UGC NET Commerce Exam Sample Paper

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As per your request here I am sharing the sample question paper of UGC NET Commerce Paper II Exam

1. The concept of Small Scale
Industries (SSIs) was brought to fore
by the
(A) Industrial Policy Resolution,
1948
(B) Industrial Policy Resolution,
1956
(C) Industrial Policy Statement,
1977
(D) None of the above
2. Which combination of the following
factors has driven globalisation in
the recent past ?
I. Growth of multinational
corporations.
II. Internationalisation of finance.
III. Increased international trade.
(A) I and II (B) I and III
(C) II and III (D) I, II and III
3. Assertion (A) : Privatisation
process leads to change in
management with change in
ownership.
Reason (R) : Change in
management is not a necessary
condition for the process of
privatisation.
Which one of the following is
correct combination ?
Codes :
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is
incorrect.
(C) (A) is incorrect, but (R) is
correct.
(D) Both (A) and (R) are incorrect.
4. Match the following two lists of
statements.
List – I List – II
I. When one
company
purchases
another one.
1. Conglomeration
merger
II. Merger
between two
companies
having no
common
business
areas.
2. Consolidation
merger
III. Merger
between two
companies
that sell the
same
products in
different
markets.
3. Purchase
merger
IV. Two
companies
are bought
and
combined
under new
entity.
4. Market
extension
merger
Codes :
I II III IV
(A) 1 2 3 4
(B) 2 3 1 4
(C) 3 1 4 2
(D) 3 4 1 2

5. In which of the industrial policies
were the following major changes
introduced ?
– Liberalisation of licensed
capacity.
– Relaxation of industrial
licensing.
– Industrialisation of backward
areas.
(A) Industrial Policy Resolution,
1956.
(B) Industrial Policy Statement,
1977.
(C) Industrial Policy of 1980.
(D) Industrial Policy of 1991.
6. Which of the following is not an
Accounting concept ?
(A) Matching concept
(B) Dual Aspect concept
(C) True and Fair concept
(D) Going concern concept
7. Deficiency/Surplus Account in
liquidation of a company is called
(A) List – C (B) List – D
(C) List – G (D) List – H
8. Which of the following statement is
not correct ?
(A) P/V ratio can be improved by
reducing fixed cost.
(B) Contribution is also known as
Gross margin.
(C) P/V ratio can be improved by
increasing the selling price.
(D) Margin of safety can be
improved by reducing fixed
cost.
9. In the context of Standard Costing;
Basic Standard is established for
(A) short period
(B) current period
(C) indefinite period
(D) pre-defined period
10. Read the following statements :
(i) Marginal costing and
Absorption costing are the
same.
(ii) For decision making,
absorption costing is more
suitable than marginal costing.
(iii) Cost-volume-profit relationships
also denote break-even point.
(iv) Marginal costing is based on
the distinction between fixed
and variable costs.
Which of the following
combinations gives true statements
with regard to above ?
(A) (i) & (ii) (B) (ii) & (iii)
(C) (iii) & (iv) (D) (iv) & (ii)
11. A consumer consuming two goods
will be in equilibrium, when the
marginal utilities from both goods
are
(A) maximum possible positive
(B) minimum possible positive
(C) equal
(D) zero
12. Total production will be maximum
when
(A) Marginal production is
maximum.
(B) Average production is
maximum.
(C) Marginal production is zero.
(D) Average production is equal to
the marginal production.

13. Which one of the following is not
matched properly ?
List – I List – II
I. High initial
price to be
lowered later
1. Product
line pricing
II. Prices to be
proportional to
cost
2. Differential
pricing
III. Prices to be
increased for
providing
profit
3. Pioneer
pricing
IV. Prices to be
different in
different
markets
4. Incremental
pricing
(A) I and 3 (B) II and 1
(C) III and 4 (D) IV and 2
14. As per indifference curve and price
line, a consumer will not be in
equilibrium when
(A) Ratios of marginal utilities and
prices of the respective goods
are equal.
(B) Ratio of marginal utilities of
the two goods is equal to the
ratio of their respective prices.
(C) The marginal rate of
substitution is equal to the
ratio of prices of the two
goods.
(D) The marginal rate of
substitution is decreasing.
15. Under kinked demand model, the
demand curve for the firm’s product
is drawn on the assumption that
(A) All rivals charge the same
price which is charged by the
oligopolist.
(B) All rivals charge a price
independent of the price
charged by the oligopolist.
(C) All rivals follow the
oligopolist upto certain price
but beyond that they do not.
(D) All oligopolists charge the
price as independent sellers.
16. A graph of a cumulative frequency
distribution is called
(A) Ogive
(B) Frequency polygon
(C) Pie diagram
(D) Histogram
17. Which of the following tests is used
to test the significance of the coefficient
of association ?
(A) Z-test (B) t-test
(C) 2-test (D) F-test
18. The total area of a normal
distribution between average value
1.96 of standard deviation is
(A) 95.45 % (B) 95 %
(C) 99 % (D) 68.34 %
19. Which of the following is a relative
measure of dispersion ?
(A) Standard deviation
(B) Variance
(C) Co-efficient of variation
(D) None of the above

