Course Title: Business and Entrepreneurship Lab

Course Code: BUS 401

Submitted by Submitted to
Md. Samiur Rahman (20101094) Dr. Abul Kashem
Professor
Md. Atik Shams (20101113) Department of Management
Information Systems
Dhaka University
Ziaul Karim Asfi (20101115)
1. Business: Meaning, Scope of business, major forms of business ownerships
and future of IT Business in Bangladesh.

Answer:

Business:
A business refers to any activity that involves providing goods or services to consumers in order
to satisfy their needs, wants, or demands, while generating a profit in a legal and ethical manner.

Scope of Business:
The scope of business refers the range of activities a company engages in and the specific
products or services it offers. This defines the operational boundaries and market focus of the
company.
There are four major scopes of business:
 Industry
 Commerce
 Trade
 Support Activities

Industry:
Industry includes a broad spectrum of business activities focused on the production of goods and
services to meet consumer needs. It utilizes available material resources to manufacture tangible
products and provide essential services. The industrial sector plays a pivotal role in driving
economic growth by contributing significantly to income generation, employment opportunities,
and tax revenue. Moreover, industrial activities facilitate innovation and technological
advancements, leading to enhanced productivity and competitiveness on a global scale.

Commerce:
Commerce has evolved into a vital aspect of modern life, encompassing a diverse array of
activities aimed at facilitating trade and transactions. It serves as a conduit for the exchange of
goods and services, essential for the functioning of economies worldwide. Through commerce,
businesses gain access to expansive markets, both domestic and international, enabling them to
reach a broader customer base. The advent of e-commerce has revolutionized commercial
practices, allowing businesses to engage directly with consumers and participate in global trade.
Leveraging commerce opportunities empowers businesses to adapt to dynamic market
conditions, fostering growth and sustainability in a fiercely competitive landscape.

Trade:
Trade forms the cornerstone of commerce, facilitating the exchange of goods and services
between buyers and sellers. It is a fundamental component of business operations, enabling
companies to expand their product offerings and diversify their market reach. By engaging in
trade, businesses can access a wider range of foreign goods and services, enriching consumer
choices and driving market competitiveness. Moreover, active participation in trade activities
contributes significantly to the growth of national and global economies, fostering economic
development and prosperity. In today's interconnected world, strategic trade initiatives are
essential for businesses seeking to thrive amidst evolving market dynamics.

Business Model:

Support activity:
In the business context, support activities are important tasks and functions that make it possible
for the company to run, however, they don't directly make or give goods or services. Human
resource management, which includes jobs like hiring, training, developing, paying, and getting
along with employees, is an important support activity. Infrastructure and the development of
new technologies are also important to support activities that are necessary for running a
business efficiently and successfully. There is various kind of support activities such as:
 Middleman Services:

Intermediaries such as wholesalers, retailers, brokers, and agents connect producers with
consumers, providing distribution channels and market access.

 Telecommunication & IT:

Technologies and communication infrastructure enable businesses to communicate,

collaborate, and conduct transactions globally, enhancing productivity and efficiency.

 Warehouse:

Storage facilities help businesses manage inventory, streamline logistics, and meet
customer demand by ensuring product availability.

 Transportation:
 Transport networks, including roads, railways, airways, and shipping lanes, facilitate the
movement of goods and people, connecting producers with consumers and markets
worldwide.

 Finance:

Financial services such as banking, lending, investment, and insurance support businesses
in managing capital, funding operations, and mitigating financial risks.
 Insurance:

Insurance services provide protection against potential losses due to unforeseen events,
helping businesses manage risks and maintain financial stability.

Major forms of business ownerships:

The basic forms of business ownership specify the legal framework in which a company functions. This
framework establishes the proportion of ownership, the sharing of gains and losses, and the degree of
liability owner’s bear. The way of the structure of a business can significantly impact its long-time
success [1].

The major forms of business ownerships are 3 types [1]:

 Sole proprietorships,
 Partner ships and
 Corporations
Sole proprietorships:

A sole proprietorship is a business owned and typically managed by a single individual.

Advantages:
 Starting and Closing the Business with Ease
o Easy to setup and run; all you need is the equipment and any licenses.
o Simple to dissolve, no outside advice required.
 Holding Your Own Authority:
o Complete authority to make any business decisions.
o Owning your accomplishments and making independent decisions brings your
personal fulfilment.

 Ownership Pride:
o The risks they incur to offer worthwhile products or services are taken with pride
by sole proprietors.
 Imprinting a Legacy:
o Ability to transfer the company to next generations.
 Profits Retained in the Company:
o Profits remain with the company and owners gain from its expansion.
 Without Extra Taxes:

o Corporate tax rates are eschewed in favor of taxing business profits as personal
income.
o For Social Security and Medicare, owners pay self-employment taxes.

Disadvantage:

 No Limitation of Liability:

o Risking personal assets, the proprietor bears personal liability for all business
debts and commitments.
 Constrained Funds:

o The owner's own funds are the only ones available, which makes financing more
difficult to come by than with partnerships and corporations.
 Troubles in Management:

o For basic business management duties like keeping records and hiring competent
staff, sole entrepreneurs could be lacking the necessary expertise.
 Time Commitment Too Great:

o Often requiring long hours and a large personal time commitment, managing a
solitary proprietorship affects both personal and family life.
 A Few Fringe Advantages
 o Absence of perks including pension plans, sick leave, vacation pay, and health
insurance—all of which are usually provided by larger companies.
 Restriction of Growth:

o The need on the owner's inventiveness, commercial acumen, and financial

resources might make expansion sluggish.
 Restricted Life Time:

o If an owner passes away, is rendered incapable, or retires, the company may close
unless it is transferred to heirs.

