students with necessary statistical and mathematical tools and
techniques to be used in business decision-making processes.

Course Description

This course comprises introduction to statistics, classification and presentation of data, measures of
central tendency, measures of dispersion, Skewness, kurtosis and moments, simple correlation and
regression analysis, analysis of time series, index numbers, probability, sampling and estimation,
quantitative analysis, determinant and matrix.

Learning outcomes

On the completion of this course, students will be able to:

 classify, present and analyze the business and management related data.
 interpret the data from the management perspectives.
 apply forecasting techniques in business and management.
 use quantitative techniques in different decision making environments.
 apply the tool for cause and effect relationship in managerial decision.

Course Details
Unit 1: Introduction to Statistics 5 LHs
Meaning, scope and limitation of statistics; Importance of statistics in business and
management; Types and sources of data; Methods of collection of primary and secondary
data; Precautions in using secondary data; and Problems of data collection.

Unit 2: Classification and Presentation of Data 5 LHs

Data classification: meaning, need, objectives and types of classification; Construction of
frequency distribution and its principles; Presentation of data: tabular presentation,
diagrammatic presentation: bar diagram, Pie diagram, graphic presentation: histogram,
frequency polygon, frequency curve and ogive.
(Illustrations related to Business and Management).

Unit 3: Measures of Central Tendency 15 LHs

Mean: simple and weighted (Arithmetic Mean, Geometric Mean and Harmonic Mean);
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 Median; Partition values; Mode; Properties of averages; and Choice and general limitations
of an average.

Unit 4: Measures of Dispersion 15 LHs

Absolute and Relative measures; Range; Quartile deviation; Standard deviation; Coefficient
of variation; and Lorenz curve.

Unit 5: Skewness, Kurtosis and Moments 15 LHs

Meaning, objective and measurement of Skewness; Karl Pearson’s and Bowley’s methods;
Five number summary; Box-Whisker Plot; Kurtosis and its measurement by Percentile
method; Meaning of moments; Central and raw moments and their relationship; and
Measurement of Skewness and Kurtosis by method of moment.

Unit 6: Simple Correlation and Regression Analysis 15 LHs

Karl Pearson’s correlation coefficient including bi-variate frequency distribution; Coefficient
of determination; Probable Error(P.E.); Spearman’s rank correlation coefficient; Concept of
linear and non-linear regression; Simple linear regression equations including bi-variate
frequency distribution; and Properties of regression coefficients.

Unit 7: Analysis of Time Series 15 LHs

Meaning, need and components of time series; Measurement of trend: semi-average, moving
average, method of least squares; Measurement of seasonal variation: method of simple
average and ratio to moving average (only quarters).

Unit 8: Index Numbers 15 LHs

Meaning and types of Index Number; General rule and problems in construction of index
number; Methods of constructing index numbers: simple and weighted (aggregative and
average of price relative method), Laspeyre’s index number, Paasche’s index number,
Fisher’s ideal index number; and Time and factor reversal tests.
Cost of living index number (or Consumer’s price index number): aggregative expenditure
method and family budget method; and Base shifting and deflating.

Unit 9: Probability 10 LHs

Definition of probability; Addition and multiplication theorem; Application of combination
rule in probability; and Conditional probability.

Unit 10: Sampling and Estimation 5 LHs

Meaning of sample and population; Census versus sampling; Sampling techniques; Concept
of sampling distribution; Standard error; Estimation: estimator, concept of types of estimates:
Point and Interval estimates.

Unit 11: Quantitative Analysis 15 LHs

Introduction to Quantitative Analysis; Application of management science: scientific
approach to decision making; Decision making under the condition of uncertainty: maximax
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 (optimism), maximin(pessimism), minimax regret; Decision making under risk : Expected
Profit (EP) Or Expected Monetary value (EMV), Expected Profit with perfect Information
(EPPI), Expected Value of Perfect Information (EVPI); Linear Programming Problem (LPP):
Problem formulation with two decision variables, graphical solution of maximization and
minimization problems.

Unit 12: Determinant 10 LHs

Definition of determinant; Methods of finding the numerical values of determinant up to
three order; Properties of determinant and its use to find the numerical values of
determinants; and Cramer’s rule to solve simultaneous equations up to three variables.

Unit 13: Matrix 10 LHs

Definition and types of Matrix; Addition, subtraction and multiplication of matrices;
Cofactors; Transpose; Adjoint and inverse of a matrix; Matrix method to solve simultaneous
equations up to three unknown variables.
Note: Illustrations and applications in all chapters should be based on Business and
Management situation as far as possible.

Suggested Readings:

1. Gupta, S.C., Fundamentals of Statistics for Management, Mumbai: Himalayan Publishing

House.
2. Tulsian, P.C. & Pandey, Vishal, Quantitative Techniques: Theory and Problems, New
Delhi:Pearson Education.
3. David, M.. Levine, Timothy, C. Krehbiel, & Mark, L. Berenson , Business Statistics A first
course, USA:Prentice Hall.
4. Gupta , S.P., Statistical Methods, New Delhi:Sultan Chand and Sons.
5. Levine, Richard I, and Dabid S. Rubin, Statistics for Management , New Delhi: Prentice hall
of India Pvt. Ltd.
6. Aitken ,A.C. , Determinant and Matrices, UK: Amazon.

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 MGT 207: Microeconomics for Business
Level: Bachelor's Full Marks:100
Nature of the Course: Compulsory Pass Marks: 35
Program: BBS Lecture Hours: 150

Course Objectives
This course aims to enhance the understanding of microeconomic theories and their practical
applications by developing students’ skill in the application of theories in business decisions making.

Course Description
This course comprises introduction to microeconomics, market equilibrium and efficiency, elasticity
of demand and supply, analysis of consumer’s behaviour, theory of production, cost and revenue
curves, product pricing theories and practices and factor pricing.

Learning Outcomes
By the completion of the course students will be able to:

 Explain the nature and scope of the microeconomics and business economics.
 Explain the concept of market equilibrium and efficiency and to analyze effect of change in
market demand market supply to the market equilibrium and efficiency.
 Define and measure elasticity of demand and supply, their applications and uses in business
decision making.
 Analyze the consumer's behaviour, derivation of the demand curve for normal goods by using
both cardinal and ordinal approach.
 Explain the single variable and the multi-variable production functions and determination of
the optimal combination of two inputs.
 Acquire the knowledge about the concept and nature of cost and revenue and to derive costs
and revenue curves.
 Explain pricing of the products and the inputs under different market structures.

Course Details
Unit 1: Introduction --------------------------------------------------------------------- 15LHs
Microeconomics: meaning, scope, uses and limitations of microeconomics; Business economics:
nature and scope; Basic concepts: production possibility curve, marginal analysis, incremental
analysis, static and dynamic equilibrium analysis in microeconomics; and Ten principles of
economics.

Unit 2: Market Equilibrium and Efficiency -------------------------------------- 20 LHs

Demand function: types, determinants of demand, movement and shift in demand curve; Supply
function: types, determinants of supply, movement and shift in supply curve; Market equilibrium;
Effect of changes in demand and supply on market equilibrium; Effect of government policy (Tax,
subsidy and price control) in market equilibrium; Concept of market efficiency; and Measuring
market efficiency by consumer's surplus and producer's surplus.

Unit 3: Elasticity of Demand and Supply ----------------------------------------- 20 LHs

Price elasticity of demand: concept, degree and calculation (percentage/proportionate and average
method); Point price elasticity of demand; Price elasticity and total expenditure; Income elasticity of
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demand: concept, degree and calculation (percentage/proportionate and average method); Cross
elasticity of demand: concept, degree and calculation (percentage/proportionate and average
method);; Concept of advertisement elasticity of demand; and Uses of price, income, cross and
advertisement elasticity of demand; and Price elasticity of supply: concept, degree and calculation
(percentage/proportionate and average method)

Unit 4: Analysis of Consumer's Behavior ----------------------------------------- 20 LHs

Cardinal approach: assumptions, consumer's equilibrium, criticisms and derivation of demand curve;
Ordinal approach: assumptions and properties of Indifference curve; Marginal rate of substitution;
Price line; Consumer's equilibrium; Price effect and derivation of price consumption curve (normal
goods and Giffen goods); Income effect and derivation of income consumption curve (normal and
inferior goods); Substitution effect; Decomposition of price effect into income and substitution
effect; and Derivation of demand curve for normal goods.

Unit 5: Theory of Production -------------------------------------------------------- 15 LHs

Production function: Short-run and Long run production functions; concept of Cobb-Douglas
production function; Law of variable proportions; Isoquant: assumptions, marginal rate of technical
substitution and properties; Iso-cost curve; Optimal employment of inputs; and Laws of return to
scale.

Unit 6: Cost and Revenue Curves -------------------------------------------------- 20 LHs

Cost function; Concept of costs: Implicit cost and explicit cost, accounting cost and economic cost,
historical cost and replacement cost, separable cost and common cost, opportunity cost; Short-run
costs: cost-output relationship; derivation of short run total cost curves and their relationship;
derivation of short-run average and marginal cost curves and their relationship; Reason for the U-
shaped of short run average cost curve; Relationship between AC and MC curves; Long-run costs:
derivation of long run average and marginal cost curves; Reason for the U- shaped, L- shaped and
continuously falling long run average cost curve; Economies of scale; and Concept of economies of
scope. Revenue: revenue function; Revenue curves under perfect and imperfect competition market;
Relation between average and marginal revenue curves; and Relationship between price elasticity of
demand and revenue.

Unit 7: Product Pricing Theories and Practices --------------------------------- 25 LHs

Market structure: concept and characteristics; Profit maximization goal of firm;
Price and output determination under perfect competition: short-run and long-run equilibrium;
Derivation of short run supply curve of a firm and industry; Price and output determination under
monopoly: short-run and long-run equilibrium; economic effects of monopoly. Price and output
determination under monopolistic competition: short-run and long-run equilibrium, monopolistic
firm's equilibrium under product variation and selling expenses. Concept and types of cartel; Pricing
under joint profit maximization cartel; and Pricing practices: price discrimination, cost plus pricing,
incremental cost pricing, administered pricing, export pricing, predatory pricing, skimming pricing
and penetration pricing.

Unit 8: Theory of Factor Pricing ---------------------------------------------------- 15 LHs

Rent: modern theory of rent; Wages: marginal productivity theory of wages; Concept of collective
bargaining; Minimum wages fixation; Wage differentials; Interest: Nominal and real interest rates;
Interest rate differentials; Theories of interest: loanable funds theory of interest and liquidity
preference theory of interest; Profit: economic profit and business profit; and Theories of profit:
dynamic theory of profit and innovation theory of profit.

14
Suggested Readings
Mankiw, N. G. Principles of Microeconomics. New Delhi: Centage Learning India Private Limited,
Latest edition
Koutsoyianis, A. Modern Microeconomics. Hong Kong: ELBS, Latest edition
McConnell, C.R., Brue, S.L., Flynn, S.M. and Grant, R. Economics. New Delhi: McGraw Hill
Education, Latest edition

Salvatore, D. Managerial Economics. New Delhi: Oxford University Press, Latest edition
Slowman, J. and Sutcliffe, M. Economics for Business. New Delhi: Pearson Education.

Browning, E.K. and Browning, J.M. Microeconomic Theory and Application. New Delhi: Kalyani
Publishers, Latest edition
Pindyck, R.S. and Rubinfield, D. Microeconomics. New Delhi: Prentice Hall of India, Latest edition
Dwivedi, D.N. Microeconomic Theory and Applications. New Delhi: Tata McGraw-Hill Publishing
Company Limited, Latest edition

15
 MGT 211: Financial Accounting and Analysis

Nature of course: Core Full Marks: 100

LHs: 150 Pass Marks: 35

Course Objectives
The main objective of this course is to provide in-depth knowledge and understanding of basic
principles, concept and practices of financial accounting. This course also aims to develop students'
understanding on business transactions, record such transactions in an accounting system and enable
them to prepare and analyze the basic financial statements.

Course Description
This course contains conceptual and theoretical foundation of financial accounting; processing and
recording business transactions; accrual accounting concept; adjusting entries, closing entries,;
preparation of basic financial statements like income statement, statement of retained earnings,
balance sheet, value added statement and cash flow statement; and their analysis.

Course Details
Unit I: Basic Understanding of Financial Accounting 8 LHs
Forms of business entities: sole proprietorship, partnership and corporate entities; Cyclical nature of
business: financial cycle and operating cycle; Financial accounting : concept, features objectives
and scope ; Book-keeping, accounting and accountancy; Nature of accounting; Qualitative features
of accounting information; Users and uses of accounting information: internal users and external
users; Limitations of financial accounting; Bases of accounting: cash and accrual bases of
accounting; and Accounting and other disciplines.

Unit 2: Conceptual Framework of Accounting 8 LHs

GAAP and its features; Basic accounting concepts: the business entity concept, the monetary
concept, the going concern concept, the cost concept, the dual aspect concept, the accounting period
concept, the realization concept, the accrual concept and the matching concept; Accounting concepts
Vs. Accounting conventions; Basic accounting conventions: consistency, conservatism, materiality
and full disclosure; Accounting standards: meaning, nature, need and significance of accounting
standards; NAS,IAS, NFRS, IFRS; Classification of Accounting standards; Ethics in accounting.

Unit 3: Accounting Process 23 LHs

Accounting events of business: concept and types; Source documents: concept, types and role in
recording transactions; Accounting equation for analyzing the transactions; Debit and credit and
their rules; Recording process of accounting events: journal, sub-division of journal, ledger, and
trial balance.

Unit 4: Accrual Basis of Accounting 10 LHs

Accrual versus cash basis of accounting; Adjusting entries: concept and types of adjusting entries;
Adjusted trial balance; Closing entries: concept and types of closing entries.

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Unit 5: Accounting for Inventories and Cost of Goods Sold 8 LHs
Concept, nature and cost of inventory; Cost of goods sold model; Inventory valuation and income
measurement: periodic and perpetual system; Methods of inventory valuation in periodic and
perpetual system; Inventory estimation: retail inventory method and gross profit method; Effect of
inventory valuation on cost of goods sold and its disclosure; Analyzing the management of
inventory: inventory turnover ratio and number of days' sales in inventory.

Unit 6: Accounting for Cash and Internal Control 6 LHs

Concept and nature of cash ; Internal control and principles of internal control activities; Cash
receipts and disbursement control; Preparation of bank reconciliation statement; adjusting entries;
petty cash fund; Effect of cash in balance sheet; Internal control procedures.

Unit 7: Accounting for Receivables 6 LHs

Concept, nature and types of receivables; Recognition and valuation of accounts receivables:
presentation of accounts receivable in balance sheet,
Recognition and valuation of notes receivables; Balance sheet presentation of notes receivable;
Analyzing the management of accounts receivable: Accounts receivable turnover ratio and days'
sales outstanding.

Unit 8: Accounting for Current Liabilities and Contingencies 6 LHs

Concept and nature of current liabilities; types of current liabilities: Accounts payable, notes
payable, tax payable, other accrued liabilities (accrued expenses and unearned income) and current
maturities of long-term debt; Recognition and valuation of accounts payable and notes payable;
Balance sheet presentation of accounts and notes payable; Concept of contingent liabilities;
Accounting entries of product warranty and guarantees; Analyzing the management of current
liabilities.

Unit 9: Accounting for Long-Lived Assets 10 LHs

Concept, features and types of long lived assets; Acquisition cost of tangible long lived assets;
Depreciation of tangible long lived assets: Straight-line method, diminishing balance method, unit of
activity method and depreciation fund method; Choice of depreciation method; Disposal of long
lived assets; Impact of depreciation on profit measurement; Capital versus Revenue expenditure;
Effect of long lived assets in balance sheet; Analyzing the management of long lived assets.

Unit 10: Accounting for Long Term Liabilities 8 LHs

Concept of tong term liabilities; Concept, features and types of debentures or bonds ; Accounting
entries for issuance and retirement of debentures or bonds; Balance sheet presentation of
debentures or bonds;
Concept and types of leases: Acquisition of capital lease; depreciation of leased asset; amortization
of lease obligation; balance sheet presentation of lease obligation; analyzing the management of
long-term debt.

Unit 11: Accounting for Shareholders' Equity 7 LHs

Concept of shareholder's equity; Components of shareholders equity: Common share, preference
share, additional paid-in capital, and retained earnings; Balance sheet presentation of shareholder's
equity; Accounting entries for issuance of share; Accounting entries for treasury share or stock;
Accounting entries for cash and stock dividend, stock split and its effect on shareholder's equity;
Analyzing the management of shareholders' equity.

17
Unit 12: Basic Financial Statements 20 LHs
Financial statements-means of communicating accounting information: concept, purpose, types and
relationship;
Income statement: concept and types of income statement, components of an income statement,
preparation of single step and multi step income statement;
Statement of retained earnings: concept, components and preparation of retained earnings statement;
Statement of financial position or balance-sheet: concept, purpose, components and preparation of
classified statement of financial position or balance sheet;
Statement of changes in owners' equity: concept, components and preparation of statement of
changes in owners’ equity.
(Disclosure required for financial statements as per Nepal Company Act and NFRS).

Unit 13: Cash Flow Statement 12 LH s

Meaning, objectives and importance of cash flow statement; Contents of cash flow statement;
preparation of cash flow statement using trail balance of a year; Preparation of cash flow statement
using balance-sheets of two dates under direct and indirect method.

Unit 14: Value Added Statement 6 LHs

Value added: concept and its application; Value added statement: concept, contents and advantages;
Preparation of value added statement showing value added generated and applied.

Unit 15: Analysis of Financial Statement 12 LHs

Meaning, objectives, need and importance of financial statement analysis; Types of financial
statement analysis: Horizontal and vertical analysis, comparative and common size statement
analysis and their application.
Ratio analysis: concept, uses, importance and limitations of ratio analysis; Types, computations and
interpretations of: liquidity (current ratio and quick ratio), capital structure (debt-equity ratio, debt to
total capital ratio, interest coverage ratio and debt coverage ratio), efficiency (stock turnover ratio,
receivable turnover ratio including collection period, payable turnover ratio including payable
period, fixed assets turnover ratio, total assets turnover ratio, capital employed turnover ratio),
profitability (gross profit ratio, net profit ratio, operating ratio, return on equity, return on total assets
and return on common shareholders equity) and earning evaluation ratios (EPS, DPS and price
earning ratio) for evaluating the financial performance of the business.

Suggesting Readings
Accounting Standards Board, (2003). Nepal Accounting Standards. Kathmandu: ASB.

Greunnung & Keen, (2000). International Accounting Standards. A Practical Guide, USA: World
Bank
Narayanaswamy. R. Financial Accounting: A Managerial Perspective (Fourth Edition). New Delhi:
PHI Learning Private Limited.
NFRS (2014). Nepal Accounting Standards. Kathmandu: ASB.

Porter. G. & Norton, C. L. Introduction to Financial Accounting (8th Edition). Delhi: Cengage
Learning India Private Limited.
Tulsian, P. C.. Fundamental of Accounting. New Delhi: Mc Graw Hill Education Private Ltd.

18
 MGT 213: Principles of Management

Level: Bachelor of Business Studies

Year: First
Nature of the Course: Core Full Marks: 100
Pass Marks: 35
Lecture hours: 150
Course Objectives
This course aims to impart the basic management knowledge and skills to the students so as to
enhance their managerial capabilities and enable them to apply in the practical field. The course
provides a comprehensive knowledge to students about organization and help them understand the
major functions, principles, and techniques of management.

Learning Outcomes
Upon successful completion of this course, students will be able to:
 Understand what management is and why it is important
 Have developed a working knowledge of fundamental terminology and frameworks in the
functions of management
 Be able to identify and apply appropriate management techniques for managing
contemporary organizations
 Have an understanding of the skills, abilities, and tools needed to obtain a job on a
management track in an organization of their choice.
 Understand the changes in theories about how managers should behave to motivate and
control employees

Course Description
This course contains the Nature of Organizations, Introduction to Management, Management
History and Current Thinking, Environmental Context of Management, Planning and Decision
Making, Fundamentals of Organizing, Leadership and Motivation, Fundamentals of Influencing and
Communication, Control and Quality Management, Managing in Global Arena, Management Trends
and Scenario in Nepal.

Course Details
Unit 1: The Nature of Organizations 15 Hrs.
Concept of organization; Organizational goals: concept, purposes, and types; Features of
effective organizational goals; Goal formulation: processes and approaches; Goal succession and
displacement; Problems of goal formulation; Changing perspectives of organization.

Unit 2: Introduction to Management 10 Hrs.

Management: definition, characteristics, functions, principles; Managerial hierarchy; Types of
managers; Managerial skills and roles; Management Careers; Emerging challenges for
management.

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Unit 3: Management: History and Current Thinking 15Hrs.
Classical Theory: introduction, contribution and limitation; Human relations and Behavioral
science theories; System Theory; Decision Theory; Management Science Theory; Contingency
Theory; Emerging Management Concepts: workforce diversity, outsourcing, knowledge
management, learning organization.

Unit 4: Environmental Context of Management 16Hrs.

Concept of Business Environment; Types of Business Environment: internal and external. Basic
Components of External Environment: economic, socio – cultural, political, and technological;
Environmental Scanning: concept and methods; SWOT analysis; Social Responsibility of
Business: concept and approaches; Areas of Social Responsibility. Business Ethics: meaning and
significance; Emerging Business Environment in Nepal.

Unit 5: Planning and Making Decisions 20Hrs.

Planning: concept, types, process and importance; Elements of Decision Situation; Strategic
Planning: fundamentals of strategic planning; Tactical Planning: comparing and coordinating
strategic and tactical planning; The Planning and Levels of Management; Decision Making:
definition and approaches, conditions of certainty and uncertainty. Management by Objectives
(MBO): factors necessary for a successful MBO program; Decision Making: meaning, types and
process; Group Decision Making: advantages and process.

Unit 6: Fundamentals of Organizing 18Hrs

Organizing: concept, principles and process; Approaches to Organizing: classical, behavioral,
contingency. Departmentalization: meaning and types; Delegation of Authority: meaning, steps,
obstacles; Eliminating Obstacles to the Delegation Process; Centralization and Decentralization:
meaning, advantages and disadvantages; Concept of Organic and Mechanistic Views of
Organization;
Organization Architectures: vertical differentiation (tall versus flat hierarchies), horizontal
differentiation (functional structure, multidivisional structure, geographic structure, and matrix
structure); Modern Organizational Structures: team, network and 360 degree structure.

Unit 7: Leadership and Motivation 22 Hrs.

Leadership: Concept, functions, styles; Approaches to Leadership: trait, behavioral, and
situational; Leadership Today: transformational, coaching, entrepreneurial leadership;
Leadership Situations and Decisions; Team Management; Conflict: meaning and types;
Managing Conflicts in Organization; Motivation: concept and process; Theories of Motivation:
need hierarchy and motivation-hygiene; Strategies for Motivating Employees;

Unit 9: Fundamental of Influencing and Communication 8 Hrs.

Influencing: concept and fundamentals; Influencing people; Influencing subsystem;
Communication: concept, structure, and process; Types of Communication: formal and informal,
Interpersonal and nonverbal communication in organization; Barriers to Effective
Communication; Enhancing Effective Communication.

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Unit 10: Control and Quality Management 11Hrs
Control Systems: concept, process, types, and characteristics of effective control system;
Potential Barriers to Successful Controlling; Quality Control Systems; Total Quality
Management (TQM): concept and tools; Deming Management: principles and techniques; The
Quality Improvement Process;

Unit 11: Managing in the Global Arena 8Hrs

Globalization: concept, effects; Fundamentals of International Management; Multinational
Companies: meaning, types, advantages, and disadvantages; Digital dimensioning and Planning,
Organizing, Influencing, and Controlling.

Unit 12: Management Trends and Scenario in Nepal 7Hrs

Growth of Business Sector in Nepal; Major Industries in Nepal: manufacturing, export oriented,
import substitution, and service sector; Existing Management Practices and Business Culture in
Nepalese Organization; Major Problems of Businesses in Nepal.

Suggested Reading:
Griffin, Ricky W., Management, AITBS Publishers and Distributors, Delhi.
Samuel C. Certo, Modern Management, Prentice Hall of India, Delhi
Charles W.L. Hill and Steven L. McShane, Principles of Management, Tata Mc-Graw-Hill
Company, New Delhi
Robins, Stephen P. and Coulter, Mary, Management, Prentice Hall of India.
James, Stoner, AF, Freeman, Edward, R. and Gillbert, R., Jr. Daniel, Management¸Pearson, India.
Pant, P.R., Principles of Management, Buddha Publication Pvt. Ltd., Nepal
Chalise, M. and Gautam, P. K., Principles of Management, KEC Publication and Distribution Pvt.
Ltd., Nepal

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 MGT 205: Business Communication
Full Marks: 100 Lecture Hours: 150
Pass Marks: 35

Course Description
This is BBS second year English courses in 4yr BBS system under the Faculty of Management,
Tribhuvan university. This course allows students to explore the art of language communication
skills required for general as well as professional domains . It helps students improve their reading
and writing abilities in English in both social and professional interactions, and learn skills that they
can apply to business negotiations, telephone conversations, written reports and emails, and
professional presentations. This course seeks to enhance students’ cross-cultural understanding and
communicate in varied contexts. Other important concern of this course is to present a wide array of
ideas from different spheres of human activity, which is of vital importance for success as an
executive in management. Ideas are increasingly being considered an important resource just like
men, machines materials and money, and the best business schools have taken note of the
importance of creative thinking in the business world. Reading opinions of thoughtful people is
important because we learn about other opinions and ideas in the process and they help shape our
ideas and prepare us to become educated citizens who can think and form their own conclusions.