20. ERP includes (i) SAP, and/or
(ii) Resource Planning.
(A) Both (i) and (ii)
(B) Only (i)
(C) Only (ii)
(D) None of the above
21. Which one of the following was not
main contribution of F.W. Tailor ?
(A) Scientific management
(B) Time and motion studies
(C) Differential wage plan
(D) Modern management
22. Match the items of List-I with items
of List-II.
List – I List – II
I. Hygiene
theory
1. Abraham H.
Maslow
II. Theory of
‘X’ and ‘Y’
2. Victor
Vroom
III. Expectancy
Theory
3. Fredrick
Herzberg
4. Doughlas
Mcgregor
Codes :
I II III
(A) 3 4 2
(B) 1 4 2
(C) 3 2 4
(D) 1 2 4
23. Which of the following
combinations consists of correct
statements ?
(i) Control and planning are
interlinked.
(ii) Control is not meant for men,
but for activities.
(iii) Control is a circular
movement.
(A) (i) and (ii)
(B) (i) and (iii)
(C) (ii) and (iii)
(D) (i), (ii) and (iii)
24. Staffing includes
(i) Training (ii) Appraisal
(iii) Placement (iv) Directing
Which of the following is correct ?
(A) (i) and (iii)
(B) (i), (ii) and (iii)
(C) (ii) and (iii)
(D) (i), (ii), (iii) and (iv)
25. Assertion (A) : Management is a
continuous process involving
the integration of all functions.
Reason (R) : Managers first plan,
then organise and finally
perform the function of
controlling.
Read the above statements and select
the correct answer from the code
below :
Codes :
(A) Both (A) and (R) are correct;
and (R) is correct explanation
of (A).
(B) Both (A) and (R) are correct,
but (R) is not a correct
explanation of (A).
(C) (A) is correct, but (R) is
incorrect.
(D) (A) is incorrect, but (R) is
correct.
26. Exchange concept of marketing
deals with
(A) Exchange of products between
sellers and buyers covering
distribution and price aspects.
(B) Mere appendage to production.
(C) Achieving marketing success
through product attributes.
(D) Aggressively promote and
push the products.

27. Who coined the expression
“Marketing Mix” ?
(A) Henry Fayol
(B) James Culliton
(C) Peter Drucker
(D) Abraham Maslow
28. Road blocking advertisement refers
to
(A) Advertising a product by
blocking the road.
(B) Creating big blocks for
advertising a product.
(C) Advertising a product on
multiple TV channels at the
same time.
(D) None of the above.
29. Match the following :
List – I List – II
1. Market
segmentation
i. Pricing high of
a new product
initially.
2. Skimming
price
ii. Process of
disaggregating
a market into a
number of submarkets.
3. Multilevel
marketing
iii. Translation of
the marketing
plan into
marketing
performance.
4. Sales
management
iv. Modified
version of
direct
marketing.
Codes :
1 2 3 4
(A) ii i iv iii
(B) iii i ii iv
(C) i ii iii iv
(D) iv ii iii i
30. Which of the following buying
process sequence is correct ?
1. Adoption 2. Legitimization
3. Attitude 4. Awareness
(A) 4, 3, 2, 1
(B) 2, 3, 4, 1
(C) 1, 2, 3, 4
(D) 3, 4, 2, 1
31. Discounted cash flow criteria for
investment appraisal does not
include
(A) Net present value
(B) Benefit-cost ratio
(C) Accounting rate of return
(D) Internal rate of return
32. Working capital represents the
portion of current assets financed
through long term funds. This
indicates (1) net working capital
and/or (2) gross working capital.
(A) (1) is correct
(B) (2) is correct
(C) Both (1) and (2) are correct
(D) Neither of the two is correct
33. Dividend policy of a company mainly
concerns with
(i) dividend payout and/or
(ii) stability of dividend.
(A) Only (i) is correct.
(B) Only (ii) is correct.
(C) Both (i) and (ii) are correct.
(D) Both (i) and (ii) are incorrect.

