8 Things you need to know while preparing for CA Foundation Paper 2: Business Laws and Business Correspondence and Reporting

In this article, we are sharing the tips & tricks on Preparing for CA Foundation Paper 2: Business Laws and Business Correspondence and Reporting.

What is the structure of the paper?

Paper 2 at CA Foundation level is divided into 2 parts: 

  1. Business Laws for 60 marks
  2. Business Correspondence and Reporting for 40 marks

The paper pattern is as under:

Section A: Business Laws 

  1. Question 1 is compulsory. (12 marks)
  2. Attempt any four out of remaining 5 questions. (Q No. 2 to 6 – 12 marks each)

The Law Section is application based & involves a mix of conceptual questions as well as several practical case studies that test your application throughout the syllabus. Challenge arises from the fact that the student has never studied this subject before, however proper guidance and effective study strategies can make this a scoring paper.  

Section B: Business Correspondence and Reporting 

  1. Question 7 is compulsory. (10 marks)
  2. Attempt any 3 out of remaining 4 questions. (Q No. 8 to 11 – 10 marks each)

Business Correspondence and Reporting (BCR) is similar to “General English” that tests the creative writing skills as well as grammatical prowess of the students. 

Please Note: This is the trend that has been observed over the years. However, ICAI may change its paper pattern and question break-up any time.

What are the examiner’s expectations?

  1. The examiner lays emphasis on conceptual clarity and in-depth understanding of concepts.
  2. He will assess the ability of the student to interpret and analyse the facts of the problem with reference to relevant provisions of law.
  3. Answers must be presented logically, using the correct legal language and terminologies.
  4. In case of BCR, the writing skills and creativity of the student is assessed as well as his/her command over the English language.

What should be the source of content?

  1. Content provided by your Coaching Provider along with your personal summary notes can be used as a base. However, ensure that it is comprehensive in its coverage by cross checking it with ICAI material
  2. Past Examination Papers, RTPs and MTPs.
  3. Referencer developed by ICAI for a summarised version of the notes.

Also refer ICAI’s website for recent amendments which are relevant for the exam. 

Pro Tip: Stick to your base material as a reference. You must avoid changing the source of content closer to examination since that may lead to confusion in your study preparation.

What is the ideal learning methodology & time to be invested?

A minimum of 3 detailed revisions before the exam is advisable to get a grip on the subject and understand the nuances of each chapter. 

Reading  Source  Time  Expected Outcome 
1st  A detailed study of every concept involved  7 to 8 days  Business Law 

  • Compare the Coaching Provider Notes with ICAI Study Material. At this level you should ensure you have eliminated various sources and have one set of notes only. 
  • Make summarised notes of every legal provision in your own words, by using graphical tools of presentation. (flow charts, arrow diagrams, etc.) Notes must contain the head points and key words for every answer. 
  • Make a list of the important section numbers from each Act and keep revising the same. 
  • Identify important questions from all the sources and condense it in one place. 

Business Correspondence and Reporting 

  • Make note of the format for each type of writing question and practise the same.  
  • Keep reading the ICAI textbook to remember the synonyms, antonyms, idioms, phrases, etc. given. 
  • Practise different grammar questions and comprehensions from various sources to ensure zero errors and a full score. 
  • Make summarised notes for the communication chapter. 
2nd  A summarised version of the syllabus  4 to 5 days 
  • Keep reading your notes and list of section numbers. Try and get as acquainted to the legal language as you can. 
  • Write and practise to understand the nuances of writing the correct terminologies. (Atleast list down key words for each answer and then compare with the solution given) 
  • Continue practising for BCR. 
  • Appear for the Cluster Tests if your Coaching Provider provides them.  
3rd  A quick revision to cut-down pre-exam study time  1 to 1.5 day 
  • Go through all your notes. 
  • Solve RTPs. 
  • Appear for a mock exam. (Preferably 2) 
4th  The final revision one-day before the exam  1 to 1.5 day 
  • Trust your past preparations and instincts.  
  • Read through all the notes prepared by you. 
  • Go through all important questions from past papers that you have identified. 

Pro Tip: Mock Test Papers (2 or 3) should be attempted sincerely, and a lesser time than 3 hours should be set (say 2 hours 45 mins) in which attempt should be made to complete the paper. This will ensure that appropriate speed would be developed and there will not be any difficulty in the completion of the final exam paper. 

Sufficient writing practice improves your ability to produce legal language with the right use of legal vocabulary, terms, section numbers, case law references & so on.

Note: For more practice of questions, you can refer to the Shuchita Scanners available in the market and on Amazon. 

What is the appropriate order in which the syllabus should be studied?

Despite the lengthy syllabus, avoid ad-hoc selective studies; follow a method of smart studying and be thoroughly clear with all the concepts.  

Visit the concept of ‘Remember, Revise, Recollect’ all throughout your study preparation. 

Business Laws 

The syllabus consists of 5 Acts, all of which are important as questions are asked from every Act. However, the suggested order of study, along with the weightage of each Act and some trends and observations from past year examinations are as under:

Name of Chapter  Weightage  Type of Question asked 
Indian Contract Act, 1872  15 – 20 marks  Descriptive Type Questions + Practical Case Studies 
Indian Partnership Act, 1832  12 – 15 marks 
Sale of Goods Act, 1930  12 – 15 marks 
Companies Act, 2013  10 – 12 marks 
Limited Liability Partnership Act, 20008  5 – 12 marks  Descriptive Type Questions 

Business Correspondence and Reporting 

Once again, all the chapters in the syllabus of BCR are important. The general paper pattern based on past trends and observations is as under:

Question 7  5 marks  Comprehension 
5 marks  Note Making 
Question 8 – 11  2 marks  One Question from Communication Chapter 
3 marks  3 one mark questions from grammar 

(Synonyms, Antonyms, Active Passive Voice, Direct Indirect Speech, Phrases, Idioms, etc.) 

5 marks  1 Creative Writing Question of 5 marks 

(Precis, Article, Report, Formal Letter, Memo, Formal Mail, Resume, Minutes or Agenda, etc.) 

Disclaimer: The above analysis is based on examination papers of the last 3-4 years. The trend may change from time to time at the discretion of ICAI. 

Note: Learn about the weightage distribution over various topics as per ICAI

How can I ace my exam writing skills?

Follow the below tips: 

  1. Use the 15 minutes reading time judiciously to strategize your way through the paper.
  2. It is very important to choose the right order for attempting the paper – ensure that you manage to attempt 40 marks in the first 1-1.25 hours.
  3. Quote Relevant section number and / or case law to enhance the quality of the answer and provide value addition.
  4. Focus should be given on the crux / key terms & words of every provision and usage of the right legal vocabulary.
  5. Present the analytical case-study based answers in the following manner:
  6. Section Number and Name of the Act
  7. Case Law (if any)
  8. Relevant Provisions
  9. Facts of the case in brief (present only those facts that are pertinent to your subsequent analysis)
  10. Comments and analysis
  11. Conclusion
  12. Ensure that you underline the key words, wherever relevant.
  13. Ensure that your paper is neat, handwriting is legible, and sufficient lines are left in between paragraphs.
  14. Follow the correct format as given in the ICAI study material for all questions of BCR.
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