The course has two main components of equal weightage: (50% + 50%)
I. Business Communication Skills
II. Discourse in Disciplines

Course Objectives and Outcomes

After completing this course, students will be able to:
 read English texts written in various disciplines and understand different level of discourses
 express themselves in varied forms both in speech and writing
 write correctly and persuasively in present time standard English
 adapt content to a proposed context, audience and purpose
 understand and use appropriate style and tone in spoken as well as written texts
 be familiar with the language used in conducting meetings and prepare reports based on the
discussion in the meetings
 write memos, letters, and other business communications

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  apply formal structure and develop organization in writing proposal, reports, article etc.
 understand arguments and respond the arguments accordingly
 use English pertinent to the level of audience and the purpose as the medium of
communication
 learn the art of using essential rhetorical techniques for developing effective communication
 Evolve step by step disciplinary and interdisciplinary insights and ability to express in
acceptable English

Course Contents
I. Business Communication Skills
I. The Communication Process
- Elements of Communication Process
- Methods of Communication
- The Writing Process
- Oral Communication Process
- Group Work and Collaboration Process
- Communication Structures and Systems
- Management Style and Communication
- Barriers of Business Communication

II. Business Communication

- Defining Business Communication
- Nature of Communication
- Historical Perspectives
- Purpose of Business Communication
- Functions of Business Communication
- Importance of Business Communication
- Components of Business Communication
- Types of Business Communication
- Principles of Effective Business Communication
- Challenges for Business Communication

III. Skills and Values in Business Communication

- The Importance of Communication Skills
- Identifying Communication Skill Sets
- Organizational Communication Skills
- Interpersonal Communication Skills
- Leadership Communication Skills
- Professionalism in Business Communication
- Elements of Professionalism
- Ethical Values
- Intercultural Sensitivities

IV. Electronic and Other Messages

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 - Memos
- Notices
- Letters
- Using Email
- Blogs
- Advertisements
- Press Release

V. Reports and Proposals

- Business Plan
- Reports
- Proposals

VI. Oral Communication

- Presentations and Speeches
- Telephone Calls
- Other Oral Communication Situations
- Enhancing Oral Communication
- Using Visual Aids
- Using Nonverbal Communication
VII. Visual Communication
- Pictures
- Charts
- Graphics
VIII. Employment Communication
- Planning and Conducting a Job Search
- Resumes and Cover Letters
- Job interview

II. Discourse in Disciplines

I. Culture and Society
1. New Nepal
2. Looking for a Rain God
3. Dover Beach
4. Shooting an Elephant
5. The Unknown Citizen
6. The Parrot in the Cage

II. Money and Management

1. Advertise Your Business
2. Eveline
3. The Company Man
4. Light My Lucky
5. The Ideal of Craftsmanship

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 III. Science and Environment
1. Religion and Science
2. The New Physics
3. Root Cellar
4. On Warts
5. The Etiquette of Freedom
6. The Rights of Animals

IV. Gender and Women

1. Professions for Women
2. The Use of Force
3. The Stronger
4. Here I Love You
5. The Kiss
6. Girl
7. Farewell
8. Popular Mechanics

V. Life, Death and Beyond

1. The Fly
2. Jest and Earnest
3. The Old Man at the Bridge
4. Once More to the Lake
5. The Hundredth Dove
6. The Lunatic

VI. Art and Philosophy

1. An Essay in Aesthetics
2. The Clock Tower
3. Beauty
4. From the Fountainhead to the Future
5. What I, Think I Am
6. All-Pervading Poetry
7. The Allegory of the Cave
8. Her First Ball
9. Not the Non-Existent

Teaching Method
The suggested method of teaching is of two fold : introduce the theme of the texts and lead
students to the writing task i.e. guide the students to practice specific skills of language knowledge
to produce their own writings. The recommended approach is to view the books not as mere
language texts but to introduce students to many disciplines in order to expand their intellectual
horizon. It is important to discuss what it means to be educated through the ideas of great thinkers
and help students to become educated through thoughtful writings on different disciplines . The
method, therefore, is to engage students in a dialogue about the questions and ideas raised in each
25
text by exploring through different perspectives and voices of others, and also sharing respectfully
their own experiences and thoughts.

Evaluation
The examinations will cover the language skills including a range of tasks,students’ ability to use
English in a variety of contexts. Examinations will evaluate the students’ ability to communicate
effectively in English that is reading and writing activities and using appropriate writing style.
Special credit will be given to originality of expression and depth of thinking,

Prescribed Texts ( Compulsory Reading)

Adhikari, Dharma, Tika Lamsal, I. Hugh Holmes, and Mike Sobiech. Business Communication:
Theory and Practice. Kathmandu: Buddha Publications, 2020.

Lohani, S., compiler & editor. Visions: A Thematic Anthology. Kathmandu: Vidyarthi Pustak,
Bhandar, 2020.

Recommended Reading

Abrams, M.H., and G.G. Harpham. A Glossary of Literary Terms. 11th ed., Cengage Learning, 2014.
Bargiela-Chiappini, Francesca, The Handbook of Business Discourse. Edinburgh UP, 2009.
Bovee, C.L., and John Thill. Business Communication Essentials. 7th ed., Pearson, 2016.
Chaney, Lilian H. Intercultural Business Communication. 4th ed., Pearson, 2007.
Guffey, Mary Allen, and Dana Loewy. Essentials of Business Communication. 11th ed., Cengage
Learning, 2018.
Hattersley M., and L. Mcjannet. (1997). Management Communication, Principles and Practice.
McGraw – Hill, 1997.
Jethwaney, J. Corporate Communication. Oxford, 2010.
Oxford Advanced Learner’s Dictionary of Current English. 10th ed., Oxford, 2020.
Pearson Education. Longman Business English Dictionary. 2nd ed., Longman, 2018.
Parkinson, Dilys, editor. Oxford Business English Dictionary. Oxford, 2005.
Tourish, Dennis, and Owen Hargie. Key Issues in Organizational Communication. Routledge, 2004.

26
 MGT 204: Business Law

Full Marks: 100 Lecture Hours: 150

Pass Marks: 35

Course Objectives
This course aims to impart the basic knowledge on legal aspects of business to the students so as to
provide with basic understandings of the fundamental concept, principles and Legal frameworks of
business to enhance their knowledge and managerial capabilities and apply in the practical field to
resolve complex issues and for effective management of business operations.This course familiarizes
students with the relevant provisions of various laws influencing business organization and to
resolve legal issues in business.
Learning Outcomes
Upon successful completion of this course, students will be able to:

 Familiarize the concept and nature of law and business laws and sources of business law
and its importance in Nepalese and global context;
 Understand fundamental concept, principles and Legal frameworks of Business laws;
 Have an understanding of the incorporation, operation and termination of company-
voluntarily and compulsorily;
 Understand the system of dispute settlement (competent court system and alternative
system - particularly Arbitration);
 Develop competencies to understand the problem and resolve the issues related to the
business laws.

Course Description
This course contains various legal frameworks influencing business organizations in national and
international context and foundational information about the Nepalese legal system, dispute
resolution, and their impact on business as well as the major content of the Constitution of Nepal,
State and Federal legal systems.The course covers the laws relating to General Contract and specific
contracts, Company, Insolvency, Industrial Enterprises, Foreign Investment & Technology Transfer,
Intellectual property, International trade, and dispute settlement systems (court and arbitration).

Course Details

Unit 1: Introduction to Law and Business Law 10 LHs

Concept, Nature and characteristic of law; Classification and sources of law; Meaning,
characteristics and sources of Nepalese Business Law; Changing dimension of Nepalese
Business Law and Constitutional provisions.

27
Unit 2: The Law of Contract and other Liabilities 30 LHs

Meaning, Nature and definition of contract; Essential elements of valid contract; Meaning
and Rules regarding offer; Revocation or lapse of offer; Meaning and rules regarding
acceptance; Communication of offer and acceptance; Meaning and Rules regarding
consideration; Concept and importance of free consent; Flaws of free consent and legal
effects of contract caused bythe flaws: coercion, undue influence, misrepresentation, fraud,
mistake; Concept and importance of legality of objective and consideration- unlawful
agreements and void agreement; Meaning and definition of contingent contract; Rules
regarding contingent contract and distinguish from wagering agreement; Meaning, essentials,
importance and types of performance of contract; Rules regarding performance of contract;
Meaning of termination of contract; Modes of termination of contract; Meaning and types of
breach of contract; Remedies for breach of contract; Major provisions of Contract and other
Liabilities under the Muluki Dewani Samhita, 2074; Provisions of other obligations in brief-
Lease Contract; Hire-purchase Contract; Quasi contract; Unjust Enrichment; Concept of
Torts.

Unit 3: Contract of Bailment and Pledge 10 LHs

Bailment: meaning and concept, rights and duties of Bailor and Bailee; Finder of lost goods
(rights and duties of finder of lost goods); Meaning of pledge of pawn; Distinction between
bailment and pledge; Right and duties of pawned and Pawnee; Pledge by non- owner.

Unit 4: Contract of Sale of Goods 15 LHs

Meaning and nature of contract of sale of goods; Difference between sale and agreement to
sell Condition and warranty; Doctrine of caveat emptor; Transfer of ownership; Transfer of
title by non- owner; Rights and duties of unpaid seller; Buyer's remedies.

Unit 5: Contract of Agency 15 LHs

Meaning and general rules of agency; Modes of creating agency; Types of agent; Rights and
duties of agent; Personal Responsibility of agent; Right and duties of principal; Delegation of
authority; Sub-agent and substituted agent; Termination of agency; Procedure of registration
and effect of non-registration of agency in Nepal (under Agency Act, 2014).

Unit 6: Contract of Carriage 20 LHs

Meaning and nature of contract of carriage; Characteristics of common carrier; Difference

between common and private carrier; Rights, duties and liabilities of common carrier;
Carriage by land; Carriage by Sea: contract of Affreightment, charter party and bill of lading;
Incoterms- 2020; Carriage by Air.

Unit 7: Contract of Indemnity and Guarantee 10 LHs

Meaning of contract of indemnity- Rights and duties of indemnifier and indemnity holder;
Meaning and nature of contract of guarantee- Types of guarantee; Difference between

28
 indemnity and guarantee; Rights, duties and liabilities of surety; discharge of surety from
liability.

Unit 8: Law of Company and Insolvency 10 LHs

Meaning, nature and incorporation of company; Legal importance and formalities of annual
general meetings; Minutes and resolutions of a company; Legal provision regarding BoD's
report; Appointment and removal of an auditor; Insolvency of company; Nepalese law of
insolvency and feature of Insolvency Act, 2063.

Unit 9: Dispute Settlement Systems 10 LHs

The Court System; The Civil Procedure in Nepal; Meaning, features and importance of
arbitration; Appointment of arbitrators; Power and function of arbitrators; Disputes to be
settled by arbitration; Major provisions of Nepal Arbitration Act, 2055.

Unit 10: Law of Intellectual property 20 LHs

Concept and Nature of Intellectual property rights; Copyrights Act, 2059 and its major
provisions; Patent, Design and Trademark Act, 2022 and its major provisions; Trade Related
Aspects of Intellectual Property Rights (TRIPs); Industrial Enterprises Act, 2074 and its
major Provisions; Foreign Investment and Technology Transfer Act (FITTA), 2075 and its
major provisions.

Suggested Readings

Albuquerque, D Paniel (2013).Legal Aspects of Business (Texts, Jurisprudence and Cases),

Oxford University Press, New Delhi.
Agency Act, (2014). Law Book Management Committee, Kathmandu.
Arbitration Act, (2055). Law Book Managemet Committee, Kathmandu.
Company Act, 2063, Law Book Management Committee, Kathmandu.
Copyright Act, 2059, Law Book Management Committee, Kathmandu.
Foreign Investment and Transfer of Technology Act, 2015, Law Book Management Committee,
Kathmandu.
Industrial Enterprise Act, 2073, Law Book Management Committee, Kathmandu.
Insolvency Act, 2063, Law Book Management Committee, Kathmandu.
Kalika, S. N. (2018) Principles of Business Law (7th Ed.), Buddha Publication, Kathmandu.
Muluki Dewani Sanhita, 2074, Law Book Management Committee, Kathmandu.
Nepal Bar Council Law Journal, Nepal Bar Council, Lalitpur, Nepal.
Nepal Law Review, Faculty of Law, Nepal Law Campus, Tribuvan University, Kathmandu
Nepal.
Patent, Design and Trademark Act, 2022, Law Book Management Committee, Kathmandu.
Shukla, M.C.,Mercantile Law,S.Chand & Company Ltd, New Delhi, New Delhi.

29
 MGT 209: Macroeconomics for Business

Full Marks: 100 Lecture hours: 150

Pass Marks: 35

Course Objectives:
Macroeconomics for Business aims to enhance understanding of macroeconomic principles and
Nepalese macroeconomic situation to the Bachelor level students. It will help to inculcate the skills
incorporating different macroeconomic domain in assessment of nature of business environment.

Course Description:
This course of macroeconomics makes students skilled to understand macroeconomic concepts,
theories and contemporary macroeconomic issues pertinent in Nepal. This course comprises an
introduction to macroeconomics, national income accounting, the classical theory of employment,
Keynesian macroeconomics, IS-LM model, inflation, business cycles, monetary theory and policy,
government finance and fiscal policy, the global economy and contemporary issues in references to
Nepal.

Learning Outcomes:
By the completion of the course students will be able to:
 Explain the nature of macroeconomics and macroeconomic variables; explain the concepts
and difficulties of measuring national income and calculate the national income by product,
income and expenditure methods.
 Derive consumption function, saving function, investment function, investment multiplier,
government expenditure multiplier, tax multiplier, foreign trade multiplier, IS curve and LM
curve and determine the equilibrium level of income and employment in Classical,
Keynesian and IS-LM model.
 Describe the concepts and causes of inflation, deflation, stagflation and business cycles;
assess their effect and identify the measures of reducing their consequences in business.
 Describe the concept and structure of financial market, monetary policy, government finance,
fiscal policy and fiscal federalism, in reference of Nepal and explore the effect of change in
monetary policy and fiscal policy in equilibrium level of national income.
 Explain the effect of global and regional economy in Nepalese economy in reference to
exchange rate, balance of payments, foreign direct investment and foreign employment and
explain contemporary macroeconomic issues in Nepalese perspective.

Course Details:

Unit 1: INTRODUCTION TO MACROECONOMICS LH 6

Macroeconomics: concepts, scope, uses and limitations; and Macroeconomic concepts: stock
and flow variables; equilibrium and disequilibrium; static and dynamic equilibrium analysis.

Unit 2: NATIONAL INCOME ACCOUNTING LH 20

Circular flow of income and expenditure in two sector, three sector and four sector economy;
Different concepts of national income: GDP, NDP, GNP and NNP at market price and factor
cost, personal income (PI), disposable personal income (DI), per capita income (PCI); Real
GDP, nominal GDP and GDP deflator; Computation of national income: product method,
30
 income method and expenditure method; and Difficulties in the measurement of national
income. Numerical Exercise

Unit 3: CLASSICAL THEORY OF EMPLOYMENT LH 6

Unemployment: concept and types; Say’s law of market: concept, assumptions and
implications; and Classical theory of employment: assumptions, components and criticisms.

Unit 4: KEYNESIAN MACROECONOMICS LH 30

Principle of effective demand; Consumption function: concepts, psychological law of
consumption, technical attributes and determinants; Saving function: concepts, technical
attributes and determinants; Paradox of thrift; Investment function: concept and types of
investment, marginal efficiency of capital, investment demand curve and determinants of
investment; Income and output determination in the two-sector economy; Investment
multiplier: concept, income generation process and leakages; Income and output
determination in three sector and four sector economy; and Derivation of government
expenditure multiplier; tax multiplier and foreign trade multiplier. Numerical Exercise

Unit 5: IS-LM Model of INCOME DETERMINATION LH 7

Derivation of IS curve and product market equilibrium; Derivation of LM curve and money
market equilibrium; General equilibrium in the product market and the money market; and
Shifts in IS and LM curves (change in monetary and fiscal policies) and effects on
equilibrium. Numerical Exercise

Unit 6: INFLATION AND BUSINESS CYCLES LH 18

Inflation: concepts and types; Measurement of inflation through consumer’s price index
(CPI) and GDP deflator; Demand-pull inflation and cost-push inflation; Concept of core
inflation; Effects of inflation; Anti-inflationary measures; Inflation and unemployment:
Phillips curve and stagflation; Deflation: concept and causes; Nature, causes and effect of
inflation in Nepal; Business cycles: concepts, characteristics and phases; and Measures to
control business cycles. Numerical Exercise

Unit 7: MONETARY THEORY LH 16

Money supply: concepts and determinants; Money market and capital market: concepts and
functions; Structure of financial market in Nepal; Monetary Policy: concepts, types,
objectives and instruments; and Features of current monetary policy of Nepal.

31
Unit 8: GOVERNMENT FINANCE LH 15
Government budget: Concepts and components; Deficit financing: concept, objectives and
methods; Sources of government revenue in Nepal, Government expenditure of Nepal;
Features of current government budget of Nepal; Fiscal policy: concepts, types, instruments
and objectives; and Fiscal federalism: concepts, components and Nepalese practice.

Unit 9: GLOBAL ECONOMY LH 17

Global economy: concept and current trends; Globalization: concepts, drivers, benefits and
defects; Regional integration and trading blocs: concepts and role; Issues of Nepali foreign
trade; Exchange rate: concept and types; Determination of equilibrium exchange rate under
fixed and flexible exchange rate system; Balance of payments: concept and BOP accounts;
Foreign direct investment: concepts, benefits, defects and current status of Nepal; and
Foreign employment: benefits, defects and current status of Nepal.

Unit 10: CONTEMPORARY MACROECONOMICS ISSUES IN NEPALESE PERSPECTIVES LH 15

Macroeconomic indicators of Nepal; Privatization and liberalization: concepts, benefits and
defects; Economic growth and development: concepts and components; Sources of
economic growth; Poverty: concepts, types, causes and remedies; Economic inequality:
concepts, causes and remedies; Public private partnership: concepts, importance and
Nepalese practice; and Financial inclusion: concepts, determinants and current Nepalese
status.

Suggested Readings:
Dwivedi, D.N. Macroeconomic Theory and Policy. New Delhi: Tata McGraw-Hill Publishing
Company Limited. Latest Edition.
Kumar, R. and Gupta, K. Business Economics: Applications and Analysis. New Delhi: UDH
Publishers and Distributers (P) Ltd .Latest Edition.
Slowman, J. and Sutcliffe, M. Economics for Business. New Delhi: Pearson Education. Latest
Edition.
Shreshtha, R.G., Adhikari, G.M. and Paudel, R.K. Macroeconomics for Business. Kathmandu: KEC
Publications. Latest Edition
Abel, A.B. and Bernanke, B.S. Macroeconomics. New Delhi: Pearson Education. Latest Edition
McConnell, C.R., Brue, S. L., Flynn, S. M. and Grant, R. Economics. New Delhi: McGraw Hill.
Latest Edition.
Jhingan, M.L. Macroeconomics. New Delhi: Vrinda Publication (P) Ltd. Latest Edition.
Mithani, D.M. Money, Banking, International Trade and Public Finance. Mumbai: Himalayan
Publishing House. Latest Edition.
Shapiro, E. Macroeconomic Analysis. New Delhi: Galgotia Publication (P) Ltd. Latest Edition.
Shah, R. K. Public Economics (Vol-2). Kathmandu: Ekta Books. Latest Edition.
Bista, R.B. Economics of Nepal. Kathmandu: New Hira Books Enterprises. Latest Edition
Yoshio, N. and Morgan, P. J. (2017). Financial Inclusion, Regulation and Education. Tokyo:
Asian Development Bank Institute.
Suggested Publications:
Publications of Nepal Rastra Bank, Central Bureau of Statistics, Ministry of Finance, National
Planning Commission, IMF, World Bank, Asian Development Bank.

32
 MGT 212: Cost and Management Accounting

Full Marks: 100 Lecture Hours: 150

Pass Marks: 35

Course Objectives
The objectives of the course are to provide the students with in-depth knowledge of cost and
management accounting in order to enable them to develop, arrange and classify cost information
required for decision making for maximizing the profit and reducing / eliminating losses. The course
further aims at developing a sound base for higher study in accounting besides in practical
knowledge required by the middle level managers to handle cost information independently.

Course Description

This course contains conceptual and theoretical foundation of cost and management accounting ; It
also comprises classification and segregation of cost, accounting for material and labour, allocation,
apportionment and absorption of overhead cost, costing in different situations such as service
costing, job and contract costing, process costing etc., income statement under variable and
absorption costing techniques, standard costing system with material and labour cost variance,
flexible budgeting under different levels of activities, overhead cost variance,

Course Details

Unit 1: Conceptual Foundation 15 LHs

Cost accounting and cost accountancy; Meaning, objectives, importance, scope, advantages
and limitations of cost and management accounting; Limitations of financial accounting;
Similarities and dissimilarities in financial, cost and management accounting

Concept, importance and classification of cost: basic concept of cost, expense, loss cost
center, profit center and cost unit, cost classification: based on function, identification,
behavior, controllability, decision making, time of recording, monetary expression, planning
and control, period and product cost;

Cost segregation and estimation: concept and methods of cost segregation: i) Two point
method ii) Least square method and iii) Estimation of cost

Unit 2: Accounting for Materials 12 LHs

Materials/Inventory: Concept, reasons and objectives for holding material/inventory.

Inventory control: Meaning, importance and techniques; Economic order quantity: concept,
techniques, formula, graphic and trial & error approaches-considering discount under
certainty condition; Re-order, maximum, minimum, average stock levels, danger level and
safety stock; Concept and techniques of perpetual inventory system; Stock control through
ABC analysis and just in time inventory: concept, advantages and limitations; Material
productivity and Inventory or material turnover.

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Unit 3: Accounting for Labour Cost 15 LHs

Labour Cost: Concept and need for control of labour cost; Remuneration without premium
plan: Features of good remuneration system, time and piece wage system; Remuneration
with premium Plan: Features of premium plan, premium bonus scheme-Halsey and Rowan
Plan, Taylor's Differential Piece Rate, Gant's Task and Bonus Plan, Group Bonus Scheme:
Priestman’s and Scalon’s Plan

Labour Turnover: Concept, causes and effects, cost of labour turnover: preventive and
replacement cost and calculations, labour turnover ratios.

Unit 4: Accounting for Overhead Cost: 8 LHs

Overhead Cost: Meaning, features, importance and classification; Allocation, apportionment

and absorption of overhead: meaning and importance; Apportionment and absorption of
overhead cost based on volume, direct labour hours and machine hours; Concept,
importance, features, elements of Activity Based Costing, ABC vs Traditional Costing,
procedures of absorption of overhead cost under ABC technique.

Unit 5: Costing in Different Situations 42 LHS

Service Costing: Concept, features and scope of service costing; Preparation of cost sheet
for transport service for passenger, hospital, hotel and restaurant services, limitations of
service costing.

Job Order Costing: Concept and features; measuring direct material, direct labour and
manufacturing overhead cost; Accounting for job order: Preparation of job order cost sheet
showing non- manufacturing costs & determination of cost of goods manufactured, cost of
goods sold and unit cost.

Batch Costing: Concept and features; Determination of Economic Batch Quantity (EBQ).

Contract Costing: Concept and features; Similarities and dissimilarities in job and contract
costing; Contract costing procedures: preparation of contract account in the case of
incomplete, near to completion and complete contract, work certified and work uncertified,
contractee’s account, work in progress account and balance sheet; Cost plus contract;
Escalation and de-escalation clauses.

Process Costing: Concept, features and application; comparison of job costing and process
costing; preparation of process accounts with/without beginning and ending work-in-
progress inventory, partial and total transfer of output to next process, accounting for
process loss/gain: normal and abnormal loss, abnormal effective/gain and computation of
unit costs, and treatment of spoilage, wastage, scrap and defective unit; accounting for inter
process profit, reserve for unrealized profit.

Joint Product and By Product Costing: Concept, features and objectives of joint and by-
product, difference between joint product, main product and by-product; Apportionment of
joint costs under unit of output and revenue basis; Accounting for joint and by-products.
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Unit 6: Accounting for Profit Planning 20 LHs

Absorption Costing: Concept, features, importance and preparation of income statement

under absorption costing, treatment of normal capacity and fixed manufacturing overhead
rate, treatment of opening and closing stock, over and under absorption of fixed
manufacturing overhead and adjustment and limitations of absorption costing.

Variable Costing: Concept, features, use and importance preparation of income statement
under variable costing, treatment of manufacturing overheads, treatment of opening and
closing stock limitations and treatment of other expenses; limitations of variable costing.

Reconciliation of profit or loss between absorption and variable costing techniques showing
the causes of differences.

Cost Volume Profit Analysis: Meaning, importance; assumptions and limitations of CVP
analysis; Contribution margin and ratio, profit volume ratio; Break even analysis using
contribution margin, algebraic and graphic approaches; Break-even-analysis: under various
situations situations: changes on selling price, fixed cost, variable cost, under step fixed
cost, multi-products situations, margin of safety and determination of selling price to realize
desired profit ; Advantages and limitations of break even analysis.

Unit 7: Cost Accounting for Planning and Control 30 LHs

Standard Costing: Concept of standard cost and standard costing, features, application,
advantages and limitations; Difference between standard and budget.

Variance Analysis; Material variances: Concept and calculation of cost, price, usage, mix
and yield variances; Labour variances: Concept and calculation of cost, efficiency, rate, mix,
idle time and yield variances.

Overhead Cost Variance: Concept and calculation of capacity, efficiency and spending
variances.

Budget: concept, features and importance of budget; budget and budgetary control; Types of
budget: sales budget, production budget, material budget & merchandize purchase budget,
labour budget, manufacturing overhead budget, cost of goods manufactured budget,
selling/distribution & administrative expenses budget and cost of goods sold budget.

Fixed and Flexible Budgeting: Concept and importance of fixed and flexible budgets;
Difference between fixed and flexible budgets; Flexible budgeting for overhead cost control
on activity levels and budget allowance for actual level attained.

