2012 June UGC NET Solved Question Paper in Commerce, Paper II

1. Which of the following denote the structural changes in Indian economy?

(A) Primary sector contribution has gone down.

(B) Service sector contribution has gone up.

(C) Secondary sector has not changed much.

(D) All of the above

Answer: (D)


2. Broad Money has to be sensitized through:



(C) Repo Rate

(D) All of the above

Answer: (D)


3. Which one is not an element of legal environment?

(A) Act of Parliamentarians in Lok Sabha

(B) Indian Contract Act, 1872

(C) Indian Partnership Act, 1932

(D) Negotiable instruments Act, 1881

Answer: (A)


4. Out of the following, which are four dimensions of Human Development Index?

(i) Life Expectancy

(ii) Literacy Level

(iii) Success Rate of Marriages

(iv) Standard of Living

(v) Crime Rate

(vi) Corruption Level

(vii) Economic Entitlement

(viii) Foreign Visits

Codes :

(A) (i), (ii), (vi) and (viii)

(B) (i), (ii), (iv) and (vii)

(C) (ii), (iii), (vi) and (vii)

(D) (iii), (v), (vii) and (viii)

Answer: (B)


5. Public Enterprise is defined as

(A) An organisation run by joint efforts of Centre and State Governments.

(B) An organisation which caters to the needs relating to public utilities.

(C) An organisation in which capital is invested by public.

(D) An organisation owned and managed by public authorities for definite set of public purposes.

Answer: (D)


6. Match List-I with List-II and select the correct answer:

List – I                                                List – II

(i) Measurement of income                 (a) Accrues to the equity of owners

(ii) Recognition of expense                 (b) Recognition of revenue

(iii) Basis of realization                       (c) Matching revenue with expenses

(iv) Identification of revenue              (d) Accounting period

Codes :

(i) (ii) (iii) (iv)

(A) (a) (b) (c) (d)

(B) (b) (a) (c) (d)

(C) (c) (d) (a) (b)

(D) (c) (d) (b) (a)

Answer: (D)


7. Consider the following items:

(i) Debentures

(ii) Prepaid rent

(iii) Interest accrued

(iv) Bank overdraft

Which of them are current liabilities?

(A) (i), (ii), (iii) and (iv)

(B) (iv)

(C) (ii), (iii) and (iv)

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

Answer: (B)


8. Conversion cost is the sum of

(A) Indirect wages and factory overhead

(B) Direct wages, direct expenses and factory overhead

(C) Direct material cost and indirect wages

(D) Prime cost and selling & distribution overhead

Answer: (B)


9.  (A) Assertion: Premium received on issue of shares is credited to share premium account but not to Profit and Loss account. www.netugc.com

(R) Reasoning: Since share premium is not a trading profit, it is not distributed to shareholders.

(A) Both (A) and (R) are true but (R) is not correct explanation to (A).

(B) (A) is false but (R) is correct.

(C) Both (A) and (R) are true and (R) is correct explanation of (A).

(D) (A) is correct but (R) is false.

Answer: (C)


10. Consider the following:

(i) Basic defensive and interval ratio

(ii) Current ratio

(iii) Superquick ratio

(iv) Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order.

(A) (ii), (iv), (iii) and (i)

(B) (i), (ii), (iv) and (iii)

(C) (iv), (ii), (iii) and (i)

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

Answer: (A)

11. Normally Demand curve slopes

(A) Upward

(B) Downward

(C) Horizontal

(D) Vertical

Answer: (B)


12. Which of the following refers to Perfect Competition?

(i) There are restrictions on buyers and sellers

(ii) There are no restrictions on movement of goods

(iii) There are no restrictions on factors of production Correct one is

(A) only (i) and (ii)

(B) only (ii) and (iii)

(C) only (i) and (iii)

(D) only (i)

Answer: (B)


13. Assertion (A): Total utility will be maximum when marginal utility to price of respective products  are equal.

Reason (R): Deviation from this situation leads to reduction in maximum utility.

(A) (A) and (R) are not correct.

(B) (A) is correct but (R) is not correct.

(C) (A) and (R) are correct.

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

Answer: (C)


14. Match List-I with List-II and select the correct answer.

List – I                                                List – II

(i) Survival                                          (a) Economic Objective

(ii) R.O.I                                             (b) Natural Urge

(iii) Growth                                         (c) Business Purpose

(iv) Innovation                                    (d) Primary Objective

Codes :

       (a) (b) (c) (d)

(A) (ii) (iii) (iv) (i)

(B) (ii) (i) (iii) (iv)

(C) (i) (ii) (iii) (iv)

(D) (iv) (iii) (ii) (i)

Answer: (A)


15. Consider the oligopoly models:

(i) Sweezy’s kinked demand curve model

(ii) Newman and Morgenstern Game Theory model

(iii) Cournal’s duopoly model

(iv) Baumal’s sales maximization model Arrange them in correct sequence as per order of evolution.

