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1. Assertion (A) : Corporate culture is generally considered as either closed and threatening
or as open and participatory.
Reason (R) : Corporate culture and style of functioning of top managers is important
factor for determining the internal environment of a company.
(1) (A) is correct, but (R) is incorrect.
(2) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(3) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(4) (R) is correct, but (A) is incorrect.
2. Statement I : If the workers develop an attitude of non-cooperation with Management, a
repressive economic system may be needed to set right this industrial disorder.
Statement II : By fulfilling social responsibility towards shareholders, employees,
consumers, government and community, a business achieves economic growth and
increases public image.
(1) Statement I is correct, but II is incorrect.
(2) Both the statements I and II are correct.
(3) Statement II is correct but I is incorrect.
(4) Both the statements are incorrect.
4. From which Five Year Plan “Growth with Social Justice” has received emphasis ?
(1) 5th (2) 6th
(3) 7th (4) 10th
5. Which of the following is not the objective of the Competition Act, 2002 ?
(1) Prohibition of Restrictive Trade Practices.
(2) Prohibition of Dominant Position
(3) Prohibition of Anti-competitive Agreements
(4) Regulation of Combinations
6. Consolidated financial statements are prepared on the principle
(1) In form the companies are one entity, in substance they are separate.
(2) In form companies are separate, in substance they are one.
(3) In form and substance the companies are one entity.
(4) In form and substance the companies are separate.
8. From the following two statements of Assertion (A) and Reason (R), indicate the correct
Assertion (A) : From the marginal costing approach point of view, the marginal cost is
compared with the purchase price.
Reason (R) : If the marginal cost is less than the purchase price it should be purchased
rather than manufactured.
(1) (A) and (R) both are correct.
(2) (A) is correct, but (R) is not correct.
(3) (A) is not correct, but (R) is correct.
(4) (A) and (R) both are incorrect.
9. Which one of the following statements is true about standard labour time ?
(1) Standard labour time indicates the time in hours needed for a specific process.
(2) It is standardized on the basis of past experience.
(3) In fixing standard time due allowance should not be given to fatigue and tool setting.
(4) The Production Manager does not provide any input in setting the labour time
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14. The Kinked demand curve model of oligopoly was developed by
(1) Augustin Cournot (2) Stackelberg
(3) Edgeworth (4) Sweezy
15. For the success of the penetration price policy, which one of the following is not
(1) Short-run demand for the product to have elasticity greater than unity.
(2) Availability of economies of large scale production.
(3) Product to have very low cross-elasticity of demand.
(4) Easy acceptance and adoption of the product by the consumers.
16. Statement I : The absolute value of the difference between an unbiased estimate and the
corresponding population parameter is called sampling error.
Statement II : Multi-stage sampling is a restricted non-probability based sampling
Indicate the correct code :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement I is correct, while Statement II is incorrect.
(4) Statement I is incorrect, while Statement II is correct.
18. Which one of the following is a false statement ?
(1) The signs of the regression coefficients are always the same.
(2) Correlation coefficient is the geometric mean of the two regression coefficients.
(3) The co-variance between two variables divided by the product of their standard
deviations produces the value of coefficient of correlation.
(4) Coefficient of correlation is independent of origin but not of scale
19. If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of
(1) – 0.16 (2) + 0.50
(3) + 0.40 (4) – 0.40
20. Process of arranging data into a new order is called
(1) Manipulation of data (2) Standardization of data
(3) Sequencing of data (4) Standardized input
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21. Developed by the Special Projects Office of the U.S. Navy; this technique was first
formally applied to the planning and control of the Polaris Weapon System in 1958 and
worked well in expediting the completion of that programme. The technique is known as
(1) Gantt Chart (2) PERT
(3) CRM (4) Milestone budgeting
22. Consider the following statements relating to planning and find out which of the following
are correct :
Statement I : The operating personnel should not be associated with the preparation of
Statement II : A programme indicates the principal operations to be carried out to
accomplish a work.
Statement III : Under MBO technique, the Managers should be provided with a freehand
to laydown the objectives.
(1) Only Statement I is correct. (2) Only Statement II is correct.
(3) Only Statement III is correct. (4) Only Statements I and III are correct.
23. Assertion (A) : Sympathetic listening in upward communications often leads to
resentment in communicator.
Reason (R) : Sympathetic listening and encouraging remarks often lead the
communicator to believe that his proposal will receive action not contemplated by
(1) (A) is correct and (R) is the right explanation to it.
(2) (A) is correct, but (R) is not the right explanation to it.
