Commerce

NET SYLLABUS

Subject: Commerce Code No. : 08

Unit 1: Business Environment and International Business

Unit 2: Accounting and Auditing

Unit 3: Business Economics

Unit 4: Business Finance

Unit 5: Business Statistics and Research Methods

Unit 6: Business Management and Human Resource Management

Unit 7: Banking and Financial Institutions

Unit 8: Marketing Management

Unit 9: Legal Aspects of Business

Unit 10: Income-tax and Corporate Tax Planning

Unit 1: Business Environment and International Business

 Concepts and elements of business environment: Economic environment- Economic

systems, Economic policies(Monetary and fiscal policies); Political environmentRole of government in business; Legal environment- Consumer Protection Act,

FEMA; Socio-cultural factors and their influence on business; Corporate Social

Responsibility (CSR)

• Scope and importance of international business; Globalization and its drivers; Modes

of entry into international business

• Theories of international trade; Government intervention in international trade; Tariff

and non-tariff barriers; India’s foreign trade policy

2

• Foreign direct investment (FDI) and Foreign portfolio investment (FPI); Types of

FDI, Costs and benefits of FDI to home and host countries; Trends in FDI; India’s

FDI policy

• Balance of payments (BOP): Importance and components of BOP

• Regional Economic Integration: Levels of Regional Economic Integration; Trade

creation and diversion effects; Regional Trade Agreements: European Union (EU),

ASEAN, SAARC, NAFTA

• International Economic institutions: IMF, World Bank, UNCTAD

• World Trade Organisation (WTO): Functions and objectives of WTO; Agriculture

Agreement; GATS; TRIPS; TRIMS

Unit 2: Accounting and Auditing

• Basic accounting principles; concepts and postulates

• Partnership Accounts: Admission, Retirement, Death, Dissolution and Insolvency of

partnership firms

• Corporate Accounting: Issue, forfeiture and reissue of shares; Liquidation of

companies; Acquisition, merger, amalgamation and reconstruction of companies

• Holding company accounts

• Cost and Management Accounting: Marginal costing and Break-even analysis;

Standard costing; Budgetary control; Process costing; Activity Based Costing (ABC);

Costing for decision-making; Life cycle costing, Target costing, Kaizen costing and

JIT

• Financial Statements Analysis: Ratio analysis; Funds flow Analysis; Cash flow

analysis

• Human Resources Accounting; Inflation Accounting; Environmental Accounting

• Indian Accounting Standards and IFRS

• Auditing: Independent financial audit; Vouching; Verification ad valuation of assets

and liabilities; Audit of financial statements and audit report; Cost audit

• Recent Trends in Auditing: Management audit; Energy audit; Environment audit;

Systems audit; Safety audit

Unit 3: Business Economics

• Meaning and scope of business economics

• Objectives of business firms

• Demand analysis: Law of demand; Elasticity of demand and its measurement;

• Relationship between AR and MRConsumer behavior: Utility analysis; Indifference curve analysis

• Law of Variable Proportions: Law of Returns to Scale

3

• Theory of cost: Short-run and long-run cost curves

• Price determination under different market forms: Perfect competition; Monopolistic

competition; Oligopoly- Price leadership model; Monopoly; Price discrimination

• Pricing strategies: Price skimming; Price penetration; Peak load pricing

Unit 4: Business Finance

• Scope and sources of finance; Lease financing

• Cost of capital and time value of money

• Capital structure

• Capital budgeting decisions: Conventional and scientific techniques of capital

budgeting analysis

• Working capital management; Dividend decision: Theories and policies

• Risk and return analysis; Asset securitization

• International monetary system

• Foreign exchange market; Exchange rate risk and hedging techniques

• International financial markets and instruments: Euro currency; GDRs; ADRs

• International arbitrage; Multinational capital budgeting

Unit 5: Business Statistics and Research Methods

• Measures of central tendency

• Measures of dispersion

• Measures of skewness

• Correlation and regression of two variables

• Probability: Approaches to probability; Bayes’ theorem

• Probability distributions: Binomial, poisson and normal distributions

• Research: Concept and types; Research designs

• Data: Collection and classification of data

• Sampling and estimation: Concepts; Methods of sampling – probability and nonprobability methods; Sampling distribution; Central limit theorem; Standard error;

Statistical estimation

• Hypothesis testing: z-test; t-test; ANOVA; Chi–square test; Mann-Whitney test (Utest); Kruskal-Wallis test (H-test); Rank correlation test

