Table of Contents
The exams date for UGC NET 2022 has been declared. For achieving the right preparation strategy, we should have a clear idea about the syllabus of both paper 1 and paper 2 of commerce UGC NET 2022. After that, we have to find the right study materials. In this article, a brief form of Commerce Notes for UGC NET 2022 is given.
Business Environment and International Business
Employees, customers’ requirements and expectations, supply and demand, management, clients, suppliers, owners, government actions, technological innovation, social trends, market trends, economic changes, and so on are all part of the business environment. These aspects influence the working of the company directly or indirectly.
International business comprises any kind of business activity that go across national borders.
The most important topics covered under this unit are
| Topics | Sub-topics |
| Concepts and elements of the business environment | ·        Economic environment
·        Political environment ·        Legal environment ·        Socio-cultural factors and their influence on business ·        Corporate Social Responsibility |
| Scope and importance of international business
|
·        Globalization & its drivers
·        Modes of entrance into international business
|
| Theories of international trade
|
·        Government involvement in international trade
·        Tariff & non-tariff barriers ·        India’s foreign trade policy |
| FDI and FPI
|
·        Types of FDI
·        Costs & advantages of FDI to home and host countries ·        Trends in FDI ·        India’s FDI policy |
| Balance of payments (BOP)
|
·        Importance of BOP
·        components of BOP |
| Regional Economic Integration
|
·        Levels of Regional Economic Integration
·        Trade creation & diversion effects ·        Regional Trade Agreements |
|
International Economic institutions
|
·        IMF
·        World Bank ·        UNCTAD |
|
World Trade Organisation
|
·        Functions & objectives of WTO
·        GATS ·        TRIPS ·        TRIMS |
Click here to view lecture notes for UGC NET Paper 1
Accounting and Auditing
Accounting/accountancy is the quantifying, managing, and communication of financial and non-financial data about economic bodies such as businesses and corporations. Accounting is the language of business. It measures the outcomes of an organization’s economic activities and communicates this information to the group of stakeholders, including investors, creditors, management, and regulators.
Auditing is a component of the accounting world. It refers to the inspection of accounting and financial documents that are undertaken independently. This is done to finalize if the company or the business undertaking has confirmed its functioning to the laws and the commonly recognized accounting principles. Topics covered under the unit are.
| Topics | Sub-topics |
| Basic accounting principles
|
·        concepts
·        postulates |
| Partnership Accounts
|
·        Admission
·         Retirement ·        Death ·        Dissolution ·        Insolvency |
| Corporate Accounting
|
·        Issue, forfeiture & reissue of shares
·        Liquidation of companies ·        Acquisition ·        Merger ·        amalgamation ·        reconstruction of companies |
| Holding company accounts | – |
| Cost and Management Accounting
|
·        Marginal costing & Break-even analysis
·        Standard costing ·        Budgetary control ·        Process costing ·        Activity-Based Costing (ABC) ·        Costing for decision-making ·        Life cycle costing ·        Target costing ·        Kaizen costing ·         JIT |
| Financial Statements Analysis
|
·        Ratio analysis
·        Funds flow Analysis ·        Cash flow analysis |
| Human Resources Accounting
|
·        Inflation Accounting
·        Environmental Accounting
|
| Indian Accounting Standards & IFRS | – |
| Auditing | ·        Independent financial audit
·        Vouching ·        Verification ad valuation of assets & liabilities ·        Audit of financial statements & audit report ·        Cost audit |
| Recent Trends in Auditing | ·        Management audit
·        Energy audit ·        Environment audit ·        Systems audit ·        Safety audit |
Business Economics
Business economics is a branch of applied economics that examines business enterprises and the factors that contribute to the diversity of organizational structures and businesses’ connections with labor, capital, and product markets using economic theory and quantitative tools. Important subtopics are
| Topics | Sub-topics |
| Meaning and scope of business economics | – |
| Objectives of business firms | – |
| Demand analysis | ·        Law of demand
·        The elasticity of demand & its measurement ·        Relationship between AR & MR |
| Consumer behavior | ·        Utility analysis
·        Indifference curve analysis |
| Laws of Variable Proportion | ·        Laws of Returns to Scales |
| Theory of cost | ·        Short-run cost curves
·        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 |
Business Finance
Business finance means the finances gained by company founders to match their needs, which may include starting a business, procurement of more assets to finance business operations, obtaining funding to purchase capital assets for the business, or dealing with a cash flow crisis. Important topics covered in this unit are
| Topics | Sub-topics |
| Finance | ·        Scope of finance
·        sources of finance ·        Lease financing |
| Cost of capital & time value of money | – |
| Capital structure | – |
| Capital budgeting decisions | ·        Conventional techniques of capital budgeting analysis
·        scientific techniques of capital budgeting analysis |
| Theories and policies | ·        Working capital management
·        Dividend decision |
| Risk and return analysis | ·        Asset securitization |
| International monetary system | – |
| Foreign exchange market | ·        Exchange rate risk
·        hedging techniques |
| International financial markets and instruments | ·        Euro currency
·        GDRs ·        ADRs |
| International arbitrage | ·        Multinational capital budgeting |
Click here to attempt a UGC NET 2022 Paper 1 Mock test
Business Statistics and Research Methods
The use of statistical tools and techniques to business and managerial challenges for the goal of decision making is referred to as business statistics. The topics covered are as follows
| Topic | Sub-topics |
| 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 distributions
·        poisson distributions ·        normal distributions |
| Research
|
·        Concept
·        types ·        Research designs |
| Data
|
·        Collection of data
·        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 | – |
Business Management and Human Resource Management
The coordination and organisation of commercial activities are denoted as business management. Business managers oversee actions and aid the staff in achieving maximum productivity. A business manager is also responsible for overseeing or training new personnel, as well as assisting a company in meeting its operational and financial goals.
