NTA UGC NET/JRF Exam, Dec. 2020/June 2021 Commerce (Morning-Shift)

Technology adoption and innovation
The most potent driver of business transformation during-19 pandemic is Technology adoption and) innovation. 

The covid-19 crisis has bought about years of charge in the way companies do business. To stay competitive during the pandemic, because consumers have moved dramatically forwards online channels.

Companies adopted various digital technology diver changes. The pandemic- has re-written three rules of engagement for everyone. Now compemics are ready to use key technological tools in most of their HR process almost over night.

Export subsidies
Counter vailing Duties (CVD) are often of imposed on imports to offset the impact of Export Subsidies.

Countervailing Duties (DVDs) are tariffs levied on| imported goods to offset subsidies made to producers of these goods in exporting country.

For example — Export subsidies given by the Chinese government will make the Chinese products low priced in the Indian market. This will be a disadvantage for the competing Indian product.

To overcome this situation government of India can impose a countervailing duty on Chinese imports.

To prevent opportunistic takeover of domestic firms amid covid-19 pandemic. Foreign direct Investment (FDI) from countries that borders with Indial is allowed through government route.

FDI in India is allowed under two modes - the, automatic route. For which companies don’t need government approval, or through the government route, for which companies need a go-ahead from the centre land need government approval .

This is done after some controversy was raised over chineis central bank buying a minority stake (less than 1 per cent) in HDFC, a large Indian mortgage lender.

Skilled labour and scientific knowledge
Factor conditions in Michael porter's competitive, advantage of Nations include Skilled labour and scientific knowledge.

National competitive theory or porter's diamond theory was given by Micheal porter. This theory states that the equalities of home country are vital for the triumph of a corporation.
There are six model factors in this theory which are also known as the determinants.
Jactor conditions
This is the situation in a country relating to production| factors like knowledge and infrastructure.
These factors can be grouped into material resources-human resources (labour costs, qualifications and commitment).

Vendor's suspense account
In case the purchasing company agrees to act as the agent of the vendor for collection of the book debts in the books of the purchasing company the amount of debtors should be credited to vendor's suspense account. 

A suspense account is an account used temporarily to carry doubtful entries and the need for a suspense account arises due to the inability to identify the, appropriate ledger account for record transaction.

Goodwill on consolidation 
When the value of 'Investment in subsidiary' in the holding company's balance sheet is more than the book value of the net assets acquired the difference represents is Goodwill on consolidation.
The goodwill on consolidation represents the excess of the cost of acquisition over the group's share in the market value of the identifiable assets and liabilities of a subsidiary.
The share of a subsidiary company are purchased either as a premium or at a discount by a holding company, that is the main cause of difference in the value.
Goodwill = cost of Investment — parent's share in the equity of the subsidiary on date of investment.

Amortization -
According to Historical cost Approach - actual cost incurred on recruiting, hiring training and development the human resources of the organisation are Capitalized and amortized over the expected useful life of the human resources.

Present value of all expected future profits
The value of the firm in maximization objective is measured by present value of all expected future profits.

Value of the firm is measured by calculating present value of cost flows of profits of the firm over a number of years in the future.

To do so projects of future years must be discounted money value a rupee of profit in a future year is worth less than a rupee of profit in a future year is worth less than a rupee of profit in the present.

The value of a firm may be expressed as follows :- value of the firm = present value of expected future profit.

Inelastic-
For decline in press, total revenue decline, if the demon of the product is Inelastic. If demand of the product is inelastic at given price level, then a company should raise the price.
The percentage increase in price will result in a smaller percentage decrease in the quantity sold and total revenue will rise.
Total revenue is price multiplied by quantity demanded (TR = P×Qd).