• Report writing

Unit 6: Business Management and Human Resource Management

• Principles and functions of management

4

• Organization structure: Formal and informal organizations; Span of control

• Responsibility and authority: Delegation of authority and decentralization

• Motivation and leadership: Concept and theories

• Corporate governance and business ethics

• Human resource management: Concept, role and functions of HRM; Human resource

planning; Recruitment and selection; Training and development; Succession planning

• Compensation management: Job evaluation; Incentives and fringe benefits

• Performance appraisal including 360 degree performance appraisal

• Collective bargaining and workers’ participation in management

• Personality: Perception; Attitudes; Emotions; Group dynamics; Power and politics;

Conflict and negotiation; Stress management

• Organizational Culture: Organizational development and organizational change

Unit 7: Banking and Financial Institutions

• Overview of Indian financial system

• Types of banks: Commercial banks; Regional Rural Banks (RRBs); Foreign banks;

Cooperative banks

• Reserve Bank of India: Functions; Role and monetary policy management

• Banking sector reforms in India: Basel norms; Risk management; NPA management

• Financial markets: Money market; Capital market; Government securities marketFinancial Institutions: Development Finance Institutions (DFIs); Non-Banking

Financial Companies (NBFCs); Mutual Funds; Pension Funds

• Financial Regulators in India

• Financial sector reforms including financial inclusion

• Digitisation of banking and other financial services: Internet banking; mobile

• banking; Digital payments systemsInsurance: Types of insurance- Life and Non-life insurance; Risk classification and

management; Factors limiting the insurability of risk; Re-insurance; Regulatory

framework of insurance- IRDA and its role

Unit 8: Marketing Management

• Marketing: Concept and approaches; Marketing channels; Marketing mix; Strategic

marketing planning; Market segmentation, targeting and positioning

• Product decisions: Concept; Product line; Product mix decisions; Product life cycle;

New product development

• Pricing decisions: Factors affecting price determination; Pricing policies and

strategies

5

• Promotion decisions: Role of promotion in marketing; Promotion methods –

Advertising; Personal selling; Publicity; Sales promotion tools and techniques;

Promotion mix

• Distribution decisions: Channels of distribution; Channel management

• Consumer Behaviour; Consumer buying process; factors influencing consumer

buying decisions

 Service marketing

• Trends in marketing: Social marketing; Online marketing; Green marketing; Direct

marketing; Rural marketing; CRM

• Logistics management

Unit 9: Legal Aspects of Business

• indian Contract Act, 1872: Elements of a valid contract; Capacity of parties; Free

consent; Discharge of a contract; Breach of contract and remedies against breach;

Quasi contracts;

• Special contracts: Contracts of indemnity and guarantee; contracts of bailment and

pledge; Contracts of agency

• Sale of Goods Act, 1930: Sale and agreement to sell; Doctrine of Caveat Emptor;

Rights of unpaid seller and rights of buyer

• Negotiable Instruments Act, 1881: Types of negotiable instruments; Negotiation and

assignment; Dishonour and discharge of negotiable instruments

• The Companies Act, 2013: Nature and kinds of companies; Company formation;

Management, meetings and winding up of a joint stock company

• Limited Liability Partnership: Structure and procedure of formation of LLP in India

 The Competition Act, 2002: Objectives and main provisions

• The Information Technology Act, 2000: Objectives and main provisions; Cyber

crimes and penalties

 The RTI Act, 2005: Objectives and main provisions

• Intellectual Property Rights (IPRs) : Patents, trademarks and copyrights; Emerging

issues in intellectual property

• Goods and Services Tax (GST): Objectives and main provisions; Benefits of GST;

Implementation mechanism; Working of dual GST

Unit 10: Income-tax and Corporate Tax Planning

• Income-tax: Basic concepts; Residential status and tax incidence; Exempted incomes;

Agricultural income; Computation of taxable income under various heads; Deductions

from Gross total income; Assessment of Individuals; Clubbing of incomes

• International Taxation: Double taxation and its avoidance mechanism; Transfer

pricing

6

• Corporate Tax Planning: Concepts and significance of corporate tax planning; Tax

avoidance versus tax evasion; Techniques of corporate tax planning; Tax

considerations in specific business situations: Make or buy decisions; Own or lease an

asset; Retain; Renewal or replacement of asset; Shut down or continue operations

• Deduction and collection of tax at source; Advance payment of tax; E-filing of

income-tax returns