(3) (A) is not correct while (R) is a correct statement.
(4) Both (A) and (R) are incorrect.
24. Assertion (A) : Herzberg believes that today’s motivators are tomorrow’s hygiene factors.
Reason (R) : Some job conditions operate primarily to dissatisfy employees when they
are absent, but their presence does not motivate them in strong way.
(1) (A) and (R) both are correct and (R) is the right explanation of (A).
(2) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(3) (A) is not correct while (R) is a correct.
(4) Both (A) and (R) are incorrect
30. An elaborated version of the idea expressed in meaningful consumer term is called
(1) Product image (2) Product idea
(3) Product concept (4) Prototype
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31. Which one of the following combination of rules stands true while preparing schedule of
changes in working capital ?
A. An increase in current assets increases working capital.
B. An increase in current assets decreases working capital.
C. An increase in current liabilities decreases working capital.
D. An increase in current liabilities increases working capital.
(1) A and D (2) A and C
(3) B and C (4) C and D
32. Assertion (A) : The primary motive of a company in using financial leverage is to
magnify shareholders’ return under favourable economic conditions.
Reason (R) : To magnify shareholders’ return fixed charges funds can be obtained at a
cost higher than the firm’s rate of return on net assets.
(1) (A) is correct and (R) is the correct explanation of (A).
(2) (A) is correct, but (R) is wrong.
(3) (R) is correct, but (A) is wrong.
(4) Both (A) and (R) are wrong.
33. Debt financing is a cheaper source of finance because of
(1) Time value of money (2) Rate of interest
(3) Tax deductibility of interest (4) Dividends are not payable to lenders
34. Which of the following is not true with reference to capital budgeting?
(1) Capital budgeting is related to asset replacement decisions.
(2) Cost of capital is equal to minimum required rate of return.
(3) Timing of cash flows is relevant.
(4) Existing investment in a project is not treated as sunk cost.
35. Which of the following statements is not correct ?
(1) The cost of capital is required rate of return to ascertain the value of the firm.
(2) Different sources of funds have a specific cost of capital related to that source only.
(3) Cost of capital does not comprise any risk premium.
(4) Cost of capital is basic data for NPV technique.
36. Which of the following is not the quality of human resources in any organization ?
(1) Their behaviour to stimuli is often inconsistent and unpredictable.
(2) They depreciate with passage of time in terms of skills.
(3) They are heterogeneous.
(4) Retaining qualified human resources is a challenge for managers.
37. Human Resource Planning benefits to an organization are reflected in which of the
combination of the following ?
a. Balance between demand and supply of human resources.
b. Non-compulsion on management to assess critically and continuously the employees
and personnel policies.
c. Duplication of efforts and conflicts are avoided.
d. Minimizing the future returns on investment in human resources.
(1) a and b (2) a and c
(3) a, b and c (4) a, c and d
38. A statement containing items such as job title, location, summary, duties, materials used,
working conditions etc., is called
(1) Job specification (2) Job evaluation
(3) Job description (4) Job analysis
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40. Which organizational analysis method is used, among the following, to develop various
efficiency indices relating to contribution of human capital in meeting the organizational
(1) Objectives analysis
(2) Resource utilization analysis
(3) Task analysis
(4) Organizational climate analysis
45. Letters of credit, Guarantees, Forward Contracts etc., come under which one of the
(1) Liabilities of a bank
(2) Assets of a bank
(3) Foreign exchange items of a bank
(4) Off-balance sheet items of a bank
46. Consider the following statements with regard for the “Theory of Absolute Cost
(i) Productive efficiency differed among different countries because of diversity in
natural and acquired resources possessed by them.
(ii) The difference in natural advantage manifests in varying climate, quality of land,
availability of minerals, water and other resources.
(iii) The difference in acquired resources manifests in different levels of technology and
Identify the correct code from the following :
(1) Statement (i) is correct, but (ii) and (iii) are incorrect.
(2) Statements (i) and (ii) are correct, but (iii) is incorrect.
(3) All the statements (i), (ii) and (iii) are correct.
(4) None of the statements is correct.
1. Put the following steps of strategic Management Process in correct sequence :
a. Scanning and Evaluation of Business Environment
b. Formulating strategies
c. Implementation of Corporate Strategy
d. Deciding about the Mission of the organisation
e. Setting Corporate Level Objective
(1) a, b, c, d and e (2) d, a, b, c and e
(3) d, a, e, c and b (4) d, a, e, b and c
3. Identify the correct statement from the following :
(1) The liability of the Karta is limited.
(2) A joint Hindu family business continues to exist on the death of a co-partner.
