UGC NET Mock 16 on Commerce – 20 Questions for Practice

1. Assertion (A): A company should pay minimum dividend to its shareholders. Reason (R): Dividends are heavily taxed than capital gains.

2. Under which legislation, the manufacturers and distributors are required to declare Maximum Retail Price (MRP) on packaged commodities?

3. Identify the quantitative credit control methods among the following: (i) Bank Rate (ii) Credit Rationing (iii) Open Market Operations (iv) Variable Reserve Ratio (v) Selective Credit Control (vi) Liquidity Ratio

4. The following activities are mainly related to which organization? (i) Micro Finance (ii) Rural Finance (iii) Self Help Groups (iv) Cooperative Banks Finance

5. Assertion (A): The Central Bank of the country is responsible to maintain the stability of the monetary standard which involves currency circulation Reason (R): The Central Bank is the only authorized entity to do so.

6. Indicate your choice through the codes given below: 1. A club is an industry under the Industrial Disputes Act, 1947 2. Factory as defined under the Factories Act, 1948 includes a mine. 3. For the purpose of the payment of bonuses to employees, the gross profits earned by a bank is to be calculated in the manner specified in Schedule – I of the Payment of Bonus Act, 1965. 4. Various labour laws do not apply to public sector undertakings.

7. Which one of the following does not serve the main objective of performance appraisal?

8. The Reserve Bank of India was nationalized on _____?

9. Dividend irrelevance hypothesis is implied in the _____?

10. The major provisions for employees’ health and safety are contained in _____?

11. PIN in banking transaction is known as _______?

12. Which one of the following does not constitute a Standalone Risk Analysis?

13. Which method of setting the advertising budget of a company is considered to be the most scientific?

14. Statement (I): Job evaluation is a technique of assessing the worth of each job in comparison with others throughout an organization. Statement (II): Job evaluation and job rating are one and the same for employees’ appraisal purposes.

15. In modern marketing, which of the following functions of a distribution middleman is gaining maximum importance?

16. Financial leverage in a firm is positively affected by _____?

17. Assertion (A): Merit rating of an employee is the process of evaluating the employees performance on the job in terms of the requirements of the job. Reason (R): Employees’ merit rating is a technique for fair and systematic evaluation of an employee’s capacities and abilities and performance on the specific job.

18. Mutually exclusive projects can be more accurately ranked as per _____?

19. Inability of the firm to meet its obligations results in financial distress which may lead to bankruptcy resulting into the following: 1. Distress sale of assets at lower price. 2. Legal and administrative costs for bankruptcy. 3. Dilution of stakeholders’ commitment to the firm. 4. Stretching of payments to suppliers and creditors. The direct costs of such financial distress may be

20. Which combination of the following two statements (A) and (R) is correct? Assertion (A): The IRR of a project is the discount rate which reduces its NPV to zero. Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.