How to prepare for Commerce subject in UGC NET Exam

UGC NET Exam Overview

The National Testing Agency (NTA) has been entrusted by the University Grants Commission (UGC) with the task of conducting UGC-NET Exam, which is a Test to determine the eligibility of Indian nationals for ‘Assistant Professor’ as well as ‘Junior Research Fellowship and Assistant Professor’ in Indian Universities and Colleges.

The UGC-NET is being conducted by the National Testing Agency (NTA) in Computer Based Test (CBT) mode w.e.f. December 2018 onwards.

Awarding of Junior Research Fellowship (JRF) and/ or Eligibility for Assistant Professorship depends on the aggregate performance of the candidate in Paper-I and Paper-II of UGC-NET Exam. The candidates qualifying only for Assistant Professorship are not eligible to be considered for the award of JRF. Candidates who qualify the eligibility test for Assistant Professorship are governed by the rules and regulations of the concerned Universities/Colleges/State Governments, as the case may be for recruitment of Assistant Professor.

UGC-NET Exam is conducted twice every year (June & December). Due to the outbreak of COVID- 19 pandemic in 2020 & 2021, the cycles of UGC NET Exam were merged and conducted together.

In order to regularize the UGC-NET Examination cycle, the National Testing Agency (NTA), with the concurrence of UGC is conducting UGC NET Exam December 2022 in the month of February & March 2023 in 83 subjects, at selected cities across the country.

Going a step further and to regularise the exam cycle, the NTA has released exam dates for the later half of the year and the exam will be held from 13th to 22nd June 2023.

As NTA gears up to conduct the exam in a proper manner, students also need to prepare themselves for the exam in a dedicated manner. For students who are preparing for UGC Net with commerce as a subject, here are a few pointers to guide you in the right direction.

Our JRF team is the best in the business and almost all of them have already been selected as JRF. So, in your preparation journey we will be the best guide for you and our experienced team will prove to be a vital cog in your preparation journey.

How to prepare for UGC NET Commerce Paper II

Go through the syllabus to gauge your strengths and weaknesses

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; Socio-cultural factors and their influence on business; Corporate Social Responsibility (CSR) Legal environment- Consumer Protection Act, FEMA
• Government intervention in international trade; Theories of 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
• Trade creation and diversion effects; Regional Economic Integration: Levels of Regional Economic Integration, Regional Trade Agreements: European Union (EU), ASEAN, SAARC, NAFTA 
• International Economic Institutions: IMF, World Bank, UNCTAD
• Agriculture Agreement; GATS; TRIPS; TRIMSWorld Trade Organisation (WTO): Functions and objectives of WTO

Unit 2: Accounting and Auditing

• Basic accounting principles; concepts and postulates
• Partnership Accounts: Admission, Retirement, Death, Dissolution, and Insolvency of partnership firms
• Liquidation of companies; Acquisition, merger, Corporate Accounting: Issue, forfeiture, and reissue of shares amalgamation, and reconstruction of companies Holding company accounts
• Standard costing; Budgetary control; Cost and Management Accounting: Marginal costing and Break-even analysis; Process costing; Activity Based Costing (ABC); Costing for decision-making; Life cycle costing, Target costing, Kaizen costing, and JIT 
• Funds flow Analysis; Cash flow analysis Human Resources Accounting; Inflation Accounting; Environmental Accounting, Financial Statements Analysis: Ratio analysis;
• Indian Accounting Standards and IFRS
• ; Vouching; Auditing: Independent financial audit, Verification and valuation of assets and liabilities; Audit of financial statements and audit report; Cost audit
• Energy audit; Recent Trends in Auditing: Management audit; Environment audit; Systems audit; Safety audit

Source:

R.S. AGGARWAL

TS Grewal

Unit 3: Business Economics

• Meaning and scope of business economics
• Objectives of business firms
•  Elasticity of demand and its measurement; Demand analysis: Law of demand; Relationship between AR and MR
•  Indifference curve analysis, Consumer behavior: Utility analysis;
• Theory of cost: Short-run and long-run cost curves 
• Perfect competition; Monopolistic competition; Oligopoly- Price leadership model; Monopoly; Price discrimination, Price determination under different market forms:
• 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
• Working capital management; Dividend decision: Theories and policies
• Risk and return analysis; Asset securitization
• International monetary system
•  Exchange rate risk and hedging techniques, Foreign exchange market
• 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 distribution; Central limit theorem; Sampling and estimation: Concepts; Methods of sampling - probability and nonprobability methods; Standard error; Statistical estimation
• Mann-Whitney test (Utest); Chi-square test; Kruskal-Wallis test (H-test); Hypothesis testing: z-test; t-test; ANOVA; Rank correlation test
• Report writing