Unit 8: Cost Reduction 8 LHs

Cost Reduction and Cost Control: Cost reduction-pre-requisites, techniques, steps,

responsibility and limitations; Value engineering (analysis): Concept, advantages, tools and
techniques for cost reduction; Value analysis: Concept, objectives, importance, advantages
and techniques of value analysis.

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Suggesting Readings

Atkinson, A. A., Kaplan, R. S., Matsumura, E.M., Young, S.M & Kumar, G. A. (2012).
Management Accounting/6e. New Delhi: Pearson Education Pvt. Ltd.

Garrison, R. H. & Noreen, E. W. (2017).Managerial Accounting McGraw-Hill Companies, Inc.

Lynch & Williamson, ( ) Accounting for Management Planning & Control, Tata McGraw Hill Co.

Pillai & Bagavathi (2017). Cost Accounting New Delhi: S. Chand and Company Ltd.

36
 MGT 214: Fundamentals of Marketing

Full Marks: 100 Lecture Hours: 150

Pass Marks: 35

Course Objectives
This course aims at developing knowledge and skills in students in analyzing issues concerning
major decision making areas of marketing. It also aims to provide students about effective tools,
techniques and practical skills in marketing of goods, services and ideas. Besides this, an attempt has
been made to familiarize the students with the marketing practices in Nepal.

Course Description
This course contains introduction or marketing, understanding the market place and customer needs,
managing customer relationship, analyzing marketing environment, managing marketing
information, understanding buyer behavior, market segmentation, targeting, and positioning,
product decision, pricing decision, promotion decision, distribution decision, and marketing practice
in Nepal.
Learning Outcomes
On the completion of this course, students will be able to:
 learn the basic concepts of marketing and understand the marketing strategy and effect of
marketing environment in business;
 create value for customer and built a relationship with them to win customer trust and
confidence;
 demonstrate the ability to apply market segmentation, targeting and positioning to win in the
competitive market place;
 identify the importance of pricing and learn the distribution system to deliver product to the
customer;
 know about the marketing communication tools and integrated marketing communication

Course Details
Unit 1: Introduction 20 LHs
Meaning and definition of marketing; Understanding the marketplace and customer needs
(customer needs, wants, and demand, market offerings-products, services, experience,
customer value and satisfaction, exchange and relationship); Marketing orientation: the
production concept, the product concept, the selling concept, the marketing concept, and the
societal marketing concept; Managing customer relationship and capturing customer value:
engaging customers and managing customer relationships; customer relationship
management; customer satisfaction; customer relationship level and tools; Customer
engagement and today’s digital and social media; Consumer generated marketing; Capturing
value from customers; Creating customer loyalty and retention; Creating customer loyalty
and retention; The marketing mix and its components.

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Unit 2: Marketing Environment (Analyzing the marketing Environment) 16 LHs
Meaning of marketing environment; Types of marketing environment: the Micro
environment: company, suppliers, marketing intermediaries, competitors; Public and
customers; The macro environment: the demographic environment, the economic
environment, the natural environment, the political and social environment, and the
technological environment.

Unit 3 Managing Marketing Information 12 LHs

Introduction of marketing information; Marketing Information System; Assessing
Information Needs; Developing marketing information: internal data bases, Marketing
intelligence, marketing research, analyzing and using information; Marketing research -
Marketing Research Process and international marketing research; and Marketing
information system in Nepal

Unit 4: Understanding Buyer’s Behaviors 20 LHs

Meaning of Consumer Market and Buying Behavior; Model of Consumer Buying Behavior;
Characteristics affecting consumer behavior; The buying decision process; Meaning of
business market and business buyer behavior; Model of business buyer behavior; Participant
in business buying process; Major influences on business buyers; buying style; Decision
Process of Business Buyer; Engaging Business Buyers with Digital and Social Marketing: e-
procurement and online purchasing; Business to business digital and social media marketing.

Unit 5: Market Segmentation, Targeting, Differentiation and Positioning 18 LHs

Concept of Market Segmentation; Segmenting Consumer Market: geographic segmentation,
demographic segmentation, psychographic segmentation, behavioral segmentation;
Segmenting Business Markets: geographic, demographic, operating characteristics,
purchasing approaches, situational factors, personal characteristics; Segmenting International
Market: geographic location, economic factors, political and legal factors, cultural factors;
Requirements for Effective Segmentation: market targeting, evaluating market segment;
Selecting Target Market Segment: mass or undifferentiated marketing, segmented marketing-
differential marketing, niche or concentrated marketing, micro marketing- local marketing-
individual marketing; Choosing a Targeting Strategy; Differentiation and Positioning; and
Market Segmentation in Nepal.

Unit 6: Product, Service and Brands 18 LHs

Meaning of Products and Services; Level of Product and Services; Product and Service
Classification: consumer products, industrial products; Product and Service Decision:
product quality, features product style and design, branding, packaging, labeling and logos,
product support services, product line decision, product mix decision; Services Marketing:
the nature and characteristics of a service; Marketing Strategies for services firms; Branding
Strategy- Building strong brands: brand equity and brand value, brand positioning;

38
 Developing New Products: new product, the new product development process, and product
life- cycle.

Unit 7: Pricing 10 LHs

Meaning of price; Major pricing strategies: customer value based pricing, good value pricing,
value added pricing; Other pricing strategies: cost based pricing: cost plus pricing, breakeven
analysis pricing and target profit pricing, competition based pricing; and Internal and external
considerations affecting price decisions.

Unit 8: Marketing Channels 18 LHs

The nature and importance of marketing; Channel design decisions; Retailing and
wholesaling; Retailing trends and development wholesaling; Types of wholesalers; Channel
management decisions: selecting channel member, managing and motivating channel
members, evaluating channel members; Marketing logistics and supply chain management:
nature and importance of marketing logistics; Major logistics functions: transportation,
warehousing, order processing, inventory management, customer service; and Distribution in
Nepal.

Unit 9: Promotion Decision 18 LHs

Concept and objectives of promotion; Marketing communication process and system
communication mix; Advertising: concepts and objectives, Sales promotion: concepts,
objectives, tools and techniques; Personal selling: concepts and relevant of personal selling;
Publicity: concepts and objectives; Public relations: concepts and objectives; Online and
social media; Events and experience; The need for integrated marketing communications;
Selecting marketing communication mix or promotion mix; and Communication in Nepal.
Suggested Readings

Kotler, P., Armstrong, G., Agnihotri, P. (2018), Principles of marketing, India, 17th Edition,
Pearson.

Evans and Burma, Marketing, India, Mcmilliam Publishing Company.

Stanton, Etzel and Walker, Fundamentals of marketing, India, Mc Graw Hill.

39
 FIN 215: Fundamentals of Financial Management

Full Marks: 100 Lecture Hours: 150

Pass Marks: 35

Course Objective

This course Fundamentals of Financial Management aims to lay the foundation for understandings
fundamental concepts and principles of financial management. This course has been structured as a
compulsory course in finance. This course equips the students with fundamental tools and techniques
of financial management to prepare them to resolve complex financial issues concerning corporate
firms.
Course Description

This course is a core course in finance and includes the basic area of financial management
functions. This course consists of the introduction to financial management, understanding, and
analysis of financial statements, time value of money, fundamentals of risk and return theory, bond
valuation, stock valuation, cost of capital, capital structure and leverage, working capital
management, and distributions to shareholders.
Course Detail

Unit 1: Introduction to Financial Management LH 7

Nature of financial management; Finance within an organization; Functions of financial
management; The financial goal: creating value for investors; Balancing shareholder interest
and the interests of society.
Unit 2: Financial Statement Analysis LH 15
Financial statements: Balance sheet, profit or loss statement, cash flow statement, statement
of change in shareholders’ equity; Framework for analysis; Nature and need of financial ratio
analysis; Types of financial ratios: liquidity ratios, asset management ratios, debt
management ratios, profitability ratios, market value ratios; DuPont system of financial ratio
analysis; Ratios in different industries; Uses and limitations of financial ratios; Common size
and index analysis.
Chapter 3: Time Value of Money LH 20
Concept time value of money; Cash flow time line; Future values and present values of a
single cash flow; Finding the interest rate and the number of years; Future value and present
value of an ordinary annuity and annuity due; Finding annuity payments, periods and interest
rates; Present value of perpetuities; Present value and future value of uneven cash flows;
Semiannual and other compounding periods; Preparation of loan amortization schedule;
Application of the concept of time value of money.

40
Unit 4: Fundamentals of Risk and Return LH 18
Defining risk and return, expected rates of return, historical rates of return, standard
deviation, coefficient of variation; Risk aversion and required returns; Return and risk in a
portfolio context: The role of covariance and correlation; The capital asset pricing model
(CAPM): the beta coefficient, the security market line (SML): The relationship between risk
and rates of return.

Unit 5: Financial Assets Valuation LH 20

Concept of financial assets; Key characteristics of bonds, common stocks and preferred
stocks; Basic financial asset valuation models; Valuation of bonds: perpetual bonds, zero
coupon bonds, coupon bonds with a finite maturity, bond valuation with semiannual interest;
Discount bond and premium bond; Bond yields: current yield, capital gain yield, holding
period return, yield to maturity, yield to call; Dividend discount model for stock valuation:
zero-growth model, normal growth model, super-normal growth model, single period
valuation, multi-period valuation; Valuation of preferred stock.

Unit 6: Cost of Capital LH 10

Concept of cost of capital; Applications of cost of capital in financial decision making,
Component cost of capital: cost of debt, cost of preferred stock, the cost of retained earnings,
the cost of new common stocks; Weighted average cost of capital (WACC); Factors affecting
the WACC.
Unit 7: Capital Structure and Leverage LH 10
Concept of capital structure; Business risk and operating leverage; Financial risk and
financial leverage; Total leverage; Break-even analysis: Operating break-even, cash break-
even, financial break-even analysis.
Unit 8: Basics of Capital Budgeting LH 20
Characteristic of capital budgeting decision; Capital budgeting decision process; Types of
capital budgeting projects; Capital budgeting decision techniques: payback period,
discounted payback period, net present value, profitability index, internal rate of return,
modified internal rate of return; merits and limitations of each capital budgeting decision
technique.
Unit 9: Working Capital Management LH 15
Concepts of working capital; Types of working capital: Seasonal and permanent working
capital, Factors affecting the size of working capital; Significance of working capital
management; The cash conversion cycle; Significance of inventory management; Basic
inventory costs; The economic order quantity model; Reorder point and safety stock;
Quantity discount; Significance cash management, Cash budget; Purpose of receivables
management; Elements of credit policy.

41
Unit 10: Distributions to Shareholders LH 15
Concept and types of dividends; Factors affecting dividend policy; Dividend payment
procedures; Dividend policy in practice: Stability in dividends and residual dividend policy;
Stock dividends, Stock splits, Reverse stock splits; Stock repurchases; Dividend payment
practices in Nepal.
Text Book

Brigham, E. F. & Houston, J. F. Fundamentals of financial management. Delhi: Cengage Learning.

References

Gitman, L. J. Principles of managerial finance. Delhi: Pearson Education.

Van Horne, J. C., Wachowicz, J. R. & Bhaduri, S. N. Fundamentals of financial management. New
Delhi: Prentice-Hall India Ltd.

42
 MGT 223: Organizational Behavior & Human Resource Management

Full Marks: 100

Pass Marks: 35
Lecture Hours: 150

Course objectives
The objectives of this course are to introduce the basic concepts of Human Resource Management
and Organizational Behavior. It also aims to enhance the knowledge and approaches of Human
Resource Management and develop students' skills to handle tactfully emerging human resources
challenges and issues and to provide students with an in-depth understanding of fundamental
theories of organizational behavior.
Learning Outcomes
Upon successful completion of this course, the students will be able to;
 Develop basic understanding of organizational behavior
 Apply different dimensions of organizational behavior in organizational system and
procedures
 Understand the importance and basic concepts of human resource management
 Know the functions of human resource management and their importance for organizational
effectiveness
Course Description
This course contains Introduction to Human Resource Management, Human Resource Planning, Job
Design and Analysis, Recruitment, Selection and Socialization, Training and Development,
Motivation, Performance Appraisal and Reward Management, Compensation Management,
Employees Discipline, Labor Relations, and Grievances and Dispute Settlement in Part I. In Part II,
the course contains Introduction, Understanding Individual Behavior, Perception, Individual
Decision Making and Learning in Organizations, Personality and Positive Organizational Behavior,
Motivation, Job Satisfaction and Stress Management, Groups and Teams in Organizations,
Leadership, Communication, Conflict and Organizational Change.
Course Details
Part I: Organizational Behavior
Unit 1: Introduction 14 LHs
Concept of organizational behavior; Levels of OB analysis; Organizational behavior system; Basic
assumptions of organizational behavior; Contributing disciplines to the field of organizational
behavior; Individual behavior as an input-output system; Mental process: beliefs, attitudes, values,
needs, motives and behavior; Emotions and Cognitive dissonance; New challenges for manager in
OB.
Unit 2: Perception and Learning 12 LHS
Concept of perception; Perceptual process; Factors affecting perception; Attribution theory;
Attribution errors; Perception and individual decision making; Concept and principles of learning;
Learning theories: classical theory, operant theory, cognitive learning and social learning; Behavior
modification.

Unit 3: Personality 12 LHs

Concept and types of personality; Personality traits and characteristics; Determinants of personality;
Emotions and personality; Major personality attributes influencing organizational behavior;

43
Unit 4: Job Satisfaction 8 LHs
Concept and importance of job satisfaction; Measuring job satisfaction; Effects of job satisfaction on
employees’ performance.

Unit 5: Groups and Teams in Organizations 10 LHs

Concept of group and group dynamics; Stages of Group formation; Types of groups; Nature and
significance of informal groups; Teams: concept, nature and types, differences between group and
team; Team performance factors; Issues in managing work teams.

Unit 6: Organizational Conflict and Stress 10 LHs

Conflict: concept, nature, and types; Sources of conflict; Approaches to conflict management;
Resolving conflict through negotiation; Functional and dysfunctional conflicts; Organizational
stress: concept, causes and managing stress.

Unit 7: Organizational Change and Development 9 LHs

Concept and forces of change; Resistance to change; Approaches to managing organizational
change: Lewin’s three steps model; Organizational development (OD): concept and features of OD
and OD interventions.
Part II: Human Resource Management

Unit 8: Introduction 15 LHs

Human Resource Management: concept, characteristics, objectives and functions; Human resource
management system; Human resource outcomes: quality of work life, productivity and readiness to
change; Challenges of human resource management.
Human Resource Planning: concept, characteristics, process and importance.

Unit 9: Job Design and Analysis 12 LHs

Meanings of job, task, position and occupation; Concept, benefits and methods of job design;
Concept and purposes of job analysis; Sources of job analysis information; Job description, job
specification and job evaluation: concept and contents.

Unit 10: Talent Acquisition and Development 18 LHs

Talent, Talent management and Talent development: concept and importance; Meaning, sources and
methods of recruitment; Concept of selection; Difference between selection and recruitment;
Selection process, selection tests, interviews and their types; Concept and process of socialization;
Concept and process of learning; Human resource development: concept and importance; Concept,
objectives and benefits of training; Determining training needs; Training methods: on - the - job and
off - the – job training ; Concept and techniques of management development; Evaluating training
effectiveness

Unit 11: Performance Appraisal and Reward Management 8 LHs

Concept and uses of performance appraisal; Methods of performance appraisal: graphic rating scale,
alternative ranking, paired comparison, forced distribution, critical incident, essay and checklist
methods; Concept of reward management; Types and qualities of effective rewards; Performance
appraisal practices in Nepalese organizations.

Unit 12: Employee Maintenance and Emerging Issues in HRM 7 LHs

Employee health and safety, employee welfare, social security; Grievance handling and redressal;
General guidelines in administrating employee’s discipline; Emerging issues and challenges of

44
HRM: employee empowerment, downsizing, work- life balance, use of technology in HRM
functions, e-HRM, green-HRM, outsourcing HRM, ethics in HRM (surveillance vs. privacy); HRM
in Naples organization.

Suggested Readings
Aswathappa K., Human Resource and Personnel Management: Text and Cases, New Delhi:
Tata McGraw Hill.
Arnold, H.J. &Fieldman, D.C. Organizational Behavior. New York: McGraw Hill Book Company.
Decenzo, D.A. and Robbins, S.P., Human Resource Management, New Delhi: Prentice Hall of
India Pvt. Ltd.
Dessler, G., A Framework of Human Resource Management, New Delhi: Pearson Education.
Dwivedi,R.S.,Human Relations and Organizational Behavior:A Global Perspective. New Delhi:
Macmillan India Limited.
Newstorm, J.W., Organizational Behavior: Human Behavior at Work, New Delhi: Tata
McGraw_Hill Publishing company.
Robbins, S.P., Organizational Behavior, New Delhi: Pearson.
Chalise,M &Gautam,P.,Organizational Behavior & Human Resource Management, KEC
Publication, Kathmandu, Nepal

45
 MGT 217: Business Environment & Strategy

Full Marks: 100

Pass Marks: 35
Lecture Hours: 150

Course Objective
This course aims to provide students with a sound understanding of environmental forces affecting
business operations and to improve their ability to analyze the effects of such environmental forces
on business. This course intends to provide students with a review of major environmental concept
and a basic understanding of how these forces affects the operations of business. This course also
provides the students to the fundamental concepts of strategic management and practices.
Learning Outcomes
Upon successful completion of this course, the students will be able to;
 Understand the environmental components and their effect on business.
 Know the international environment affecting Nepalese business
 Understand the concept and importance of strategic management for the success of a
business organization
 Analyze the internal and external environmental components to develop strategic alternatives
 Evaluate, select and implement proper strategy for business competitiveness
 Ensure the strategy is in right direction towards achievement of business goals.

Course Description
This course contains two parts: Business environment and strategic management. In business
environment students will be familiarized with the topics: Introduction to Business Environment,
Political Environment, Environment Regulations/Legal Environment, Economic Environment,
Socio-cultural Environment, Technological Environment, Asian and Global Environment. In
strategic management students will be familiarized with the topics: Strategic Management,
Establishing Company Direction, Internal Analysis, Evaluation Company Resources and
Competitive Capabilities, Strategic Options, Strategy Formulation and Strategic Choice, Strategy
Implementation, Strategic Control and Evaluation.

Course Details
Part I: Business Environment
Unit 1: Introduction to Business Environment 9 LHs
Business environment: concept, characteristics and components; External and internal environmental
variables; Environmental analysis process (scanning, monitoring, forecasting and assessment);
Environmental scanning: concept and types (concentrated and comprehensive scanning); Importance
of the study of business environment.

Unit 2: Political Environment 12 LHs

Concept and components of political environment; Business-government relationship; Political risk:
concept, impact and management; Nepalese political environment: issues and problems.

Unit 3: Environment Regulations/Legal Environment 8 LHs

Business law: concept and basic features; Business related legislations in Nepal: Company act,
foreign investment and technology transfer act, Industrial enterprise act, Labor act, Patent, design
and trademark act, Copyright act and Foreign employment act.

46
Unit 4: Economic Environment 20 LHs
Dimensions of an economy; Structure of Nepalese economy; Privatization: concept and methods of
privatization (share sales, management contract, lease assets and business sales, others);
Liberalization: meaning and requirement; Economic policies: monetary policy, industrial policy,
trade policy, Tourism policy, Employment policy; Effects of liberalization on Nepalese business.

Unit 5: Socio-Cultural Environment 6 LHs

An introduction to socio-cultural environment; Socio-cultural components: attitude and belief,
religion, language, education, family structure and social organizations.

Unit 6: Technological Environment 10 LHs

Introduction to technology; Components of technology environment; Effect of technology on
business; Factors affecting choice of technology; Information technology policy in Nepal, Status of
technology in Nepal

Unit 7: Asian and Global Environment 10 LHs

Globalization: concept and forms; WTO: Introduction and principles; Nepal's membership to WTO:
opportunities and threats for the Nepalese business. Regional economic integration: concept and
forms; Nepal’s membership to SAFTA and BIMSTEC: opportunities and threats.

Part II: Strategic

Unit 8: Introduction 12 LHs
Concept and characteristics of strategy; Level of strategy; Strategic decisions: concept and
characteristics; Strategic management: concept, process, benefits; Phases of strategic management;
Strategic planning: concept, components and steps; Challenges to strategic management: innovation,
globalization and sustainability; Role of chief executive in strategic management

Unit 9: External Environment and Industry Analysis 8 LHs

Aspects of environmental analysis; Strategic importance of external environment; Environmental
analysis: industry analysis (Porter’s approach), PESTEL analysis, Scenario building; External Factor
Evaluation Matrix (EFEM); Competitive intelligence and Strategic audit.

Unit 10: Organizational Appraisal 10 LHs

Concept of organizational appraisal; Concept and types of company resources (available resources,
threshold resources, unique resources); Core Competencies; Distinctive Competencies; Strategic
advantage; Strategic Advantage Profile (SAP); Value chain analysis: concept and importance.
Unit 11: Strategy Formulation 24 LHs
Strategy formulation: concept and importance; Mission, objectives, strategies and policies;
Generating strategic options: corporate strategy, business strategy and functional strategy; Using
SWOT analysis for strategies ; Strategic alternatives at corporate level (stability strategy, growth
strategy, retrenchment strategy, combination strategy); Strategic alternatives at business level
(Porter’s competitive strategy, strategic clock-oriented market based generic strategies); Strategies at
functional level ( marketing strategy, financial strategy, operation strategy, human resource
management strategy and research and development strategy); Direction for strategy development
(Consolidation, market penetration, product development, market development, diversification);
Methods of strategy development (Internal development method, acquisition and merger method,
joint development and strategic alliances method) ; Portfolio analysis for strategic choice (BCG
matrix, GE Business Screen, Hofer’s matrix)

Unit 12: Strategy Implementation 10 LHs

47
Concept and process of strategy implementation, Requirements for strategy implementation:
structure, resources and management system; Strategic change: Concept, levels and management

Unit 13: Strategic Evaluation and Control 11 LHs

Concept of control in strategic management, Strategic information system, Types of control,
Meaning and characteristics of strategy evaluation, Measures of corporate performance, problems in
measuring performance, Characteristics of an effective evaluation and control; Guidelines for proper
evaluation and control.

Suggested Readings
Aswasthappa, K., Business Environment for Strategic Management.Mumbai: Himalaya Publishing
House.
Pearce, J. A. and Robinson, R.B., Strategic Management, New Delhi: AITBS.
Thomson, A. A. and Stickland III: Strategic Management, New Delhi: Tata McGraw-Hill.
Wheelen, T.L and Hunger, J.D: Strategic Management and Business Policy, New Delhi: Pearson
Education
Pant, P. R., Business Environment in Nepal, Kathmandu: Buddha Publication.
Bhandari, D.R., Business Environment and Strategic Management, Asmita Publication,
Kathmandu
.

48
 MGT 224: Taxation in Nepal
Full Marks: 100 Lecture Hours: 150
Pass Marks: 35

Course Objectives
The objective of this course is to provide students with the knowledge of general principles and
practices of taxation in Nepal and develop in them the basic skills required to solve practical
problems regarding income tax, vat and enable for preparing tax returns.

Course Description
This course includes conceptual foundation, tax accounting, classification of taxpayers, taxation of
income, heads and sources of income, income from employment, capital gain tax, income from
investment, valuation of stocks and depreciation, business loss, income from business, total
assessable income, tax liability and tax payable, value added tax, rights and duties, tax collection and
realization, penal provision, review and appeal, tax auditing.

Course Details
Unit 1: Conceptual Foundation 10 LHs
Meaning and objectives of tax; Types of tax: Direct tax and Indirect tax; Canons of taxation;
Historical background of income taxation in Nepal; Tax laws: Constitution, Tax Act, Tax
rule, Finance Act, Legal precedents established by court; Features of Income Tax Act, 2058;
Meaning of basic terms used in income taxation.

Unit 2: Tax Accounting 3 LHs

Registration for Permanent Account Number (PAN); Concepts of tax accounting;

Accounting methods for different tax payers; Cash basis of accounting and Accrual basis of
accounting; Changing accounting methods.

Unit : 3 Classification of Assesses/Tax payers 6 LHs

Natural person and entities; Single, couple and family; Resident and non-resident; Special
provisions for natural person; Entities and retirement savings.

Unit 4: Taxation of Income 6 LHs

Concepts of: Presumptive taxation, Turnover taxation, Personal (non-corporate) taxation,

Corporate taxation; Provisions of presumptive taxation and Provisions of turnover taxation in
Nepal.

49
Unit 5: Heads and Sources of Income 2 LHs

Sources: Employment, Business, Investment, Casual gain.

Unit 6: Income from Employment 16 LHs

Concept of employment, difference between employment and profession; Features of

employment income, Incomes chargeable under income from employment, Non-chargeable
employment incomes; Allowable reductions, exemptions and applicable tax rates; Tax
liability and tax payable.

Unit 7: Capital Gain Tax 4 LHs

Concept of capital gain and capital gain tax; Computation of capital gain on disposal of
depreciable assets, business assets, non-business chargeable assets; Provisions for adjustment
and carry-forward of capital loss, Applicable tax rates for individual and entities.

Unit 8: Income from Investment 10 LHs

Concept of investment income; Difference between investment and business; Chargeable

and non-chargeable incomes from investment; Deductible expenses and non-deductible
expenses; Assessable income from investment; Set-off and carry-forward of investment
losses; Investment income from domestic sources and foreign sources; Tax liability and tax
payable.

Unit 9: Valuation of Stocks, and Depreciation 10 LHs

Methods of stock valuation, Adjustments of over and under valuation of stocks; Calculation
of cost of trading stocks; Assets pooling system of depreciation, Calculation of depreciation
basis and allowable depreciation; Provisions for unabsorbed pollution control cost, research
and development cost and repairs expenses; Provisions of additional depreciation allowance.

Unit 10: Business Loss 6 LHs

Concept of assessed business loss, Set-off of business loss, Carry forward of business loss.