Partnership:
A partnership is a business owned and usually managed by two or more individuals who have
legally agreed to operate together. There are several types of partnership:

 General partnership:
o In a general partnership, all owners share in operating the business and assume
liability for its debts.

 Limited partnership
o A limited partnership consists of one or more general partners with unlimited
liability and one or more limited partners who invest but have no management
responsibilities or extended liability.

 Master limited partnerships (MLPs)

o Master limited partnerships (MLPs) resemble corporations in their structure and
trading on stock exchanges but are taxed like partnerships, thus avoiding
corporate income tax.

Advantages:
 More Financial Resources:
o When partners pool their money and credit, it's easier to pay for things like rent
and bills. Limited partnerships are a way to get money while limiting your
responsibility.

 Shared Management and Skills:

o Different skills and points of view are good for partnerships because they make
day-to-day tasks easier to handle. In many business areas, spouse partnerships are
widespread.

 Longer Survival:
o Partner control encourages discipline and responsibility, which is one reason why
partnerships last longer than sole proprietorships.
  No Extra Taxes:
o Like profits from a sole proprietorship, profits from a partnership are treated as
personal income, so each partner has to figure out their taxes and pay them.

Disadvantage:

 Unlimited Liability:
o General partners are responsible for all business bills and risk losing their own
assets if the business goes bankrupt or is sued.

 Splitting up the profits:

o Since there isn't a set way to divide up the profits, disagreements over who should
get what may arise from different contributions or efforts.

 Disagreements Among Partners:

o Differences in who makes decisions, how to manage employees, and how to
spend can lead to disagreements, which shows how important it is to have clear
partnership agreements.

 Difficulty of Termination:
o It can be hard to end a partnership because of issues like dividing assets and
future responsibilities. To escape problems, partnership agreements must be very
clear.

Corporation:

A corporation is a legal entity that operates independently from its owners, possessing the
authority to conduct business and incur liabilities separate from its shareholders.

Advantages:
 Limited Liability:

o Owners have limited liability, which means that business debts or court problems
don't affect their assets.
 Capital Investment:

o By selling stocks or bonds, companies can get a lot of money, which they can
then use to spend on things like infrastructure, talent, and growth.

 Size and Resources:

o Larger companies can take advantage of global possibilities with modern

facilities, specialized knowledge, and a wide range of business ventures thanks to
 economies of scale.

 Perpetual Existence:

o Corporations last forever, even if the owners or managers change. This ensures
safety and continuity.

 Flexibility in ownership:

o It is easy to trade ownership shares, which provides liquidity and makes it

possible to change the ownership structure.

 Getting Talented People:

o Companies can get skilled workers and encourage growth and innovation by
giving them stock options and other perks.

 Separation of Ownership and Management:

o There needs to be a clear separation between ownership (stockholders) and

management for government and strategic decision-making to work well.

Disadvantage:

 Start-up costs:

o Incorporation costs a lot of money, like legal and financial fees, which can be
scary for small businesses.

 Burden of administration:

o Corporations have to deal with a lot of paperwork and tighter accounting rules,
which raises the cost of doing business.

 Double Taxation:

o It is called "double taxation" because a company's gains are taxed twice: once
when they are made and again when they are given to shareholders as dividends.

 Hard to Fill Out Tax Forms:

o Because corporations are so complicated, they need to file their tax forms, which
are often done with professional help.

 Problems with administration:

 o Large companies may have trouble with inefficient and strict administration,
which makes them less able to adapt to changes in the market.

 Difficulty of Dissolution:

o It can be hard and take a lot of time to dissolve a company because it involves
legal steps and possible legal problems.

 Possible Conflicts:

o There could be disagreements between stockholders and the board of directors,

which would impact the choices made by management and the direction of the
company.

Future of IT Business in Bangladesh:

It's great to see that Bangladesh's IT industry is on the right track for big growth over the next
few years. Here is a more in-depth look at the major trends that will shape its future and the
problems that need to be solved.

IT Export Growth:

Analysts think that by 2025, Bangladesh's IT exports will have grown by a huge five times. This
growth is due to two main things: a young workforce that knows a lot about technology, and the
government pushes the IT field hard. Bangladesh has a lot of smart college graduates who want
to work in the tech business [2]. Together with the low pay, this makes Bangladesh a good place
for companies looking for skilled IT workers [3]. Additionally, the government's actions such as
setting up IT parks and providing tax breaks are making it easier for companies to grow [3].

Diversification in IT Services:

People in Bangladesh expect the IT business to grow beyond just software development and IT
services. New areas of study such as Artificial Intelligence (AI), Blockchain, and the Internet of
Things (IoT) are about to become very popular [3]. AI has the ability to change many fields,
from manufacturing and farming to healthcare and finance [3]. Supply chain management and e-
commerce can be changed by block chain technology, which stores data in a way that is both
safe and open [3]. A huge number of gadgets will be connected to the Internet of Things (IoT),
creating a lot of data that IT companies can use to come up with new solutions.

Thriving Startup Ecosystem:

Bangladesh has a thriving startup scene, and a lot of them are focused on IT solutions. These
startups are shaking up old fields and making new ways to do business [4]. They are making new
apps for things like mobile banking, online shopping, and technology used in schools. This lively
ecosystem motivates people to be creative and work together, which speeds up the development
process and leads to cutting-edge solutions [4]. This industry is growing quickly thanks to
programs run by the government, such as startup incubators and funding schemes.

