24 TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY
Code No: 07
SUBJECT: COMMERCE
SYLLABUS
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): 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 Organization (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.
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY 25
• 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 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 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.
26 TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY
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 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.
• 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.
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY 27
• 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.
• 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.
• Income-tax: Basic concepts–Residential status and tax incidence–Exempted incomes; Agricultural
income–Computation of taxable income under Salaries, House property, Capital gains, Profits and gains of
business and profession and Income from other sources – Gross total income – Deductions from Gross
total income–Clubbing of incomes–Set off and carry forward of losses–Assessment of Individuals.
28 TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY
• Deduction and collection of tax at source–Advance payment of tax–E-filing of income-tax returns.
• Tax planning, Tax avoidance and Tax evasion – Techniques of corporate tax planning and specific management
decisions: Make or buy, Own or lease, Retain or replace, Shut down or continue.
• International Taxation: Transfer pricing and anti-avoidance measures – Non-resident taxation – Double taxation
relief – Application and interpretation of tax treaties.