Unit 11: Income from Business 20 LHs

Concept of business income; Concepts of capital and revenue incomes and expenses;
Chargeable and non-chargeable incomes from business; Deductible and non-deductible
expenses; Assessable income from business; Tax liability and tax payable.

Unit 12: Total Assessable Income 6 LHs

Concepts of total assessable income and taxable income; Allowable reductions: retirement
contribution, insurance premium, remote area allowance; Reductions of additional exemption
limit for the persons having pension income and disabled individual, Reduction of foreign
allowance, Reduction of donations

50
Unit 13: Tax Liability and Tax Payable 6 LHs

Statutory exemption limit; Progressive slab rates and flat rates; Tax concessions;
Adjustments of advance tax; Tax deduction at source (TDS) and Tax credits; Tax payable
and tax clearance.

Unit 14: Value Added Tax (VAT) 16 LHs

Concept, principles and types of Value Added Tax (VAT); Characteristics of Vat: Burden
shifting, multi- stage imposition, zero-rating, deletion of cascading effect, substitute of sales
tax; Evolution of VAT, Origin and evolution of VAT in Nepal; Methods of Vat: Addition,
Subtraction, Tax credit; Accounting of VAT: purchase book, sales book and VAT book;
Collection, realization and refund of VAT; Penalties, actions and appeal

Unit 15: Rights and Duties 5 LHs

Rights of tax Authorities: Government of Nepal, Inland Revenue Department (IRD),

Director General (DG), Chief Tax Officer and other officers; Rights and duties of taxpayers.

Unit 16: Tax Collection and Realization 6 LHs

Concept of tax collection, realization, remission and refund; Methods of tax collection:
installment, withholding (tax deduction at source, TDS), self-assessment, presumptive tax;
Methods of tax realization, Provisions of refund and remission.

Unit 17: Penal Provision, Review and Appeal 8 LHs

Concept and differences of penalty and offence; Provisions relating to fees and interest,
provisions relating to offences; Concept of administrative review and appeal; Administrative
decisions eligible for review, procedure of filing objections for administrative review;
Provisions relating to appeal to Revenue Tribunal.

Unit 18. Tax Auditing 10 LHs

Relationship between Taxation and Auditing; Concept, types and major functions of
auditing; Internal control: Internal auditing and internal check; Concept, scope and
objectives of tax auditing; Provisions of tax auditing in Income Tax Act, 2058 and Value
Added Tax, Act,2052.

Suggested Readings:
GON, Budget speech and Finance Act (Recent)
GON, Income Tax Act, 2058 (With amendments)
GON, Income Tax Rules, 2059 (With amendments)
GON, Value Added Tax Act, 2052 (With amendments)
GON, Value Added Tax Rules, 2053 (With amendments)
Dhakal, K. D. et.al. (updated edition). Fundamentals of Taxation and Auditing, Ashmita Books
Publishers and Distributors Pvt. Ltd., Kathmandu.
Kandel, P. R. & Lamsal R. (updated edition). Tax Laws and Tax Planning in Nepal, Benchmark

51
 Education Support Pvt. Ltd., Kathmandu.
K.C., J.B. (updated edition), Tax Laws and Tax Planning, Theory and Practice, Khanal Books
and Stationery, Kathmandu.
Lekhi, R. K. (2018). Public Finance, Kalyani Publishers, New Delhi.
Regmi, G.N. et.al. (updated edition). Fundamentals of Taxation and Auditing, KEC Books
Publication and Distribution Pvt. Ltd., Kathmandu.
Sapkota, P. P. & Pandey, D.L. (updated edition). Fundamentals of Taxation and Auditing,
Pinnacle Publication Pvt. Ltd. Kathmandu.

52
 MGT 225: Entrepreneurship
Full Marks: 100
Pass Marks: 35
Lecture Hours: 150
Course Objectives:
This course aims to impart fundamental knowledge of entrepreneurships, theories of
entrepreneurships, and its different dimensions so that students inspire to involve in entrepreneurship
activities as well as gain skills to manage small business and new venture effectively.

Learning Outcomes:

Upon successful completion of this course, students will be able to:

 Understand the concept of different theories of entrepreneurship.

 Know the growth of entrepreneurship practices in Nepal
 Develop the necessary entrepreneurial competencies and competencies support institutions in
Nepal.
 Have ability to prepare business plan analyzing all elements of business plan and able to
evaluate business plan for new venture creation.
 Have understanding about entrepreneurial family business and ethics.
 Understand the current paradigm shift of entrepreneurship in different areas with specific
focus.
 Predict the problems, challenges and prospects of entrepreneurship in Nepal.

Course Description:

This course contains the fundamental concept of entrepreneurship, growth of entrepreneurship,

entrepreneurial opportunities, entrepreneurship competencies development, business plan concept
and elements of business, business plan evaluation, family business and ethics, new issues of
entrepreneurship, success and failure stories of selected entrepreneurs and institutional support to
entrepreneurship promotion in Nepal.

Course Details:

Unit 1: Introduction 20 LHs

Concepts of entrepreneurship, Evolution of the entrepreneurship concept, Major functions, and types
of entrepreneurship. Significance of entrepreneurship for individual, community and national
development. Characteristics of entrepreneurs. Entrepreneurship motivation, Entrepreneurial
feelings, Entrepreneurial process. Differences between entrepreneur and manager. Distinctive
relationship among entrepreneur, entrepreneurship and owner manager, Dimensions of
entrepreneurship: intrapreneurship, technopreneurship, netpreneurship, ecopreneurship, social
entrepreneurship.

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Unit 2: Growth of Entrepreneurship 20 LHs

Historical perspectives and growth of entrepreneurship in Nepal (a brief review). Factors affecting
entrepreneurial growth: Economic factors, social factors, political factors, legal factors, geographical
factors, technological factors, global factors, cultural factors and psychological factors with
reference to Nepal; Evaluating opportunities for new venture: The opportunities, the government, the
suppliers, the enterprise team, the customers, the competition, the timing, the resources; Ingredients
for a successful new business; Identifying and recognizing the entrepreneurial opportunities in Nepal

Unit3: Entrepreneurship Competencies Development (ECD) 20 LHs

Concept of entrepreneurship competencies; Distinct traits of entrepreneur; Competencies mapping;

Characteristic and competencies of entrepreneurial leadership; Entrepreneurship competencies
development programs; Phases of entrepreneurial development program; Methods of developing
entrepreneurial competency; Institutional supports to entrepreneurship competencies development in
Nepal: Financial supports, product/service supports, Logistics supports, Government and non-
governmental supports, especial supports programs. Roles of vocational institution and universities
in developing entrepreneurship intentions and competencies in Nepal.

Unit 4: Development of Business Plan and Entrepreneurial Venture Creation 25 LHs

Concept of business idea generation; The planning process; Sources and methods of business idea
generation; Selection of best ideas. Business plan development: Concept and contents of a sound
business plan; Basic elements of business plan: Financial plan, Marketing plan, Human resource
plan, Management plan, Production operational plan and Research and development plan.
Importance of business plan for new business setup. Techniques of presenting business plan.
Illustration of business plan preparation. Business plan evaluation and improvement; Concept and
template of Business Model Canvas and Lean Canvas Model. Concept of value proposition and
value co-creation. Entrepreneurial venture: creation of venture, venture project formulation,
implementation and evaluation of venture; Choosing a form of business organization: sole
proprietorship, partnership, and company.

Unit 5: Entrepreneurial Family Business and Ethics 20 LHs

Concept of family business, role of family business, stages of family business development. Family
business culture, Critical factors for starting family business, Conflict in family business. Roles and
responsibilities of family members in family business, Three circle model of family business,
Succession planning in family business, Problems and prospects of family business in Nepal.
Business ethics: concept and characteristics of ethical entrepreneurship, ethical issues in Nepalese
entrepreneurship; Role of entrepreneurs and entrepreneurial managers in promoting and sustaining
business ethics.

Unit 6: Emerging Entrepreneurship in Nepal 20 LHs

Micro, small and medium size enterprise: concept and characteristics, importance and contribution to
employment generation and resource mobilization in the economic development of Nepal.
Indigenous knowledge and major ethnic entrepreneurship- its problems and prospects; The

54
emerging entrepreneurship in Nepal: Rural entrepreneurship- problems and prospects, Women
entrepreneurship - problems and prospects, Tourism entrepreneurship - problems and prospects,
Agri-entrepreneurship - problems and prospects, Transport entrepreneurship- problems and
prospects, Green entrepreneurship- problems and prospects and e-entrepreneurship- problems and
prospects in Nepal; Social innovation and entrepreneurship: concept, significance to social value
creation and social change, status of social entrepreneurship in Nepal. Success and failure stories of
selected Nepalese entrepreneurship.

Unit 7: Institutional Support to Entrepreneurship Development 25 LHs

Institutional support: concept and need; Financial support agencies: Rural Development Banks,
micro finance institutions, commercial banks, micro enterprise development projects and programs;
Logistic support agencies: government, specialized and consultancy agencies, Industrial estates;
Role of Government in promoting entrepreneurship incentives, subsides and grants, Export oriented
units: Fiscal and Tax concession; Role of National Banking Institute, Insurance Institute,
Cooperative Training center in the entrepreneurship development in Nepal. Introduction to
Entrepreneurship Development Projects in Nepal with reference to IED, MEDEP and ELAM.

Suggested Readings

Barringer, B.R. and Ireland, R. D. Entrepreneurship: Successfully Launching New Business.

Pearson, Delhi, India.

Charantimath, P.M. Entrepreneurship Development and Small Business Enterprises. Pearson, Delhi,
India

Hisrich, R. D.; Peter, M. P.; Shepherd, D. A. Entrepreneurship. Tata McGraw Hill, New Delhi.

Khanka, S. S. Entrepreneurship Development. S. Chand & Co. New Delhi

Shapter, M.; Volery, T.; Weber, P.; & Lewis, K. Entrepreneurship and Small Business. Wiley India.

William, B. and Andrew, Z. Entrepreneurship. Wiley.

55
 MGT 221: Business Research Methods
Full Marks: 50
Pass Marks: 17.5
Lecture Hours: 75
Course Objective

The primary aim of this course is to introduce students to the principle of research methods used
most frequently by business students. Basic knowledge of these methodological approaches is
absolutely critical to the comprehension of academic understanding and comprehensive and critical
writing which is an essence of business students. Therefore, the basic objective of this course is to
provide knowledge and understanding of basic principles of business research methods.

Course Description

The course comprises introduction to research, different types of research, literature searching and
frame working, research design issues, measurement, scaling, sampling, data collection and analysis,
research proposal and report writing . This encompasses the overall understanding and application of
appropriate research techniques, research statistics and presentation skills.

Learning Outcomes:

On the completion of this course, students will be able to:

 become acquainted with the scientific methodology in business domain.

 write a literature review that synthesizes and evaluates literature in a specific topic area to
justify a research questions.
 apply appropriate research design and methods to address a specific research question and
acknowledge the ethical implications of the research.
 understand how research activities can be used to address business decisions.
 develop, present and defend a research proposal and prepare a research report.

Course Details
Unit 1: Introduction 20 LHs
Meaning of research; Scientific research : features; Types of research: applied and basic; The
Scientific research process; Approaches to research: Paradigm shifts – Positivist Versus
interpretivist philosophies; Management research : concept, nature and value in business
decision making; Applying scientific thinking to management problems; and Ethical
concerns in research.

Qualitative research: concept, features, assumptions; Common practices in qualitative

research; Methods of collecting and analyzing qualitative data; Role of computers in
different phases of research; Qualitative data analysis: content, thematic and narrative.

Methods of qualitative research: case study, ethnography, grounded theory and

phenomenological study (A short introduction only); Building trustworthiness and credibility
in qualitative research; and Strength of qualitative research.

56
Unit 2: Literature Searching and Theoretical Framework 10 LHs

Literature searching : concept, purposes and kinds; Writing a literature survey; Literature
search through the internet; Relation of literature to research; Theoretical framework; Theory
and research: research approaches – deductive and inductive; Research problem:
identification of research problem in business, research questions; and Concept of
hypothesis formulation.

Unit 3: Research Design 5 LHs

Concept; Features; Types: descriptive, developmental, case studies, causal-comparative,

experimental, cross-sectional and longitudinal; Basic principles of research design ; and
Criteria of a good research design.

Unit 4: Measurement, Scaling and Sampling 12 LHs

Variables and their types; Nature of measurement; Types of scales of measurement: nominal,
ordinal, interval and ratio scales; Scale construction for attitude measurement; Scales
commonly used in business research; Validity and reliability of measurement; Sources of
measurement problems; Concept of population, sample and sampling; Concept of sample
size; The sampling process; Types of sampling: probability and non-probability sampling;
and Sampling and non- sampling errors.

Unit 5: Data Collection and Analysis 20 LHs

Types of data: primary and secondary; Importance of secondary data in business research;
Primary data: methods of collecting primary data; Questionnaires: design, components and
principles of questionnaire writing; Pilot testing and questionnaire administration; The
research interviews: face-to- face, telephone interviews and computer assisted interviewing;
Observation: concept and methods: participative and non-participative; Data analysis:
organizing and preparing data, presenting data in tables, graphs and charts; Pre-conditions
and the use of statistical techniques: descriptive (Mean, Median, Mode and Standard
Deviation) and inferential statistics: correlation analysis, statistical significance, basic
forecasting tools, regression (concept of linear and non-linear); Concept and illustration of t-
test : single mean and two means ; Chi-square test : goodness of fit and independence of
attributes; and Statistical testing of hypothesis.

Unit 6: Research Proposal and Report Writing 8 LHs

Topic selection; Research proposal : purpose, types and structure; Writing research reports :
reporting process, contents of the research report and style of writing; Typing and layout of
the research report; Citations and references by using APA format; and Essentials of a good
research report.

57
 Suggested Readings:

1. Cooper, D. R., Schindler, P. S., & Sharma, J. K., Business Research Methods, New Delhi:
Tata Mc Graw Hill.
2. Sekaran, U. & Bougie, R., Research Methods for Business, New Delhi: Wiley India.
3. Zikmund, W.G., Babin, B. J., Carr, J. C., Adhikari, A., & Griffin, M., Business Research
Methods, A South Asian Perspective, New Delhi: Cengage Learning.
4. Bryman, A., & Emma, B., Business Research Methods, New Delhi: Oxford University
Press.
5. Kothari, C.R., Research Methodology Methods and Techniques, New Delhi: New Age
International Publication.
6. Sachdeva,J.K., Business Research Methods, Mumbai: Himalayan publishing house.
7. Chawla, D. & Sondhi, N., Research Methodology, Mumbai: Vikash Publishing house.
8. Adhikari, D. R. & Pandey, D. L., Research Methodology for Management, Kathmandu:
Asmita Books Publishers & Distributors (p) Ltd.
9. Gautam, D.K. & Gautam,P.K.,Research Methodology, Kathmandu: KEC publication and
Distribution (p.) Ltd.

58
 MGT 226: Foundation of Financial Systems
Full Marks: 100
Pass Marks: 35 Lecture Hours 150

Course Objectives

This course aims to equip students with the operational aspects of Nepalese financial system.
This will develop the theoretical understanding and practical insight on financial instruments,
the implication of interest rate and taxes in the supply and demand of funds in the financial
markets, depository and non-depository financial institutions, ancillary financial services,
operation of primary and secondary markets, regulation and regulatory authorities of the
financial system and exchange rate system, foreign reserve and balance of payment.

Course Description

This course focuses on the conceptual and operational aspects of the different components of
Nepalese financial system and covers the operational aspects of Nepalese financial system.
The course covers concept and components of financial systems; financial instruments,
interest rate and taxes, depository and non-depository financial institutions, ancillary
financial services, operation of primary and secondary markets, acts and regulation related to
the operation of the financial system and regulatory authorities, foreign exchange system,
foreign reserve and balance of payments.

Unit 1: Introduction LH 15

Concept of financial system; Components of financial system with reference to Nepalese

financial system; Size of overall Nepalese financial system; Structure of Nepalese financial
sector; Process of funds transfer from surplus units to saving units; Functions and role of
financial intermediaries in the financial systems.

Unit 2: Financial Instruments and Interest Rates LH 15

Concept of financial instruments; Functions and types of financial instruments: money

market and capital market instruments, derivative securities, mutual fund units; Financial
instruments available in Nepalese financial system; Loanable funds theory of interest: Supply
and demand of loanable funds, equilibrium interest rate, factors affecting the interest rate;
Components of interest rate; Terms structure of interest rate; Determination of interest rate
in Nepalese financial markets; Base interest rate, interest rate spread, interest rate corridor;
Implication of inflation and tax on interest rate

Unit 3: Depository Financial Institutions LH 20

Concept of depository institutions; Fundamental functions of depository institutions;

Classification of depository institutions in Nepal; Major products of depository institutions;
Financial statements and major indicators of performance of depository institutions;
Supervision by Nepal Rastra Bank: Onsite and offsite supervision and supervisory tools;

59
 Saving and credit cooperatives in Nepal: role, structure and size and monitoring and
regulation.

Unit 4: Non-Depository Financial Institutions LH 20

Concept and types of non-depository institutions; Risk management industry: types of risk
management industry, fundamentals of risk management industry, and role of risk
management industry in the mobilization of saving and protection of individual and social
wealth; Mutual fund industry in Nepal: types, size, and structure; Pension funds: Concept,
fundamentals of provision for pension; Types and practices of pension fund in Nepal; Social
welfare funds and other retirement schemes.

Unit 5: Ancillary Financial Services LH 15

Investment banking industry: concept and functions, the structure of investment banking in
Nepal; CDS & Clearing Ltd.: role and functions; Depository participants: concept and
functions; Securities dealer and broker; Credit rating agencies: Concept, functions and credit
rating agencies in Nepal; Deposit and Credit Guarantee Fund: role and functions; Credit
Information Bureau of Nepal: its products and services.

Unit 6: Primary Market Operations LH 15

Concept and role of primary markets; Legal provision regardingthe issue of stocks and
debenture in Nepal; Process of initial public offerings; Further public offering and rights
issue; Application and allotment process of securities in Nepal

Unit 7: Secondary Market Operations LH 15

Concept, functions and role of secondary markets; Buying and selling the securities in the
secondary markets and settlement of the transactions; Stock market Index: NEPSE, float,
sensitive index; Construction and interpretation of NEPSE Index; Market capitalization and
market return.

Unit 8: Financial Regulations and Regulatory Authorities LH 20

Major provisions of relevant Acts: NRB Act, Bank and Financial Institution Act, Foreign
Exchange Act, Bank Offensive Act and Anti-money Laundry Act; Insurance Act, and
Securities Act; Role and power of Nepal Rastra Bank, Insurance Board, Nepal Securities
Board as regulatory authoriti

Unit 9: Exchange Rates, Foreign Reserve and Balance of Payment LH 15

Exchange rate system in Nepal; Concept and components of foreign reserves; Concept of
balance of payments and balance of trade; Structure of balance of payment of Nepal; Funds
flows as foreign direct investment of multinational companies and international financial
institutions in Nepal

60
References
Madura, J. Financial institutions and markets. Delhi: Cengage Learning India Private Limited.
Khan, M.Y. Indian financial system. Delhi: McGraw-Hill.
Pathak, B. V. The Indian financial system: Markets, institutions and services. New Delhi: Pearson
Education India.
Nepal Rastra Bank, Nepal Rastra Bank, Financial Stability Reports.
Nepal Insurance Board, Annual Report
Nepal Rastra Bank Act, 2002.
Securities Act, 2063
Insurance Act, 1992

61
 Acc 250: Accounting for Banking

Course: Concentration Full Marks: 100

LHs: 150 Pass Marks: 35

Course Objectives
The objectives of the course are to provide the students with the basic knowledge required to
handle the accounting functions of banks. On completion of this course the students will be
able to gain the knowledge of total banking accounting practices of the banks. The course
further aims at providing knowledge required to analyze financial statements of banks.

Course Description
This course contains conceptual foundation of different banking activities.It also comprises
banking rules and regulation, accounting for deposit, bills for collection, guarantee, letter of
credit, remittance, credit and treasury management etc. Similarly, it focuses on new banking
technologies, BASEL, anti-money laundering, financial statement and its analysis.

Course Details
Unit 1: Introduction 8 LHs
Concept of bank account, Rules and classifications of accounts;Accounting
assumptions, principles and conventions;Evolution of banking industry, Development
of banking industry in Nepal; Banks: Meaning, nature, objectives, importance and
functions of banks; Types of Banks: Central Bank, Commercial Banks, Development
Banks, Financial Institutions, Micro Finance Institutions and Co-operative Banks;
Opportunities and Challenges of Nepalese Banking Sector; Legal provisions under
Banking and Financial Institutions Act (BAFIA), 2063; Unified directives issued by
Nepal RastraBank; Concept and importance of GAAP, Nepalese Accounting
Standards (NAS), International Accounting Standards (IAS), Nepal Financial
Reporting Standard (NFRS) and International Financial Reporting Standard (IFRS),
Relative aspects of NAS, IAS, NFRS and IFRS

Unit 2: Accounting for Deposit 7 LHs

Account Opening, operations and closure of bank account; Concept and types of
deposit: current, saving, time or fixed account, hybrid or flexi deposit, calls deposit
account, margin account, foreign currency account, special foreign currency account;
Process of opening accounts; Inter bank borrowing from other banks and short term
borrowing from NRB; Substitutes for vouchers: pay in slip and its meaning; Cheques:
meaning and types of cheques; Electronic cheque clearing (ECC); Service charges-
concepts and accounting procedures

Unit 3: Accounting for Bills for Collection 7LHs

Bills for collection: concept, types and necessity for banking business; Outward bills for
collection (OBC): concept and types; Service charges and accounting records for OBC;
Endorsement: meaning and accounting procedures; Procedures used in bills for collection;
62
 Inward bills for collection (IBC): concept and importance, Document required for IBC;
Service charges and accounting records for inward bills for collection; Debit note and
required reversal entry; Outgoing debit advice for uncollected or dishonored bills

Unit 4: Accounting for Guarantee and Margin Deposit 7 LHs

Guarantee: Concept, needs and types of guarantee: Bid bond, Performance bond, Advance
payment guarantee, Counter guarantee, Financial guarantee, Standby letter of credit, Bonded
warehouse guarantee; Banker’s liabilities and customer’s liabilities toward guarantee
issuance; Accounting treatment of guarantee issue (voucher and ledger); Margin deposit:
concept, process and evaluation; Service charges and accounting treatment

Unit 5: Letter of Credit (LC) 7 LHs

Letter of credit: concept, needs and types of LC; Parties involved in LC; Documents in LC;
Trade finance; International Chambers of Commerce and Universal Custom and Practices
(UCP) for documenting credit; NRB regulations for LC; Accounting treatment

Unit 6: Accounting for Remittance 7LHs

Remittance: concept, importance and types; Services rendered by remittance; Parties
involved in remittance; Demand draft, accounting for advice received and un-received
demand draft; Account payee draft; Books of original entry for advice received and un-
received; Telegraphic transfer and mail transfer; Branch reconciliation

Unit 7: Accounting for Credit and Advances 9 LHs

Credit: Concepts,importance and types: Cash credit, Overdraft, Secured loan, Micro
credit,and other loans: auto, home, credit card, education and social; Security: types and
procedures/valuation of securities; Evaluation of feasibility study; Industry risk analysis and
Business risk analysis(using six C’s of credit); Accounting treatment of different types of
credit; Loan processing charges, interest and commission and their accounting treatment;
Collection and recovery of loans method applied and accounting treatment; Credit risk
management; Credit creation

63
Unit 8:Accounting for Cash Transactions 7 LHs
Receiving cashier’s counter cash book; Paying cashier’s counter cash book; General cash
books, day books and denomination books; Bank reconciliation

Unit 9: Accounting for Treasury Management 7 LHs

Concept of treasury management; Dimensions of treasury management; Market risk
management; Liquidity management; Investment portfolio management; Foreign exchange
risk management; Assets liability management; Maintenance of agency ledger (NOSTRO
and VOSTRO)

Unit 10: Banking Technology Products 9 LHs

Banking software; Card operation; Tele banking; Mobile banking; Internet banking and e
banking; SWIFT (society for worldwide interbank financial telecommunication); Branch less
banking

Unit 11: Concept of BASEL Framework: 7LHs

Concept and importance; Principles of capital measurement and capital standard

Unit 12: Anti Money Laundering (AML) 6 LHs

Concept, importance and AML Act; Know your customers (KYC)

Unit 13: Accounting for Decision Making 12 LHs

Capital Budgeting: Project evaluation on the basis of Discounted Pay-back Period, Net
Present Value, Profitability Index and Internal Rate of Return; Cost Volume Profit Analysis
for project evaluation

Unit14: Preparation of Financial Statements 20 LHs

Concept and importance; General ledger: concept, needs and procedures of maintaining
general ledgers, Comparison with commercial accounting, Daily trail balance: concept, needs
and preparation; Transaction list verification and operational procedures; Statement of profit
and loss and other comprehensive income (Income statement); Statement of financial
position/balance sheet; Statement of cash flow statement; Statement of changes in equity;
Disclosures required for Financial Statement

64
Unit 15: Financial Statements Analysis 20 LHs
Concepts and importance; Ratio Analysis: concept, importance and limitations;
Types of ratios:Profitability ratios:Net interest income growth (NII growth), Interest yield,
Net Spread, Operating profit growth; Shareholder ratios:Return on equity, Return on assets,
Earning per share, Price earnings ratio, Market price per share, Dividend payout ratios;
Liquidity ratios:Net liquid assets, Net liquidity ratios, Statutory liquidity ratio (SLR), Cash
reserve ratio (CRR), Gap analysis;
Activity ratios:Cost of fund, Base rate, Cost to income ratio, Credit deposit ratio, Net interest
margin, Non-funded income as a percentage of total operating income, Operating expenses
ratio (interest to total operating expense, office operating expense to total operating expenses
and HR expenses to total operating expenses) Staff efficiency (per employee income, per
employee business i.e. deposit plus loan);
Gearing and Financial ratios:Total borrowing to shareholder fund, Total external liabilities to
total assets, Total assets growth, Net worth growth; Cash Flow ratios:
Interest coverage ratio, Debt coverage ratio; Assets Quality ratios: Non-performing loans to
total loans, Loan loss reserves to gross loan, Earning coverage to loan losses, Increase in loan
loss reserve to gross income; Earning ratios:Net interest margin, Non-funded income
expenses as a percentage of total operating expenses; Capital Adequacy ratios:Capital fund as
a percentage of risk weighted assets

Project Work 10 LHs

After the completion of fourth year concentration classes the students shall have to prepare and
submit a project work in the area they have specialized. The subject teachers have to discuss with
students on possible topics of the project work, availability and sources of literature, availability of
data, data collection methods, appropriate tools of data analysis, etc. relevant to the subject.

