UGC NET Commerce Important Questions with Answers, Key Topics
UGC NET Commerce Important Questions focus on repeated concepts from the UGC NET Commerce Exam. Covers MCQs with answers, most expected questions, and key syllabus areas. Supports quick revision, concept clarity, and practice for UGC NET December 2025. Includes topics from international business, accounting, finance, management, and economics. Helps build accuracy and confidence through regular practice.
Share
UGC NET Commerce Important Questions play a key role in exam preparation. They help students understand how questions are framed. They also help in revising concepts in a simple way. UGC NET Commerce Important questions are based on common concepts asked in the exam. These questions are useful for students preparing for UGC NET December 2025 and future attempts. Reading and practicing such questions builds confidence step by step.
UGC NET Commerce Important Questions with Answers
Preparing UGC NET Commerce Important Questions helps students revise many topics at once. These questions cover theory and application-based areas. They also help in quick recall before the exam. Regular practice of UGC NET Commerce Important Questions improves accuracy and understanding.
1. In international trade factoring, who assumes the credit risk of the importer?
A. Exporter
B. Export Factor
C. Import Factor
D. Importer
Correct Answer: C. Import Factor
2. In export factoring, which step must occur before the exporter receives advance payment?
A. Importer makes full payment
B. Export factor collects money from importer
C. Exporter submits invoice to export factor
D. Import factor sends funds to the exporter
Correct Answer: C. Exporter submits invoice to export factor
3. According to Market Imperfection Theory, firms prefer foreign investment mainly because:
A. Perfect competition ensures higher profits
B. Oligopolistic markets provide strategic advantages
C. Capital is equally available in all countries
D. Governments mandate foreign expansion
Correct Answer: B. Oligopolistic markets provide strategic advantages
4. Which theory explains foreign investment as a way to protect innovation from imitation?
A. Market Imperfection Theory
B. Capital Movement Theory
C. Appropriability Theory
D. OLI Paradigm
Correct Answer: C. Appropriability Theory
5. Under the WTO Agriculture Agreement, which subsidy category is considered highly trade-distorting?
A. Green Box
B. Blue Box
C. Amber Box
D. Export Box
Correct Answer: C. Amber Box
6. Which of the following correctly represents an element of the socio-cultural environment?
A. Inflation rate
B. Interest rate policy
C. Social values and customs
D. Legal compliance rules
Correct Answer: C. Social values and customs
7. When a service provider is located outside India, and the recipient is located in India, the transaction is treated as:
A. Export of services
B. Domestic supply
C. Import of services
D. Exempted supply
Correct Answer: C. Import of services
8. Which World Bank institution provides additional finance during severe natural disasters and health emergencies?
A. IMF
B. IBRD
C. IDA
D. WTO
Correct Answer: C. IDA
9. Investment by an Indian company setting up retail outlets abroad is an example of:
A. Horizontal FDI
B. Backward Vertical FDI
C. Forward Vertical FDI
D. Conglomerate FDI
Correct Answer: C. Forward Vertical FDI
10. Which type of dumping involves selling goods below cost to eliminate competition?
A. Persistent Dumping
B. Sporadic Dumping
C. Seasonal Dumping
D. Predatory Dumping
Correct Answer: D. Predatory Dumping
11. The Service Quality Model was developed by which of the following scholars?
A. Philip Kotler
B. Parasuraman and Berry
C. Herzberg and Maslow
D. Porter and Chandler
Correct Answer: B. Parasuraman and Berry
12. Customer expectations in the Service Quality Model are mainly formed through:
A. Pricing strategies and cost structure
B. Word-of-mouth, past experience, and personal needs
C. Employee motivation and leadership style
D. Company profitability and market share
Correct Answer: B. Word-of-mouth, past experience, and personal needs
13. Gap 1 in the Service Quality Model represents the difference between:
A. Service design and service delivery
B. External communication and service delivery
C. Expected service and management perception
D. Perceived service and expected service
Correct Answer: C. Expected service and management perception
14. Which service gap arises when management understands customer expectations but fails to design appropriate service policies?
