NTA UGC NET/JRF Exam, June 2020 Commerce (Evening-Shift)

Customer relationship management (CRM) is the process of managing interactions with existing as well as past and potential customers it is one of many different approaches that allow a company to manage and analyze its own interactions with its past, current and potential customer.

It uses data analysis about customers' history with a company to improve business relationship with customers, specifically focusing on customer retention and ultimately driving sales growth.

CRM process involves the activities and strategies that companies use to manage their interaction with current and potential customers.

Successfully collecting information about your customers allows you to understand them more. In turn, you can improve your protects and service based on their demands.
Steps in the CRM process-
(i) Collecting of customer data
(ii) Analyzing customer data
(iii) Identify the target customers
(iv) Developing CRM programs
(v) Implementing programs

Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Standard costing are assigned to production units rather than actual cost; after total costs are accumulated using standard cost, these total are compared to actual accumulated costs, and the difference is charged to a variance account
Process of standard costing:-

The accounting cycle is a process designed to make financial accounting of the business activities easier for the business owners.

It provides clear guideline for recording, analyzing and final reporting a business's financial activities.
Process of accounting-
(i) Recording the business transaction in the books of entry.
(ii) Journalising the transaction in the ledger accounts.
(iii) Preparation of the trial balance.
(iv) Preparation of annual financial statements.
(v) Deriving meaningful inferences for business decision.

Capital budgeting capital budgeting, also  known as an "Investment appraisal” is a financial anagement tool to measure a projects potential risk and expected long-term return on investment. Companies may have limited resources for now projects so they carefully consider the capital investment a projgct requires and the amount of value they expect to receive.
Capital budgeting process sequence:
(a) Cash flow estimation
(b) Identify discount rate
(c) Determination of NPV
(d) Project solution decision

The term 'TDS' refers to "Tax Deduction at Source" it is a mechanism wherein a person who is responsible to pay a sum of specified nature shall deduct an amount towards 'TDS' and pay it to the credit of the central government.

A void contract under section 2 (J) A contract which ceases to be enforceable by law becomes void 'when it ceases to be enforceable.
Features of Void contract:
A contract made by incompetent parties is void
Any contract with bilateral mistakes is void
Any contract with bilateral mistakes is void
Contracts that have unlawful object or consideration or void.
Contract in restraint of trade is void.
Contracts in restraint of legal proceedings are void.
Contract the term of which is uncertain is void
A contract by way of wager (gambling/betting) is void.
A contract contingent upon the happening of an impossible event is void.
A contract to do impossible acts is void.

Keith Davis defined worker's participation in management as "as an individual's mental and emotional involvement in a group situation that encourages him to contribute to group goals and to share responsibility for them.

'Worker participation in management:
It refers to the participation of non-managerial employees in the decision making process of the organization.

It refers to the involvement of worker's only in such areas of activities of the enterprises where they can make some positive contribution.

orkers may not be competent enough to understand| and appreciate the managerial aspects of the enterprise.
So only those workers should be selected who possess the ability, intelligence, and knowledge so as to participate effectively in the management.
Therefore, both statement A and R are correct but 'R’ is the correct explanation of A.

Credit Market: The credit market was characterized by credit controls and direct lending.
Credit markets in developing countries, in particular, play an important role, where apart from the industry, agriculture is also an important segment of the economy
Besides, there are also a large no. of small and medium enterprises in the industrial and service sectors, which are not above to access the capital market and have depend on the credit market for their funding requirements.
Later, various leans and restrictions were gradually phased out and the Reserve Bank of India has gradually relaxed various controls in the credit market.

The agricultural credit flow has increased consistently over the year exceeding the target set for each fiscal.
Thus, credit flows to SME sectors have increased as well in recent year.
Therefore, statement A and R both are correct and R is| the right explanation of A.

TRIM'S (Trade Related Investment Measures) recognize that certain investment measures can restrict trade.

TRIMs and TRIPs provisions facilitate and promote FDI.
The TRIPs (Trade Related Aspects of intellectual property rights) is a minimum standard agreement that allows more extensive protection of intellectual property to the member nations of WTO.
The agreement on TRIMs calls for introducing national treatment of foreign investment and removal of quantitative restrictions.
Collective, TRIMs and TRIPs provisions remove restrictions and address capital flow statement:
Therefore both A and R are correct and R is the right explanation of A.

Equilibrium 
In the above diagram, when the price of a commodity is above equilibrium price then the supply will be more then demand and when the price of a commodity is below equilibrium price than the demand will be more then supply.
These both are disequilibrium prices of a commodity.
The equilibrium price of a commodity is the price at which the quantity demanded of the commodity equals the quantity supplied i.e.
Equilibrium is the condition, once determined tends to persist in time only when the behavior of agents is consistent, a dynamic process governs equilibrium outcome and there is no incentive for agents to change behavior.
Therefore, both A and R are correct and R is NOT the correct explanation of A.