(3) A joint Hindu family business ceases to exist on the death of the Karta.
(4) A joint Hindu family business comes into existence by Hindu law.
4. Statement I : “Working in harmony with the community and environment around us and
not cheating our customers and workers we might not gain anything in the short run
but in the long term it means greater profits and shareholders value”.
Statement II : According to Mahatma Gandhi, capitalist class owns wealth or capital as
trustees of the society.
(1) Statement I is correct, but II is incorrect.
(2) Statement II is correct, but I is incorrect.
(3) Both the statements I and II are incorrect.
(4) Both the statements I and II are correct.
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6. Which of the following is not true ?
(1) When all the forfeited shares are not reissued, the forfeited shares account will also
show as credit balance equal to gain on forfeiture of shares not yet reissued.
(2) Loss on reissue of shares cannot be more than gain on forfeiture of those shares.
(3) At the time of forfeiture of shares, securities premium is debited along with share
capital when premium has not been received.
(4) When forfeited shares are issued at premium, the premium amount is credited to
Capital Reserve Account.
7. Preparation of consolidated Balance Sheet of Holding Company and its subsidiary
company is done as per
(1) AS 11 (2) AS 21
(3) AS 22 (4) AS 23
8. Amount due to outgoing partner is shown in the balance sheet as his
(1) Liability (2) Asset
(3) Capital (4) Loan
11. Short-run demand and total cost functions for a monopoly firm are as under :
Demand function : Q = 100 – 0.2 P
: P = 500 – 5 Q
: TC = 50 + 20 Q + Q2
Where Q = Total quantity of the product in physical units.
P = Price of the product per unit
TC = Total cost
What is the profit maximizing output of the pure monopoly firm ?
(1) 20 (2) 35
(3) 40 (4) 50
12. In which one of the following market situations, the pricing above the prevailing market
price is used as a more common practice ?
(1) Markets where the selling firms face perfect competitive situations.
(2) Markets where the selling firms want to gain popularity of the products having high
cross elasticity of their demand.
(3) Markets where sellers rely on their customers’ high propensity to consume a
(4) Markets where the selling firms have entered into the stages of maturity and
13. Which one of the following statements is false regarding normal distribution ?
(1) Mean, Median and Mode always coincide.
(2) Within ± 1.96 σ limits from Mean value, the area under the distribution is 99 percent
of the total area.
(3) The area under the normal curve represents probabilities for the normal random
variable and the total area for the normal probability distribution is one.
(4) For every pair of values of Mean and Standard deviation, the curve of the
distribution is bell-shaped and symmetric.
14. If unexplained variation between variables X and Y is 36%, what is the coefficient of
correlation between the variables ?
(1) 0.36 (2) 0.64
(3) 0.60 (4) 0.80
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16. A researcher wants to test the significance of the difference between the average
performance of the two small sized Commerces when the information of the population
standard deviation is not available, which one of the following hypothesis-testing is
suitably used ?
(1) Z-test (2) Chi-square test
(3) F-test (4) t-test
17. Which of the following statements are not correct ? Indicate the correct code.
Statement I : Organizational culture means the general pattern of behaviour, belief and
values that organization members have in individuality.
Statement II : As per contingency theory of Leadership, people become leader only
because of the demand of group members.
Statement III : The group judgement can only be obtained through the formal
Statement IV : Ombudsperson in communication function is a person assigned to
investigate employee concerns and providing valuable upward communication link.
(1) Statements I, II and IV (2) Statements I, III and IV
(3) Statements I, II and III (4) Statements II, III and IV
18. Assertion (A) : The organization is a closed system that operates within and interacts with
the external environment.
Reasoning (R) : The system approach to management includes the outputs from the external
environment on the basis of interactions between management and employees.
(1) (A) and (R) are correct and (R) is the correct reasoning of (A).
(2) (A) and (R) are correct, but (R) is not the correct explanation of (A).
(3) (A) is incorrect while (R) is a correct statement.
(4) Both (A) and (R) are incorrect
39. Under TRIPS Agreement, patent is granted subject to which of the following ?
a. The product or the process is new one.
b. It contains an inventive step.
c. It is capable of industrial application for 15 years from the grant of the patent.
d. It is capable of industrial application for 20 years from the grant of the patent.
(1) Only a and b (2) Only a, b and c
(3) Only a, b and d (4) Only a and d
41. Which of the following correctly depicts differences between a merger and an acquisition
of stock ?