Expanding Market Access:

IT companies will be able to reach a huge new market if they can improve digital infrastructure
and internet access in rural places [4]. At the moment, the digital gap makes IT solutions in
Bangladesh harder to get to. However, projects run by the government and private groups are
trying to close this gap. As more people in rural places get online, IT companies will have more
chances to make money [4]. They can come up with solutions that meet the specific needs of
these groups, like mobile banking for people who don't have bank accounts or online learning
tools for places that are hard to get to [4]. This growth for everyone will not only give rural areas
more power but will also help the IT field grow as a whole.

Addressing Skill Gaps:

The IT revolution needs workers who are skilled and know how to use these new tools. There are
a lot of IT grads in Bangladesh, but it's hard to give them the skills they need in AI, Blockchain,
and IoT [4]. Universities and training centers need to change their courses to meet the needs of
the business as it changes. When schools and IT companies work together, they can make
targeted training programs that close the skills gap and make sure there is a steady flow of
qualified professionals joining the workforce [4].

Navigating Global Competition:

As Bangladesh becomes a more popular place for IT workers to go, competition from big
companies in the global market will get tougher. For businesses to stay ahead of the curve, they
will have to keep changing, coming up with new ideas, and providing competitive services.
Companies will need to spend a lot of money on research and development to stay on top of
technology changes [4]. Focusing on niche markets and coming up with unique selling points
will also be important for making a name for yourself in the global IT scene.

Bangladesh could make its IT industry a big player in the world market if it takes advantage of
these chances and works through the problems that come up. Not only will this change be good
for the IT industry, it will also help the country's economy grow as a whole. Bangladesh is ready
to be a leader in the digital age. It has a skilled workforce, a thriving startup environment, and a
focus on new technologies.
2. Management: Meaning, major functions, strategic planning process and
control process.

Answer:

Management:
Management is a set of activities which includes planning, decision making, organizing, leading
and controlling and directed with an organization resources (human, financial, physical, and
informational) with the aim of achieving organizational goal in an efficient and effective manner.

Major Function:
The functions of management refers to the essential activities and processes involves in the
effective and efficient administration of an organization. These functions are commonly known
as the POLC framework which includes Planning, Organizing Leading and Controlling.

Planning:

Planning is a crucial managerial function that entails forecasting trends and devising effective
strategies and tactics to achieve organizational goals and objectives [1]:

 Establishing the vision and mission to define the organization’s purpose and fundamental
goals.
 Setting broad, long-term goals and specific, short-term objectives to guide actions.
 Formulating strategic, tactical, operational, and contingency plans to address various
organizational needs.
 Making informed decisions and solving problems using structured methods to achieve
goals.
 Continuously evaluating and adapting plans in response to changing circumstances and
feedback.
Organizing:

Organizing involves creating a structured and efficient system within the organization to ensure
cohesive progress toward its goals and objectives [1]:

 Determining how best to group activities and resources.

 Arranging resources, tasks, and people in a structured manner to implement plans
effectively.
 Designing the organizational structure, allocating responsibilities, and establishing
coordination mechanisms.
 Streamlining workflows and optimizing processes to enhance productivity and
performance.

Leading:

Leading involves several key activities essential for fostering a productive and goal-oriented
work environment [1]:

 Motivating members of the organization.

 Guiding and influencing individuals and teams to achieve organizational goals

 Focusing on communication, decision making, conflict resolution, and creating a positive

and productive work environment.

Controlling:

A management function that involves setting clear standards to assess the organization's progress
toward its goals and objectives, rewarding good performance, and taking corrective action when
necessary includes [1]:

 Monitoring and connecting activities.

 Setting up the standard if the products of the organization.
 Evaluating organizational decision and find out the imperfections and tries to solve the
problem with company policies.
 Monitoring On going activities to facilitate goal battement

Strategic planning:
Strategic planning is essential for an organization's growth. It is led by the top management, who
set the overall goals and map out the way to reach them. It includes making the rules, steps,
plans, and decisions about how to use the resources that are needed to reach these goals.
At its core, strategic planning involves figuring out who the ideal customers are, when the best
time is to launch a new product or service, which market segments to fight in, and which areas to
grow into. To illustrate, Taco Bell's reaction to economic downturns included introducing a value
menu and coming up with new menu items for late-night customers. Blockbuster, on the other
hand, didn't change with the times and its standard brick-and-mortar model became useless when
streaming services like Netflix and Hulu came along [1].

The fast rate of change in today's world makes strategic planning harder than ever. Long-term
plans can become useless in just a few months. Things like changing gas prices mean that
strategies need to be changed quickly. Six Flags' special deals during times when customers can't
get around as easily show this [1].

Even though strategic planning is usually led by upper management, it's important to listen to
what employees have to say because they have useful strategic insights. If you don't listen to
your employees, you might lose important employees. For example, Disney fired animator John
Lasseter because they didn't see his vision for computer animation, which led to his success at
Pixar [1].

Control process:
An essential component of management is the control process, which includes rewarding
achievement, assessing performance about predetermined goals and standards, and taking
remedial action as needed [1].
This is how the control process is works [1]:

Establishing Clear Performance Standards:

By establishing clear, realistic, and quantifiable standards, this first phase connects planning to
control. The absence of well-defined guidelines makes control difficult to implement.

Monitoring and Recording Actual Performance:

After standards are established, real performance or outcomes must be regularly observed and
documented.
Evaluating Outcomes of Plans and Standards:
To find any variations or inconsistencies, the recorded performance is compared to the defined
plans and criteria.

Communicating Results and Deviations:

To ensure accountability and transparency, the results and any deviations from the standards are
shared with the appropriate staff members or stakeholders.

