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

The characteristics of different levels of leadership are in increasing order :
■ He makes a productive contribution through talent, knowledge, skills, and good work habits.
■ He organises people and resources towards the effective and efficient pursuit of predetermined objectives.
■ He catalyses commitment to and vigorous pursuit of a clear and compelling vision and stimulates the group to high performance standards.
■ He builds enduring greatness through a paradoxical combination of professional will and personal humility.

Key points :
• The concept of level 5 leadership was created by business consultant Jim Collins. He wrote about it in a well-respected 2001 Harvard Business Review article, and published his research in his popular book “Good to Great”.
■ Level 1  Highly capable Individual
■ Level 2  Contributing Team Member
■ Level 3  Competent Manager
■ Level 4  Effective Leader
■ Level 5  Level 5 Executive

The following statements are true in a contractual capacity :
■ That a minor can make a contract for necessities of life
■ A convict cannot enter into a valid contract nor can sue

Note : According to section 11 of Indian contract act 1872, “Every person is competent to contract who is of the age of majority according to the law to which he is subjected and who is of sound mind and is not disqualified from contracting by any law to which he is subjected.”

Key points :
■ Capital market is a crucial link between saving and investment process.
■ Capital market provides funds for long and medium term.
■ It makes use of different intermediaries such as brokers, underwriters, depositories etc.
■ These markets functions within the framework of government rules and regulations, stock exchange, regulated by SEBI.

Match the list-I & List-II

Key points :
■ As per section 10 (1) income tax act, agriculture income earned by the tax payer in India is exempt from tax.
■ Under Section 10 (10 (C)) J.T. Act any amount received receivable by a specified category of an employee under the voluntary retirement scheme is exempted.

The following are required to be studied for a deep understanding of income tax procedures :
■ The Income Tax Act 1961
This act is a comprehensive statute that focuses on the different rules and regulations that govern taxation in the country.
■ The Income Tax Rule 1962
It contain the set of Rules which helps in the enforcement and application law constituted in the Act.
■ Notifications, cm colours, classifications issued from time to time by the CBDT and judical decisions.

Tax Audit is compulsory in case a person is carrying a business whose gross turn over/receipts exceeds 1 crore.
Note : Section 44B (Compulsory Audit of books of accounts)
■ Section 44AB makes it obligatory for a person to get his accounts audited before the "Specified date" by "Chartered Accountant". If the total sales, turnover in business for the previous year exceeds INR 1 crore or if his gross receipts in profession for the previous year exceeds INR 50 lakhs.

Characteristics of the product life cycle-

Key points :
■ Current Account transaction :
Any person may sell or draw foreign enchange to or from an authorized person if such sae or drawal is a current account transaction.
Examples of current account transaction :
■ Payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business.
■ Remittances for living expensis of parents, spours and children residing abroad.
■ Expenses in connection with foreign travel, education and medical care of parents, spouse, and children.