Purbanchal University

BBA IV Semester

LH: 48

Course Title: Business Law

Code: MGT 141

Area of Study: Core

Credit Hour: 3

Course Objective: The course intends to familiarize students with the business related laws required for
managing business operations effectively and successfully.

Course Content:

Unit I: INTRODUCTION 4 LH Meaning and nature of law; Meaning and scope of business law;
Sources of business law; Development of Nepalese business law

Unit II: LAW OF CONTRACT 20 LH Meaning and definition of contract; Essential

requirements of a valid contract, Classification of contract, Brief introduction of Nepalese Karar Ain
2056;

The proposal of offer and acceptance: Meaning and types of offer, Legal rules regarding offer,
Communication and revocation of offer, Meaning of acceptance, Legal rules regarding a valid
acceptance, Communication and revocation of acceptance

Consideration: Meaning, Definition and types of consideration, Essentials of a valid consideration,

Contracts without consideration

Parties competent to contract: Meaning, Minor and the law regarding minor’s agreement, Persons of
unsound mind, Disqualified persons

Legality of object and consideration: Meaning and importance, Unlawful agreements, Agreements
opposed to public policy, Void and illegal agreements
Quasi-contracts: Meaning of quasi-contract, Rules regarding quasi-contract, Quasi-contract Vs
Contingent contract

Performance of contracts: Meaning of performance of contracts, Rules as to the performance of

contracts, Assignment of contracts, Rules regarding assignment of contracts

Discharge of contracts: Meaning and modes of discharge of contract, Remedies for breach of contract.

Unit III: CONTRACT OF BAILMENT AND PLEDGE OF PAWN 6 LH Meaning, definition and kinds of
Bailment, Rights and Duties of Bailor, Rights and Duties of Bailee, Termination of Bailment, Meaning of
pledge or pawn, Advantages of pledge, Pledge by Non-owners, Rights and Duties of pledge, Rights and
obligations of pledgor; Bailment Vs Pledge

Unit IV: INDEMNITY AND GUARANTEE 5 LH Meaning and features of Indemnity, Rights and Duties of
Indemnity holder, Rights and Duties or liabilities of indemnifier, Meaning and features of guarantee,
Types of guarantee, Differences between contract of indemnity and guarantee

Unit V: CARRIERS AND CARRIAGE OF GOODS 4 LH Contract of carriage, Classification of carriers,

Rights, duties and liabilities of a common carrier, Meaning and Forms of a contract of affreightment;

Unit VI: LAWS OF ARBITRATION 5 LH Meaning and definition of Arbitration, Essentials of a valid
arbitration, Importance of Arbitration, Meaning of Arbitrator, Procedure to appoint Arbitrator, Duties of
Arbitrator, Removal of Arbitrator or umpire, Meaning of Award, Essential elements of a valid Award

Unit VII: CONTRACT OF SALE OF GOODS 4 LH Meaning and definition of contract of sale, Essentials of
a contract of sale, Kinds of goods, Meaning and definition of Condition and Warranty, Express and
implied Condition and Warranty, Rights and Duties of unpaid seller.

References:
Shrestha Ram Prasad ‘Nirajan’, Business Law

Shukla M.C.,(1996) , A Manual of Mercantile Law, S Chand and company Ltd, New Delhi

Nepal Karar Ain,2056,Law Book Management, Nepal

Dr Das Hari Hara, Principles of International Law and organization, Vikash Publishing House PVT.LTD,
New Delhi

Kuchhal M.C., Business Law, Vikash Publishing House PVT.LTD., New Delhi
 Purbanchal University

BBA IV Semester

LH: 36

Course Title: Financial Management

Code: MGT 142

Area of Study: Core

Credit Hour: 3

Course Objective:

The objective of this course is to create an understanding of the basic concepts, principles and
techniques of financial management among students. It also aims to enable them to apply this
knowledge in real-life situations and take appropriate financial decisions.

Course Contents:

UNIT I: Recap of Business Finance L.H. 3

Cost of Capital; Bond Valuation; Common Stock Valuation

UNIT II: Capital Budgeting: Cash-flow Principles L.H. 4

Project Classifications; Identifying and Computing relevant cash-flows in cases of Expansion and
Replacement – Initial investment, Net Operating Income, Terminal Cash-flow;

UNIT III: Capital Budgeting Techniques L.H. 6

Capital Budgeting Techniques – Payback Period, Discounted Payback Period, Accounting Rate of Return,
Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, Profitability Index;

UNIT IV: Short-term Financial Planning L.H. 4

Sources of Short-term Financing; Features of Short-term Financing;

Cost of Trade Credit; Short-term Bank Loans – Promissory Note, Line of Credit, Revolving Credit
Agreement; Cost of Bank Loans – Simple Interest, Discount Interest and Effect of Compensating Balance
on Discount Interest, Add-on Interest;