(1) An acquisition of stock results in the total absorption of a firm whereas a merger
(2) In case of a merger, the firm can deal directly with the shareholders of the acquired
firm but not in the case of acquisition of stock.
(3) Shareholders of the acquired or target firm vote by their response to a tender offer in
an acquisition of stock but cast a formal vote in a merger situation.
(4) A formal vote by the acquired firm’s shareholders is required for an acquisition of
stock but not for a merger
49. Which of the following is not a measure for quality of service for consumer ?
(1) Responsiveness (2) Competition
(3) Empathy (4) Tangibility
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52. Statement I : The firm should “stick to its niching” but not necessarily to its niche.
Statement II : Multiple niching is not preferable to single niching.
(1) Both the Statements are true.
(2) Both the Statements are false.
(3) Statement I is true, but Statement II is false.
(4) Statement II is true, but Statement I is false.
53. A descriptive thought that a person holds about something is called
(1) Belief (2) Learning
(3) Attitude (4) Perception
54. Deferment, Autonomy of object, use of the common place, involvement/detachment and
use of metaphor are description of which of the following technique ?
(1) Brainstorming (2) Synectics
(3) Forced Relationship (4) Attribute listing
55. Which of the following statements are correct ? Indicate the correct combination :
a. A well motivated individual tends to experience a low degree of morale.
b. A group characterized by a high state of morale may or may not have a high degree
of motivation to perform.
c. Morale can always be built up by a combination of rewards and penalties.
d. Organizations, in general, devote more direct attention towards motivational aspects
of people’s behaviour than the aspects of morale.
(1) a, b and d (2) c and d only
(3) a, c and d (4) b and d only
62. What is the popular term used for that type of option in Foreign Exchange Market which
provides the holder the right to purchase or sell foreign currency at the most favorable
exchange rate realized over the life of the option ?
(1) Forward reversing option (2) Preference option
(3) Look back option (4) Basket option
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63. What is the term used popularly for the situation when a speculator, being dominant in the
market, expects a drop in the value of a particular currency and he begins selling it
(1) International Fisher Effect (2) Bandwagon Effect
(3) Interest Rate Parity Effect (4) Relative Version Effect
64. Identify the correct statement.
(1) The Maastricht Treaty signed in February 1992 renamed European Community (EC)
as European Economic Community (EEC).
(2) The main objective of the formation of ASEAN Free Trade Area in 1993 was to
soften the restrictions on the movement of professionals in the region and helping
(3) The SAARC is a regional grouping scheme among Six South Asian Countries.
(4) The European Union, including European Monetary Union, was the biggest and
most important regional integrative scheme.
69. An equipment was acquired at a cost of ` 10 lacs and was put to use in Scientific
Research. After one year of research the equipment was brought into another business of
the assessee. For charging depreciation, Block of Assets shall be increased by
(1) ` 10 lacs.
(2) Market value of the equipment on the date it was brought into another business.
(3) Cost or market value of the equipment, whichever is less.
70. If an assessee is engaged in the business of growing and manufacturing tea in India, the
portion of agricultural income in that case shall be
(1) 100% (2) 60%
(3) 50% (4) 40%
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71. Which of the following statements is not correct ?
(1) X is an individual assessee. He pays a monthly rent of ` 10,000 pm. He cannot
deduct tax at source.
(2) On salaries, tax is deducted at source according to provisions of Sec. 192.
(3) No tax is deducted at source in respect of interest on securities issued by a domestic
(4) Bank will deduct tax at source @ 10% if bank fixed deposit’s interest credit is more
than ` 10,000 in a year.
72. X donated ` 20,000 to a charitable institution, which is eligible for deduction u/s 80 G,
during the financial year 2015-16. His total income during the period was ` 1,50,000.
How much deduction he can claims u/s 80 G ?
(1) ` 7,500 (2) ` 10,000
(3) ` 15,000 (4) ` 20,000
73. X is employed in a private company at a salary of ` 70,000 per month and ` 10,000 per
month as dearness pay. He received ` 2,000 per month as house rent allowance. He paid
` 2,500 per month as house rent. What is the exempted portion of house rent allowance ?
(1) ` 2,500 (2) ` 2,000
(3) ` 1,000 (4) NIL
74. Surcharge is payable by an individual where the total income exceeds
(1) ` 10 lacs (2) ` 25 lacs
(3) ` 50 lacs (4) ` 1 crore
75. Which one of the following statements is not correct ?
(1) A person may not have assessable income but still be an assessee.
(2) In some cases, the assessment year and the previous year can be same.
(3) An Indian company is always resident assessee.
(4) Surcharge is additional tax calculated on total income.
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