34. Match the following :
List – I List – II
I. The presence of
fixed cost in the
cost structure
of a firm.
1. Superleverage
II. The presence of
fixed return
funds in the
capital structure
of a firm.
2. Operating
leverage
III. Impact of
changes in sales
on the earnings
available to
shareholders.
3. Financial
leverage
Codes :
I II III
(A) 1 2 3
(B) 2 3 1
(C) 3 2 1
(D) 1 3 2
35. Which one of the following is not
used to estimate cost of equity
capital ?
(A) External yield criterion
(B) Dividend plus growth rate
(C) Equity capitalisation approach
(D) Capital asset pricing model
36. Which of the following is not a
Central Trade Union in India ?
(A) B.M.S. (B) I.L.O.
(C) INTUC (D) AITUC
37. Sequence the following in which
they are practised :
(i) Promotion
(ii) Performance appraisal
(iii) Recruitment
(iv) Training and Development
(A) (iii), (ii), (iv) (i)
(B) (iii), (ii), (i), (iv)
(C) (iii), (i), (iv), (ii)
(D) (iii), (iv), (ii), (i)
38. Which one of the following purposes
is not served by performance
evaluation ?
(A) Decisions about promotions,
transfers and terminations.
(B) Centralisation and
decentralisation of decision
making authority.
(C) Identification of training and
development needs.
(D) Criterion against which
selection and development
programmes are validated.
39. Who has introduced the “Seven
Point Plan” for taking the best
interview method ?
(A) Milton L. Blum
(B) F. E. Burt
(C) Prof. A. Rozar
(D) Filippo
40. The last stage in a grievance
redressal procedure is handled by
(A) Union
(B) Voluntary Arbitrator
(C) H.R. Department
(D) Grievance Committee
41. The Commercial Banks in India are
governed by
(A) Reserve Bank of India Act,
1934
(B) Indian Companie’s Act, 1956
(C) Indian Banking Regulation
Act, 1949
(D) Securities and Exchange Board
of India Act, 1992
42. Which of the following limits the
power of credit creation by
Commercial Banks ?
(A) Fiscal Policy
(B) Banking Laws
(C) Business Pessimism
(D) None of the above

43. Match the following with the years
of establishment/nationalisation.
List – I List – II
(a) Reserve Bank of
India
i. 1975
(b) Nationalisation
of 14 Major
Commercial
Banks
ii. 1935
(c) Nationalisation
of 6 Commercial
Banks
iii. 1969
(d) Regional Rural
Banks
iv. 1980
Codes :
(a) (b) (c) (d)
(A) i iii ii iv
(B) iii ii iv i
(C) iv iii i ii
(D) ii iii iv i
44. Capital adequacy norm helps to
Banks
(i) For strengthening capital base
of Banks.
(ii) For sanctioning more loans.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) (i) is correct, but (ii) is
incorrect.
(D) (i) is incorrect, but (ii) is
correct.
45. Which one of the following is the
main objective of Unit Trust of India ?
(A) To mobilize the savings of
high income groups.
(B) To mobilize the savings of low
and high income groups.
(C) To mobilize the savings of
corporates.
(D) To mobilize the savings of low
and middle income groups.
46. Which of the following is the basic
objective of the World Bank ?
(A) To provide social services
(B) To provide financial assistance
(C) To promote economic growth
(D) To eradicate poverty
47. Which of the following is not an
International Financial Institution ?
(A) I.C.I.C.I. (B) I.M.F.
(C) I.D.A. (D) World Bank
48. In balance of payment accounts, all
goods exported and imported are
recorded in ________.
(A) Capital Account
(B) Visible Account
(C) Invisible Account
(D) Merchandise Account
49. The devaluation of currency of a
country is done when ________.
(i) It has adverse balance of
payments.
(ii) It has favourable balance of
payments.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) Only (i) is correct.
(D) Only (ii) is correct.
50. Match the following with the year of
establishment :
List – I List – II
(a) World Trade
Organisation
i. 1993
(b) Uruguay Round
Negotiation
ii. 1995
(c) W.T.O. – Trade
Policy Review
Body
iii. 1997
(d) The Patents
(Amendment)
Act.
iv. 1999
Codes :
(a) (b) (c) (d)
(A) i iii iv ii
(B) i iv iii ii
(C) ii i iii iv
(D) iv ii i iii



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