Making the necessary corrections and offering encouraging opinions:

Corrective action is done to remedy discrepancies that are found. Positive reinforcement is also
given to recognize and strengthen successful performance.

Control systems frequently rely on precise protocols for performance monitoring to assure
efficacy. Accounting and finance are essential in providing the information and measurements
required to assess progress and make wise decisions [1].

Organizations may efficiently manage performance, adjust to changes in the environment, and
ultimately accomplish their goals by adhering to these guidelines and upholding established
standards.

3. Finance: Meaning, scope, major functions, time value of money-discounting

and compounding techniques with illustrations.
Answer:
Finance is the branch of economics concerned with the management of money and resources. It
involves activities like raising capital, lending, budgeting, saving, and forecasting. The primary
goal is to allocate resources, manage risks, and create value for individuals, businesses, and
governments.

Scope of Finance:
Personal Finance:
Personal finance encompasses the management of individual or household financial activities. This
includes creating and maintaining budgets to track income and expenses, establishing savings
plans to ensure financial security, making informed investment choices to grow wealth, and
planning for retirement to ensure a comfortable future. Effective personal finance management
also involves managing debt, understanding credit scores, setting financial goals, and protecting
assets through insurance. It requires a good understanding of various financial tools and resources
to make sound decisions that will impact one's financial well-being over time.
Corporate Finance:
Corporate finance deals with managing a company's financial activities and resources. This
involves capital budgeting, which is the process of planning and managing a company’s long-term
investments. Corporate finance professionals must make financing decisions, determining the best
mix of debt and equity to fund operations and growth. They also develop dividend policies that
determine how profits are distributed to shareholders. Risk management is another crucial aspect,
involving the identification, analysis, and mitigation of financial risks. Overall, corporate finance
aims to maximize shareholder value through strategic financial planning and execution.

International Finance:
International finance focuses on financial activities that occur across national borders. It involves
analyzing foreign exchange markets and understanding how currency values fluctuate. This field
examines international trade and how countries interact economically. Multinational corporate
finance is a significant component, dealing with the financial management of companies that
operate in multiple countries. This includes handling foreign investments, managing risks
associated with exchange rate fluctuations, and navigating different regulatory environments.
International finance professionals must be adept at dealing with the complexities of global
financial markets and international economic policies.

Financial Markets and Institutions:

This area of finance studies how financial instruments such as stocks, bonds, and derivatives are
traded through various institutions like banks, investment firms, and stock exchanges. Financial
markets facilitate the raising of capital, transfer of risk, and international trade. Institutions within
these markets play a crucial role in the functioning of the economy by providing liquidity and
enabling price discovery. They also offer a range of services, including underwriting, brokerage,
asset management, and advisory services. Understanding financial markets and institutions is
essential for making informed investment decisions and for grasping the broader economic forces
at play.

Major Functions of Finance:

Investment Decision (Capital Budgeting):
 Involves evaluating and selecting long-term investments that are worth more than their
cost.
 Techniques: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and
Profitability Index.
Financing Decision:
 Determines the best financing mix (debt and equity) to fund investments.
 Capital Structure Decisions: Specifically focuses on the proportion of debt and equity
financing to optimize the firm’s cost of capital and manage risk.
 Minimize the cost of capital, balance risk and maximize firm value.
Dividend Decision:
 Decides how much of the earnings should be distributed to shareholders as dividends and
how much should be retained in the business for reinvestment.
 Considerations: Profitability, reinvestment opportunities, and shareholder expectations.
Working Capital Management:
 Managing short-term assets and liabilities to ensure sufficient liquidity.
 Components: Managing cash flows, inventories, accounts receivable, and accounts
payable.

Time Value of Money (TVM)

The time value of money is a core principle in finance that states money available now is worth
more than the same amount in the future due to its earning potential.
25 years ago, with $100, you might have been able to purchase a basic model of a portable CD
player, a popular gadget at the time. Fast forward to today, with the compounded growth of
investments using TVM principles, that same $100 could potentially buy you a state-of-the-art
wireless earbobs, showcasing the significant advancements in technology and the increased
purchasing power afforded by long-term investing strategies. In an investor purchased 100 shares
of Amazon during its IPO at $18 per share, totaling $1,800. After 25 years Amazon's stock price
had soared to $2,200 per share, making the initial investment worth $220,000. This remarkable
growth demonstrates the Time Value of Money (TVM), where the investment appreciated
significantly over 25 years, achieving a compound annual growth rate (CAGR) of approximately
36.2%. The case exemplifies how long-term investments in growth stocks can vastly increase
wealth, highlighting the importance of considering TVM in financial decisions.
Discounting Techniques:
Discounting is the process of determining the present value (PV) of a future sum of money or cash
flow considering the time value of money and a specific rate of return (discount rate).
Formula for Present Value (PV):
  PV = Present Value
 FV = Future Value
 r = Discount Rate
 n = Number of Periods

Illustration: Discounting
Scenario: Calculate the present value (PV) of receiving $1,000 in 5 years with a discount rate of
8%.
Here
 FV is the future value ($1,000),
 r is the discount rate (8% or 0.08)
 n is the number of periods (5 years)
1000
𝑃𝑉 =
(1 + 0.08)5
1000
𝑃𝑉 =
1.4693
PV ≈ 681.00

Compounding Techniques
Compounding is the process of determining the future value (FV) of a present sum of money or
stream of cash flows given a specific rate of return (interest rate).
Formula for Future Value (FV):

 FV = Future Value
 PV = Present Value
 r = Interest Rate
 n = Number of Periods
Illustration: Compounding
Scenario: Calculate the future value (FV) of investing $500 today at an annual interest rate of 6%
for 4 years.
Here
 PV is the present value ($500),
 r is the interest rate (6% or 0.06)
 n is the number of periods (4 years)
𝐹𝑉 = 500 × (1 + 0.06)4
𝐹𝑉 = 500 × 1.2625
FV ≈ 631.25

4. Accounting: accounting equation, completing the accounting cycle and major

areas of Accounting.