Codes :

 (A) (iv), (iii), (ii), (i)

(B) (ii), (i), (iii), (iv)

(C) (iii), (i), (ii), (iv)

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

Answer: (C)


16. Which of the following is not a restricted random sampling technique?

(A) Stratified sampling

(B) Simple random sampling

(C) Systematic sampling

(D) Multistage sampling

Answer: (B)


17. Classification of respondents only on the basis of gender is an application of

(A) Ordinal scale

(B) Nominal scale

(C) Interval scale

(D) Ratio scale

Answer: (B)


18. Karl Pearson’s co-efficient of correlation between two variables is

(A) the product of their standard deviations

(B) the square root of the product of their regression co-efficients

(C) the co-variance between the variables

(D) None of the above

Answer: (B)


19. Statistical software packages for research in social sciences include



(C) MiniTab

(D) All of the above

Answer: (D)


20. F-test is used to test the significance of the differences between/among

(A) Two sample mean

(B) More than two samples mean

(C) Variance of two samples

(D) (B) and (C)

Answer: (D)

21. Match the following

List-I                                                               List-II

(i) The Practice of Management                      (a) Henry Fayol

(ii) Philosophy of Management                       (b) F.W. Taylor

(iii) Scientific Management                             (c) Oliver Sheldon

(iv) General and Industrial Administration    (d) Peter F Drucker

Codes :

       (i) (ii) (iii) (iv)

(A) (a) (b) (c) (d)

(B) (d) (c) (b) (a)

(C) (d) (c) (a) (b)

(D) (c) (d) (b) (a)

Answer: (B)


22. Identify the correct sequence of steps involved in planning:

(i) Selecting the best course of action

(ii) Establishing the sequence of activities

(iii) Establishment of objectives

(iv) Evaluating alternative courses

(v) Determining alternative courses

(A) (i), (ii), (iii), (iv) and (v)

(B) (iii), (v), (iv), (ii) and (i)

(C) (v), (iv), (iii), (ii) and (i)

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

Answer: (D)


23. Assertion (A) : One can be sure about future course of actions by making good plans.

Reasoning (R) : Planning brings certainty in future course of actions of an organisation.

(A) (R) is correct but (A) is not correct.

(B) (A) is correct but (R) is not correct.

(C) Both (A) and (R) are correct.

(D) Both (A) and (R) are not correct.

Answer: (A)


24. According to Kieth Devis, which one is not a barrier of communication?

(A) Physical Barriers

(B) Technological Barriers

(C) Personal Barriers

(D) Linguistic Barriers

Answer: (B)


25. While establishing relation between Maslow’s and Herzberg’s theories, which Needs of Hierachy Theory will fall under the Hygiene Factors?

(A) Self actualisation, esteem and social needs

(B) Esteem, social and safety needs

(C) Social, safety and physiological needs

(D) Only social needs

Answer: (C)


26. Howard-Sueth model of consumer behaviour is popularly known as

(A) Machine Model

(B) Human Model

(C) Marketing Model

(D) Purchase Model

Answer: (A)


27. To generate and facilitate any exchange intended to satisfy human needs or wants such that the satisfaction of these wants occur with minimal detrimental impact on the natural environment is known as

(A) Aggressive marketing

(B) Operating marketing

(C) Green marketing

(D) All of the above

Answer: (C)


28. All the activities involved in selling goods or services directly to final consumers for personal non-business uses are done by

(A) Wholesalers

(B) Retailers

(C) Mediators

(D) Commission Agents

Answer: (B)


29. To manage a business well is to manage its future and to manage the future is to manage information is termed as

(A) Management information system

(B) Marketing information system

(C) Future information system

(D) General information system

Answer: (A)


30. DAGMAR approach in marketing is used to measure

(A) Public relations

(B) Advertising results

(C) Selling volume

(D) Consumer satisfaction

Answer: (D)


31. Which one is not an important objective of Financial Management?

(A) Profit Maximisation

(B) Wealth Maximisation

(C) Value Maximisation

(D) Maximisation of social benefits

Answer: (D)


32. Which one refers to cash inflow under payback period method?

(A) Cash flow before depreciation and taxes

(B) Cash flow after depreciation and taxes

(C) Cash flow after depreciation but before taxes

(D) Cash flow before depreciation and after taxes

Answer: (B)


33. The concept of present value is based on the :

(A) Principle of compounding

(B) Principle of discounting

(C) (A) and (B)

(D) None of the above

Answer: (B)


34. Cost of capital from all the sources of funds is called

(A) Specific cost

(B) Composite cost

(C) Implicit cost

(D) Simple Average cost

Answer: (A)


