UGC NET Solved Papers Commerce June' 2010 [Paper II Commerce 08 For NTA NET Exam 2025]

UGC NET Solved Papers Commerce June' 2010

[Paper II Commerce 08 NTA NET Exam 2025]

UGC NET PAPER II COMMERCE SOLVED PAPERS

Note: This paper contains fifty (50) objective-type questions, each question carrying two (2) marks. Attempt all of them.

1. The concept of Small Scale Industries (SSIs) was brought to force by the

(A) Industrial Policy Resolution, 1948.

(B) Industrial Policy Resolution, 1956.

(D) None of the above.

Ans: (C) Industrial Policy Statement, 1977.

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.

(D) I, II and III.

Ans: (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.

(D) Both (A) and (R) are incorrect.

Ans: (B) (A) is correct, but (R) is incorrect.

4. Match the following two lists of statements.

List – I

List – II

I. When one company purchases another one.

II. Merger between two companies having no common business areas.

III. Merger between two companies that sell the same products in different markets.

IV. Two companies are bought and combined under new entity.

1. Conglomeration merger.

2. Consolidation merger.

3. Purchase merger.

4. Market extension merger.

Codes:

(A) I-1, II-2, III-3, IV-4.

(B) I-2, II-3, III-1, IV-4.

(D) I-3, II-4, III-1, IV-2.

Ans: (C) I-3, II-1, III-4, IV-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.

(D) Industrial Policy of 1991.

Ans: (D) Industrial Policy of 1991.

6. Which of the following is not an Accounting concept?

(A) Matching concept.

(B) Dual Aspect concept.

(D) Going concern concept.

Ans: (C) True and Fair concept.

7. Deficiency/Surplus Account in liquidation of a company is called

(A) List – C.

(B) List – D.

(D) List – H.

Ans: (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.

(D) Margin of safety can be improved by reducing fixed cost.

Ans: (B) Contribution is also known as Gross margin.

9. In the context of Standard Costing; Basic Standard is established for

(A) Short period.

(B) Current period.

(D) Pre-defined period.

Ans: (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).

(D) (iv) & (ii).

Ans: (C) (iii) & (iv).

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.

(D) zero.

Ans: (C) equal.

12. Total production will be maximum when

(A) Marginal production is maximum.

(B) Average production is maximum.

(D) Average production is equal to the marginal production.

Ans: (C) Marginal production is zero.

13. Which one of the following is not matched properly?

List – I

List – II

I. High initial price to be lowered later.

II. Prices to be proportional to cost.

III. Prices to be increased for providing profit.

IV. Prices to be different in different markets.

1. Product line pricing.

2. Differential pricing.

3. Pioneer pricing.

4. Incremental pricing.

Code:

(A) I and 3.

(B) II and 1.

(D) IV and 2.

Ans: (B) II and 1.

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.

(D) The marginal rate of substitution is decreasing.

Ans: (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.

(D) All oligopolists charge the price as independent sellers.

Ans: (C) All rivals follow the oligopolist upto certain price but beyond that they do not.

16. A graph of a cumulative frequency distribution is called

(A) Ogive.

(B) Frequency polygon.

(D) Histogram.

Ans: (A) Ogive.

17. Which of the following tests is used to test the significance of the coefficient of association?

(A) Z-test.

(B) t-test.

(D) F-test.

Ans: (C) c2-test.

18. The total area of a normal distribution between average value ± 1.96 of standard deviation is

(A) 95.45 %.

(B) 95 %.

(D) 68.34 %.

Ans: (B) 95 %.

19. Which of the following is a relative measure of dispersion?

(A) Standard deviation.

(B) Variance.

(D) None of the above.

Ans: (C) Co-efficient of variation.

20. ERP includes (i) SAP, and/or (ii) Resource Planning.

(A) Both (i) and (ii).

(B) Only (i).

(D) None of the above.

Ans: (A) Both (i) and (ii).

21. Which one of the following was not main contribution of F.W. Taylor?

(A) Scientific management.

(B) Time and motion studies.

(D) Modern management.

Ans: (A) Scientific management.

22. Match the items of List-I with items of List-II.

List – I

List – II

I. Hygiene theory.

II. Theory of ‘X’ and ‘Y’.

III. Expectancy Theory.

1. Abraham H. Maslow.

2. Victor Vroom.

3. Fredrick Herzberg.

4. Doughlas McGregor.

Codes:

(A) I-3, II-4, III-2.

(B) I-1, II-4, III-2.

(D) I-1, II-2, III-4.

Ans: (A) I-3, II-4, III-2.

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).

(D) (i), (ii) and (iii).

Ans: (A) (i) and (ii).

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).

(D) (i), (ii), (iii) and (iv).

Ans: (B) (i), (ii) and (iii).

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).

(D) (A) is incorrect, but (R) is correct.

Ans: (A) Both (A) and (R) are correct; and (R) is correct explanation of (A).

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.

(D) Aggressively promote and push the products.

Ans: (A) Exchange of products between sellers and buyers covering distribution and price aspects.

27. Who coined the expression “Marketing Mix”?

(A) Henry Fayol.

(B) James Culliton.

(D) Abraham Maslow.

Ans: (B) James Culliton.

