HPSC Assistant Professor Commerce Questions 2025 Subjective

  1. What is Corporate Social Responsibility (CSR)? Discuss the need, obligations, issues and challenges related to it in the Indian context. 10 Marks
  2. How social marketing and direct marketing are reshaping traditional marketing practices? Critically evaluate their role in enhancing brand loyalty and customer retention. 10 Marks
  3. Explain the concept of Price Determination under Perfect Competition. Discuss how equilibrium between price and quantity is established. Illustrate your answer with the help of a diagram. 10 Marks
  4. A firm faces the following demand schedule for its product. Calculate Marginal Revenue (MR), Average Revenue (AR) and find the price level at which Total Revenue (TR) is maximized. Explain the relationship among AR, MR and TR.
    Price (Rs.) Quantity Demanded (kg)
    10
    9
    8
    7
    6
    5    		 1
    2
    3
    4
    5
    6

    10 Marks

  5. “Negotiable instrument is a document of title that is transferable by delivery or endorsement”. Explain the concept of negotinbility and its legal significance in commercial transactions. 10 Marks
  6. Analyze the impact of digital financial services on financial inclusion and economic empowerment in India.10 Marks
  7. Discuss the concept of organizational culture and its impact on employee behaviour and performance. Explain the types of organisational culture according to Deal & Kennedy culture model. How can organizational development interventions be used to shape and change organizational culture? 10 Marks
  8. Compare and contrast the contributions of Henri Fayol and Frederick Winslow Taylor to the field of management.
  9. In a factory, there are 100 skilled, 250 semi-skilled and 150 unskilled workers. lt has been observed that on an average a unit length of a particular fabric is woven by a skilled worker in 3 hours, by a semi-skilled worker in 4 hours and by an unskilled worker in 5 hours. After a training of 2 years, the semi-skilled workers are expected to become skilled and the unskilled workers to become semi-skilled.
    How much reduced time will be required after 2 years of training for weaving the unit length of fabric by an average worker?
  10. Explain the contribution of Normal Distribution in statistical analysis. Also explain properties of Binomial and Poisson distribution.
  11. An analyst wants to estimate the risk of Stock X relative to the market using regression analysis. The following data of a company is available:
    Month Market Return (%) Stock X Return (%)
    1 2.0 2.8
    2 1.5 2.0
    3 − 1.0 − 1.2
    4 0.5 0.7
    5 3.0 4.0
    6 − 2.0 − 2.5

    Required:
    1. Using the regression equation Rx = α+ßRM, where RX  is Stock X’s return and RM is the market return, calculate the beta (ß) of Stock X.
    2. Interpret the calculated beta in terms of risk.
    3. If the risk-free rate is 1% per month and the average market return is 0.67% per month, use the CAPM formula to estimate the expected return of Stock X.

  12. Explain the residential status of an individual under the Income – tax Act, 1961 in Assessment Year 2025-26 and analyze on tax incidence. Support your answer with appropriate legal provisions and relevant examples.
  13. You are required to compute the income from salary of Mr. Raja under default tax regime from the following particulars for the Previous year ended 31-3-2025 –
    (i) He retired on 31-12-2024 at the age of 60, after putting in 25 years and 9 months of service, from a private company at Delhi.
    (ii) He was paid a salary of Rs. 25,000 p.m. and house rent allowance of Rs. 6,000 p.m. He paid rent of  Rs. 6,500 p.m., during his tenure of service.
    (iii) On retirement, he was paid a gratuity of Rs.3,50,000. He was covered by the payment of Gratuity Act, 1972. He had not received any other gratuity at any point of time earlier, other than this gratuity.
    (iv) He had accumulated leave of 15 days per annum during the period of his service; this was encashed by him at the time of his retirement. A sum of Rs. 3,15,000 was received by him in this regard. Employer allowed 30 days leave per annum.
    (v) He is receiving Rs. 5,000 as pension. On 1-2-2025 he commuted 60% of his pension and received Rs. 3,00,000 as commuted pension.
  14. On account of Fire in a Business the Financial Statements were burnt for the Current year but any how the following information and financial ratios were recovered.
    Prepare Trading Account, P&L Account and Balance Sheet as at 31st March, 2025 for the business with as much information as possible.
    Gross Profit Rate = 15%
    Net Profit Rate = 8%
    Raw Material Consumed = 20% of Works Cost
    Direct Wages = 10% of Works Cost
    Closing Stock of Raw Materials = 3 Months Usage
    Closing Stock of Finished Goods = 6% of Works Cost
    Debt Collection Period = 60 Days
    Fixed Assets to Sales Ratio = 1:3
    Fixed Assets to Current Assets ratio = 13:11
    Current Ratio = 2:1
    Long Term Loan to Current Liabilities ratio = 2:1
    Fixed Assets as at 315t March, 2025 amounted to Rs. 26,00,000
    All sales are on Credit only. Assuming a year of 360 days only.
    Suitable Assumptions if any may be made with proper notes. 10 Marks
  15. XYZ Ltd. manufactures a single product that requires two material componcents, namely, A and B. The selling price of the product is Rs.95 per unit. The following are the results obtained by the company during the last two quarters:
    Particulars I Quarter  (Rs.)  II Quarter  (Rs.)
    Sales (Units) 5,100 4,800
    Production (Units) 5,500 4,500
    Direct Materials : A

    B

    		 66,000 54,000
    55,000 45,000
    Manufacturing Wages 1,56,750 1,38,000
    Factory Overheads 86,000 83,000
    Selling Overheads 1,79,000 1,73,000

    The company estimates its sales for the next quarter to range between 5,500 units and 6,500 units, with the most likely volume being 6,000 units. The manufacturing programme will match with the sales quantity such that no increase in inventory of finished goods is contemplated in the next quarter. The following price and cost changes will, however, apply to the next quarter :
    (1) The price of direct Material B will increase by 10 percent. There will be no change in the price of direct Material A.
    (2) The wage rates will go up by 8 per cent. If the production volume increases beyond 5,500 units, overtime premium of 50 per cent is payable on the increased volume due to ovetime by the variable labour component.
    (3) The fixed factory and selling expenses will increase by 20 per cent and 25 per cent respectively.
    (4) A discount in the selling price of 2 per cent is allowed on all sales made at 6,500 unit’s level of output. The selling price, however, will remain unaltered if the volume of output is below 6,500 units.

    Prepare a flexible budget for the next quarter at 5,500, 6,000 and 6,500 units levels and determine the profit at the respective volumes. 10 Marks