CET-2022

COMMERCE (R22-05)

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(7 marks)

1. 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)
2. Scope and importance of international business; Globalization and its drivers; Modes of
entry into international business
3. Theories of international trade; Government intervention in international trade; Tariff and
non-tariff barriers; India’s foreign trade policy.
4. 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
5. Balance of payments (BOP): Importance and components of BOP
6. Regional Economic Integration: Levels of Regional Economic Integration; Trade creation
and diversion effects; Regional Trade Agreements: European Union (EU), ASEAN, SAARC,
NAFTA.
7. International Economic institutions: IMF, World Bank, UNCTAD.
8. World Trade Organisation (WTO): Functions and objectives of WTO; Agriculture
Agreement; GATS; TRIPS; TRIMS

Unit 2: Accounting and Auditing ( 7 marks)

Basic accounting principles; concepts and postulates
2. Partnership Accounts: Admission, Retirement, Death, Dissolution and Insolvency of
partnership firms
3. Corporate Accounting: Issue, forfeiture and reissue of shares; Liquidation of companies;
Acquisition, merger, amalgamation and reconstruction of companies
4. Holding company accounts
5. 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
6. Financial Statements Analysis: Ratio analysis; Funds flow Analysis; Cash flow analysis
7. Human Resources Accounting; Inflation Accounting; Environmental Accounting
8. Indian Accounting Standards and IFRS
9. Auditing: Independent financial audit; Vouching; Verification ad valuation of assets and
liabilities; Audit of financial statements and audit report; Cost audit
10. Recent Trends in Auditing: Management audit; Energy audit; Environment audit; Systems
audit; Safety audit

Unit 3: Business Economics (7 marks)

• 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 (7 marks)

• 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 (7 marks)

• 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 (7 marks)

• 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 (7 marks)

• 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 (7 marks)

• 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
• Logistics management

Unit 9: Legal Aspects of Business (7 marks)

• 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 (7 marks)

• 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