(Syllabus) Himachal Pradesh PSC: State Eligibility Test (Commerce)

Himachal Pradesh Public Service Commission

SET: Commerce (Code-22)

Paper-II and Paper-III (Core Group)

Unit-I.
Business Environment:

• Meaning and Elements of Business Environment Econimic enrironment, Economic Policies, Economic Planning Legal environment of Business in India, Competition policy, Consumer protection, Environment protection Policy Environment : Liberalization, Privatisation and globalisation, Second generation reforms, Industrial policy and implementation. Industrial growth and structural changes.

Unit-II.
Financial & Management Accounting:

• Basic Accounting concepts, Capital and Revenue, Financial statements.
• Partnership Accounts: Admission, Retirement, Death, Dissolution and Cash Distribution.
• Advanced Company Accounts : Issue, forfeiture, Purchase of Business, Liquidation, Valuation of shares, Amalgamation, Absorption and Reconstruction, Holding Company Accounts.
• Cost and Management Accounting : Ratio Analysis, Funds Flow Analysis, Cash Flow Analysis, Marginal costing and Break-even analysis, Standard costing, Budgetary control, Costing for decision-makinmg.
• Responsibility accounting

Unit-III.
Business Economics:

• Nature and uses of Business Economics, Concept of Profit and Wealth maximization. Demand analysis and Elasticity of Demand, Curve Analysis, Law.
• Utility Analysis and Indifference of Returns and Law of variable proportions Cost, Revenue, Price determination in different market situations: Perfect competition, Monopolistic competition, Monopoly, Price discrimination and Oligopoly, Pricing strategies

Unit-IV.
Business Statistics & Date Processing.

• Data types, data collection and analysis, sampling, need, errors and methods of sampling, Normal distribution, Hypothesis testing, Analysis and Interpretation of data.
• Correlation and Regression, small sample tests-t-test, F-test and chi-square test.
• Data processing-Elements, Data entry, Data processing and Computer applications.
• Computer application to Functional Areas-Accounting, Inventory control, Marketing.

Unit-V.
Business Management.
Principles of Management

• Planning-Objectives, Strategies, Planning process, Decision-making Organising, Organisational structure, Formal and Informal organisations, Organisational culture.
• Staffing.
• Leading : Motivation, Leadership, Committees, Communication Controlling.
• Corporate Governance and Business Ethics.

Unit-VI.
Marketing Management.

• The evolution of marketing, Concepts, Concept of marketing, Marketing mix, Marketing environment.
• Elements of consumer behaviour, Market segmentation.
• Product decisions.
• Pricing decisions.
• Distribution decisions.
• Promotion decisions .
• Marketing planning, Organising and Control.

Unit-VII.
Financial Management.

• Capital Structure, Financial and Operating leverage.
• Cost of capital, Capital budgeting.
• Working capital management.
• Dividend Policy.

Unit-VIII.
Human Resources Management.

• Concepts, Role and Functions of Human Resource management.
• Human Resource Planning, Recruitment and Selection.
• Training and Development, Succession Planning.
• Compensation : Wage and Salary Administration, Incentive and Fringe benefits, Morale and Productivity.
• Performance Appraisal.
• Industrial Relations in India, Health Safety, Welfare and Social security, Workers,
• Participation in Management.

Unit-IX.
Banking and Financial Institution.

• Importance of Banking to Business, Types of Banks and Their Functions, Reserve Bank of India, NABARD and Rural Banking.
• Banking Sector Reforms in India, NPA, Capital adequacy norms.
• E-banking.
• Development Banking : IDBI, IFCI, SFCs, UTI, SIDBI.

Unit-X.
International Business.

• Theoretical foundations of international business, Balance of Payments.
• International liquidity, International Economic Institutions-IMF, World Bank IFC, IDA, ADB.
• World Trade Organisation-its functions and policies.
• Structure of India's foreign trade : Composition and direction, EXIM Bank, EXIM Policy of India, Regulation and promotion of Foreign Trade.

Paper-III (B)
(Elective/ Optional)

Elective-I : Accounting and Finance.

• Accounting standards in India, Inflation Accounting, Human Resource Accounting, Responsibility Accounting, Social Accounting.
• Money and Capital market, Working of stock exchanges in India, NSE, OTCEI, NASDAQ, Derivatives and Options.
• Regulatory Authorities : SEBI, Rating Agencies; New Instruments : GDRs, ADRs.
• Venture Capital Funds, Mergers and Acquisitions, Mutual Funds, Lease Financing, Factoring, Measurement of risk and returns securities and portfolios.
• Computer application in Accounting and Finance.

Elective-II : Marketing.

• Marketing Tasks, Concepts and Tools, Marketing Environment.
• Consumer Behaviour and Market Segmentation.
• Product decisions.
• Pricing decisions
• Distribution decisions.
• Promotion decisions
• Marketing Researchs.
• On-line marketing.
• Direct Marketing; Social, ethical and legal aspects of marketing in India.

Elective-III : Human Resource Management.

• Concept : Role and Functions of Human Resource Manager.
• Human Resource Planning, Job analysis, Job description and specifications, Use of Job analysis information, Recruitment and Selection.
• Training and Development, Succession Planning.
• Compensation : Wage and salary administration, Incentives and Fringe benefits, Morale and Productivity.
• Appraisal of Performance.
• Industrial Relations in India, Health, Safety, Welfare and Social Security, Workers participation in Management.

Elective-IV : International Business.

• Foreign Direct Investment and Multinational Corporations-MNCs Culture, MNCs and LDCs Joint Ventures.
• Regional Economic Intergration : SAARC, ASEAN, EC, NAFTA.
• India and WTO, intellectual Property Rights.
• Foreign Exchange-Exchange rate, Mechanism, Risk management, Transfer of internatioal payments, Convertibility of Rupee, Current and Capital Accounts; Issues and Perceptions, Derivatives and Futures.
• Foreign investment Institution; Instruments : GDRs, ADRs, FIIs-their role in Indian Capital market.

Elective-V : Income-tax Law and Tax Planning.

• Basic concepts, Residential status and tax incidence, exempted incomes, computation of taxable income under various heads.
• Comptation of taxable income of individuals and firms.
• Deduction of tax, filing of returns, different types of assessment; Defaults and penalties.
• Tax planning : Concept, significance and problems of tax planning, Tax evasion and tax avoidance, methods of tax planning.
• Tax considerations in specific business decisions, viz., make or buy; own or lease, retain or replace; export or domestic sales; shut-down or closure; expand or contact; invest or disinvest.
• Computer Application in Income tax and Tax planning.

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