Answer:

Accounting:
Accounting is the system of recording and summarizing financial transactions of a business or
organization. It involves tracking money coming in (revenue) and going out (expenses), as well as
assets, liabilities, and equity. This information is then used to create financial statements that
provide a summary of the financial health of the business.

The Accounting Equation:

Assets = Liabilities + Equity
 Assets: Resources owned by the business with economic value (e.g., cash, inventory,
equipment).
 Liabilities: Debts owed to creditors (e.g., accounts payable, loans).
 Equity: Investment and retained earnings (capital, retained earnings).
This equation ensures the balance sheet always balances, meaning every transaction has an equal
and opposite effect on two accounts.
Expanded Accounting Equation:
Assets = Liabilities + Contributed Capital + Retained earnings
 = Liabilities + Common Stock – Dividends + Revenues – Expenses
(Equity = Contributed Capital + Retained earnings)
(Net income = Revenues – Expenses)

Completing the Accounting Cycle:

The accounting cycle is a comprehensive process that businesses use to record and manage their
financial transactions. The main purpose of the accounting cycle is to ensure the accuracy and
conformity of financial statements. It is a systematic process that begins with identifying
transactions and ends with closing the books. It involves a series of steps to convert all the
transactions that have happened in the business into meaningful financial statements. The steps
include:
 Identifying Transactions:
This initial step involves recognizing and documenting all financial transactions that occur
within a company.
 Recording Transactions in a Journal:
The second step is to create journal entries for each transaction, detailing the date, amount,
and purpose of the transaction.
 Posting:
After recording transactions in the journal, they are then transferred to the ledger accounts.
 Unadjusted Trial Balance:
Prepare a report summarizing account balances before adjustments.
 Worksheets:
When discrepancies arise in the trial balance, adjustments are made and tracked on a
worksheet to correct errors.
 Adjusting Entries:
Adjusting entries are made to account for accruals and deferrals.
  Financial Statements:
Reports like the income statement, balance sheet and cash flow statement are generated
using the correct balances from the adjusted trial balance.
 Closing the Books:
Temporary accounts (revenue, expense) are closed and transferred to permanent accounts
(capital) to prepare for the next accounting cycle.

Major Areas of Accounting

Financial Accounting:
 Preparation of financial statements for external users.
 Ensures compliance with GAAP or IFRS.
 Balance sheet, income statement, statement of cash flows, and statement of changes in
equity.
Managerial Accounting:
 Providing information for internal management to aid in decision-making.
 Involves budgeting, performance reports, forecasting, cost analysis.

Cost Accounting:
 Tracks, analyzes, and controls the cost of producing goods or services.
 Cost reports, cost control strategies, pricing decisions.
 Helps in budgeting, setting prices, controlling costs.
Auditing:
 Independent examination of financial statements to ensure accuracy and compliance with
accounting standards.
 Can be internal or external.
 Internal auditing (conducted by internal staff) and external auditing (conducted by
independent auditors).
Tax Accounting:
 Preparation of tax returns and tax planning.
 Ensures compliance with tax laws and regulations.

Additional areas:
 Forensic Accounting:
Investigates financial crimes like fraud or embezzlement.
 Governmental Accounting:
Follows specific accounting regulations for government entities.
 International Accounting:
Addresses the complexities of accounting for multinational businesses with operations in
different countries.
 Nonprofit Accounting:
Accounting for nonprofit organizations. It focuses on fund accounting and managing
donations.

5. Marketing: Meaning, core marketing concepts, marketing orientations, scope of

marketing, major functions of marketing and Marketing Management Tasks.
Answer:

Marketing involves identifying and meeting human and social needs through organizational
functions and processes that create, communicate, and deliver value to customers while
managing customer relationships in ways that benefit the organization and its stakeholders. It is a
broad discipline that encompasses various strategies and activities aimed at understanding
consumer behavior, developing products or services, and ensuring they reach the target audience
effectively.
Core Marketing Concepts:

 Needs, Wants, and Demands:

Needs are the basic human necessities, such as food, clothing, and shelter, essential for
survival. Wants are desires for specific satisfiers of these needs, shaped by culture,
society, and individual personality. For instance, while food is a need, wanting a gourmet
meal is a want. Demands are wants backed by the ability and willingness to pay for them.
When wants are supported by purchasing power, they become demands, driving market
dynamics and influencing supply and demand.

 Target Markets, Positioning, Segmentation:

Segmentation involves dividing a broad market into smaller, more homogenous groups of
consumers with distinct needs, characteristics, or behaviors. Target markets are the
specific segments that a company chooses to serve, identified as most likely to respond
positively to the company’s offerings. Positioning refers to designing the company’s
offerings and image to occupy a distinct place in the minds of the target market. Effective
positioning ensures that customers have a clear, distinctive, and desirable understanding
of what the product stands for relative to competing products, establishing a competitive
edge.

 Offerings and Brands:

Offerings encompass both tangible products and intangible services provided to

consumers to satisfy their needs and wants. They include physical goods, services,
experiences, events, persons, places, properties, organizations, information, and ideas.
Brands are more than just names or logos; they represent the sum of perceptions,
experiences, and associations consumers have with a product or company. Strong brands
evoke trust, quality, and reliability, creating significant competitive advantages and
fostering customer loyalty.