35. Match the following with most suitable option:

(a) Modigiliani- Miller Approach                    (i) Commercial papers

(b) Net Operating Income Approach              (ii) Working Capital Management

(c) Short term Money Market Instrument       (iii) Capital Structure

(d) Factoring                                                   (iv) Arbitrage

Codes :

       (a) (b) (c) (d)

(A) (iv) (iii) (i) (ii)

(B) (iii) (iv) (i) (ii)

(C) (iii) (ii) (i) (iv)

(D) (iii) (ii) (iv) (i)

Answer: (B)


36. Which four are the factors influencing the Human Resource Management of an organisation?

(i) Size of workforce

(ii) Employee Expectations

(iii) Composition of workforce

(iv) Political influence

(v) Changes in technology

(A) (i), (ii), (iii) and (iv)

(B) (i),(ii), (iii) and (v)

(C) (i), (ii), (iv) and (v)

(D) (i), (iii), (iv) and (v)

Answer: (C)


37. Assertion (A): One can not be sure about the quality of appraisal on the basis of length of service.

Reasoning (R): Initial appraisal and promotional appraisal are done separately and differently since the length of service is different.

(A) (R) is correct but (A) is not correct.

(B) (A) is correct but (R) is not correct.

(C) (A) and (R) both are correct.

(D) (A) and (R) both are not correct.

Answer: (D)


38. Which of the following are covered under the scope of Human Resource Management?

(i) Forecasting Human Resource Needs

(ii) Replacement Planning

(iii) Human Resource Dynamics

(iv) Human Resource Development Planning

(v) Human Resource Audit

(A) (i), (iii), (v)

(B) (i), (ii), (iii), (iv)

(C) (iii), (v)

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

Answer: (D)


39. On which of the following, at the initial stage, the Indian IT companies relying more for getting good IT professionals?

(A) Job Portals

(B) Placement Agencies

(C) Campus Placement

(D) All of the above

Answer: (C)


40. Statement (i): Labour always get a major share of productivity gains.

Statement (ii): Partial stoppage of work by workers amounts to strike.

(A) Statement (i) is true but (ii) is false.

(B) Statement (ii) is true but (i) is false.

(C) Both statements are true.

(D) Both statements are false.

Answer: (B)


41. Imperial Bank was established on January 27, 1921 on the advise of

(A) J. M. Keynes

(B) Lord Illingworth

(C) King George V

(D) Winston Churchill

Answer: (A)


42. Read the following events:

(i) Allowing convertibility of rupee at the market rate in the current account

(ii) Nationalisation of general insurance business

(iii) Establishment of IDBI

(iv) Nationalisation of life insurance business

(v) Capital adequacy norms for commercial banks

Arrange the events in the ascending order of their occurrence:

(A) (iv), (iii), (ii), (i), (v)

(B) (v), (iv), (iii), (ii), (i)

(C) (i), (ii), (iii), (v), (iv)

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

Answer: (A)


43. In India, the Commercial Banks are given license of operation by

(A) The Government of India

(B) The Ministry of Finance

(C) Reserve Bank of India

(D) Banking Companies Regulation Act, 1949

Answer: (C)


44. The provisions of General Reserve in Banking Companies are made keeping in view the provisions of

(A) Indian Companies Act, 1956

(B) Banking Companies Act, 1949

(C) SEBI Act, 1992

(D) Statutory Auditorwww.netugc.com

Answer: (B)


45. Which among the following is not true with regard to merchant banker?

(i) It can accept deposits.

(ii) It can advance loans.

(iii) It can do other banking activities.

(iv) It can be manager to a public issue.

(A) (i), (ii) and (iii)

(B) (ii), (iii) and (iv)

(C) (i), (iii) and (iv)

(D) (ii) and (iv)

Answer: (A)


46. Balance of Payments can be made favourable if

(A) Exports are increased

(B) Imports are increased

(C) Devaluation of money

(D) (A) and (C)

Answer: (D)


47. Which one is not an objective of IMF?

(A) To promote international monetary co-operation

(B) To ensure balanced international trade

(C) To finance productive efforts according to peace-time requirement

(D) To ensure exchange rate stability

Answer: (C)


48. EPCG denotes

(A) Export Potential and Credit Guarantee

(B) Earning Promotion and Credit Guarantee

(C) Export Promotion and Credit Guarantee

(D) Export Potential and Credit Goods

Answer: (C)


49. Which one of the following matches correspond to the Member and Observer countries of the SAARC?

(i) India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldive

(ii) Iran, China, Japan, USA, South Korea, European Union

(iii) Pakistan, Nepal, India, Bangladesh, Iran

(iv) UK, USA, North Korea, South Africa

(A) (iii) and (iv)

(B) (ii) and (iv)

(C) (i) and (ii)

(D) (ii) and (iii)

Answer: (C)


50. Which one is not an international organisation?





Answer: (D)