CMA Foundation Course Syllabus : Paper 4 Fundamentals of Business Economics and Management (FBEM)

CMA Foundation Course Syllabus
Papers 4: FUNDAMENTALS OF BUSINESS ECONOMICS AND MANAGEMENT (FBEM)
Marks: 100
Question Paper Pattern: 50 MCQs of 2 Marks each

Module No.	Module Description	Weight
	Section A: Fundamentals of Business Economics	70%
1	Basic Concepts.	15%
2	Forms of Market.	20%
3	Money and Banking.	20%
4	Economic and Business Environment.	15%
	Section B: Fundamentals of Management	30%
5	Fundamentals of Management.	30%

SECTION A: FUNDAMENTALS OF BUSINESS ECONOMICS

1. Basic Concepts.

1.1 The Fundamentals of Economics.

1.2 Utility, Wealth, Production.

1.3 Theory of Demand (Meaning, Determinants of Demand, Law of Demand, Elasticity of Demand - Price, Income and Cross Elasticity, Theory of Consumer Behaviour, Demand Forecasting) and Supply (Meaning, Determinants, Law of Supply and Elasticity of Supply), Equilibrium.

1.4 Theory of Production (Meaning, Factors, Laws of Production - Law of Variable Proportion, Laws of Returns to Scale).

1.5 Cost of Production (Concept of Costs, Short-run and Long-run Costs, Average and Marginal Costs, Total, Fixed and Variable Costs).

1.6 Means of Production.

2. Forms of Market.

2.1 Pricing of Products and Services in Various Forms of Markets – Perfect Competition, Duopoly, Oligopoly, Monopoly, Monopolistic Competition.

2.2 Price Discrimination.

3. Money and Banking.

3.1 Money - Types, Features and Functions.

3.2 Banking - Definition, Functions, Utility, Principles.

3.3 Commercial Banks, Central Bank.

3.4 Measures of Credit Control and Money Market.

4. Economic and Business Environment.

4.1 PESTEL (Political, Economic, Societal, Technological and Legal) Analysis.

4.2 Emerging Dimensions of VUCAFU (Volatility, Uncertainty, Complexity, Ambiguity, Fear of Unknown and Unprecedentedness).

SECTION B – FUNDAMENTALS OF MANAGEMENT

5. Fundamentals of Management.

5.1 Introduction to Management.

5.2 Stewardship Theory and Agency Theory of Management.

5.3 Planning, Organizing, Staffing and Leading.

5.4 Communication, Co-ordination, Collaboration, Monitoring and Control.

5.5 Organisation Structure, Responsibility, Accountability and Delegation of Authority.

5.6 Leadership and Motivation – Concepts and Theories.

5.7 Decision-making – Types and Process.

Also Read: CMA Foundation Syllabus for 2025 Exam

Paper 1: Fundamentals of Business Laws and Communication (FBLC)

Paper 2: Fundamentals of Financial and Cost Accounting (FFCA)

Paper 3: Fundamentals of Business Mathematics and Statistics (FBMS)

Paper 4: Fundamentals of Business Economics and Management (FBEM) 

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