28. Road blocking advertisement refers to

(A) Advertising a product by blocking the road.

(B) Creating big blocks for advertising a product.

(D) None of the above.

Ans: (C) Advertising a product on multiple TV channels at the same time.

29. Match the following:

List – I

List – II

1. Market segmentation.

2. Skimming price.

3. Multilevel Marketing.

4. Sales management.

i. Pricing high of a new product initially.

ii. Process of disaggregating a market into a number of submarkets.

iii. Translation of the marketing plan into marketing performance.

iv. Modified version of direct marketing.

Codes:

(A) 1-ii, 2-i, 3-iv, 4-iii.

(B) 1-iii, 2-i, 3-ii, 4-iv.

(D) 1-iv, 2-ii, 3-iii, 4-i.

Ans: (A) 1-ii, 2-i, 3-iv, 4-iii.

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.

(D) 3, 4, 2, 1.

Ans: (A) 4, 3, 2, 1.

31. Discounted cash flow criteria for investment appraisal does not include

(A) Net present value.

(B) Benefit-cost ratio.

(D) Internal rate of return.

Ans: (B) Benefit-cost ratio.

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.

(D) Neither of the two is correct.

Ans: (C) Both (1) and (2) are 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.

(D) Both (i) and (ii) are incorrect.

Ans: (C) Both (i) and (ii) are correct.

34. Match the following:

List – I

List – II

I. The presence of fixed cost in the cost structure of a firm.

II. The presence of fixed return funds in the capital structure of a firm.

III. Impact of changes in sales on the earnings available to shareholders.

1. Super leverage.

2. Operating leverage.

3. Financial leverage.

Codes:

(A) I-1, II-2, III-3.

(B) I-2, II-3, III-1.

(D) I-1, II-3, III-2.

Ans: (B) I-2, II-3, III-1.

35. Which one of the following is not used to estimate cost of equity capital?

(A) External yield criterion.

(B) Dividend plus growth rate.

(D) Capital asset pricing model.

Ans: (A) External yield criterion.

36. Which of the following is not a Central Trade Union in India?

(A) B.M.S.

(B) I.L.O.

(D) AITUC.

Ans: (B) I.L.O.

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).

(D) (iii), (iv), (ii), (i).

Ans: (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.

(D) Criterion against which selection and development programmes are validated.

Ans: (B) Centralisation and decentralisation of decision making authority.

39. Who has introduced the “Seven Point Plan” for taking the best interview method?

(A) Milton L. Blum.

(B) F. E. Burt.

(D) Filippo.

Ans: (C) Prof. A. Rozar.

40. The last stage in a grievance redressal procedure is handled by

(A) Union.

(B) Voluntary Arbitrator.

(D) Grievance Committee.

Ans: (B) Voluntary Arbitrator.

41. The Commercial Banks in India are governed by

(A) Reserve Bank of India Act, 1934.

(B) Indian Companies Act, 1956.

(D) Securities and Exchange Board of India Act, 1992.

Ans: (C) Indian Banking Regulation Act, 1949.

42. Which of the following limits the power of credit creation by Commercial Banks?

(A) Fiscal Policy.

(B) Banking Laws.

(D) None of the above.

Ans: (D) None of the above.

43. Match the following with the years of establishment/nationalisation.

List – I

List – II

(a) Reserve Bank of India.

(b) Nationalisation of 14 Major Commercial Banks.

(d) Regional Rural Banks.

i. 1975.

ii. 1935.

iii. 1969.

iv. 1980.

Codes:

(A) (a)-I, (b)-iii, (c)-ii, (d)-iv.

(B) (a)-iii, (b)-ii, (c)-iv, (d)-i.

(D) (a)-ii, (b)-iii, (c)-iv, (d)-i.

Ans: (D) (a)-ii, (b)-iii, (c)-iv, (d)-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.

(D) (i) is incorrect, but (ii) is correct.

Ans: (C) (i) is correct, but (ii) I incorrect.

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.

(D) To mobilize the savings of low and middle income groups.

Ans: (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.

(D) To eradicate poverty.

Ans: (B) To provide financial assistance.

47. Which of the following is not an International Financial Institution?

(A) I.C.I.C.I.

(B) I.M.F.

(D) World Bank.

Ans: (A) I.C.I.C.I.

48. In balance of payment accounts, all goods exported and imported are recorded in ________.

(A) Capital Account.

(B) Visible Account.

(D) Merchandise Account.

Ans: (B) Visible 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.

(D) Only (ii) is correct.

Ans: (C) Only (i) is correct.

50. Match the following with the year of establishment:

List – I

List – II

(a) World Trade Organisation.

(b) Uruguay Round Negotiation.

(d) The Patents (Amendment) Act.

i. 1993.

ii. 1995.

iii. 1997.

iv. 1999.

Codes:

(A) (a)-i, (b)-iii, (c)-iv, (d)-ii.

(B) (a)-i, (b)-iv, (c)-iii, (d)-ii.

(D) (a)-iv, (b)-ii, (c)-i, (d)-iii.

Ans: (C) (a)-ii, (b)-i, (c)-iii, (d)-iv.

UGC NET Solved Papers Commerce June' 2010 [Paper II Commerce 08 For NTA NET Exam 2025]