 Value and Satisfaction:

Value is the perceived benefit that a customer gets from a product or service relative to its
cost, representing the trade-off between what a customer receives and what they give up
to obtain it. Satisfaction measures how well a product’s perceived performance meets a
customer’s expectations. High satisfaction can lead to customer loyalty and repeat
business, while dissatisfaction can drive customers to competitors. Thus, delivering
superior value and satisfaction is crucial for long-term success.
 Marketing Channels:

Marketing channels are the pathways through which products and services travel from the
producer to the consumer. They include intermediaries like wholesalers, retailers,
distributors, and online platforms that help move the product to the market. Effective
management of these channels ensures that products are available to consumers at the
right place and time, enhancing convenience and accessibility.

 Supply Chain:

The supply chain encompasses all the activities, organizations, people, information, and
resources involved in moving a product from the supplier to the customer. Effective
supply chain management ensures that products are produced and distributed in the right
quantities, to the right locations, and at the right time. This efficiency is vital for
maintaining product availability, reducing costs, and increasing customer satisfaction.

 Competition:

Competition refers to the rivalry between companies in the same industry striving for the
same customer base. Understanding the competitive landscape helps businesses identify
their strengths and weaknesses relative to competitors and develop strategies to gain a
competitive advantage. Competitive analysis is essential for positioning, strategic
planning, and staying ahead in the market.

 Marketing Environment:

The marketing environment consists of external factors and forces that affect a
company’s ability to serve its customers. These include economic, social, cultural,
technological, political, and legal factors. Companies must continually adapt to changes
in the environment to remain competitive. Monitoring and analyzing these factors enable
businesses to anticipate market trends, mitigate risks, and seize opportunities.

 Marketing Planning:

Marketing planning is the process of defining marketing objectives and creating plans to
achieve them. It involves conducting a situation analysis, setting marketing goals, and
developing marketing strategies and action plans to reach these goals. Effective
marketing planning ensures that a company’s marketing efforts are aligned with its
 overall business objectives, leading to better resource allocation and higher chances of
success.

Marketing Orientations:

 Production:

Production orientation focuses on internal capabilities of the firm rather than on the
desires and needs of the marketplace. Companies with this orientation assume that
customers prioritize product availability and affordability. It works well in markets with
high demand and low supply but may not satisfy customers seeking more than just
product availability. This approach often emphasizes efficiency and cost reduction to
maximize production output.

 Product:

Product orientation emphasizes the quality, performance, and features of a product.

Companies believe that a superior product will naturally attract customers. While this can
lead to innovations and high-quality products, it may overlook the actual needs and
desires of the target market. This orientation assumes that customers will choose products
based on their superior attributes, sometimes ignoring market realities.

 Selling :

Selling orientation centers on the need for aggressive selling and promotional efforts.
Companies believe that customers need to be persuaded to buy through strong sales
 techniques. This orientation is often used for unsought goods – items that consumers do
not think about frequently or typically purchase. It relies heavily on advertising, personal
selling, and sales promotions to stimulate demand.

 Marketing:

Marketing orientation focuses on understanding and meeting the needs and wants of
target customers better than competitors. Companies with this orientation invest in
researching customer needs and preferences and tailor their products, services, and
marketing efforts accordingly. This approach emphasizes creating value for customers
and building long-term relationships based on customer satisfaction and loyalty.

 Social Marketing:

Social marketing orientation balances company profits, customer satisfaction, and

societal well-being. Companies adopt this orientation to address broader societal issues,
such as environmental sustainability and social responsibility, ensuring their operations
benefit society as a whole. This approach integrates ethical considerations into marketing
strategies, promoting products and practices that contribute positively to society.

Scope of Marketing:

 Goods (Products):

Goods (products) refer to tangible items that satisfy customer needs or wants. These
include everything from consumer electronics to household goods, representing a
significant portion of market transactions.

 Services:

Services are intangible offerings that provide value through experiences or activities,
such as banking, healthcare, and education, where the service provider's performance
plays a critical role in customer satisfaction.
 Events:

Events are organized occasions that bring people together for a specific purpose, such as
sports events, concerts, or trade shows, creating unique experiences and opportunities for
engagement.

 Experiences:

Experiences involve creating memorable events or interactions that engage customers on

an emotional level. Examples include theme parks and interactive exhibits that offer
immersive and enjoyable experiences.

 Persons:

Persons marketing focuses on promoting individuals, such as celebrities or public figures,

to build their personal brand and influence, leveraging their public image and appeal.

 Places:

Places marketing promotes geographical locations to attract tourists, residents, or

businesses, such as city marketing or tourism campaigns aimed at highlighting the unique
attributes of a location.

 Properties:

Properties marketing involves promoting real estate and financial properties to potential
buyers or investors, focusing on the benefits and value of the properties.

 Organizations:

Organizations marketing promotes non-profit organizations, companies, or governmental

bodies to build their image and achieve their goals, emphasizing their mission, vision,
and contributions.

 Information:
 Information marketing involves distributing valuable information to educate or inform a
target audience, such as health campaigns or financial advice, helping people make
informed decisions.

 Ideas:

Ideas marketing focuses on promoting social concepts or policies to shape public opinion
or behavior, such as public health campaigns or environmental initiatives aimed at
driving positive societal change.

Major Functions of Marketing:

 Promotion:

Promotion involves activities that communicate the value proposition of a product or

service to the target audience. This includes advertising, public relations, sales
promotions, and personal selling, all designed to increase awareness and generate
interest.