Suggested Readings:
Accounting Manual of banks
Bank and Financial Institutions Act, 2063
Circulars issued by NRB (Banks and Financial Institution Regulation department and Foreign
Exchange Management Department)
Indian Institute of Banking and Finance, (2008), Accounting and Finance for Bankers,
Macmillan India Ltd. Chennai India
International Chamber of Commerce and the UCPDC 600
Jain, S. P. &Narang, K. L., (2014), Advanced Accounting, Corporate Accounting,Vol. 11,
Kalyani Publishers, New Delhi
Negotiable Instrument Act, 2034
Nepal Rastra Bank Act, 2058
Unified Directives issued by NRB

65
 ACC 251: Accounting for Business

Course: Concentration Full Marks: 100

LHs: 150 Pass Marks: 35

Course Objectives
The objectives of the course are to provide the students with in-depth knowledge of accounting
required to handle accounting works in the various business situations like partnership, consignment,
branch etc. independently. The course further aims at providing knowledge required by the students
for advance studies in accounting subject.

Course Description
This course contains various aspects of company accounts i.e. accounting for partnership,
consignments, joint ventures, branch, department, containers, professional men, royalty, installment
and higher purchase etc.

Contents
Unit 1: Accounting for Partnership 9 LHs
Concept of partnership; Partnership agreement and status of partners in the absence of
partnership deed; Accounting for partnership firm: partner’s capital a/c, fixed and fluctuating
capital; Accounting treatment of partner’s salary, interest and drawing; Partner’s loan
account; Preparation of profit and loss appropriation account in the book of the firm.

Unit 2: Admission of New Partner 11 LHs

Concept; Impact of admission: in the profit sharing ratio of the firm, in the revaluation of
assets and liabilities, in the value of goodwill of the firm; Re-arrangement of reserve and
surplus and accumulated losses of the firm; Re-adjustment of partners capital giving due
influence of new admission; Distribution of old profit to old partners; Admission of a partner
during an accounting year.

Unit 3: Retirement and Death of a Partner 15 LHs

Calculation of new profit sharing ratio; Revaluation of assets and liabilities; Adjustment
regarding undistributed profits and losses; Adjustment regarding goodwill and capital after
retirement; Ascertainment of the due amount to the outgoing partners; Mode of payment to
the outgoing partners; Death of a partner; Accounting for Joint life policy; Accounting for
insurance premium.

Unit 4: Dissolution of a Partnership Firm and Piecemeal Distribution 9 LHs

Concept; Closing the books of account and final settlement; Accounting for dissolution:
Settlement of partner’s capital accounts when the firm and all the partners are solvent,
Settlement of account when a partner is insolvent with or without using the rule of Garner Vs

66
 Murry; Gradual realization and piecemeal distribution: Surplus capital method, Maximum
loss method

Unit 5: Accounting for Consignments 9 LHs

Concept, Difference between consignment and sales; Important terms: Consignment goods
sent at invoice price, Consignment expenses, Commission, Valuation of unsold stock, Loss
of goods on consignment: Normal loss, Abnormal loss; Interest on consignment;
Consignment goods taken over by consignee

Unit 6: Accounting for Joint Ventures 9 LHs

Meaning, characteristics and features of joint venture; Difference between joint venture and
consignment; Difference between joint venture and partnership; Methods of accounting:
Without keeping separate set of books, With keeping separate set of books

Unit 7: Accounting for Branch 11 LHs

Concept and types of branch, Accounting records: Dependent branch, Independent branch;
Accounting entries for incorporation of branch transactions in the books of head office and
consolidated balance sheets; Accounting treatment of some important adjustments: Normal
loss, Abnormal loss, Cash in transit, Goods in transit, Inter branch transactions

Unit 8: Accounting for Department of Activity 9 LHs

Concept, objectives and types of department; Department trading and profit and loss account;
Allocation of expenses; Difference between branch and department; Inter – department
transfer

Unit 9: Accounting for Packages or Containers 9 LHs

Concept, objectives and Importance terms of container; Calculation of missing terms of
container; Accounting for types of container: Returnable: with maintaining trading and
reserve account, with maintaining trading, reserve and stock account; Non Returnable

Unit 10: Accounting Professional Men 15 LHs

Concept and techniques in general; Accounting treatment: receipt and payment account ,
adjustments, income and expenditure account, profit and loss account, household cash
statement

Unit 11: Accounting for Royalties 14 LHs

Concept and modern terms; Accounting treatment with and without maintaining minimum
rent account

Unit 12: Accounting for Hire Purchase System 10 LHs

Concept and objectives of hire purchase system; Calculation of interest, cash price and
installment (using analytical table); Accounting treatment: In the book of purchaser : Journal
entries, Necessary ledger accounts, In the book of vendor: Journal entries, Necessary ledger
accounts

Unit 13: Accounting for Installment System 10 LHs

Concept and features of installment system; Difference between hire purchase and
installment system; Calculation of interest, cash price and installment (using analytical table);
Accounting treatment: In the book of purchaser: Journal entries, Necessary ledger accounts,
In the book of vendor: Journal entries, Necessary ledger accounts

67
Project Work 10 LHs
After the completion of fourth year concentration classes the students shall have to prepare and
submit a project work in the area they have specialized. The subject teachers have to discuss with
students on possible topics of the project work, availability and sources of literature, availability of
data, data collection methods, appropriate tools of data analysis, etc. relevant to the subject.

Suggested Readings:

Battliboi, J. R., (2017). Advanced Accounting, Standard Accountancy Publication Pvt.

Ltd., Mumbai
Jain, S. P. & Narang, K. L., (2014), Advanced Accounting, Corporate
Accounting, Vol. 11, Kalyani Publishers, New Delhi
Shukla, Grewal & Gupta, (2017). Advanced Accounting, S. Chand and Co., New Delhi

68
 ACC 256 Advance Cost and Management Accounting
Course: Concentration Full Marks: 100

LHs: 150 Pass Marks: 35

Course Objectives:
This course is designed to familiarize the students to the basic concept of Advance Cost and
Management Accounting. After completion of the course, students will be able to understand cost
and management accounting information and analysis of the different situation of the business.
Similarly, students will be able to take decisions after analyzing the different issues of the
organizations.
Course Description

This course will enable students to understand the concept, tools and techniques of cost &
management accounting. It covers fundamental of accounting, cost management and its techniques,
activity based costing, cost-volume-profit analysis, planning, standard costing, responsibility
accounting, master budgeting and decision making analysis etc.

Contents
Unit 1: Fundamental of Accounting 6 LHs
Concept, objectives, functions, scope and limitations of Cost and Management Accounting;
Management Accounting versus Financial Accounting versus Cost Accounting. Users of accounting
information; Professional ethics and social responsibility; Role of Cost and Management Accounting
in decision-making.
Unit 2: Cost Behavior Analysis 8 LHs
Cost concept and classification; Segregation of semi-variable cost using two point method and
regression method; Measurement of correlation, coefficient of determination, testing of significance
with ‘t’ value.
Unit 3: Accounting for Overhead Cost 12 LHs
Overhead cost distribution: Concept, primary & secondary distribution of overhead cost under direct
method, Repeated distribution method, simultaneous equation method; Concept and ascertainment of
total cost and profit under Traditional Costing Technique, limitations of Traditional Costing System;
Activity Based costing: Concept, ascertainment of cost and profit under ABC technique, benefits and
limitations of Activity Based Costing system. Relationship between Traditional and Activity Based
Costing.
Unit 4: Income Measurement and Reporting 10 LHs
Income measurement under Variable and Absorption Costing; Causes of differences; Effect of
inventories of work in progress and finished stock; Effect of FIFO and LIFO; Standard costs, actual
costs and income statements; Income statements under uncertainty
Unit 5: Cost Volume Profit Analysis 12 LHs

69
Concept, objectives, assumptions, limitations and techniques of Cost Volume Profit Analysis;
Application of cost-volume-profit for breakeven analysis and profit planning for single and multiple
products; Cost-volume-profit analysis under resource constraints: Allocation of single resource
constraint, Allocation of multiple resource constraints using linear programming model

Unit 6: Short term Decision Making 10 LHs

Concept, need and objectives of short term decisions in business; Cost concept in decision making:
Relevant and irrelevant costs, avoidable and unavoidable costs, opportunity cost, incremental cost
and sunk cost; Types of decisions: Drop or Continue, Special Offer/Order and Make or Buy
Unit 7: Budgeting and Controlling of Profit 30 LHs
Concepts, objectives and importance of budgeting; Types of budget: Sales Budget, Production
Budget, Material Budget, Merchandize Purchase Budget, Direct Labour Budget, Manufacturing Cost
Budget, Selling and Administrative Budget, Cash Budget, Budgeted Income Statement and Balance
Sheet. Preparation of Master Budget for manufacturing and non-manufacturing organizations.
Concept, significance and applications of Standard Costing; Types of Standards; Installation of
Standard Costing System for Material, Labour, and Overhead; Variance Analysis for Materials and
Labour; Accounting Treatment of Variances under certain and uncertain situations.

Unit 8: Flexible Budget and Performance Analysis 10 LHs

Concept, need and characteristics of a flexible budget; Limitations of the Static Budget; Overhead
variances: Capacity Variance, Efficiency Variance and Spending Variance; Performance reporting
Unit 9: Performance Measurement in Decentralization Organization 10 LHs
Decentralization in organizations: Concept, merits and demerits of decentralization; Responsibility
accounting: meaning, principles and benefits; Implementation process; Responsibility Centre of
Controls: Cost Centre, Revenue Centre, Profit Centre and Investment Centers.

Unit 10: Capital Budgeting 22 LHs

Concept, importance and need of Capital Budgeting; Types of investment proposals: Mutually
Related Project, Mutually Exclusive Project, New Project, Replacement; Estimation of Cash
Outflow: Net investment of new project, differential net investment for replacement and mutually
exclusive projects; Annual Net Cash Inflow: Differential net cash flow for replacement of assets and
net cash flow for new project; Net cash flow for final year; Methods of evaluation of investment
proposal: Non-discounted Cash Flow Method: Payback Period and discounted Payback Period;
Discounted Cash Flow Method: Net Present Value, Profitability Index, Internal Rate of Return;
Decision regarding selection of project based on profitability
Unit 11: Advance Cost Management Techniques 10 LHs
Need for cost management; Cost control and cost reduction; Balance Scorecard, Total Quality
Management, Just in Time(JIT), Supply Chain Management, Enterprise Resource planning (ERP),
Theory of Constraints, Bench Marking, Business Process Re-engineering, Management Control
System,
70
Project Work 10 LHs
After the completion of fourth year concentration classes the students shall have to prepare and
submit a project work in the area they have specialized. The subject teachers have to discuss with
students on possible topics of the project work, availability and sources of literature, availability of
data, data collection methods, appropriate tools of data analysis etc.

Suggested Books
Garrison, R.H., Noreen, E.W. & Brewer, P.C., (2017) Managerial Accounting, New Delhi:
McGraw-Hill Companies, Inc.
Lal, J., (2013). Cost Accounting, New Delhi: Tata McGraw Hill Co.
Pillai, R.S. N. & Bagavathi, V. (2017). Cost Accounting, New Delhi: S. Chand and Company
Ltd.
Kishore, M. R. (2016). Cost and Management Accounting, New Delhi: Taxmann Allied Services

Pvt. Ltd.

71
 MGT 255: Auditing

Course: Concentration Full Marks: 100

LHs: 150 Pass Marks: 35

Course Objectives
This course is designed to impart knowledge on conceptual aspects of Auditing. It helps to enhance
the student with knowledge on working clarity in auditing. Similarly, it helps for understanding the
relevant audit procedures &techniques, to assess internal control systems by identifying audit risk
and to perform audit work effectively and efficiently by identifying various types of audit.

Course Description
This course contains conceptual foundation of an audit, planning an audit, internal check and
control, vouching, audit of impersonal ledgers, verification and valuation of asset & liabilities,
depreciation, reserve & provision, appointment, remuneration and right & duties of an auditor.
Similarly, this course focus on audit of a limited company, audit of divisible profits & dividends,
audit report, liabilities of an auditor, audit programs & procedures of different classes of audits,
investigation, government audit in Nepal and recent trends in auditing.

Course Details
Unit 1: Introduction 9LHs
Auditing: Concept,objectives, nature, scope, advantages and limitations;Evolution of auditing
practices; Prevention and detection of error with practical dealings(Rectification of
Error);Qualities of an Auditor ;Book keeping, accounting & auditing, auditing&
investigation;Terms of audit engagement.

Unit 2: Planning an Audit 10 LHs

Knowledge and understanding of the organization; Audit program: Concept, objectives,
advantages and disadvantages;Contents of audit program,techniques andpreparation of audit
program;Tolerable error, audit risks;Sampling and determinants of sample size; Audit note
books: Objectives, procedures & techniques and contents of audit notebooks;Organization of
audit staff: Job description, responsibility assigned and liabilities defined;Types of audit
work: continuous audit, periodical audit, interim audit, partial audit,tax audit, cash audit, cost
audit, management audit, data processing audit; Scope of work to be determined;Instruction
to the client; Preparation by the auditor, division of work; Audit files andaudit working
papers

Unit 3: Internal Check and Control 8LHs

Internal check: Concept, objective, essential characteristics, advantages and
disadvantages;Internal check and internalaudit; Effects of internal control and internal audit,
Auditor's duties as regard to internal check and internalcontrol;Use/adoption of distinctive
ticks; Routine checking; Difference in balancing books; Concept of testchecks, advantage
and limitation; Difference between statutory audit and internal audit

Unit 4: Vouching 14 LHs

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 Vouching: Concept, importance and objectives;Vouching of cash transactions,vouching of
payments,vouching of receipts, vouching of sales, credit and cash sales; Internalchecks as
regard to cash sales, cashdiscount allowed & return, credit sales, review of internal check
system as regard to credit sales; Saleson approval basis, sales under hire purchases system,
goods on consignment, goods sent on package andcontainers, return;Vouching of purchase:
cash purchase, internal check as regard to cash purchase,discount received and return, credit
purchase, internal check as regard to credit purchase, discountreceived and return.

Unit 5: Audit of Impersonal Ledgers 8 LHs

Capital expenditure, revenue expenditure and deferred expenditure;Outstanding expenses and
income;repairs and renewals; Prepaid expenses, contingent liabilities and asset.

Unit 6: Verification and Valuation of Asset and Liabilities 13 LHs

Concept and importance of Verification & Valuation;Distinction between verification and
vouching; Verification and valuation of assets;Vouching and valuation, Methods of
valuation:Valuation of fixed assets, current assets and wasting assets;Auditor's position as
regards to verification and valuation of assets, Verification of liabilities, capital loansand
long-term loans, trade creditors, outstanding liabilities for expenses, bills payable, contingent
liabilities; Confirmation and verification, concept of fair value measurement.

Unit 7: Depreciation, Reserve and Provision 5LHs

Concept and causes for depreciation, methods of depreciation;Difference betweenfluctuation
and depreciation;Difference between obsolescence and depreciation; Auditor's duty
inconnectionwith depreciation; Concept, needs and types of reserve and provision; Auditor's
duty in connection with different provisions and reserves

Unit 8: Appointment, Remuneration and Right & Duties of an Auditor 5 LHs

(According to Nepal Company Act and other legislations governing audit)
Qualification of an auditor of a company; Appointment and remuneration of an auditor;
Qualities of anauditor; Rights and duties of an auditor;Removal of an auditor

Unit 9: Audit of a Limited Company 10 LHs

Nature of company audit;Preliminaries before company audit, statutory audit, audit of
preliminary expenses, audit of statutory general meetings, review of memorandum of
association and articlesof association; Audit of shares capital: Issue of shares at par, premium
and discount, issue of share for otherthan cash, bonus share, calls in arrear and calls in
advance, forfeiture and re-issue of forfeited shares,transfer and conversion of shares,
alternation of share capital;
Audit of underwriting commission, transferfees, brokerage and commission; Audit of
debentures: Issued at par, discount and premium,redemption of debentures, regular
redemption and redemption at par, premium and discount, redemptionthrough purchase in
open market, conversion of debentures into shares.

Unit 10: Audit of Divisible Profits and Dividends 8 LHs

Concept of profit and divisible profit; Consequences of incorrect valuation of profit; Factors
affectingdividend-capital profit and revenue profit, dividend by appreciating assets
including intangible assets, losson fixed assets and dividend pre-opening profit and
dividend; Dividend on preference shares: cumulativeand non-cumulative preference shares,
unclaimed dividend.

73
Unit 11: Audit Report 5 LHs
Audit report: Concept and contentof audit report;Types of audit report: statutory report,
general report,qualified report, tax audit report;Evaluation of audit evidence, adequacy and
appropriate of auditevidence.

Unit 12: Liabilities of an Auditor 8 LHs

Legal provision regarding liability of an auditor; Liability of an auditor appointed by a
private business concern; Liabilityof a limited company auditor, civil liability, liability for
negligence and misfeasance, criminal liability; Joint audit:Meaning, liability of joint auditor
and branch auditor; Liability of an honorary auditor; Auditor's liability to third party.

Unit 13: Audit Programs and Procedures of different Classes of Audits 8 LHs
Audit of educational institutions, co-operative societies, charitable institutions, NGO's and
localgovernment bodies; Audit of partnership firm: concept of partnership firm
audit;Procedures to befollowed by a newly appointed auditor; Audit on behalf of different
types of partners; Performance audit: Concept, objectives and distinction between financial
and performance auditing.

Unit 14: Investigation 8 LHs

Concept of investigation, difference between investigation and audit, causes for
investigation andmethods of investigation, identification of objectives of investigation,
formulation of program; Collection and examination of records and evidence; Typesof
investigation: Investigation on behalf ofincoming partners, prospective shareholders,
prospective moneylenders and suspected frauds;Duties andliabilities of an investigator.

Unit 15: Government Audit in Nepal 8 LHs

Government audit: Concept, objectives, natures and evolution;Difference between
government audit and commercial audit;Internal audit:Concept, objectives and advantages;
Misappropriation and procedure for regularization; Roles of Comptroller General; Final
audit, audit of expenditure, debts, deposit, remittance and stores, audit report; Roles of
Auditor General in government audit, and Public Account Committee;Directives ofOffice
of Auditor General;
Government auditing standard.

Unit 16: Recent Trends in Auditing 8LHs

Establishment ofICAN, Accounting Standards Board, Auditing Standard Board; The
Institute of Chartered Accountants Act; Roles of ICAN and AUSB in developing and
promulgating auditingstandards; Certificate of practice, code of ethics; Auditing
Standards:Concept, objectives, importance andrequirement of each auditing standards
(mandatory, voluntary and exposure drafts)

Unit 17: Current Issues in Auditing 5LHs

Reporting on financial sickness; Social audit, qualityaudit,environment audit;
Auditing and Assurance

Project Work 10 LHs

After the completion of fourth year concentration classes the students shall have to prepare and
submit a projectwork in the area they have specialized. The subject teachers have to discuss with

74
students on possible topics of theproject work, availability and sources of literature, availability of
data, data collection methods, appropriate tools of data analysis etc.

Suggested Readings:
Gupta, K., (2005).Contemporary Auditing, New Delhi: Tata McGraw-Hill
Ramaswamy, M.S. (2014). Principles and Practices of Auditing,New Delhi:S. Chand and Co.
Saxena, R.G. (2008). Principles and Practice of Auditing,Bombay: Himalayan Publishing
House.
B.N. Tandon, (2015). Practical Auditing,New Delhi: S.Chand and Co.
Nepal Government,Auditing Act, 2048with amendments.Nepal Government.
Company Act, 2063 with amendments.Auditing Standards Board of Nepal
Nepal Standard on Auditing.
Website: ICAB, AUSBGovernment of Nepal;
Income Tax Act, Co-operative Act, Education Act, Self-governance Act (withamendments).

75
 ACC 256 Advance Cost and Management Accounting
Course: Concentration Full Marks: 100

LHs: 150 Pass Marks: 35

Course Objectives:
This course is designed to familiarize the students to the basic concept of Advance Cost and
Management Accounting. After completion of the course, students will be able to understand cost
and management accounting information and analysis of the different situation of the business.
Similarly, students will be able to take decisions after analyzing the different issues of the
organizations.
Course Description

This course will enable students to understand the concept, tools and techniques of cost &
management accounting. It covers fundamental of accounting, cost management and its techniques,
activity based costing, cost-volume-profit analysis, planning, standard costing, responsibility
accounting, master budgeting and decision making analysis etc.

Contents
Unit 1: Fundamental of Accounting 6 LHs
Concept, objectives, functions, scope and limitations of Cost and Management Accounting;
Management Accounting versus Financial Accounting versus Cost Accounting. Users of accounting
information; Professional ethics and social responsibility; Role of Cost and Management Accounting
in decision-making.
Unit 2: Cost Behavior Analysis 8 LHs
Cost concept and classification; Segregation of semi-variable cost using two point method and
regression method; Measurement of correlation, coefficient of determination, testing of significance
with ‘t’ value.
Unit 3: Accounting for Overhead Cost 12 LHs
Overhead cost distribution: Concept, primary & secondary distribution of overhead cost under direct
method, Repeated distribution method, simultaneous equation method; Concept and ascertainment of
total cost and profit under Traditional Costing Technique, limitations of Traditional Costing System;
Activity Based costing: Concept, ascertainment of cost and profit under ABC technique, benefits and
limitations of Activity Based Costing system. Relationship between Traditional and Activity Based
Costing.
Unit 4: Income Measurement and Reporting 10 LHs
Income measurement under Variable and Absorption Costing; Causes of differences; Effect of
inventories of work in progress and finished stock; Effect of FIFO and LIFO; Standard costs, actual
costs and income statements; Income statements under uncertainty
Unit 5: Cost Volume Profit Analysis 12 LHs

76
Concept, objectives, assumptions, limitations and techniques of Cost Volume Profit Analysis;
Application of cost-volume-profit for breakeven analysis and profit planning for single and multiple
products; Cost-volume-profit analysis under resource constraints: Allocation of single resource
constraint, Allocation of multiple resource constraints using linear programming model

Unit 6: Short term Decision Making 10 LHs

Concept, need and objectives of short term decisions in business; Cost concept in decision making:
Relevant and irrelevant costs, avoidable and unavoidable costs, opportunity cost, incremental cost
and sunk cost; Types of decisions: Drop or Continue, Special Offer/Order and Make or Buy
Unit 7: Budgeting and Controlling of Profit 30 LHs
Concepts, objectives and importance of budgeting; Types of budget: Sales Budget, Production
Budget, Material Budget, Merchandize Purchase Budget, Direct Labour Budget, Manufacturing Cost
Budget, Selling and Administrative Budget, Cash Budget, Budgeted Income Statement and Balance
Sheet. Preparation of Master Budget for manufacturing and non-manufacturing organizations.
Concept, significance and applications of Standard Costing; Types of Standards; Installation of
Standard Costing System for Material, Labour, and Overhead; Variance Analysis for Materials and
Labour; Accounting Treatment of Variances under certain and uncertain situations.

Unit 8: Flexible Budget and Performance Analysis 10 LHs

Concept, need and characteristics of a flexible budget; Limitations of the Static Budget; Overhead
variances: Capacity Variance, Efficiency Variance and Spending Variance; Performance reporting
Unit 9: Performance Measurement in Decentralization Organization 10 LHs
Decentralization in organizations: Concept, merits and demerits of decentralization; Responsibility
accounting: meaning, principles and benefits; Implementation process; Responsibility Centre of
Controls: Cost Centre, Revenue Centre, Profit Centre and Investment Centers.

Unit 10: Capital Budgeting 22 LHs

Concept, importance and need of Capital Budgeting; Types of investment proposals: Mutually
Related Project, Mutually Exclusive Project, New Project, Replacement; Estimation of Cash
Outflow: Net investment of new project, differential net investment for replacement and mutually
exclusive projects; Annual Net Cash Inflow: Differential net cash flow for replacement of assets and
net cash flow for new project; Net cash flow for final year; Methods of evaluation of investment
proposal: Non-discounted Cash Flow Method: Payback Period and discounted Payback Period;
Discounted Cash Flow Method: Net Present Value, Profitability Index, Internal Rate of Return;
Decision regarding selection of project based on profitability
Unit 11: Advance Cost Management Techniques 10 LHs
Need for cost management; Cost control and cost reduction; Balance Scorecard, Total Quality
Management, Just in Time(JIT), Supply Chain Management, Enterprise Resource planning (ERP),
Theory of Constraints, Bench Marking, Business Process Re-engineering, Management Control
System,
77
Project Work 10 LHs
After the completion of fourth year concentration classes the students shall have to prepare and
submit a project work in the area they have specialized. The subject teachers have to discuss with
students on possible topics of the project work, availability and sources of literature, availability of
data, data collection methods, appropriate tools of data analysis etc.

Suggested Books
Garrison, R.H., Noreen, E.W. & Brewer, P.C., (2017) Managerial Accounting, New Delhi:
McGraw-Hill Companies, Inc.
Lal, J., (2013). Cost Accounting, New Delhi: Tata McGraw Hill Co.
Pillai, R.S. N. & Bagavathi, V. (2017). Cost Accounting, New Delhi: S. Chand and Company
Ltd.
Kishore, M. R. (2016). Cost and Management Accounting, New Delhi: Taxmann Allied Services

Pvt. Ltd.

