U. P. HIGHER EDUCATION SERVICES COMMISSION, PRAYAGRAJ Syllabus COMMERCE (Subject Code-68)
Unit 1: Business Environment and International Business
Concepts and elements of Business Environment: Economic environment- Economic systems, Economic policies (Monetary and fiscal policies); Political environment- Role of government in business; Legal environment- Consumer Protection Act, FEMA; Sociocultural factors and their influence on business; Corporate Social Responsibility (CSR), Policy Environment: Liberalization Privatisation and globalisation, Second generation reforms, Industrial policy and implementation. Industrial growth and structural changes. Scope and importance of International Business; Globalization and its drivers; Modes of entry into international business, Theories of international trade; Government intervention in binternational trade; Tariff and non-tariff barriers; India’s foreign trade policy, Foreign direct investment (FDI) and Foreign portfolio investment (FPI); Types of FDI, 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.
Unit 2: Accounting
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 decisionmaking; 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, Responsibility Accounting.
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 MR, Consumer behavior: Utility analysis; Indifference curve analysis, Law of Variable Proportions: Law of Returns to Scale, 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; Cost of capital and time value of money, Capital structure, Leverages- Operating, Financial & Combined Leverages, EBIT- EPS Analysis, 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, Foreign exchange market; Exchange rate risk and hedging techniques, International financial markets and instruments: Euro currency; GDRs; ADRs, International arbitrage; Multinational capital budgeting, Portfolio management- CAPM, APT; Derivatives.
Unit 5: Business Statistics and Research Methods
Measures of central tendency, Measures of dispersion, Measures of skewness, Correlation and regression of two variables, Association of attributes, 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 non-probability methods; Sampling distribution; Central limit theorem; Standard error; Statistical estimation, Hypothesis testing: z-test; t-test; ANOVA; Chi–square test; Rank correlation test.
Unit 6: Business Management and Human Resource Management Principles and functions of management, Planning – Objectives, Strategies, Planning process and decision making, Organization structure: Formal and informal organizations; Span of control, Responsibility and authority: Delegation of authority and decentralization, Directing, Motivation and leadership: Concept and theories, Controlling, 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 market, Financial Institutions: Development Finance Institutions (DFIs); Non-Banking Financial Companies (NBFCs); Mutual Funds; Pension Funds, Financial Regulators in India, Financial sector reforms including financial inclusion, Digitization of banking and other financial services: Internet banking; mobile banking; Digital payments systems
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, 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.
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, 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
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