UGC NET Syllabus for Commerce 2020

FOR UGC NET EXAM PREPARATION

UGC NET
Syllabus · Commerce
EXAM YEAR TYPE SUBJECT

UGC NET — Syllabus Commerce

Notes · Sample Papers · Previous Year Papers · Mock Tests

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UNIVERSITY GRANTS COMMISSION
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NET BUREAU
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NET SYLLABUS

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Subject: Commerce Code No. : 08

Unit 1: Business Environment and International Business

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Unit 2: Accounting and Auditing

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Unit 3: Business Economics

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Unit 4: Business Finance
Unit 5: Business Statistics and Research Methods
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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

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Unit 1: Business Environment and International Business

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. Economic
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e environment-
and elements of business environment: Economic environment-

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systems, Economic policies(Monetary and fiscal policies); Political

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Role of government in business; Legal environment- Consumer

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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

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 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 MR
 Consumer behavior: Utility analysis; Indifference curve analysis
 Law of Variable Proportions: Law of Returns to Scale

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 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

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Unit 4: Business Finance

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Scope and sources of finance; Lease financing
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Cost of capital and time value of money
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Capital structure
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 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

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International arbitrage; Multinational capital budgeting

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Unit 5: Business Statistics and Research Methods

 Measures of central tendencya
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 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

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Research: Concept and types; Research designs

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Data: Collection and classification of data

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 Sampling and estimation: Concepts; Methods of sampling - probability and non-

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probability methods; Sampling distribution; Central limit theorem; Standard error;

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Statistical estimation
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test); Kruskal-Wallis test (H-test); Rank correlation test
 Report writing

Unit 6: Business Management and Human Resource Management

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 Principles and functions of management

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 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 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
 Digitisation of banking and other financial services: Internet banking; mobile
banking; Digital payments systems
 Insurance: 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

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 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

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Service marketing

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

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marketing; Rural marketing; CRM
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Logistics management

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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

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pledge; Contracts of agency

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

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Rights of unpaid seller and rights of buyer
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Negotiable Instruments Act, 1881: Types of negotiable instruments; Negotiation and

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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
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The RTI Act, 2005: Objectives and main provisions

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

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issues in intellectual property

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

las Implementation mechanism; Working of dual GST
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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
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International Taxation: Double taxation and its avoidance mechanism; Transfer

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pricing

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 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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