KSET Commerce Syllabus

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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 
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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
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