 Selling:

Selling is the direct interaction between sales representatives and potential buyers to
persuade them to make a purchase. Effective selling involves understanding customer
needs, building relationships, and closing sales, ensuring that the product meets the
buyer's requirements.
 Product Management:

Product management involves the planning, development, and lifecycle management of a

product. This includes designing features, overseeing production, and making
adjustments based on customer feedback to ensure the product remains relevant and
competitive.

 Pricing:

Pricing is the process of setting a price for a product or service that reflects its value,
covers costs, and achieves a desired profit margin. Pricing strategies can include
discounts, premiums, and competitive pricing, balancing profitability with customer
affordability.

 Market Information Management:

Market information management involves gathering, analyzing, and interpreting data

about market conditions, customer behavior, and competitive activity. This information
guides decision-making and strategy formulation, helping companies stay informed and
responsive to market changes.

 Financing:

Financing is securing funds to support marketing activities and overall business

operations, including managing budgets, securing loans, and investing in marketing
initiatives to ensure sufficient resources for effective marketing efforts.

 Distribution:

Distribution involves ensuring that products are available to customers where and when
they want them. This includes managing logistics, inventory, and the supply chain to
optimize the flow of goods from production to consumption, enhancing customer
convenience and satisfaction.
Marketing Management Tasks:

 Develop Market Strategies and Plans:

Developing market strategies and plans involves creating long-term plans that outline
how a company will achieve its marketing objectives. This includes setting goals,
identifying target markets, and determining the best ways to reach them. Effective
strategy development ensures alignment with overall business objectives and provides a
clear roadmap for marketing activities.

 Capture Marketing Insights:

Capturing marketing insights involves collecting and analyzing data to understand market
trends, customer needs, and competitive dynamics. This information helps companies
make informed decisions, adapt to changes, and identify opportunities for growth.

 Connect with Customers:

Connecting with customers is about building and nurturing relationships through

personalized communication, engagement, and customer service. Strong connections lead
to loyalty and repeat business, enhancing customer lifetime value.

 Build Strong Brands:

Building strong brands involves developing a brand identity that resonates with
customers and differentiates the company from competitors. This includes creating a
compelling brand story, visual identity, and consistent messaging to establish a strong
market presence.

 Shape Market Offerings:

Shaping market offerings means designing and delivering products or services that meet
customer needs and preferences. This involves innovation, quality management, and
aligning offerings with market demand to ensure relevance and appeal.
  Deliver Value:

Delivering value ensures that the value proposition of a product or service is effectively
communicated and experienced by the customer, encompassing everything from product
design to customer support.

 Communicate Value:

Communicating value involves using various marketing channels to convey the benefits
and advantages of a product or service to the target audience. Effective communication
strategies build awareness, generate interest, and drive sales by highlighting the unique
selling points.

 Create Long-Term Growth:

Creating long-term growth entails implementing strategies that ensure sustainable

business growth over time, including investing in innovation, exploring new markets, and
continuously improving customer experiences to maintain competitive advantage and
market relevance.

By understanding and effectively implementing these concepts, businesses can navigate the
complex marketing landscape, meet customer needs, and achieve long-term success.

6. Entrepreneurship: Meaning, theories, process and preparing a new business plan.

Entrepreneurship is the process of planning, organizing, operating, and assuming the risk of a
business venture. Entrepreneurs are individuals with vision, drive, and creativity who are willing
to take the risk of starting and managing a business to make a profit or significantly changing the
scope and direction of an existing firm. This process involves identifying opportunities,
developing a business concept, and executing a strategy to create and grow a new enterprise.
Entrepreneurs play a crucial role in the economy by generating employment, fostering
innovation, and contributing to overall economic development. Their willingness to innovate and
take risks drives economic growth and transforms industries.
Theories:

 Innovation Theory:
According to Joseph Schumpeter's proposition, entrepreneurs serve as innovators driving
economic progress through "creative destruction." By introducing novel products,
services, or processes, they render existing ones obsolete, thus propelling the economy
forward. Schumpeter perceived entrepreneurs as instrumental in reshaping industries and
markets [5].
 Alertness Theory:
Kirzner's theory illustrates the entrepreneur's role in recognizing and seizing
opportunities that may go unnoticed by others. Entrepreneurs possess a heightened sense
of alertness to market inefficiencies and unmet needs, enabling them to capitalize on
overlooked opportunities [5].
 Resource-Based Theory:
This theory shows the significance of resources in entrepreneurial success. It suggests
that entrepreneurs' capacity to acquire and effectively manage resources—such as human
capital, financial capital, and technology—determines their competitive advantage and
potential for success [5].
 Psychological Trait Theory:
Focusing on individual traits and characteristics, this theory explores the predisposition of
individuals toward entrepreneurship. Traits like risk-taking propensity, need for
achievement, creativity, and internal locus of control are often associated with successful
entrepreneurs, highlighting the influence of personal attributes on entrepreneurial
behavior [5].
 Economic Theory:
Economic theories of entrepreneurship establish a connection between entrepreneurial
activity and broader economic contexts. Favorable economic environments, characterized
by access to capital, supportive regulatory frameworks, and economic stability, foster
entrepreneurial endeavors. Conversely, economic downturns or restrictive policies may
impede entrepreneurial activities [5].

Process:

 Idea Generation:

The first step is to look for a possible business chance. Entrepreneurs get ideas from their
own life experiences, understanding of the market, and creative thinking. Effectively
coming up with ideas is what the whole project is built on.
 Feasibility Analysis:

At this point, business owners figure out if their idea for a business will work. This
includes studying the market to find out what people want, looking at the competition,
and figuring out how much money is needed. A feasibility study helps you decide if the
idea is worth following and points out any problems or chances that might come up.

