Economics Class 11 12 CUET Notes
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| 6 | 🗳 Joint Ventures in Private, Public and Global Enterprises
Joint ventures help businesses share resources, technology, risks and rewards. They may involve private companies, government-owned enterprises or foreign companies.
📌 Meaning of Joint Venture
A joint venture is formed when two or more businesses join together for a common purpose and mutual benefit. It may be created for business expansion, new product development or entry into new markets.
📌 Types of Joint Ventures
🖇 Contractual joint venture➖ Parties agree to work together without forming a new jointly-owned entity.
🖇 Equity-based joint venture➖ Parties create a separate business entity with shared ownership.
📌 Contractual Joint Venture
In a contractual joint venture, a new jointly-owned entity is not created. The parties only agree to work together for a business purpose.
📮 Key Element
🖇 Common intention➖ Parties agree to run a business venture
🖇 Inputs➖ Each party brings resources
🖇 Control➖ Parties exercise some control
🖇 Duration➖ Relationship is usually longer than one transaction
📪 Equity-Based Joint Venture
In an equity-based joint venture, a separate business entity is formed. The parties share ownership, management, investment, profits and losses.
📮 Key Element
🖇 New or existing entity➖ Parties create or join an entity
🖇 Shared ownership➖ Ownership is divided among parties
🖇 Shared management➖ Parties manage the entity together
🖇 Shared responsibility➖ Capital and finance are shared
🖇 Shared profits and losses➖ Distribution follows the agreement
💰 Benefits of Joint Ventures
🖇 Increased resources and capacity➖ Partners pool financial and human resources.
🖇 Access to new markets➖ Foreign partners can enter large markets like India.
🖇 Access to technology➖ Advanced production methods improve quality.
🖇 Innovation➖ Partners bring new ideas and product designs.
🖇 Low cost of production➖ International firms may benefit from lower production costs.
🖇 Established brand name➖ One partner may benefit from the other’s goodwill. | 491 |
| 7 |  No text... | 398 |
| 8 |  No text... | 409 |
| 9 |  National Income Formula | 412 |
| 10 |  GDP Deflator | 367 |
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| 19 | ✅Advantages of Computerized Accounting System
➖ The accounts developed by computers are accurate, uniformed, clear, and comprehensive.
➖ It saves time and increases the efficiency of the employees.
➖ The computer prepares the account and records in no time with accuracy.
➖ Computerized accounting minimizes boredom of doing monotonous accounting jobs.
➖ With the help of accounting software, an individual can easily access data securely outside the office as well. The best example would be internet banking, booking tickets, etc.
➖ The financial statements arranged by computers are so precise and accurate that anybody can rely on the report.
➖ The accounting software makes the whole process simpler and faster to prepare an account.
✅Disadvantages of Computerized Accounting System
➖ The accuracy of the end report entirely depends on the input of the information.
➖ Sometime the incompetent and biased employees may alter the data.
➖ It is expensive.
➖ There is a cybersecurity threat and it might hinder the whole saved data.
➖ Too much of the input on the computer might slow down the operating system and affect the work process.
✅Types of Accounting Softwares
➖ Ready-to-use Softwares – It is cheap and fit for small enterprises which has less accounting transactions and a low user base. However, such software is less secure and easily subject to risks. This software doesn’t require any specialised training.
➖ Customized Softwares – The software is customizable to satisfy the customer’s requirement and fit for medium and large firms. The software is costly as well as its training, but a company can use it for a various information system. It is more secure as compare to ready-to-use software.
➖ Tailored Softwares – It is suitable for big companies that have many divisions and scattered geographically. The cost is extremely high and requires specialized training to utilise the software. The software is highly secure. | 324 |
| 20 | ✅Features of Income and Expenditure Account
➖Income and expenditure account presented by non-trading entities are much like the profit and loss a/c presented by trading entities.
➖It is prepared by stringently following the fundamentals of the double-entry system of bookkeeping or accounting.
➖It is always prepared during the end of the period which normally comprises of 1 year.
➖It decides the surplus or deficit of income over expends of the non-trading entities for the particular year.
➖The surplus or deficit from the income and expenditure account is moved to the capital fund a/c.
➖The Income and expenditure account of only revenue nature are incorporated in this account. Any income and expenditure of capital nature are not comprehended.
➖It is prepared by accountants chosen by the enterprise’s management and is audited by an independent auditor.
➖It does not begin with the opening balance, and it follows back the incomes received and expenditures incurred by the non-trading entities during the financial year.
➖The accumulated or accrual concept of accounting is rigidly pursued when it is prepared. | 206 |