A. Knowledge Gap
B. Delivery Gap
C. Communication Gap
D. Policy or Design Gap
Correct Answer: D. Policy or Design Gap
15. Failure to deliver service as per established standards leads to which gap?
A. Knowledge Gap
B. Delivery Gap
C. Customer Satisfaction Gap
D. Communication Gap
Correct Answer: B. Delivery Gap
16. Promising a service through advertisements but failing to deliver it creates:
A. Knowledge Gap
B. Policy Gap
C. Communication Gap
D. Delivery Gap
Correct Answer: C. Communication Gap
17. Which of the following is NOT a dimension of service quality?
A. Tangibles
B. Reliability
C. Responsiveness
D. Profitability
Correct Answer: D. Profitability
18. Under conditions of slack demand and high competition, which pricing strategy is most suitable to increase market share?
A. Skimming Pricing
B. Premium Pricing
C. Penetration Pricing
D. Psychological Pricing
Correct Answer: C. Penetration Pricing
19. Under the Pooling of Interest Method, which condition is mandatory?
A. Revaluation of assets and liabilities
B. Consideration paid fully in cash
C. At least 90% common equity shareholders
D. Transferor company must be liquidated
Correct Answer: C. At least 90% common equity shareholders
20. Trade credit, bills payable, and accrued expenses are examples of:
A. Long-term finance
B. External finance
C. Non-spontaneous finance
D. Spontaneous finance
Correct Answer: D. Spontaneous finance
21. Which of the following is used in calculating the Accounting Rate of Return (ARR)?
A. Cash flow after tax
B. Profit before depreciation
C. Average profit after tax
D. Net present value
Correct Answer: C. Average profit after tax
22. While calculating ARR, depreciation is:
A. Added back to profit
B. Ignored completely
C. Deducted to arrive at PAT
D. Treated as a cash inflow
Correct Answer: C. Deducted to arrive at PAT
23. Under the Aggressive Approach of working capital financing, permanent working capital is financed through:
A. Long-term sources only
B. Short-term sources
C. Equity shares
D. Retained earnings
Correct Answer: B. Short-term sources
24. Which working capital financing approach involves the lowest repayment risk?
A. Aggressive approach
B. Matching approach
C. Conservative approach
D. Seasonal approach
Correct Answer: C. Conservative approach
25. Salvage value of an asset affects depreciation by:
A. Increasing depreciable amount
B. Being ignored in the calculation
C. Reducing depreciable amount
D. Being added to the cost
Correct Answer: C. Reducing depreciable amount
26. Which of the following disclosures is NOT required for a private company planning an IPO?
A. Earnings per share
B. Pre-issue P/E ratio
C. Average return on net worth
D. Dividend payout ratio
Correct Answer: D. Dividend payout ratio
27. Insurable interest must exist:
A. Only at the time of policy issuance
B. Only at the time of loss
C. Both at policy issuance and time of loss
D. Only at the time of claim settlement
Correct Answer: C. Both at policy issuance and time of loss
28. Which costing method is suitable for customized products such as tailoring or printing work?
A. Unit costing
B. Process costing
C. Job costing
D. Operating costing
Correct Answer: C. Job costing
29. The main objective of a stock split is to:
A. Increase dividend per share
B. Increase market capitalization
C. Reduce market price per share
D. Reduce the number of shareholders
Correct Answer: C. Reduce market price per share
30. Preference share dividend is excluded while calculating the Interest Coverage Ratio because:
A. It is optional
B. It is paid after tax
C. It is not an interest expense
D. It is a capital repayment
Correct Answer: C. It is not an interest expense
UGC NET Commerce Important Topics
UGC NET Commerce Important Topics help students focus on key syllabus areas. These topics are repeated often in exams. A clear understanding of these areas supports both theory and MCQ-based questions. The list below is useful for UGC NET Commerce Important Questions practice:
| UGC NET Commerce Important Topics | |
| Important Topic | Core Focus for Exams |