78
 FIN 250: Fundamentals of Corporate Finance
Full Marks: 100

Lecture Hours: 150 Pass Marks: 35

Course Objective
This course "Fundamentals of Corporate Finance" aims to provide students with basic
understandings of fundamental concepts and principles of corporate finance. This course also
equips the students with fundamental concepts, tools, techniques, and theories of corporate
financial management which helps to prepare them to resolve complex financial issues of
corporate firms.

Course Description
This course "Fundamentals of Corporate Finance" is about how effectively financial resources
are raised and used in a business corporation. It helps students to learn effective management of
financial resources in a corporate firm and equips them with the necessary skills to do so. This
course includes the introduction to corporate finance, short-term financing, terms loan and lease
financing, long-term financing, hybrid financing - preferred stock, warrants and convertibles,
capital structure decision, financial planning and forecasting, international corporate finance and
merger and acquisition.

Course Details
Unit 1: Introduction to Corporate Finance LH 15

Corporate finance and financial manager; Financial manager’s responsibilities; Managerial actions
to maximize shareholder wealth; Corporate finance and other functional areas; The agency
problem: stockholders versus managers and stockholders versus creditors; Ethics in financial
decisions; Corporate governance and corporate social responsibilities.

Unit 2: Short-Term Financing LH 20

Nature of short-term financing; Advantages and disadvantages; Sources of short-term financing:
accruals, accounts payable (trade credit), commercial paper, short-term bank loans – line of credit,
revolving credit arrangement, transaction loans; Choosing a bank; Comparison of cost of trade
credit, commercial paper, and short-term bank loan; Use of security in short-term financing:
inventory financing and accounts receivable financing; Factors affecting in choosing the
appropriate sources of short-term financing.

Unit 3: Term Loans and Lease Financing LH 15

Term Loans: Concept, cost and benefits, loan repayment schedule; Lease financing: concept,
merits and demerits of lease financing, forms of lease financing, Analysis of lease versus
buy/borrow decision using present value of cash flow approach; Lease financing in Nepal.
79
Unit 4: Long-Term Financing LH 20
Long term debt: Debt instruments, Features of long-term debts; Types of bonds; Bond
innovations; Advantages and disadvantages of bonds; Common stock: Features of common
stock; Legal rights and privileges of common stockholders; Advantages and disadvantages of
common stock; Methods of selling securities: public offering, rights offering and private
placement; Analysis of rights offering and effect of rights offering on shareholders’ wealth;
The investment banks and investment banking process; Ranking of different types of
securities.

Unit 5: Hybrid Financing: Preferred Stock, Warrants and Convertibles LH 15

Preferred stock: Features and advantages and disadvantages; Warrants, reasons for using
warrants, value of warrants, warrant premium; Convertibles, reasons for using convertibles,
conversion ratio, conversion price, conversion value, straight bond value, minimum price of
convertibles and conversion premium.

Unit 6: Financial Planning and Forecasting LH 15

Strategic planning; Operating plan and the financial plan; Sales forecast; Additional fund needed
equation; Forecasted financial statements; Using regression to improve forecasts; Analyzing the
effects of changes in ratios.

Unit 7: Capital Structure Decision LH 10

Capital structure and financial structure; Determining the optimal capital structure; The effect of
capital structure on stock prices and the cost of capital; Capital structure and value of the firm.

Unit 8: International Corporate Finance LH 20

Nature of multinational corporations; Reasons for companies going global; Multinational versus
domestic financial management; Exchange rates quotations; Cross rates; Interbank foreign
currency quotations; Trading in foreign exchange rates: spot rates and forward rates; Interest rate
parity; Purchasing power parity; Inflation, interest rates, and exchange rates; International money
and capital markets; International capital budgeting; and International capital structure.
Unit 9: Merger and Acquisition LH 10
Rationale for mergers; Types of mergers; Level of merger activity; Hostile versus friendly
takeovers; Merger analysis; Role of investment bankers; Corporate alliances; and Private equity
investments.

Project Work LH 10
The students shall have to prepare and submit a project work in the area studied in the course. The
subject teachers have to discuss with students on possible topics of the project work, availability and
sources of literature, availability of data, data collection methods, appropriate tools of data analysis
etc. relevant to the subject within 10 lecture hours.

80
Text Books
Ross, S. A., Westerfield, R. W. & Jordan, B. D. Fundamentals of corporate finance. New York:
McGraw-Hill Irwin.

Brigham, E. F. & Houston, J. F. Fundamentals of financial management. Delhi: Cengage

Learning.

References
Van Horne, J. C., Wachowicz, J. R. & Bhaduri, S. N. Fundamentals of financial
management. New Delhi: Prentice-Hall India Ltd.

Brealey, R. A., Myers S. C. & Alen, F. Principles of corporate finance. New York: McGraw- Hill
Irwin.

Gitman, L. J. Principles of managerial finance. Delhi: Pearson Education.

81
 FIN 251: Commercial Bank Management

Nature of Course: Concentration Full Marks: 100

Lecture Hours: 150 Pass Marks: 35

Course Objective

The objective of the course is to build up the theoretical foundation and develop the analytical skill
of the students required to manage the bank at operation level in general. More specifically, the
objective of this course is to provide the students an overview of commercial banks management;
acquaint the students with the organizational structure of a bank, bank regulation, and supervision
and develop students’ skill to understand and analyze the financial statement of banks, manage
assets and liabilities of a bank.

Course Description

This course consists of the overview of banking industries and their services; banking regulations
and supervision, organization structure of banks, financial statements and performance evaluation of
banks, asset-liability management, investment management, liquidity and reserve management,
managing and pricing deposit liabilities, management of non-deposit liabilities, management of
capital, bank lending, and agency and electronic banking.

Course Details

Unit 1: An Overview of Banking Industries and Their Services LH 10

Concept and classification of bank and financial institutions in Nepalese context; Unit banking
versus branch banking; Functions of a bank; Historical development of Nepalese banking industry in
Nepal; Structure and size of banking industry in Nepal; Organizational structure of Nepalese Banks;
Key trends affecting banking industry in Nepal.

Unit 2: Banking Supervision and Regulation LH 15

Reasons of regulation of banking industry; Role of Nepal Rastra Bank in the regulation and
supervision of banking industry in Nepal; Institutional mechanism of Nepal Rastra Bank for
regulation and supervision of banking industry; Professional ethics of bank supervisors;
Macroprudential regulation of licensed financial institutions; Types of supervision: offsite and onsite
supervision; Onsite supervision: procedures, and reporting of supervisions; Offsite supervision:
rationale of off-site supervision, dimensions of offsite supervision of banks, contents of report on the
compliance of regulatory directives; CAMELS as an offsite and onsite supervision tools,
construction and interpretation of composite index.

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Unit 3: Financial Statements and Performance Evaluation of Commercial Banks LH 15

Concept of Uniform bank reporting system (UBRS) in Nepal; Balance sheet and income statements
as per UBRS; Concept of off-balance sheet items; Evaluating bank performance: value of stock,
profitability ratios-ROE, ROA, NIM, NNIM, NOM, and EPS; Evaluation of performance of bank in
the framework of DuPont model; Comparing the performance indices with industry average
indicators.

Unit 4: Asset-Liability Management LH 15

Concept of asset/liability management; Asset-liability management strategy; Meaning and nature of

financial risk, Types of major risks in banking business; Risk identification; Risk measurement and
Risk mitigation; Forces determining interest rates; Measurement of interest rates; Components of
interest rate; Interest rate hedging: protection of net interest margin ; Interest sensitive gap
management and practice of GAP analysis in Nepal; Problems with interest sensitive gap
management; Duration as risk management tool: concept, price sensitivity to changes in interest rate
and duration; Using duration to hedge against interest rate risk; and Limitation of duration gap
management.

Unit 5: Investment Management of Commercial Banks LH 12

Concept of investment; investment instruments available to commercial banks; Purposes of

investment; Classification of investment of Nepalese banks; Structure of investment of Nepalese
banks; Factors affecting choice of investment securities; Investment maturity strategies; Maturity
management tools; and Directives of NRB regarding investment of banks.

Unit 6: Liquidity and Reserve Management LH 15

The demand for and supply of liquidity; Causes of liquidity problem; Strategy for liquidity
management; Estimating liquidity needs: Sources and uses of funds approach, The structure of fund
approach; Liquidity indicator approach; Legal reserve and money position management: legal
reserves, reserve requirements, calculation of reserve; Different sources of reserves; NRB Directives
regarding liquidity and reserve; Introduction to stress testing.

Unit 7: Managing and Pricing Deposit Liabilities LH 12

Types of deposit offered by banks; Position of deposits in the liabilities structure of Nepalese banks;
Structure of bank deposits of Nepalese banks; Interest rates offered on different types of deposits;
Pricing deposits at cost and profit margin; Using marginal cost to set interest rate on deposits;
Pricing based on the total customer relationship; NRB directives regarding the deposit collection.

Unit 8: Managing Non-Deposit Liabilities LH 6

Alternative non-deposit source of funds; Inter-bank borrowing; Repurchase agreements; Borrowing

from NRB; Negotiable certificate of deposit; Commercial paper.
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Unit 9: Management of Capital LH 10

Introduction to Bank for International Settlements and Basel; Concept and functions of capital;
Capital and risk; Types of capital; Measurements of capital according to BASEL III; NRB directives
regarding the measurement of capital and capital adequacy and case analysis on capital of Nepalese
banks.

Unit 10: Bank Lending: Policies and Procedures LH 15

Types of loans: commercial lending, real estate lending, agricultural lending, loan to individuals--
hire purchase loans, credit card loans, education loan and medical care loan; Regulation of lending;
Steps in lending process; Credit analysis; Sources of information about loan customers: credit
scoring, credit rating agencies, credit information bureau; Blacklisting; Essentials of loan agreement;
Recovery of loan; Directives of NRB regarding loans.

Unit 11: Agency Services and Electronic Banking LH 15

Fund transfer; Remittance services; Bank customer relationship: agent-principal, debtors-creditors,

trust-trustee; Utility payment services; Advisory services; Foreign exchange service; Clearing
services; Retail payments and financial services; Electronic banking services: retail services,
wholesale services; Electronic banking; Internet banking.

Project Work LH 10

The students shall have to prepare and submit a project work in the area studied in the course. The
subject teachers have to discuss with students on possible topics of the project work, availability and
sources of literature, availability of data, data collection methods, appropriate tools of data analysis,
etc relevant to the subject within 10 lecture hours.

Text Book

Rose, P.S., & Hudgins, S.C. Bank management and financial services (Irwin Finance).

New Delhi: McGraw-Hill Education

References

Gup, B.E., & Kolari, J.W. Commercial banking. New Delhi: Wiley India

Koch, T.W., & Macdonald, S.S. Bank management. USA: The Dryden Press

Singh, K., & Dutta, V. Commercial bank management. New Delhi: McGraw- Hill Education

Nepal Rastra Bank.2017.

Nepal Rastra Bank Inspection and Supervision Bylaws, 2017. Kathmandu: Nepal Rastra Bank.

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 FIN 253: Fundamentals of Investment

Nature of the Course: Concentration Full Marks: 100

Lecture Hours: 150 Pass Marks: 35

Course Objective

The objective of this course is to provide students with a basic understanding of fundamental
concepts and principles of investing and equip them with the tools and techniques for analyzing
individual securities and portfolios. By the end of this course, the student will be familiar with the
investment environment and be able to analyze securities and other investment vehicles and make
correct investment decisions from the viewpoint of individual and institutional investors.

Course Description

This course deals with the investment environment, principles, and process of investing in securities.
It also provides students opportunities to learn techniques for analyzing securities and forming
portfolios. The topics covered in this course are investment environment, securities markets and
transactions, risk and return, modern portfolio, investment in common stocks, bonds, mutual funds,
and derivative securities and real estate.

Course Details

Unit 1: The Investment Environment LH 8

Meaning of investment; Types of investment; Structure of investment process; Investment vehicles:

short-term vehicles, common stock, fixed income securities, mutual funds, derivative securities,
other investment vehicles; Investment plan: steps in investing, considering personal taxes, investing
over the life cycle, investing in different economic environment; Meeting liquidity needs: the role of
short-term vehicles, investment suitability; Ethics in investing; The investment environment in
Nepal.

Unit 2: Securities Markets LH 12

Meaning of securities markets; Types of securities markets: primary and secondary markets, broker
and dealer markets, alternative trading system; General market conditions; Globalization of
securities markets: growing importance of international markets, ways to invest in foreign securities,
risk of investing internationally; Securities markets in Nepal: introduction, trading hours and
regulations; Basic types of securities transactions: long purchase, margin trading and short selling.

Unit 3: Investment Information and Securities Transactions LH 15

Introduction to online investing; Types and sources of investment information; Market averages and
indexes: introduction, uses, types and their construction including NEPSE Indexes; Making
securities transactions: role of stock broker, basic types of orders, online transactions, transaction
costs and investor protection; Recent developments of securities transactions in Nepal: online and
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automation, C-ASBA and DMAT, OTC transactions, cost of trading, taxes on capital gains and
dividends, credit rating in Nepal.

Unit 4: Risk, Return and Portfolio Management LH 25

Concept of return: components of return, importance of return, factors affecting the level of return,
historical returns; Measuring return: real, risk-free and required return, holding period return,
expected return; Meaning of risk; Sources of risk; Risk of a single asset: standard deviation,
coefficient of variation; Combining risk and return of single asset; Concept of portfolio; Measuring
portfolio return and risk; Correlation and diversification; The Capital Assets Pricing Model (CAPM):
components of risk, beta, estimating return using CAPM, the security market line; Traditional
approach to portfolio management: Modern portfolio theory: the efficient frontier, portfolio beta, and
the risk return trade-off.

Unit 5: Common Stock Fundamentals LH 10

Pros and cons of stock ownership; Basic characteristics of common stock: common stock as a
corporate security, buying and selling stocks, common stock values; Common stock dividends: the
dividend decision, types of dividends, dividend reinvestment plans; Alternative investment
strategies.

Unit 6: Common Stock Analysis and Valuation LH 15

Principles of security analysis; Economic analysis; Industry analysis; Fundamental analysis: the
concept, financial statements, key financial ratios, ROA-ROE interaction, common stock ratios; The
valuation process; Stock valuation models: the dividend valuation model, other approaches to stock
valuations, other price relative procedures; Valuing a company; Efficient markets and behavioral
finance: level of market efficiency, investor behavior and stock prices.

Unit 7: Fixed Income Securities LH 10

Meaning and types of fixed income securities; Essential features of a bond: bond interest and
principal, maturity date, call features, sinking fund, bond ratings; The market for debt securities;
Specialty issues; Convertible securities: conversion privilege, conversion value, conversion
premium, payback period, investment value. Fixed income securities market in Nepal.

Unit 8: Bond Valuation LH 15

The behavior of market interest rate; The term structure of interest rate and yield curve; The basic
bond valuation model; Measures of yield and return; Duration and immunization: the concept of
duration, measuring duration; Bond duration and price volatility; Uses of bond duration measures;
Bond investment strategies.

Unit 9: Mutual Fund and Performance Evaluation LH 10

An overview of mutual fund; Open end and closed-end fund; Exchange traded funds; Other types of
investment companies; Types of mutual funds and services; Investing in mutual funds: investor uses

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of mutual funds, the selection process, investing in closed-end funds, measuring performance;
Mutual funds in Nepal.

Unit 10: Managing Portfolios LH 10

Constructing a portfolio: role of investor’s personal characteristics, portfolio objectives and policies,
developing an asset allocation scheme; Evaluating the performance of individual investments:
collection of necessary data, analyzing the index of market performance, measuring the performance
of investment vehicles, comparing the performance; Assessing portfolio performance: measuring
portfolio return, comparison of portfolio return with overall market measures – Sharpe’s measure,
Treynor’s measure, Jensen’s measure; Portfolio revision.

Unit 11: Derivative Securities LH 10

Concept of derivative securities; Put and call options: basic features, advantages and disadvantages;
Option markets; Stock options; Option pricing and trading: profit potential from puts and calls,
intrinsic value; Other types of options: stock-index option, options on exchange-traded funds,
interest rate options, currency options, LEAPS; The future market: market structure, trading in future
market; Trading commodities: speculating and spreading; Financial futures: the financial futures
market, trading techniques; Derivative markets in Nepal.

Project Work LH 10

The students shall have to prepare and submit a project work in the area studied in the course. The
subject teachers have to discuss with students on possible topics of the project work, availability and
sources of literature, availability of data, data collection methods, appropriate tools of data analysis,
etc. relevant to the subject within 10 lecture hours.

Text Book

Gitman, L. J., Joehnk, M. D., & Smart, S. B. Fundamentals of investing. New Delhi: Pearson
Education.

References

Bodie, Z., Kane, A. & Marcus, A. J. Essentials of investment. USA: Mc-Graw-Hill Education.

Alexander, G. J., Sharpe, W. F. & Jeffery V. B. Fundamentals of investments. Delhi: Pearson

Education.

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 FIN 254: Insurance and Risk Management

Nature of Course: Concentration Full Marks: 100

Lecture Hours: 150 Pass Marks: 35

Course Objectives
The purpose of this course is to impart students about the knowledge of the nature of risk,
identification of insurable risk, management of risk, and basic insurance policies. The course aims at
developing the necessary skills to analyze and evaluate appropriate life, non-life, and reinsurance
policies. The course also intends to familiarize the student with different laws and regulations
relating to insurance activities and products.

Course Description
This course deals with the basic nature of risk and the way it is managed by different types of
insurance policies. This course includes the introduction to risk and insurance, risk identification and
management, fundamental legal principles and insurance contract, life insurance, health insurance,
auto insurance, homeowners insurance, commercial property insurance, commercial liability
insurance, social insurance, and government regulation of insurance.

Unit 1: Introduction to Risk and Insurance LH 10

Meaning of risk, chance of loss, peril and hazard; Basic categories of risk; Major risk facing
businesses and individuals; Burden of risk on society; Methods of handling risk; Insurance: meaning,
purpose, and characteristics; Requirements of an insurable risk; Types of insurance; Benefit and cost
of insurance to society.

Unit 2: Risk Identification and Management LH 12

Risk identification; Use of probability in risk measurement; Evaluating the frequency and severity of
losses; Risk management: Meaning and objectives; Steps in the risk management process; Benefits
of risk management; The changing scope of risk management; Loss forecasting; Financial analysis
in risk management decision making; Other risk management tools.

Unit 3: Fundamental Legal Principles and Insurance Contract LH 10

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Legal principles; Requirements of an insurance contract; Distinct legal characteristics of insurance
contract; Basic elements of an insurance contract.

Unit 4: Life Insurance LH 15

Meaning and importance of life insurance; Types of life insurance; Life insurance contract;
Procedure of life insurance contract; Determining the premium of life insurance; Principles of
investment of life fund; Distribution channels for life insurance; Group life insurance: concept,
group life underwriting principles, group life insurance plans; Life insurance in Nepal: evolution,
current status, and major policies.

Unit 5: Health Insurance LH 15

Health care insurance: Meaning, importance and types; Individual health care insurance coverage;
Individual medical expense contractual provisions; Shopping for individual health insurance; Group
medical expense insurance; Traditional indemnity plans; Managed care plans; Consumer-driven
health plan; Expense insurance, Group medical expense contractual provisions; Group-disability
income insurance; Health insurance in Nepal: current status and major challenges.

Unit 6: Auto Insurance LH 12

Overview of automobile insurance; Liability coverage; Medical payment coverage; Uninsured and
insured motorists coverage; Auto insurance pricing and underwriting: rating factors, underwriting,
residual markets; Arguments for and against compulsory auto third party insurance; Tort liability
and no-fault law; Automobile insurance in Nepal: current status, process of effecting automobile
insurance and major issues.

Unit 7: Homeowners Insurance LH 8

Types of policies; Major coverage; Property loss settlement; Pricing homeowners policies; Personal
umbrella policies; Coverage of high risk/ catastrophic perils; Impact of catastrophes on property
insurance.

Unit 8: Commercial Property Insurance LH 8

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Commercial package policy; Important forms: Property coverage form, causes-of-loss form,
reporting form; Business income insurance; Transportation insurance: ocean marine insurance and
inland marine insurance.

Unit 9: Commercial Liability Insurance LH 15

General liability loss exposure; Commercial general liability policy; Workers’ compensation
insurance; Commercial motor vehicle liability insurance; Aviation liability insurance; Professional
liability insurance; Directors and officers liability insurance.

Unit 10: Social Insurance LH 15

Concept of social security scheme; Need of social insurance; Old-age survivors and disability
insurance; Types of benefits; Medicare; Unemployment insurance; Workers compensation; Social
security schemes in Nepal: current status and major issues.

Unit 11: Insurance Company Operations and Regulation LH 20

Insurance company operations: Rate making, underwriting, production, claims settlement,
reinsurance, alternative to traditional reinsurance, investments; Financial operations of insurers:
Financial statements and performance analysis of life and non-life insurance companies in Nepal;
Government regulation of insurance; Rationale for insurance regulation; Methods of regulating
insurers; Areas of regulation; Problems and issues in regulation; Features and coverage of existing
Insurance Act and insurance regulation; Role and functions of Beema Samiti (Insurance Board) in
regulating insurance in Nepal.

Project Work LH 10
The students shall have to prepare and submit a project work in the area studied in the course. The
subject teachers have to discuss with students on possible topics of the project work, availability and
sources of literature, availability of data, data collection methods, appropriate tools of data analysis,
etc relevant to the subject within 10 lecture hours.

Text Book
Rejda, G.E. Principles of risk management and insurance. Noida(U.P): Pearson India Education
Services Pvt Ltd.

90
References
Harrington, S.E. & Niehaus, G.R. Risk management and insurance. New Delhi: McGraw Hill
Education (India) Pvt Ltd.
Vaughan, E.J. & Vaugan, T.M. Fundamentals of risk and insurance. New Delhi: Willey India.
Williams, C.A., Smith, M.L. & Young, P.C. Risk management and insurance. Ohio: McGraw Hill.
Dorfman, M.S. Introduction to risk management and insurance. New Delhi: Pearson Education.
Government of Nepal, Insurance Act.
Beema Samiti: Directives and Annual Reports

91
 FIN 255: Management of Financial Institutions

Nature of course: Concentration Full Marks: 100

Lecture Hours: 150 Pass Marks: 35

Course Objective

The course aims to lay the foundation of students on the management of financial institutions by
imparting the fundamentals concepts and techniques of operation of financial institutions. By the end
of this course, students will understand various types and functions of financial institutions, the role
of the central bank and monetary policy, and understand the areas of activities in which the securities
firms are engaged in.
Course Description

Financial institutions are important components of market economy. Students studying finance
courses must be familiar with the purpose and functions of the financial institutions. Therefore, this
course deals with fundamental aspects of financial institutions as they operate in an economy. This
course includes: An overview of financial institutions, interest rate determination, the central bank
and monetary policy, commercial banks, microfinance, saving and credit cooperatives, insurance
companies, investment companies, pension funds, and securities firms and investment banks.
Course Details

Unit 1: Introduction LH 10

Overview of financial institutions: Types of financial institutions, Role of financial

institutions in the economy; Risks in financial institutions, Development of financial
institutions in Nepal.

Unit 2: Determinants of Interest Rates LH 15

Interest rate fundamentals; Review of loanable fund theory; Movement of interest rates over
the time; Determinants of interest rates for individual securities: Inflation, real risk-free rate,
default or credit risk, liquidity risk; Special provision or covenants; Term to maturity; Term
structure of interest rates: unbiased expectation theory, liquidity preference theory, market
segmentation theory; Forecasting interest rates.

Unit 3: The Central Bank and Monetary Policy LH 15

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 Functions of central bank; Balance sheet of central bank; Monetary tools: Open market
operation, the discount rate, and reserve requirements; Effects of monetary tools on various
economic variables; Money supply versus interest rate targeting; Central bank and monetary
policy in Nepal.
Unit 4: Commercial Banks LH 20

Overview of commercial banks; Size and structure of commercial bank; Functions of

commercial banks; Financial statements: Balance sheet, off-balance sheet items, other fee
generating activities, statement of profit or loss; Financial statement analysis using a return
on equity framework; Regulation of commercial banks; Capital adequacy regulations of
Nepalese commercial banks with reference to Basel III.

Unit 5: Microfinance LH 10

Concept of microfinance; Microfinance revolution, Rationale of growing microfinance;

Key principles of microfinance; Objectives of microfinance institutions; Product and
services of microfinance; Designing saving and lending products; Interpreting financial
statements of microfinance institutions; Performance evaluation of microfinance
institutions.

Unit 6: Saving and Credit Cooperatives LH 20

Meaning, types and structure of cooperatives; Rationale of growing cooperatives, Key

principles of cooperatives, Saving and credit cooperatives: Rationale, growth and structure;
Product and services of saving and credit cooperatives; Interpreting financial statements of
saving and credit cooperatives; Performance evaluation of saving and credit cooperatives.

Unit 7: Insurance Companies LH 20

Overview of insurance companies; Life insurance companies; Types of life insurance

companies, Fair value computation of annuity insurance policy; Property-casualty insurance
companies; Types of property-casualty insurance companies; Measuring costs and overall
profitability of property-casualty companies; Insurance company operations: Rate making,
underwriting, production, claim settlement, reinsurance, alternative to traditional reinsurance,
investments; Financial operations of insurers: Financial statements and performance analysis
of life and non-life insurance companies in Nepal; Role and functions of Beema Samiti
(Insurance Board) in regulating insurance in Nepal.

Unit 8: Investment Companies and Hedge Fund LH 10

Overview of investment companies; Organizational structure of mutual fund; Different types

of mutual funds; Net asset value; Mutual funds costs and returns; Mutual fund balance sheet
93
 and recent trends; Performance of mutual fund; Mutual funds and their regulations in Nepal.
Hedge funds: meaning, significance and structure.