Human resource management (HRM or HR) is a calculated method of supervising individuals in a firm or establishment in such a way that they aid the company to acquire a competitive edge. Its goal is to maximize workforce performance in support of a company’s calculated goals. Below given are the important themes covered.
| Topics | Sub-topics |
| Principles and functions of management | – |
| Organization structure | ·        Formal organizations
·        informal organizations ·        Span of control |
| Responsibility and authority | ·        Delegation of authority
·        decentralization |
| Motivation and leadership | ·        Concept
·        theories |
| Corporate governance and business ethics | – |
| Human resource management | ·        Concept of HR
·        role of HR ·        functions of HRM ·        Human resource planning ·        Recruitment and selection ·        Training and development ·        Succession planning |
| Compensation management | ·        Job evaluation
·        Incentives & fringe benefits |
| Performance appraisal comprising 360-degree performance appraisal | – |
| Collective bargaining & employees’ contribution to management | – |
| Personality | ·        Perception
·        Attitudes ·        Emotions ·        Group dynamics ·        Power and politics ·        Conflict & negotiation ·        Stress management |
| Organizational Culture | ·        Organizational development
·        organizational change |
Banking and Financial Institutions
A financial institution (FI) is a firm involved in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions cover a wide range of business procedures inside the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers. Important topics covered under this unit are:
| Topic | Subtopics |
| 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 |
| Insurance | ·        Types of insurance-
·        Risk classification & management ·        Factors limiting the insurability of risk ·        Re-insurance ·        Regulatory framework of the insurance ·        IRDA and its role |
Click to attend business management classes for commerce UGC NET 2022
Marketing Management
Marketing management is the structural discipline that concentrates on the practical application of marketing orientation, techniques and methods inside ventures and establishments and the management of a company’s marketing resources and endeavors. Following are the important themes covered under the units
| Topic | Sub-topic |
| Marketing | ·        Concept
·        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 & 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 | – |
Legal Aspects of Business
Business Law is also known as Mercantile Law. It deals with the laws based on which every transaction between people and commercial firms are administrated. The Law of Contract is the most significant branch of Mercantile /Commercial Law. The table below shows the important topics under this unit.
| Topics | Sub-topics |
| Indian Contract Act, 1872 | ·        Elements of a valid contract
·        Capacity of parties ·        Free consent ·        Discharge of a contract ·        Breach of contract ·        remedies against breach ·        Quasi-contracts |
| Special contracts | ·        Contracts of indemnity & guarantee
·        contracts of bailment & pledge ·        Contracts of agency |
| Sale of Goods Act, 1930 | ·        Sale and agreement to sell
·        The doctrine of Caveat Emptor ·        Rights of unpaid seller ·        rights of buyer |
| Negotiable Instruments Act, 1881 | ·        Types of negotiable instruments
·        Negotiation & assignment ·        Dishonor & discharge of negotiable instruments |
| The Companies Act, 2013 | ·        Nature & kinds of companies
·        Company formation ·        Management, meetings & winding up of a joint-stock company |
| Limited Liability Partnership | ·        Structure & procedure of formation of LLP in India |
| The Competition Act, 2002 | ·        Objectives
·        main provisions |
| The Information Technology Act, 2000 | ·        Objectives & main provisions
·        Cyber crimes & penalties |
| The RTI Act, 2005 | ·        Objectives
·        main provisions |
| Intellectual Property Rights (IPRs) | ·        Patents, trademarks and copyrights
·        Emerging issues in intellectual property |
| Goods and Services Tax (GST) | ·        Objectives
·        main provisions ·        Benefits of GST ·        Implementation mechanism ·        Working of dual GST |
Income-tax and Corporate Tax Planning
An income tax is a tax levied on people or establishments according to the income or profits gained by them. it is usually calculated as the product of a tax rate times the taxable income. Taxation rates may vary by type of taxpayer and the type of income.
Corporate tax planning is a way of deducting tax obligations from a registered firm. The usual ways for achieving this comprises taking deductions on business transport, health insurance of staff, office expenditures, retirement planning, child care, charitable donations etc. A company can substantially legally lessen its tax burden. This should not be mistaken for tax avoidance and all the measures should be done within the context of the law. Following are the topics to be covered under this unit.
| Topic | Sub-topic |
| Income-tax | ·        Basic concepts
·        Residential status ·        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 & its avoidance mechanism
·        Transfer pricing |
| Corporate Tax Planning | ·        Concepts
·        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 the asset ·        Shut down or continue operations |
| Deduction and collection of tax at source | ·        Advance payment of tax
·        E-filing of income-tax returns |
Now we have a general idea about the important topics covered under the syllabus of Commerce UGC NET 2022 paper 2 and have all the important terms and definitions covered. It is now the duty of the aspirants to structure an efficient plan for preparation and carry it out effectively. Â Download the Entri app for detailed commerce UGC NET 2022 notes PDF and to watch video lectures of classes taken by professional educators on all the focus areas of commerce UGC NET 2022 syllabus.
