KSET Syllabus Commerce

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KARNATAKA STATE ELIGIBILITY TEST (K-SET)
FOR ASSISTANT PROFESSOR

SYLLABUS

Subject: COMMERCE Subject Code: 01

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 environment – Role
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
 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): Important 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 objections 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
 Holidays 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
 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 returns 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 non-
probability methods; Sampling distribution; Central limit theorem; standard error;
Statistical estimation
 Hypothesis testing: z-test; t-test; ANOVA; Chi-square test; Mann-Whitney test (U-test);
Kruskal-Wallis test (H-test); Rank correlation test
 Report writing

Unit 6: Business Management and Human Resource Management
 Principles and functions of management
 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 negotiations; 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 Institutions: Development Finance Institutions (DFIs); Non –Banking Financial
Companies (NBFCs); Mutual funds; Pension Funds
 Financial Regulators in India
 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
 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 Behavior; 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 Instrument 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, meeting 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
 Corporate Tax Planning: Concepts and significance of corporate tax planning; Tax
avoidance versus tax evasion; Techniques of corporate tax planning; Tax consideration in
specific business situations; Make of 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