UNIT V: Working Capital Management L.H. 5

Concept of Working Capital; Working Capital Terminology; Working Capital Cash-flow Cycle – Operating
Cycle and Cash Conversion Cycle;

Current Assets Investment Policies – Conservative, Moderate, Aggressive; Current Assets Financing
Policies – Conservative, Matching maturity, Aggressive; Choosing Overall Working Capital Policy;

UNIT VI: Receivables Management L.H. 5

Purposes of Receivables; Key terms – Average Collection Period, Average Daily Sales, Average
Investment in Receivables;

Aging Schedule and Payment Pattern Approach;

Credit Policy – Credit Period, Credit Standards, Collection Policy, Cash Discounts

Evaluation of Proposed Changes in Credit Policy;

UNIT VII: Lease Financing L.H. 5

Types of Lease; Factors influencing Lease Decisions; Possible Advantages of Leasing;

Cash-flow of a lease; Lease or Buy Decision;

UNIT VIII: Dividend Policy L.H. 4

Dividends and Capital Gains; Factors influencing a Dividend Policy

References

Gitman, Lawrence J., Principles of Managerial Finance, Harper Collins Publishers,

Brigham, E.F. and J. F. Houston, Fundamentals of Financial Management, Harcourt Asia Pte. Ltd.,
Singapore
Van Horne, James C., and John M. Wachowicz, Fundamentals of Financial Management, Pearson
Education, New Delhi

Ross, Stephan A., R. W. Westerfield, and J. D. Bradford, Fundamentals of Corporate Finance,

McGrawHill/Irwin, Boston

Pradhan, R. S., Financial Management, Buddha Academic Enterprises, Kathmandu

 Purbanchal University

BBA IV Semester

LH: 36

Course Title: Taxation and Auditing

Code: MGT 143

Area of Study: Core

Credit Hour: 3

Course Objective: The objective of this course is to enables students to understand basic theory, practice
of taxation and assessment of income, corporate and value added tax.

Course Content:

Unit I: LH: 6

Concept and definition of tax; Difference between Tax, duty, charge and fee; Direct tax: Tax on income,
Tax on capital (Tax on land, land transfer, motor vehicle) Indirect Tax: VAT (Tax on goods and services),
Customs, Excise, Services; Impact of direct and indirect in economy;

Unit II: LH: 2

Definitions of important terms: Resident, temporary resident and nonresident

Unit III: LH: 5

Natural person, Family; Entity (Corporation, Company, Cooperative, Partnership, Joint venture any
Formal or Informal Association of Individuals) Income chargeable to tax; Addition in income and
deduction of expenditure

Unit IV: LH: 5

Assessment of taxable income: Of Natural person and family, entity (Corporation, Company,
Cooperative (Partnership, Joint venture and Formal or Informal Association of Individuate

Unit V: LH: 4
Payment of tax: Pay as you earn Withholding tax by the payers of income Installments payment by the
tax payer on Current year income Other enforced collection

Unit VI: LH: 4

Value added tax concept definition and types; VAT in Nepal general legal provisions. Tax rates, Main
rates, Zero rates and Exemptions; Registration and exit

Unit VII: LH: 4

Submission of return and assessment; Revisions and assessment by tax officer; Jeopardy assessment by
tax officer, Payment of tax, Fine and Penalty

Unit VIII: LH: 6

Origin, nature and scope of auditing; Advantage of an audit, Accounting, auditing and investigation;
Evolution of auditing in Nepal; Classification of audits, private audit, government audit, internal audit,
statuary or compulsory audit, partial audit balance sheet audit

References:

Income Tax Act 2058 HMG Ministry of Law Parliamentary Affairs Income Tax Rules: HMG Inland
Revenue Department 2059, Excise Act and Rules

Rup Khadka, The Nepalese Tax System 2001, Sajha Prakashan, Katmandu

Customs Act and Rules

Value Added Tax Act, 2052: HMG Ministry of Law & Parliament Affairs Value Added Tax Rules: HMG
Inland Revenue Department, 2053 Bidya Dhar Mallik , Nepalko Adhunik Aayakar Prauali, 2060 Pushpa
Raj Kandel, Neplako Bartaman Kay Byabstha: Buddha Academic Enterprises Pvt Ltd Kathmandu, 2060
Pushpa Raj Kandel, Tax Laws & Tax Planning In Nepal, Buddha Academic Enterprise Pvt Ltd. Kathmandu,
2004 2nd Edition

T.R. Sharma, Auditing: Sahitya Bhawan, Agra Walter W. Bigg, Practical Auditing, Allied Publisher Ltd,
New Delhi

Finance Acts: Current year, HMG

Nepal Company Act 2053: HMG Ministry of Law & Parliamentary Affairs
 Purbanchal University

BBA IV Semester

LH: 36

Course Title: Human Resource Management

Code No: MGT 144

Area of Study: Core

Credit: 3

Course Objective

The purpose of this course is to develop knowledge and skills of students on the concept, functions,
systems and techniques of managing human resource successfully in different organizations and in
contexts of Nepal.