Source:

“Business Statistics” by Dr. J.K. Thakur

Unit 6: Business Management and Human Resource Management

• Principles and functions of management
• Span of control
• Responsibility and authority: Delegation of authority and decentralization, Organization structure: Formal and informal organizations;
• Motivation and leadership: Concept and theories
• Corporate governance and business ethics
•  Human resource planning; Recruitment and selection; Training and development; Succession planningHuman resource management: Concept, role, and functions of HRM;
• 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 the Indian financial system
• Types of banks: Commercial banks; Regional Rural Banks (RRBs); Foreign banks; Cooperative banks
•  Role and monetary policy management
• Banking sector reforms in India: Basel norms; Risk management; NPA management,Reserve Bank of India: Functions;
• 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
•  Risk classification and management; Insurance: Types of insurance- Life and Non-life insurance;Factors limiting the insurability of risk; Reinsurance; Regulatory the framework of insurance- IRDA and its role

Source:These units are to be covered by the Internet.

Unit 8: Marketing Management

• Marketing channels; Marketing: Concept and approachesMarketing mix; Strategic marketing planning; Market segmentation, targeting, and positioning
• Product line; Product mix decisions; Product life cycle
• New product developmentProduct decisions: Concept
•  Pricing policies and StrategiesPricing decisions: Factors affecting price determination;
• 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
• factors influencing consumer buying decisionsConsumer Behaviour; Consumer buying process;
• Service marketing
• Online marketing; Green marketing; Trends in marketing: Social marketing Direct marketing; Rural marketing; CRM
• Logistics management

Source:Post-Graduation by Philip T. Kotler Gary Armstrong and Prafulla Agnihotri

Unit 9: Legal Aspects of Business

• Capacity of parties; Free consent; Indian Contract Act, 1872: Elements of a valid contract; Discharge of a contract; Breach of contract and remedies against breach;
• Quasi-contracts;
• Contracts of bailment and pledge; Contracts of agencySpecial contracts: Contracts of indemnity and guarantee;
• Doctrine of Caveat Emptor;Sale of Goods Act, 1930: Sale and agreement to sell;
• Rights of unpaid seller and rights of the buyer
• Negotiable Instruments Act, 1881: Types of negotiable instruments; Negotiation and assignment; Dishonour and discharge of negotiable instruments
• Company formation; The Companies Act, 2013: Nature and kinds of companies
• Management, meetings, and winding up of a joint-stock company
• The Competition Act, 2002: Objectives and main provisions
• The Information Technology Act, 2000; Cyber crimes and penalties
• The RTI Act, 2005: Objectives and main provisions
•  Patents, Intellectual Property Rights (IPRs):trademarks, and copyrights; Emerging issues in intellectual property
• Benefits of GST;Goods and Services Tax (GST): Objectives and main provisions;
• Implementation mechanism; Working of dual GST

Source:

Graduation level “Business and Industrial Law” by L.C. Mittal / G.K. Kapoor /Reena Chadha

Graduation level  “Company Law” by M.C. Kuchhal /Sumant Chadha/Reena Chadha.

Unit 10: Income-tax and Corporate Tax Planning

• Residential status and tax incidence; Income-tax: Basic concepts; 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.

Source:

Graduation of Income Tax by Girish Ahuja/ Taxmann

Post-Graduation book “Corporate tax planning” by Dr J.C. & Nikhil Gupta.

A few tips

• Start your preparation for UGC NET Exam commerce by understanding the exam pattern and the syllabus for the UGC NET Commerce exam. This will help you know what to expect on the day of the exam and will also help you plan your study schedule.
• Make a study plan for your UGC NET commerce preparation and stick to it. Try to devote a certain amount of time each day to studying for the exam, and cover all the essential topics in the syllabus.
• Use study materials such as books, notes, and online resources to help you prepare for the exam. Make sure to use materials that are relevant and up-to-date.
• Practice as many mock tests as possible to help you get used to the exam format and to identify your strengths and weaknesses.
• Take care of your physical and mental health. Make sure to get enough sleep, exercise, and eat well during the exam preparation. This will help you stay focused and energized.
• Don't panic or get stressed out. Instead, try to stay calm and focused on your studies. Remember that hard work and dedication can go a long way in helping you succeed in the exam.

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