| International Trade Factoring | Export factoring process, roles of exporter, export factor, importer, import factor |
| Export Factoring Flow | Sequence of invoice submission, credit risk assumption, and advance payment |
| Internationalization Theories | OLI Paradigm, Market Imperfection, Appropriability, Capital Movement |
| WTO Agriculture Agreement | Market access, domestic support, export subsidies |
| Subsidy Classification | Amber Box, Blue Box, Green Box and trade distortion |
| Economic Environment | Fiscal policy, monetary policy, inflation, interest rates |
| Socio-Cultural Environment | Social values, customs, lifestyle impact on demand |
| Micro vs Macro Environment | Internal vs external business factors, PESTEL |
| Import of Services | Location of service provider and service receiver |
| International Development Association (IDA) | Crisis Response Window for disasters and health emergencies |
| FDI vs FPI | Long-term business investment vs short-term financial investment |
| Depository Receipts | IDR, ADR, GDR and fundraising markets |
| Types of FDI | Conglomerate, Concentric, Horizontal, Vertical |
| Vertical FDI Forms | Forward and backward vertical integration |
| Inward and Outward FDI | Domestic vs overseas investment perspective |
| Dumping | Meaning and impact on domestic industry |
| Types of Dumping | Predatory, persistent, sporadic dumping |
| Anti-Dumping Duties | Investigation stages and rejection conditions |
| Service Quality Model | Five-gap framework by Parasuraman and Berry |
| Formation of Customer Expectations | Word of mouth, past experience, personal needs |
| Knowledge Gap | Expected service vs management perception |
| Policy / Design Gap | Management perception vs service design |
| Delivery Gap | Service design vs actual delivery |
| Communication Gap | Service delivery vs external communication |
| Customer Satisfaction Gap | Expected service vs perceived service |
| Service Quality Dimensions | Tangibles, Reliability, Responsiveness, Assurance, Empathy |
| Herzberg’s Two-Factor Theory | Motivators vs hygiene factors |
| Penetration Pricing | Low price strategy in competitive, slack demand markets |
| Marginal Cost Pricing | Variable cost plus reasonable margin |
| Pooling of Interest Method | Conditions under AS-14 |
| Merger Conditions | 90% equity shareholders, book value transfer |
| Preliminary Expenses Treatment | Adjustment against equity shareholders |
| Goodwill and Capital Reserve | Arising from amalgamation and acquisitions |
| Internal Reconstruction | Liability reduction through a court-approved scheme |
| External Reconstruction | Mergers, acquisitions, joint ventures |
| Sale of Investments | Profit calculation and journal entries |
| Budgeting and Forecasting | Sales forecast, stock levels, production planning |
| Unit Costing | Standardized mass production |
| Job Costing | Customized products and services |
| Process Costing | Continuous production industries |
| Operating Costing | Service sector costing |
| Accounting Rate of Return (ARR) | Average PAT and average investment |
| Depreciation Treatment in ARR | Straight Line Method, no add-back |
| Working Capital Types | Permanent and temporary working capital |
| Financing Approaches | Matching, aggressive, conservative |
| IPO Disclosure Requirements | EPS, P/E ratio, NAV, return on net worth |
| Insurable Interest | Existence at policy inception and time of loss |
| Stock Split | Increase in shares, reduction in market price |
| Impact Cost | Market order price movement risk |
| Interest Coverage Ratio | EBIT divided by interest expense |
| Preference Shares vs Debt | Dividend vs interest distinction |
| Bond Pricing | Inverse relationship with interest rates |
| Interest Rate and Inflation | Multi-factor relationship affecting investments |
| Asset Preference | Shift between stocks, bonds, commodities |
Practicing UGC NET Commerce Important Questions builds strong basics. It helps students revise concepts in less time. This approach is useful for UGC NET December 2025 and later exams. Consistent revision of UGC NET Commerce Important Topics supports steady preparation.