Course Content

Unit I: Introduction to human resource management (HRM) LH 5

Meaning, Characteristics, Objectives, Functions and importance of human resource management (HRM),
HR ethics, Environment of HRM in Nepalese context

Unit II: Acquiring human resources LH 9

Job design and analysis: Meaning, objectives and techniques of job design. Concept, importance and
process (steps) of job analysis, Techniques of obtaining job analysis information, Outcomes of job
analysis (job description, job specification and job evaluation). Human resource Planning: Meaning,
importance and process of HRP, Use of human resource information system in HRP. Recruitment:
Meaning, goals, process and sources of recruitment. Selection: Concept, purposes, process and
methods of selection. Orientation and socialization: Concept and process.

Unit III: Employee training and development LH 9

Employee training: Concept, Objectives, Determining training needs, training methods, Employee
development: Concept and methods; Career development: Meaning. Importance, Unit IV: Utilizing
human resources LH 9
Motivation: Concept, process, importance, types, theories (Maslow's need hierarchy, Herzberg's, ERG,
Equity, Expectancy) of motivation, Relationship between motivation and performance. Frustration:
Concept, causes and elimination of frustration, Performance appraisal: Meaning, importance, process
and methods (absolute standard and relative standards) of appraisal, 360-degree appraisal. Use of MBO
as appraisal method, Compensation: Concept, determinants and methods of compensation. Job
evaluation (use and methods); Rewards and incentives (meaning and types), Unit V: Labor relations
Unit V: Labor relations LH 4

Concept, actors and their roles, Methods of prevention and settlement of disputes, Nepalese labor
legislations. Grievance handling, Disciplinary actions, Issues of labor relations in Nepal

References:

DeCenzo, David A. and Stephen. P. Robbins (Sixth edition)., Fundamentals of human resource
management, New Delhi: Wiley- India.

Adhikari, D.R(2011), Fundamentals of human resource management, Kathmandu: Buddha Academic

Publishers and Distributors Pvt. Ltd.

Agrawal, G.R. (2012), Foundation of human resource management in Nepal. Kathmandu: M.K.
Publishers & Distributors

Katuwal, S.B. (2011), Foundations of human resource management, Bhakatapur: Molung Foundation

Cascio, Wane, F. (Sixth edition), Managing human resources. New Delhi: Tata McGraw-Hill Publishing
Company Limited.
 Purbanchal University

BBA IV Semester

LH: 36

Course Title: Quantitative Techniques for Business

Code: MGT 145

Area of Study: Core

Credit Hour: 3

Course Objective: The objective of this syllabus is to make students familiar with basic
quantitative tools which can be applied in solving practical problems in business world.

Course Contents:
UNIT I: Decision Theory: L.H. 6
Steps involved in Decision Making, different environments for decisions, Making under
uncertainty (probabilities unknown): maximax, maximin, regret criterion, Hurwicz’s Rule
(coefficient of Optimism),

UNIT II: Game Theory: L.H. 6

Introduction – Two Person Zero-Sum Games, Pure Strategies, Games with Saddle Point,
Mixed strategies, Rules of Dominance, Solution Methods of Games: Algebraic methods.

UNIT III: Linear Programming: L.H. 8

Introduction, Characteristics of linear programming problem, Formulation of a linear
programming problem, Graphical method to solve both minimization and maximization
problems, Use of graphical methods to show infeasibility, unbounded and multiple
solutions, Use of Excel to solve linear programming problems (only for class exercises)

UNIT IV: Transportation and Assignment: L.H. 8

Transportation: Special features of Linear Programming problem, Solution with special
reference to VAM. Alternative solution by Excel (Class assignments only)
Assignment: Special features, Algorithm to solve both maximization and minimization
problem.

UNIT V: Network Analysis: L.H. 8

PERT and CPM, dummy activity, critical path, slack time, slack method to find the
project completion time,
References:

J. K. Sharma, Operations Research, Macmillan Publication, 4th edition, India

Azaya B. Sthapit and Others, Production and Operations Management, 2010 edition, Asmita
Books Publishers and Distributors Pvt.Ltd., Kathmandu, Nepal

Fago, A. K. Chaudhary and Others, Production and Operation, Buddha Publications,

Kathmandu, Nepal

William J. Stevenson, Production/ Operations Management, New edition, IRWIN, Homewood,

IL, Boston