Unit 9: Pension Funds LH 10

Overview of pension funds; Types of pension funds: Defined benefit versus defined
contribution pension funds, insured versus non-insured pension funds, private versus public
pension funds; Retirement benefit calculation using: Flat benefit formula, career average
formula, and final pay formula; Return and impact of asset allocation; Pension fund
regulation and its management practices in Nepal; Social securities fund in Nepal.

Unit 10: Investment Banks and Securities Firms LH 10

Services offered by investment banks and securities firms; Securities firms and investment
bank activity areas: Regulations of investment banking, securities firms and businesspersons
in Nepal.
Project Work LH 10

The students shall have to prepare and submit a project work in the area studied in the course. The
subject teachers have to discuss with students on possible topics of the project work, availability and
sources of literature, availability of data, data collection methods, appropriate tools of data analysis
etc. relevant to the subject within 10 lecture hours.

Text Book

Saunders, A. & Cornett, M. M. Financial institutions management: A risk management approach.

New York: McGraw Hill Irwin
References

Saunders, A. & Cornett, M. M. Financial markets and institutions. New York: McGraw Hill Irwin
Madura, J. Financial institutions and markets. Delhi: Cengage Learning India Private Limited.

94
 MKT 252: Foreign Trade & Export Management

Nature of Course: Marketing Specialization Full Marks: 100

Level: BBS Pass Marks: 35
Year: Fourth Lecture Hours: 150

Course Objective
This course aims at providing basic understanding of the theories, processes and components of
foreign trade and export management. In addition, this course also aims to impart practical
knowledge of the operational aspects of export, import and transit management in Nepal.

Course Description:
This course contains introduction, commercial and industrial policy, balance of payments and
adjustment, export promotion through EPZ and SEZ, export procedure and documentation, export
finance, transit System and its arrangements in Nepal, role of regional economic cooperation &
international organizations in Nepal’s foreign trade.

Learning Outcomes:
On the completion of this course, students will be able to:

 Understand the nature and importance of foreign trade in the economic development of
Nepal;
 Know the commercial and industrial policy, balance of payment and adjustment;
 Understand the export promotion through EPZ and SEZ, and export-import procedures and
documentations;
 Have a board idea on export finance, transit system and its arrangement in Nepal;
 Have knowledge about role of regional economic cooperation and international organization
in Nepal’s foreign trade.

Course Details
Unit 1: Introduction 15 LHs
Nature of Nepal’s foreign trade; Import and export structure of Nepal; Diversification of
Nepal’s trade; Role of foreign trade in economic development of the country; and Nepal in
the global trade.

Unit 2:Commercial and Industrial Policy 18 LHs

Introduction; Free trade vs. protectionism; Trade barriers: tariff and non-tariff barriers;
Nature and components of commercial policy of Nepal; Provisions of Nepal’s commercial
policy; and Role of trade and industrial policy in export promotion.

Unit 3: Balance of Payments and Adjustment 19 LHs

Nature and components of balance of payments; Review of Nepal’s balance of trade and
balance of payments situation; Reasons for widening gap between import and export;

95
 Problems of export trade of Nepal; Government’s efforts in bridging gap between import and
export; Efforts of private sector for export promotion; and Import control measures in Nepal.

Unit 4: Export promotion through EPZ and SEZ 19 LHs

Concept and need of export processing zones (EPZ) and special economic zones (SEZ);
Development of SEZs in asian countries; Development of SEZ in Nepal; and Government’s
policy regarding SEZ.

Unit 5:Export Procedure and Documentation 17 LHs

Preliminary requirements in export executions; Stages in export procedure; Export procedure
in Nepal; Requirement of export documents; Export custom points in Nepal; and Products
banned for export in Nepal.

Unit 6:Export Finance 14 LHs

Concept and types of export finance; Need of export finance; Pre-shipment finance – concept
and types; Post-shipment finance – concept and types; Export credit and financing in Nepal;
Methods of export payment; and Market study is needed.

Unit 7: Transit System and its Arrangements in Nepal 19 LHs

Land-locked character and nature of transit problems; Land-locked countries of the world
and their transit trade situation; Cost of transit problems; Nepal’s trade and transit
agreements with neighboring countries; and Nepal’s trade and transit arrangements with
India, Bangladesh and China.

Unit 8: Role of Regional Economic Cooperation in Nepal’s Foreign Trade 19 LHs

Concept and need of regional economic integration/cooperation; Forms of regional
integration; Understanding the role of SAARC, ASEAN, and EU; and BIMSTEC in Nepal’s
export promotion; Role of multilateral trading system in Nepal’s foreign trade; and A small
project work is needed.

Project Work 10 LHs

After the completion of fourth year concentration classes the students will prepare a project
work. The subject teachers will discuss with students on possible topics on the basis of
availability and sources of literature, availability of data, data collection methods, appropriate
tools of data analysis, etc relevant to the subject within 10 lecture hours.

Suggested Readings
Rathor, B. S. and Rathor, J. S., Export marketing, Mumbai, Himalaya Publishing House.
Cherunilam, Francis, International trade and export management, Mumbai, Himalaya
Publishing House.
Mannur, H. G., International economics, New Delhi, Vikas Publishing House.

96
Basnet, KabiKeshari, A study of Nepal’s transit arrangement, (Nepali Version) Nepal
Adhyayan Samuha, Kathmandu.

Nepal Law Society, Landlockedstates and access to sea, Kathmandu.

Trade and Transit Agreements of Nepal with Foreign Countries.

Various Publications of ETPC, SAARC Secretariat, WTO, UNCTAD, ITC, FNCCI,

Chamber of Commerce, and others.

97
 MKT 253 Fundamentals of Advertising
Nature of Course: Marketing Specialization Full Marks: 100
Level: BBS Pass Marks: 35
Year: Fourth Lecture Hours: 150

Course Objectives/

This course aims to impart knowledge to students to be able to understand and analyze the functions
of advertising business and develop fundamental skills in designing advertisements, media planning,
scheduling, advertisement budgeting and advertising effectiveness testing.

Course Descriptions

This course contains introduction, advertising goals and objectives, advertising department,
advertising agencies, advertisement construction, advertisement layout, message design and
advertising appeals, media, advertisement budgeting and testing of advertising effectiveness.

Learning Outcomes:

On the completion of this course, students will be able to:

 learn the concept of advertising, its significance, limitations, evolution etc. along with
objectives of advertising;
 learn advertising department and advertising agency and their functions and organizational
structure;
 know about advertisement construction and its layout, message design and advertising
appeals; and
 familiar with media planning, budgeting and advertising effectiveness testing.
Course Details

Unit 1: Introduction 20 LHs

Meaning of advertising; Attributes of advertising; Publicity versus advertising;Propaganda

versus advertising; Sales promotion versus advertising;The structure of advertising industry;
Role of advertising in modern business world; Limitations of advertising;Advertising
coverage;Evolution of advertising;Advertising planning and its significance;and Steps in
advertising planning process.

Unit 2: Advertising Goals and Objectives 10 LHs

Concept of advertising goals and objectives;Theapproaches to the task of objective setting:

the sales school of thought and the communication effect school of thought;and DAGMAR.

98
Unit 3: Advertising Department 10LHs

Organization for the advertising department; Functions of advertising department; Functions

of the advertising manager;and Inter-departmental relations.

Unit 4: Advertising Agencies 10 LHs

Meaning and features of advertising agency; Functions of advertising agencies;Organization

of advertising agency; Selection of an advertising agency; Agency relations; Agency
turnover;and Methods of paying the agency services.

Unit 5: Advertisement Construction 20 LHs

Meaning and process of visualization; Qualities of a creative visualizer;Meaning of

advertisement copy; Objectives of copy;Types of advertisement copy;Attributes of an
effective advertising copy; Approach to copy writing; Structure of an advertising
copy;Headline and its functions;Types of headline;Sub-headlines;Slogans andits functions;
Attributes of a good slogan; The body of the copy; Copy illustration;Functions
ofillustrations;Essentials of good illustrations; Techniques of illustrations; Identification
marks; Structuring a poster;and Radio and television copy.

Unit 6: Advertisement Layout 15 LHs

Meaning and functions of layout;Types of layout;Principles of good layout;Meaning and

types of artwork;Concepts of typography; Principles of good typography; Color and its
qualities; Functions of color;Limitations of color uses;and Color features.

Unit 7: Message Design and Advertising Appeals 15 LHs

Message design; AIDA and hierarchy of effects model;Factors affecting message

design;Meaning of advertising appeal;Essentials of good appeal; Classifications of
advertising appeals;Advertising appeals and buying motives;Buying motives and selling
points.

Unit 8: Media 20 LHs

Meaning and role of media research;Media of advertising;Types, merits and demerits of

indoor media;Outdoor media;Direct media and display media; Factors affecting media
choice;and Meaning and types of media scheduling.

Unit 9: Advertisement Budgeting 10 LHs

Concept of advertising budget and advertising appropriations;The items of expenses included

in advertising budgeting;Advertising budget procedures;The factors influencing the size of
advertising budget;and The method of establishing the advertising appropriations.

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Unit 10: Testing of Advertising Effectiveness 10 LHs

Concept of advertising effectiveness testing;Reasons of advertising effectiveness

testing;Areas to be tested;Types of testing;Pre-testing and post-testing;and Methods of pre-
testing and post-testing.

Project Work 10 LHs

After the completion of forth year concentration classes, the students shall have to prepare
and submit a project work in the area they have specialized. The subject teachers shall have
to discuss with the students on possible topics of the project work, availability and sources of
literature, availability of data, data collection methods, appropriate tools of data analysis, etc
relevant to the subject within 10 lecture hours.

Suggested Readings:

Sontakki C. N.,Advertising, New Delhi: Kalyani Publishers.

Kenneth E. Clow, & Evans, Donald Baack.,Integrated advertising, promotion, and

marketing communications, New Delhi, Pearson Education, Prentice Hall of India Limited.

George E. Belch, Michael A. Belch &KeyoorPurani,Advertising and promotion: an

integrated marketing communications perspective, New Delhi, Tata McGraw Hill
Education Private Limited.

100
 MGT 214: Fundamentals of Marketing

Nature of the course: Core Full Marks: 100

Level: BBS Pass Marks: 35
Year: Second Lecture Hours: 150

Course Objectives

This course aims at developing knowledge and skills in students in analyzing issues concerning
major decision making areas of marketing. It also aims to provide students about effective tools,
techniques and practical skills in marketing of goods, services and ideas. Besides this, an attempt has
been made to familiarize the students with the marketing practices in Nepal.

Course Description

This course contains introduction or marketing, understanding the market place and customer needs,
managing customer relationship, analyzing marketing environment, managing marketing
information, understanding buyer behavior, market segmentation, targeting, and positioning,
product decision, pricing decision, promotion decision, distribution decision, and marketing practice
in Nepal.

Learning Outcomes

On the completion of this course, students will be able to:

 learn the basic concepts of marketing and understand the marketing strategy and effect of
marketing environment in business;
 create value for customer and built a relationship with them to win customer trust and
confidence;
 demonstrate the ability to apply market segmentation, targeting and positioning to win in the
competitive market place;
 identify the importance of pricing and learn the distribution system to deliver product to the
customer;
 know about the marketing communication tools and integrated marketing communication.

Course Details

Unit 1: Introduction 20 LHs

Meaning and definition of marketing; Understanding the marketplace and customer needs
(customer needs, wants, and demand, market offerings-products, services, experience,
customer value and satisfaction, exchange and relationship); Marketing orientation: the
production concept, the product concept, the selling concept, the marketing concept, and the
societal marketing concept; Managing customer relationship and capturing customer value:
engaging customers and managing customer relationships; customer relationship
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 management; customer satisfaction; customer relationship level and tools; Customer
engagement and today’s digital and social media; Consumer generated marketing; Capturing
value from customers; Creating customer loyalty and retention; Creating customer loyalty
and retention; The marketing mix and its components.

Unit 2: Marketing Environment (Analyzing the marketing Environment) 16 LHs

Meaning of marketing environment; Types of marketing environment: the Micro

environment: company, suppliers, marketing intermediaries, competitors; Public and
customers; The macro environment: the demographic environment, the economic
environment, the natural environment, the political and social environment, and the
technological environment.

Unit 3 Managing Marketing Information 12 LHs

Introduction of marketing information; Marketing Information System; Assessing

Information Needs; Developing marketing information: internal data bases, Marketing
intelligence, marketing research, analyzing and using information; Marketing research -
Marketing Research Process and international marketing research; and Marketing
information system in Nepal

Unit 4: Understanding Buyer’s Behaviors 20 LHs

Meaning of Consumer Market and Buying Behavior; Model of Consumer Buying Behavior;
Characteristics affecting consumer behavior; The buying decision process; Meaning of
business market and business buyer behavior; Model of business buyer behavior; Participant
in business buying process; Major influences on business buyers; buying style; Decision
Process of Business Buyer; Engaging Business Buyers with Digital and Social Marketing: e-
procurement and online purchasing; Business to business digital and social media marketing.

Unit 5: Market Segmentation, Targeting, Differentiation and Positioning 18 LHs

Concept of Market Segmentation; Segmenting Consumer Market: geographic segmentation,

demographic segmentation, psychographic segmentation, behavioral segmentation;
Segmenting Business Markets: geographic, demographic, operating characteristics,
purchasing approaches, situational factors, personal characteristics; Segmenting International
Market: geographic location, economic factors, political and legal factors, cultural factors;
Requirements for Effective Segmentation: market targeting, evaluating market segment;
Selecting Target Market Segment: mass or undifferentiated marketing, segmented marketing-
differential marketing, niche or concentrated marketing, micro marketing- local marketing-
individual marketing; Choosing a Targeting Strategy; Differentiation and Positioning; and
Market Segmentation in Nepal.

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Unit 6: Product, Service and Brands 18 LHs

Meaning of Products and Services; Level of Product and Services; Product and Service
Classification: consumer products, industrial products; Product and Service Decision:
product quality, features product style and design, branding, packaging, labeling and logos,
product support services, product line decision, product mix decision; Services Marketing:
the nature and characteristics of a service; Marketing Strategies for services firms; Branding
Strategy- Building strong brands: brand equity and brand value, brand positioning;
Developing New Products: new product, the new product development process, and product
life- cycle.

Unit 7: Pricing 10 LHs

Meaning of price; Major pricing strategies: customer value based pricing, good value pricing,
value added pricing; Other pricing strategies: cost based pricing: cost plus pricing, breakeven
analysis pricing and target profit pricing, competition based pricing; and Internal and external
considerations affecting price decisions.

Unit 8: Marketing Channels 18 LHs

The nature and importance of marketing; Channel design decisions; Retailing and
wholesaling; Retailing trends and development wholesaling; Types of wholesalers; Channel
management decisions: selecting channel member, managing and motivating channel
members, evaluating channel members; Marketing logistics and supply chain management:
nature and importance of marketing logistics; Major logistics functions: transportation,
warehousing, order processing, inventory management, customer service; and Distribution in
Nepal.

Unit 9: Promotion Decision 18 LHs

Concept and objectives of promotion; Marketing communication process and system

communication mix; Advertising: concepts and objectives, Sales promotion: concepts,
objectives, tools and techniques; Personal selling: concepts and relevant of personal selling;
Publicity: concepts and objectives; Public relations: concepts and objectives; Online and
social media; Events and experience; The need for integrated marketing communications;
Selecting marketing communication mix or promotion mix; and Communication in Nepal.

Suggested Readings

Kotler, P., Armstrong, G., Agnihotri, P. (2018), Principles of marketing, India, 17th Edition,
Pearson.

Evans and Burma, Marketing, India, Mcmilliam Publishing Company.

Stanton, Etzel and Walker, Fundamentals of marketing, India, Mc Graw Hill.

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 MKT 250: Fundamentals of Selling
Full Marks: 100

Pass Marks: 35

Lecture Hours: 150

Course Objectives

This course aims to provide knowledge to the students about effective techniques of selling and
developing practical skills in selling job. An additional attempt has been made to familiarize the
students with the sales force management technique.

Course Description

This course contains introduction, understanding, sales process, communication and transactional
analysis in sales jobs, buyer behavior and buying process, building future sales and customer
relations, managing sales force in the organization, arrangement of sales territories, arrangement of
sale quotas, international sales, evaluating, supervising and controlling sales and sales personnel.

Learning Outcomes:

On the completion of this course, students will be able to:

 identify the nature, meaning, concept and role of selling;

 handle the sales process efficiently and understand the role of communication in selling job;
 have a broad knowledge about buyer’s behavior and method of establishing goodwill;
 design of sales force, recruitment and selection;
 identify the buyers in foreign markets and handle better about sales evaluations, supervision
and control.
Course Content:

Unit 1: Introduction 17 LHs

Nature and meaning of selling; Marketing concept of selling concept; Role of selling in
society and in firm; Duties of sales representative; Types of job; Essential knowledge for
successful selling; and Qualifications for success in sales job.

Unit 2: Understanding Sales Process 17 LHs

Pre-sale preparations; Prospecting and qualifying potential customers; Pre-and qualifying

potential customers; Pre-approach planning; Approaching the prospects; Sales presentation

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 and product demonstration; Handling customers objections; Closing the sales; and Follow-up
action.

Unit 3: Communication and Transactional Analysis in sales Job 13 LHs

Meaning and process of communications; Two way communications: listening and

questioning; Verbal and non-verbal communications; Transactional analysis- concepts and
methods of analysis; Hooking the adult ; Role of Communications in Selling Job; and
Factors affecting effective communication.

Unit 4: Buyer Behavior and buying Process 13 LHs

Meaning of buyer behavior; Types of buyer- Individual buyer and Industrial buyer;
Individual buying process; Factors affecting buying decisions; Organizational buying
process; Collecting information about buyers; and Costumer care and satisfaction.

Unit 5: Building future sales and customer Relations 15 LHs

Developing goodwill- meaning and importance; Methods of establishing goodwill; Methods

of improving relations with the non- buyers; Understanding the nature of after-sale or post-
sales services to the costumers- knowledge about the use of products;Adequacy of product
information;Need for help and nature of services by the costumer and understanding the
promises (warranty and guarantee);Handling customers- need for handling customers’
complaints and methods of handling customers complaints.

Unit 6: Managing Sales force in the organization 15 LHs

Meaning of tasks and sales force management; Designing the sales; Recruitment and
selection of sales force; and Challenges in sales force and selection.

Unit 7: Arrangement of Sales Territories 11 LHs

Meaning of sales territory; Need for establishing sales territories; Reasons for not having
sales territories ; Elements of territory management; account analysis developing account
objectives, territory allocation ,customers sales planning, scheduling and routing, territory
and customer evaluation.

Unit 8: Arrangement of Sales Quotas 11 LHs

Meaning and objective of sales quotas; establishing sales quotas; Types of sale quotas;
Methods of setting sales quotas; and Problems of establishing sales quotas.

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Unit 9: International Sales 13 LHs

Introduction; Sales opportunities abroad; Identifying buyers in foreign market; Difficulties in

selling abroad; Major tools in international sales: Internet marketing/ e-marketing, referral
marketing and direct marketing.

Unit 10: Supervising, evaluating, and controlling Sales and Sales Personnel 15 LHs

Meaning and needs of sales supervision evaluation, and control; Process of sales control;
Tools of sales control and analysis - sales audit, market audit; Sales force expense and
analysis; Marketing cost analysis; Classification of marketing expenses; Credit control;
Market share analysis; Budgetary control; Ratio analysis; Management (MBO); and
Controlling sales personnel through supervision and evaluation.

Project Work 10 LHs

After the completion of forth year concentration classes, the students shall have to prepare
and submit a project work in the area they have specialized. The subject teachers shall have
to discuss with the students on possible topics of the project work, availability and sources of
literature, availability of data, data collection methods, appropriate tools of data analysis, etc
relevant to the subject within 10 lecture hours.

Suggested Readings

Pedarson, Carton A., Wright, M.D., and Wright ,B.A. Selling: principles and methods, India,
Richard D. Irwin .

Cooper, Simon, Selling: principles, practice and management, London, Pitman Publishing.

Still, Richard R., Cundiff, Edward W., Bovoni, and Norman, A.P., Sales management: decisions,
strategies and cases, New Delhi, Prentice Hall of India.

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 MKT 251: Customer Relationship Management
Nature of Course: Marketing Specialization Full Marks: 100
Level: Bachelor BBS Pass Marks: 35
Year: Fourth Lecture Hours: 150

Course Objectives

This course aims at providing fundamental knowledge to the students about the customer
relationship management and develops skill on automating and improving the business processes
associated with managing customer relationships in the areas of sales, marketing, customer-service
and support. This course helps them in acquiring, developing and retaining the satisfied loyal
customers; achieving profitable growth and creating economic value in a company’s brand.

Course Description

This course contains introduction, customer care and delighting customers, building customer
loyalty, customer retention, measuring customer satisfaction, customer service planning,
implementation of customer relationship management and warehousing, CRM practices in Nepal.

Learning Outcomes

On the completion of this course, student will able to:

 identify the concept of CRM and value of CRM to organization, customers and customer
care;
 understand the factors affecting customer loyalty and customer retention;
 evaluate the customer satisfaction, employee’s satisfaction and company management
satisfaction;
 develop customer service strategies, monitoring and controlling customer service strategies;
 have basic knowledge about customer data management and ware housing and CRM practice
in Nepal.

Course Details

Unit 1: Introduction 20 LHs

Concept of CRM; Reasons for customer relationship management; CRM in marketing; Value
of customer relationship management –to organization and customer; Types of customer
relationship management; and Various aspects of CRM; Stages of CRM strategy.

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Unit 2: Customer Care and Delighting Customers 15 LHs

Concept of customer care and delighting customers; Customer value and expectations;
Customer care and delighting programs.

Unit 3: Building Customer Loyalty 10 LHs

Concept and importance of customer loyalty; Factors affecting customer loyalty; Attitudinal
and behavioural components of loyalty.

Unit 4: Customer Retention 15 LHs

Concept and importance of customer retention; Analysis of customer life cycle; Reasons for
lost customers; Customer retention strategies; and Management of customer complaints.

Unit 5: Measuring Customer Satisfaction 20 LHs

Concept of customer satisfaction; Reasons for measuring customer satisfaction; Benefits of

measuring customer satisfaction; The costs of poor service and poor quality; Conducting
Customer Satisfaction Survey; Triangular Relationship in Customer Satisfaction- Customer
satisfaction, employee satisfaction and company management satisfaction; Tools and
techniques of measuring customer satisfaction.

Unit 6: Customer Service Planning 20 LHs

Concept of customer service; Cost and value of customer service; Developing customer
service strategy; Monitoring and controlling customer service strategy; Managing customer
service and total service quality.

Unit 7: Implementation of Customer Relationship Management System 15 LHs

Concept of implementing CRM system; Consideration in CRM implementation; Potential

problem in CRM implementation; Avoiding the problems of CRM implementation; and
Steps in CRM implementation.

Unit 8: Customer Data Management and Warehousing 18 LHs

Information technology and CRM; Sources of customer data- internal and external sources;
Tools and techniques of data collection- publications, internet, marketing intelligence system,
etc. ; Concept and components of Data Warehouse- large reservoir, business dimensions and
easy retrieval; and Steps in data warehousing.

Unit 9: CRM Practice in Nepal 15 LHs

Evolution of CRM; The global dimension of CRM; Implementation of CRM system in

Nepalese enterprises; The future of CRM system; and Project work need to be assigned to
students.

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Project Work 10 LHs

After the completion of fourth year concentration classes the students shall have to prepare
and submit a project work in the area they have specialized. The subject teachers have to
discuss with students on possible topics of the project work, availability and sources of
literature, availability of data, data collection methods, appropriate tools of data analysis etc.
relevant to the subject within 10 lecture hours.

Suggested Readings:

Buttle, Francis (2013), Customer relationship management concepts and technologies,

London, Tayler and Francis Group.

Bhat, K. Govind, Customer relationship management, Mumbai, Himalaya Publishing

House.

Graham Roberts-Phelp, Customer relationship management, London, Thorogood

Publications.

Zikmund, WilliamG., R. McLeod and F. W. Gilbert, Customer relationship management,

Singapore, John Wiley and Sons (Asia) Pvt. Ltd

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 MKT 254: Fundamentals of Services Marketing

Nature of the Course: Marketing Specialization Full Marks: 100

Level: BBS Pass Marks: 35
Year: Fourth Lecture Hours: 150

Course Objectives

This course aims to impart fundamental knowledge about marketing of services and service
industries. In addition, this course also makes an attempt to acquaint knowledge to them regarding
service marketing practices in Nepal.

Course Description

This course contains introduction; marketing segmentation; targeting and positioning for services
firm, customer perception and expectations of services, buyer behavior and relationship marketing,
service product and quality management, pricing strategies for services, promotion strategies for
services, distribution strategies for services, and emerging service sectors in Nepal.

Learning Outcomes

On the completion of this course, students will be able to:

 identify the basic knowledge of marketing goods and services, and importance of services
marketing in the 21st century;
 understand the market segmentation, targeting and positioning of service market;
 develop understanding of various levels of service expectation and factors influencing
customer’s expectations;
 identify the key differences in customer behavior in buying products and services;
 describe the new service development process, understand the various approaches for service
pricing, components of promotion mix, strategic choice of distribution and understand the
nature of growth of service sector in Nepal.

Course Details

Unit1:Introduction 19 LHs

Meaning;Characteristics and classification of services; Fundamental difference between

goods and services; Emerging key services; Reasons for the growth of services sector;
Challenges in service sector; Concept and importance of services marketing; and Marketing
mix for services.

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Unit 2:Market Segmentation, Targeting and Positioning for a Services Firm 10 LHs

Concept and process of market segmentation for service product; Market segment strategies
for service product; Concept and process of service positioning in the target market; and
Servicepositioning strategies.