 Business Planning:

Developing a detailed business plan is essential for guiding the startup process. The
business plan outlines the business model, market strategy, organizational structure,
operational plan, and financial projections. A well-crafted business plan serves as a
roadmap for the business and is often used to secure funding from investors or lenders.

 Funding:

Securing the necessary capital to start and grow the business is a critical step.
Entrepreneurs can obtain funding through various sources, including personal savings,
loans, venture capital, angel investors, and crowd funding. The choice of funding depends
on the business's capital needs, growth potential, and risk profile.

 Implementation:

This stage involves setting up the business and launching operations. Key activities
include registering the business, securing premises, hiring staff, and starting production
or service delivery. Effective implementation ensures that the business is operational and
ready to serve customers.

 Growth and Scaling:

Once the business is established, the focus shifts to growth and scaling. This involves
expanding the customer base, increasing market share, and enhancing operational
efficiency. Entrepreneurs may explore new markets, diversify product offerings, and
invest in marketing and technology to drive growth.
  Evaluation and Iteration:

Continuous evaluation of business performance is crucial for long-term success.

Entrepreneurs need to monitor key performance indicators, gather customer feedback,
and adapt their strategies based on market conditions. Iterative improvements help the
business stay competitive and responsive to changing demands.

Preparing a New Business Plan

Preparing a comprehensive business plan is a critical step in launching a successful business.

This document not only guides the entrepreneur through the startup process but also helps attract

investors and secure funding. Here is a detailed breakdown of the essential components of a

business plan:

Preparing a New Business Plan

 Executive Summary:

The executive summary provides an overview of the entire business plan. It is written
after the other sections are completed and highlights significant points, ideally creating
enough excitement to motivate the reader to continue reading. This section should
concisely summarize the business concept, financial features, and key objectives.
 Vision and Mission Statement:
This section describes the intended strategy and business philosophy for achieving the
vision. It should also include the company’s core values. A well-crafted vision and
mission statement provide direction and inspiration for the business, outlining long-term
goals and the purpose of the company.
 Company Overview:
The company overview explains the type of business (e.g., manufacturing, retail, or
service) and provides background information if the company already exists. It describes
the proposed form of organization—sole proprietorship, partnership, or corporation. This
section should include:
o Company name and location
o Company objectives
o Nature and primary product or service of the business
o Current status (startup, buyout, or expansion)
 o Legal form of organization
 Marketing Plan:
The marketing plan identifies the firm’s customers and outlines the marketing strategy. It
specifies the firm’s competitive edge and describes the strengths, weaknesses,
opportunities, and threats (SWOT analysis) of the business. This section should cover:
o Analysis of the target market and profile of the target customer
o Methods of identifying, attracting, and retaining customers
o A concise description of the value proposition
o Selling approach, type of sales force, and distribution channels
o Types of marketing and sales promotions, advertising, and projected marketing
budget
o Product and/or service pricing strategy
o Credit and pricing policies
 Management Plan:
The management plan identifies the key players, including active investors, the
management team, board members, and advisors, highlighting their experience and
competence. This section should detail:
o The management team and their qualifications
o Outside investors and/or directors and their qualifications
o Outside resource people and their qualifications
o Plans for recruiting and training employees
 Products and Services Plan:
This section provides detailed descriptions of the products and services the business will
offer. It should include:
o A comprehensive list of all products and services
o Features and benefits of each product or service
o Unique selling propositions that differentiate your offerings from competitors
o Potential future products or services that may be developed
 Perform Customer Segmentation Plan:
Customer segmentation involves dividing the broader market into distinct groups of
customers based on specific criteria. This section should include:
o Identification of different customer segments within the target market
o Demographic, geographic, psychographic, and behavioral characteristics of each
segment
o Specific needs and preferences of each segment
o Strategies for targeting and appealing to each customer segment
 Operating Plan:
The operating plan explains the type of manufacturing or operating system to be used. It
describes the facilities, labor, raw materials, and product-processing requirements. This
section should include:
 o Operating or manufacturing methods and facilities (location, space, and
equipment)
o Quality-control methods
o Procedures to control inventory and operations
o Sources of supply and purchasing procedures
 Financial Plan:
The financial plan specifies financial needs and contemplated sources of financing. It
presents projections of revenues, costs, and profits. This section should provide:
o Historical financial statements for the last 3–5 years (if available)
o Pro forma financial statements for the next 3–5 years, including income
statements, balance sheets, cash flow statements, and cash budgets (monthly for
the first year and quarterly for the second year)
o Financial assumptions
o Breakeven analysis of profits and cash flows
o Planned sources of financing

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business (12th edition). McGraw-Hill Education.
2. Bangladesh IT-ITeS Industry is Poised for Growth [link to Bangladesh IT-ITeS
Industry is Poised for Growth, bangladoot.se].
3. BUSINESS OPPOrTUNITIES WITHIN THE IT AND TELECOMMUNICATION
INDUSTrY BANgLADESH [link to BUSINESS OPPOrTUNITIES WITHIN THE IT
AND TELECOMMUNICATION INDUSTrY BANgLADESH, bangladoot.se].
4. The Future of Digital in Bangladesh - BRAC Institute of Governance and Development
[link to The Future of Digital in Bangladesh, bigd.bracu.ac.bd]
5. Morris, Michael H., and Donald L. Sexton. "The concept of entrepreneurial
intensity: Implications for company performance." Journal of Business
Research 36.1 (1996): 5-13.