Unit3: Customer Perceptions and Expectations of Services 18 LHs

Customer perception on service product; Customer satisfaction and service quality; Gap
model of service quality; Concept of customer expectations and factors influencing customer
expectations; Service encounter and moment of truth; and Management of customer service
expectation.

Unit 4: Buyer Behaviour and Relationship Marketing 16 LHs

Understanding buyer behavior; Factors influencing buyer behavior; Meaning and importance
of relationship marketing; Difference between transactional selling and relationship
marketing; Customer relationship development strategies; and Customer value building
approaches.

Unit5: ServiceProduct and Quality Management 17 LHs

Concept and nature of service product; New service product and service product
development; Life-cycle strategies for service products; Branding the service product;
Maintaining service quality and model of service quality; Service-profit chain strategy;
Researching service quality and setting quality standard.

Unit6:PricingStrategies for Services 16 LHs

Pricing objectives and buyers’ perception of value; Considerations of services pricing-

demand considerations, cost considerations, competition considerations, legal considerations;
Satisfaction based pricing, relationship pricing, and efficiency pricing.

Unit7: Promotion Strategies for Services 15 LHs

Meaning and objective of promotion for service product; Communication process for service
product; Promotion mix for service product; Selection strategies for selecting the promotion
mix; Integrated marketing communication for service product- service promised,
communicated message, integrated communication and guarantees; and Social ethics in
service promotion.

Unit 8: Distribution Strategies for Services 15 LHs

Nature of distribution for service product; Factors affecting the choice of distribution
channels; Distribution strategies- intensive, selective and exclusive; Managing distribution
channels- selection, motivation, training, evaluation, managing conflict; and Role of Internet
in global distribution system.
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Unit 9: Emerging Services Sectors in Nepal 14 LHs

Introduction; Healthcare sector; Banking sector; Insurance sector; Tourism sector;

Communication and networking sector; and Hydro power sector.

Project Work 10 LHs

After the completion of fourth year concentration classes the students shall have to prepare
and submit a project work in the area they have specialized. The subject teachers have to
discuss with students on possible topics of the project work, availability and sources of
literature, availability of data, data collection methods, appropriate tools of data analysis, etc.
relevant to the subject within 10 lecture hours.

Suggested Readings:

Jauhari, Vinnie &Dutta, Kirti, Services marketing, operations and management,New Delhi,
Oxford University Press.

Lovelock, Christopher, Services marketing, New Delhi, Pearson Education Asia.

Apte, Govind, Services marketing, New York, Oxford University Press.

Balaji, B., Services marketing and management, New Delhi, School and Co. Ltd.

Palmer, Adrian, Principles of services marketing, London, McGraw-Hill International Edition.

Zeithaml, V.A., Bitner, M.J,Gremler, D.D., and Pandit, A. (2011), Services marketing, New
Delhi, Tata McGraw-Hill.

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 MGT 251: International Business

Level: Bachelor of Business Studies (BBS) Full Marks: 100

Year: Fourth Pass Marks: 35
Nature of the Course: specialization Lecture hours: 150

Course Objectives
The objective of this course is to familiarize students with the environment and challenges of doing
business abroad. The course presents students with the opportunities to explore a number of issues
and concerns relating to international business.

Learning Outcomes
Upon successful completion of this course, students will be able to:
 Understand what International Business is and why it is important to business graduates.
 Comprehend the basic terminology and jargons frequently used in the operation of
International business.
 Have the skill of selecting and applying appropriate managerial techniques in managing
international organizations.
 Acquire skills, abilities and tools required for the employment career in International Business
organizations.
 Update their knowledge in the contemporary theories & practices in managing international
business effectively and efficiently.
Course Description
This course contains globalization and international business, global economy and regional,
international trade and investment theories and practices, national difference in political, economic
and socio cultural environment, strategies for international business and international financial
environment to provide the basic knowledge to students.

Course Details
Unit 1: Globalization and International Business 12 LHs
Concept of domestic, international and global business. Opportunities and challenges of IB.
Globalization: Concept and drivers, Types of globalization: economic, cultural, political,
environmental, production, market. International Business Environment: Economic,
demographic, cultural and political-legal environment; Globalization debate: positive and
negative impact.

Unit 2: Global Economy and Regional Economy 18 LHs

Global economy: concept, features and structures; Changing demographics of global
business. MNCs: Concept, types, structures, strategies, and problems. Global economic
integration: WTO (Origin, goals, structure, and functions). Regional economic integration
levels: preferential trading, free trade areas, customs union, common market, economic
union, and political union; International Economic Organizations: WTO, UNCTAD, World
Bank, IMF EU, NAFTA, SAFTA, BIMSTEC (Origin, goals and structure).
Unit 3: International Trade and Investment theories and practices 18 LHs
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 International trade theories: Mercantilism, absolute cost advantage, comparative advantage,
factor endowment, PLC, Porter’s diamond. Patterns of global trade. Protectionism &
Government’s instruments of trade intervention: tariff & non-tariff barriers. Balance of
payment (BOP): Balance of payment account and its components

Unit 4: National Differences in Socio-cultural Environment 14 LHs

Socio-cultural implication on IB. Cultural differences: Determinants of culture: Awareness,
values, norms, communication, language and religion. Dealing with cultural differences.
Social responsibility: concept and implications.
Unit 5: National Differences in Political Environment 10 LHs
Political systems: Democracy & totalitarian spectrum. Business-government relations.
Political risk: concept and types. Impact of political environment on international business.
Implications of legal systems in business. Intellectual property rights.

Unit 6: National Differences in Economic Environment 12 LHs

Economic system: market, command, mixed. Determinants of economic development:
Inflation, Income (GDP, per capita income nominal & PPP, HDI). Level of economic
development: developed, developing, and emerging economies (World Bank’s Criteria).
Competitive environment of IB.
7: International Financial Environment 20 LHS
Foreign exchange markets, Spot market, spot rate quotations, bid-ask spreads, trading in spot
markets, cross exchange rates, forward markets, forward rate, long and short forward
positions, forwards premium and discount; Arbitrage, Hedging and Speculation; Types of
exchange rate systems: fixed and floating, soft peg, crawling peg, free float, managed float;
Foreign exchange risk and exposure;
Exchange rate Determination: Types of Exchange rates, Factors affecting exchange rate-
relative inflation rates, interest rates, relative interest rates, relative income levels,
government controls, expectations; Mode of payment in international trade.

Unit 8: Strategies for IB 16 LHs

International strategic management: Concept and importance; Modes of entry into a foreign
market: Export and import; strategic alliances: equity based (wholly owned subsidiaries,
acquisition, greenfield venture, equity alliances, joint venture) and contractual based
(licensing, franchising, turnkey operations, BOT, management contract). FDI & portfolio
investment: benefits and drawbacks.

Unit 9: Functional Management and Operation of IB 20 LHs

Polycentric, ethnocentric, regiocentric and geocentric approach in functional management of
IB. Global marketing strategies: Product strategy, distribution strategy, promotion strategy,
pricing strategy. Global production strategies: location, outsourcing, managing global supply
chain. Global finance strategies: sources of fund, tax practices, tax haven. Global human
resource management strategies: Staffing policy, expatriate management, compensation,
cultivating global mindsets.

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Project Work 10 LHs
The final project work is made an essential academic requirement for the fourth year students in all
concentration courses. The faculty will give home/field assignment to students to develop/ design/
evaluate/ analyze/ control/ or similar other task related to project, and discuss in classroom so that
students learn practicum on international business.

Suggested Reading:
Cavusgil S.T., Knight G. and Riesenberger J. (2017). International Business. Fourth Edition.
England: Pearson Education Limited.
Hill, Charles and Hult, Tomas. (2019). International Business. Twelfth Edition. New York:
McGraw Hill Education.
Daniel J.D., Radebaugh L.H., Sullivan D.P. (2015). International business. Fifteenth Edition.
England: Pearson Education Limited.
Rugman A.M. and Collinson, S. (2012). International business. Sixth Edution. England:
Pearson Education Limited.

115
 MGT 256: Small and Medium Enterprises

Level: Bachelor of Business Studies (BBS) Full Marks: 100

Year: Fourth Pass Marks: 35
Nature of the Course: Specialization Lecture Hours: 150

Course Objective

The purpose of the course is to prepare students for the possibility of starting their own small and
medium entrepreneurial ventures in their society. This course provides knowledge and skills to the
students on various aspects of small and medium enterprises. The course emphasizes on improving the
skills of the students to identify business opportunities in Nepalese society.

Course learning objectives

 Understand the importance of defining the right strategy for the SME in a fast changing world
and to apply specific tools, models and processes in Nepalese enterprises.
 Identify and Analyze factors for successful strategies as well as reasons for failure based on
specific Nepalese case.
 Understand the importance of the three Pillars for Success: Strategy - Execution - HR and to
assess their effectiveness.
 Understand the importance of leadership, governance and approaches to conflict resolutions
and describe different models of governance at SMEs with their respective advantages and
disadvantages.
 Understand the importance of values at an SME for their sustainability and their innovation
capacity.

Course Description

The course contains overview of entrepreneurship, creativity, innovation and social entrepreneurship,
legal issues and environment for the entrepreneurship development, new venture identification and
selection, preparation of business plan with business model canvas, and institutional support to
entrepreneurship development.

Course Details

Unit 1: Introduction 10 LHs

Small and Medium Enterprises (SMEs): concept, objectives and characteristics; SMEs: role
and significance in the economy; SMEs and family business.

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Unit 2: Emergence of SMEs 20 LHs

History of SMEs; The Historical Trajectory of the SMEs; Industrial Development and SMEs;
SMEs Growth; Multi-Dimensional Connections: State Owned Enterprises (SOEs), Privatized
SOEs and SMEs; Provisions Pertaining to Promotion and Development of SMEs in Nepal

Unit 3: SMEs and Rural Entrepreneurship 20 LHs

Rural Entrepreneur and Rural Entrepreneurship: Concept, Types and Characteristics; The
Relationship between SMEs and Rural Entrepreneurship; The Informal Sector and SMEs; The
Role of SMEs for Rural Entrepreneurship Development in Nepal

Unit 4: SMEs and Market 25 LHs

Assessment of business opportunities; SMEs and Market Access; Local Market; Market
Realities and Free-Market Ideology; The Role of the SMEs in Emerging Market; Government
initiatives and Private sector opportunity in Nepal; The SMEs and Interlocking Markets: The
Role of ‘Social Assets’

Unit 5: Setting Up a Small Business Enterprise 25 LHs

Concept of Business Idea; Business Idea Selection Process; Legal Form of Business; The
Crucial

Distinction between Proprietorship and Entrepreneurship; Contribution of Small Enterprises

to Large Enterprises; the Relationship between Local Resources and SMEs; Risks and
Uncertainty to SMEs in Nepal

Unit 6: Financial Management 20 LHs

Financial Planning; Estimation of Financial Requirements; The Relation between SMEs and
Finance; Sources of Finance: Internal sources and External sources of Financing including
Term Loans and Financial Accommodation from Financial Institutions; Small Enterprise Start
up Cost; Venture Capital

Unit 7: Small and Medium Enterprise Development in Nepal 20 LHs

Status of Nepalese SMEs; SMEs and Links to the Informal Economy in Nepal; Economic
Contribution through SMEs in Nepal; Advantages of SMEs in Employment Generation;
Contribution of SMEs to Sustainable Development in Nepal

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Project Work 10 LHs

The final project work is made an essential academic requirement for the fourth year students in all
concentration courses. The faculty will give home/field assignment to students to develop/ design/
evaluate/ analyze/ control/ or similar other task related to project in SMEs, and discuss in classroom so
that students learn practicum on SMEs.

Suggested Readings

Hillary, R. (2017). Small and Medium-Sized Enterprise and Business Imperatives, The Environment,
Greenleaf Publishing, USA

SCHAPER, M.(2011). Entrepreneurship and small business, 3rd Asia Pacific Edition, Wiley India
(p) Ltd.

Thomson, A. (2016). Small Business, Education, and Management, The Life and Times of John
Bolton, Routledge, USA

GoV. of Nepal, MoF (2019). Annual Performance Review of Public Enterprises, Kathmandu, Nepal

UNCDP Report (2018). Access to Finance of Micro, Small and Medium-Sized Enterprises in Nepal

118
 MGT 257: Event Management

Full Marks: 100 Lecture Hours: 150

Pass Marks: 35

Nature of the Course: specialization

Course Objectives
This course aims to impart the basic event management knowledge and skills to the students so as to
enhance their event managerial capabilities and enable them to apply in the practical field. The
course provides a comprehensive knowledge to students about the various issues related to event and
help them understand the major functions and activities in event management.

Learning Outcomes
Upon successful completion of this course, students will be able to:
 Understand what event management is and why it is important to business management
students
 Understand event as a project
 Have developed a working knowledge of fundamental terminology in the event management
 Be able to identify and apply appropriate event management techniques in the event industry
 Have an understanding of the skills, abilities and tools needed to perform a job of event
management.
 Understand the concept, principles and issues of event regulation and laws
 Understand the nature and scope of events in different sectors

Course Description
This course contains the introduction to event management, events as project, event planning and
team management, activities in event management, development of event strategy, event safety and
security, event laws and license, basic event accounting and events in different sectors and project
work related to event management.

Course Details
Unit1: Introduction to Event Management 20 LHs
Meaning of Event, Characteristics of Event, Historical Perspective of Event, Types of event:
On the Basis of size (Local, Major, Hallmark and Mega Events) and On the Basis of Contents
(Cultural, Musical, Sports, Private, Political, Corporate, Religious). Event Management:
Meaning, Principles, and Challenges, Event Team, Code of ethics, Feasibility analysis, Event
Industry: Meaning and Characteristics, Event management and business.

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Unit 2: Events as Project 15 LHs
Definition, Common Characteristics of Event and Project, Organizational Structure of Event
Project, Project Planning, Project Optimization, Project Evaluation and Review Technique,
Project Crashing, Project Risk Management, Project Implementation, Project Breakdown and
Shutdown

Unit 3: Event Planning and Team Management 15 LHs

Concept of event planning, Developing a mission and Establishing Objectives, Setting Event
Theme, Event Wow Factor, Event staging and logistics planning, Preparing event proposal,
Event Sustainability, Protocols, Dress codes, Staffing, Event Leadership: Traits,
characteristics and Roles, Management of event Teams: Team Planning, Team Development,
operationalizing Team, Volunteer Management and Meetings management, Event Induction
and Acculturation and Communication with event team.

Unit 4: Activities in Event Management 25 LHs

Communication Components for Networking (Print Media, Radio Television, The Internet,
Cable Network, Outdoor Media, Direct Marketing, Sales Promotions, Audience Interaction,
Public Relations, Merchandising, In-venue Publicity), Event Sponsorship, Event Branding,
Advertising/publicity and Public relations, Event Contracts (Venue Contract, Sponsor and
exhibitor contract, Entertainment contract, Other supplier contract) Managing Event
Logistics: Costumer Logistics (Ticketing, Queuing, Transportation and Accommodation) and
Venue Logistics (Venue/site design, Supplier logistics, Food and beverage, Stewarding and
security, Flow and people management, VIPs, Communication procedure), Activities in
Event Management (Pre-event Activities, During-event Activities, Post-event Activities),
Event Management (Planning, Organizing, Staffing, Leading and Coordination, Controlling),
Event Management Information System,

Unit 5: Development of event strategy 10 LHs

Setting Vision, Mission and Objectives, Environmental Assessment: Assessment of Business
Potential, market attractiveness and event strength, Development of the Strategic Market
Plan, Way Forward for Gaining Competitive Advantages,

Unit 6: Event Safety and Security 10 LHs

Event Security, Occupational safety and Health, Crowd management and Evacuation, Major
Event risks, Event Insurance, Incident reporting, Emergency Planning and Procedures

Unit 7: Event Finance 10 LHs

Event Costing, Event Pricing, Budgeting, Calculation of Breakeven point: Flexible and its
use to gain advantages in competitive market, Cash flow analysis, Projected Income
statement of future events, Panic payments, Financial control system.

Unit 8: Event Laws, License and Practices in Nepal 15 LHs

Licenses and Permits, Event Ownership and Duty of Care, stakeholders and official bodies,
Event management practices in Nepal, Problems and Prospects of Event Management in
Nepal. Way forward to strengthen the event business in Nepal from the policy and economic
perspective.

Unit 9: Events in Different Sectors 20 LHs

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 Corporate Events, Types of Corporate Events (Meeting and conferences, Networking events,
Corporate hospitality, Exhibitions and trade shows), Events in Public Sector and Non-
government sectors, Cultural Events and Festivals, Sports Events, Mega Events: meaning and
characteristics, Impact of Mega Event on Tourism, economy and politics, Non-Profit Events
(Fundraising events, Political events, Religious events), Private Events.

Project Work and Development 10 LHs

The final project work is made an essential academic requirement for the fourth year students in all
concentration courses. The faculty will give home/field assignment to students to develop/ design/
evaluate/ analyze/ control/ or similar other task related project to event management, and discuss in
classroom so that students learn practicum on event management.

Suggested Reading:
Jones, Meegan (2014). Sustainable Event Management, Routledge.
Capell, Laura (2013).Event Management for Dummies, Wiley.
Lynn Van Der Wagen and Brenda R. Carlos (2020). Event management, Pearson/Prentice Hall
Glenn A.J. Bowdin (2010). Evenet management, Oxford.
Bladen, Charles et al. (2012), Events management: An introduction, Routledge.

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 MGT 258: Project Management

Full Marks: 10
Pass Marks: 35

Nature of the Course: specialization Lecture Hours: 150

Course Objectives
This course aims at familiarizing and equipping the students with significance of project
management and its important aspects so that they can acquire knowledge and skills essential for
project management. The course also aims at developing basic skills in students of project
identification, planning, implementation, appraisal and control.
Learning Outcomes
Upon successful completion of this course, students will be able to:
 Understand the overall concept of project management and its importance
 Have developed a working knowledge and frameworks in the functions of project
management
 Be able to identify and apply appropriate project management techniques for managing
projects
 Have an understanding of the skills, abilities and tools needed to obtain a job on a project
management track in an organization of their choice.
 Have fundamental skills of preparing the projects plan

Course Description
This course contains concept of project and project management, project classification, developing
project plan and formulation, leadership and team management for project, project appraisal and risk
management, project closure and hand over, project management career paths and project
management practices in Nepal.

Course Details

Unit 1: Project and Project Management 25 LHs

Meaning of project; Features of project; Project scope and priorities, Types of project;
Project life cycle; Project governance, work breakdown structure (WBS), Concept of project
management; Features and functions of project management; Significance of project
management; Socio-technical approach of project management; Current drivers of project
management; Phases of project management; 7-S of project management. Project
management as a strategic capability; Resource coordination; Project and organizational
goals.

Unit 2: Estimating Project Time, Cost and Quality Planning 15 LHs

Concept of project time, cost and quality; Types of costs, Estimating guidelines for Times,
Costs and Resources; Top-Down versus Bottom-Up Estimating; Methods of Estimating
Project Times and Costs; Project Cost Management.

Unit 3: Developing Project Plan 15 LHs

Developing project networks; Basic rules to follow in developing project network; Activity-
on-arrow (AoA) diagrams, Activity-on-Node (AON), Scheduling; Computer-assisted project
planning; Fast-track projects; Quality planning process; Quality conformance planning;
Quality performance planning.
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Unit 4: Project Appraisal and Risk Management 15 LHs
Meaning of project appraisal; Common methods of project appraisal; Tools for project
appraisal; Analyzing time plans; Analyzing cost plans; Analyzing quality plans; Risk
management; Risk management process: Risk identification, Risk assessment, Risk response
development, Risk response control; Change control management.

Unit 5: Leadership and Team management for project 15 LHs

Managing versus leading a project; Managing project stakeholders; Social network building:
mapping dependencies, management by wandering around, managing upward relations,
leading by example; Building trust; qualities of an effective project manager; Team building
for project; Role of teams; Building high-performance project teams; Project team pitfalls.

Unit 6: Projects Controlling 15 LHS

Meaning of control; Structure of a project monitoring information system; Type of project
control; Project control process; Indices to monitor control; Control systems; Outsourcing:
HR outsourcing, process outsourcing and project outsourcing, Control constraints – quality,
cost and time; Project control techniques; Change control.

Unit 7: Project closure and Handover 15 LHs

Types of project closure; Warp-up closure activities; Creating final report; Post
implementation evaluation, Conducting reviews; Retrospectives; Project handover.

Unit 8 : Project Management Career Paths 10 LHs

Career paths; Pursuing a career; Professional Training and Certification; Gaining visibility;
Mentors; Success in key projects.

Unit 9: Project Management in Nepal 15 LHs

Project management development in Nepal; Significance of project management in Nepal;
Project planning practices in Nepal; Project appraisal and control practices in Nepal; Problems
for project delay in Nepal

Project Work 10 LHs

The final project work is made an essential academic requirement for the fourth year students in all
concentration courses. The faculty will give home/field assignment to students to develop/ design/
evaluate/ analyze/ control/ or similar other task related to project, and discuss in classroom so that
students learn practicum on project management.

Suggested Readings:
Harold Kerzner .Project Management: A Systems Approach to Planning, Scheduling, and
Controlling, 10th ed.
Gray, C. F., Larson, E. W. & Desai, G. V. Project Management: The Managerial Process. Chennai
McGraw Hill Education (India) Private Limited.
Maylor, H. Project Management. New Delhi: Pearson Education Ltd.
Mantel, S.J. et al. Project Management. New Delhi: Wiley-India.
David I. Cleland, Project Management: Strategic Design and Implementation, McGraw Hill
International.
Chandra, P. Projects. New Delhi: McGraw Hill Education.
Choudhury, S. Project Management. New Delhi: McGraw Hill Education.
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 MGT 259: Technology & Information Management

Full Marks: 100

Pass Marks: 35
Nature of the Course: specialization Lecture hours: 150

Course Objectives
The basic objective of this course is to give a comprehensive knowledge to students about
organization and help them understand the major functions, principles, and techniques of using
technology and information management. The course provides an in-depth understanding of
fundamental concept of technology and information and its use for betterment of organizational
performance
Learning Outcomes
Upon successful completion of this course, students will be able to:
 Understand what technology is and why it is important to business student.
 Comprehend the basic terminology and jargons frequently used in the operation of technology
and information management.
 Have the skill of selecting and applying appropriate technology in managing organizations.
 Acquire skills, abilities and tools required for the technology and information management.

Course Description
This course contains the foundations of technology management, information system in business,
Management information: application and relationship, Information technology and strategic
advantages, e- business systems, use of IT in collaboration and social business, knowledge regarding
use of business intelligence and the emerging issues in information and technology management in
Nepal.

Course Details
Unit 1: Introduction to Technology Management 20 LHs
Concept of technology and technology management, Evolution and growth of
technology, Sources of technology, Forms of technology: process and products
technology; Role and significance of management of technology, Impact of technology
on society and business, ICT in business, Ethics in using information technology.

Unit 2: Information System in Business 20 LHs

Information management: concept, functions and dimensions; Information technology and its
role on information generation and disbursement; The interdependence between organization
and information systems; Role of information systems on strategy formulation and decision
making; Assets required to optimise returns from the use of information technology:
organizational assets, managerial assets and social assets; Contemporary approaches to
information system.

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Unit 3: Management Information: Applications and Relationship 20 LHs
Management Reporting System; Decision support system; Office information system
including video conferencing and e-mail; Use of internet and management information
system for managerial activities; Role and uses of various social media in business : research
and development, information management, innovation, venture creation ; Security issues
related to information and technology management.

Unit 4: Using Information Technology for Strategic advantages 18 LHs

Changing context of technological environment, product development – from scientific
breakthrough to marketable product; linkage between technology development and
competition; Managing research and development though technology; Strategic
components and use of IT; Role of IT in achieving strategic advantages; Introduction of
agile, virtual and knowledge creating company and uses of IT; Synergizing core
competencies and network-based strategies.

Unit 5: E-business systems 30 LHs

E-commerce: Concept and importance; Digital markets and digital products; E-commerce
and internet; E-commerce today; Peculiarities of e-commerce; E-commerce business models;
E-commerce revenue models; The mobile digital platform and mobile e-commerce. E-
Business system: marketing, operation and manufacturing, HRIS system, financial
management and reporting; Marketing information system and sales force automation; Use
of ICT in operation and computer integrated manufacturing; Use of IT in HRM; Application
of IT in financial management and reporting system.

Unit 6: Collaboration and Social business 15 LHs

Meaning of collaboration and social business, business benefits of collaboration and social
business, application of social business, Requirements for collaboration, Tools and
technologies for social business, Information system department in social organization, role
in managerial activities and operation procedures in Nepal.

Unit 7: Foundations of Business Intelligence 10 LHs

Business intelligence: Concept and importance; Dimensions of artificial intelligence;
Benefits of artificial intelligence in business, Big data analytics; Data-base approach to data
management; Data-base management and business performance; Managing data resources;
Mastering big data and searching opportunities.

Unit 8: Emerging issues in Information and Technology in Nepal 7 LHs

Social media and consumer outreach; Wireless revolution and business in Nepal; Mobile
computing technologies in Nepal; Emerging issues in IT: E- health, Socio-technical system,
mobile computing, cloud computing distance and e-learning technologies, automation,
virtual reality, data warehousing and mining, knowledge management, cyber privacy and
security,
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Project Work 10 LHs
The final project work is made an essential academic requirement for the fourth year students in all
concentration courses. The faculty will give home/field assignment to students to develop/ design/
evaluate/ analyze/ control/ or similar other task related to project work, and discuss in classroom so
that students learn practicum on technology and information management.
Suggested Readings

Kenneth C. Laudon and Jane P. Laudon. Management Information Systems: Managing the digital
(13th ed.). Delhi, India: Pearson Education firms
James A. O’brien , George M . Marakash and Ramesh Behl. Management Information System (10th
ed.). Noida, India: McGraw Hill.
Ramesh Behl. Information Technology for Management. Noida, India: Tata McGraw Hill.

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