UPESSC Assistant Professor Previous Year Question Paper
UPHESC Assistant Professor Commerce
Examination Held on 19 April 2026 — 2nd Shift
Question 31
If the sum of the squares of rank differences is 6 and there are two variables X and Y with 8 items each, what would be the coefficient of rank correlation?
(A) 1
(B) 0.07
(C) 0.93
(D) 0.67
Question 32
Match the List I with List II and select the correct answer using the codes given below the lists:
List I List II
a. Ricardian Theory i. Factor endowment
b. Heckscher-Ohlin Theory ii. Technological difference
c. Product Life Cycle iii. Innovation and maturity stages
d. New Trade Theory iv. Economies of scale and imperfect competition
Codes:
(A) a-iii, b-i, c-ii, d-iv
(B) a-iv, b-ii, c-iii, d-i
(C) a-iii, b-ii, c-i, d-iv
(D) a-ii, b-i, c-iii, d-iv
Question 33
If Average Revenue (AR) is constant at all levels of output, then Marginal Revenue (MR) will be:
(A) Increasing at a decreasing rate
(B) Less than Average Revenue at all levels
(C) Greater than Average Revenue at all levels
(D) Equal to Average Revenue at all levels
34.
What does the Margin of Safety represent in cost-volume-profit analysis?
(A) The excess of fixed cost over variable cost
(B) The excess of actual sales over break-even sales
(C) The excess of contribution over profit
(D) The excess of total cost over total sales
35.
According to Capital Asset Pricing Model (CAPM), which statement is not correct?
(A) Investors are risk averse and maximise expected utility of wealth.
(B) Investors may borrow and lend within limits at risk-free rate of interest.
(C) Capital market is not dominated by any individual investor.
(D) Capital markets are in equilibrium.
36.
Under which philosophy do firms believe consumers will buy more if persuaded through aggressive promotion?
(A) Selling concept
(B) Societal marketing concept
(C) Product concept
(D) Marketing concept
37.
Span of control refers to:
(A) Number of departments under a manager
(B) Number of subordinates reporting to a superior
(C) Authority delegated to managers
(D) Length of hierarchy
38.
Which of the following statements regarding dividend policy is/are correct?
I. The Modigliani-Miller theory supports dividend irrelevance.
II. Walter’s model assumes no retained earnings.
III. The Gordon growth model supports dividend relevance.
Options:
(A) I, II and III
(B) I and III only
(C) II only
(D) I only
39.
What is the monetary jurisdiction of district forum as per Consumer Protection Act, 2019 after the amendments?
(A) ₹50 lakh
(B) More than ₹2 crore
(C) ₹50 lakh–₹2 crore
(D) ₹20 lakh
40.
A foreign automobile firm faces sudden industry-specific emission norms and higher sectoral taxes in the host country, increasing its operating costs. Identify the risk referred to in the situation in context of international business environment.
(A) Micro political risk
(B) Macro political risk
(C) Economic risk
(D) Cultural risk
41.
A project manager in an IT firm gains influence over team members not because of their formal position but because the team trusts their technical expertise and often seeks their guidance to solve complex coding issues. Meanwhile, another manager motivates the team by promising bonuses and incentives for meeting tight deadlines. According to French and Raven’s Bases of Social Power, which types of power are being illustrated in the two scenarios respectively?
(A) Referent Power – Coercive Power
(B) Coercive Power – Legitimate Power
(C) Expert Power – Reward Power
(D) Legitimate Power – Reward Power
42.
World Trade Organization (WTO) was initially established as a result of the approval of which proposal?
(A) Dunkel Draft
(B) Doha Declaration
(C) Tokyo Round
(D) Kennedy Round
43.
What does a correlation coefficient (r) with a value of +0.65 indicate?
(A) Moderate positive correlation
(B) Perfect negative correlation
(C) No correlation
(D) Perfect positive correlation
44.
AIDA model stands for:
(A) Appeal–Interest–Decision–Action
(B) Awareness–Interest–Demand–Action
(C) Attention–Image–Demand–Awareness
(D) Attention–Interest–Desire–Action
45.
Assertion (A): Push strategy is effective when brand loyalty is high.
Reason (R): Retailers actively promote demanded brands.
Select the correct answer:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Assertion (A) is false, but Reason (R) is true.
(C) Assertion (A) is true, but Reason (R) is false.
(D) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
46.
Which of the following transactions is classified under Cash Flow from Financing Activities?
(A) Sale of investments
(B) Purchase of machinery for cash
(C) Payment of salaries to employees
(D) Issue of equity shares for cash
47.
The prohibition on issuing of shares at a discount (except for specified cases) is covered under which section of the Companies Act, 2013?
(A) Section 53
(B) Section 52
(C) Section 55
(D) Section 54
48.
Which one of the following will be considered a case of tax avoidance?
(A) ABC Ltd. claims depreciation on a motor-car recorded as a business asset, although the vehicle is substantially used by a Director for personal purposes.
(B) A foreign parent company purchases goods from its Indian subsidiary at ₹1,000 per unit while similar goods are sold to an unrelated enterprise at ₹2,000 per unit.
(C) Rohan deposits ₹1,00,000 in a tax-saver fixed deposit with a nationalised bank and claims deduction as permitted under statutory provisions.
(D) [Text in the scan is unclear.]
49.
The average marks in Statistics of 10 students of a class was 58. A new student took admission with 62 marks whereas two existing students left the college. If the marks of these students were 30 and 29, then the average marks of the remaining students would be:
(A) 61
(B) 58.3
(C) 64.78
(D) 70
50.
Which of the following statements regarding Basel norms are correct?
I. Basel I norms aim at strengthening bank capital adequacy.
II. Basel III introduced capital conservation buffer.
III. Basel norms are applicable only to cooperative banks.
Options:
(A) I only
(B) I and II only
(C) II only
(D) I and III
51.
Why do firms use derivatives?
(A) To strengthen capital structure through equity financing
(B) To manage exposure to risk in financial markets
(C) To improve liquidity position in competitive markets
(D) To increase profitability through higher product pricing
52.
When a forfeited share is reissued at a discount, the maximum permissible discount is equal to:
(A) The amount originally received on the share
(B) The total amount unpaid on the share
(C) The total nominal value of the share
(D) The amount decided by the company directors
53.
Match the following Tax Concepts with their appropriate Sections:
List I — Concept List II — Section
a. Advance payment of tax i. Section 144
b. Tax Deducted at Source (TDS) from salary ii. Section 208
c. Best Judgment Assessment iii. Section 139
d. E-filing of Income-tax Return iv. Section 192
Codes:
(A) a-ii, b-iv, c-i, d-iii
(B) a-iv, b-ii, c-iii, d-i
(C) a-iii, b-ii, c-i, d-iv
(D) a-i, b-ii, c-iv, d-iii
54.
Which of the following statements regarding pricing is/are correct?
L Price is the most flexible element of marketing mix.
11. Pricing decisions directly affect revenue and profit.
III. Pricing is independent of market competition.
Options:
(A) I only
(B) I, II and III
(C) I and II only
(B) 11 only
55.
Which of the following statements regarding pricing is/are correct?
I. Price is the most flexible element of marketing mix.
II. Pricing decisions directly affect revenue and profit.
III. Pricing is independent of market competition.
Options:
(A) I only
(B) I, II and III
(C) I and II only
(D) II only
56.
[Question concerning risk arising due to macroeconomic factors, interest-rate changes and political instability.]
Which type of risk arises due to macroeconomic factors, interest rate changes, and political instability, and cannot be eliminated through diversification?
(A) Unsystematic risk
(B) Diversifiable risk
(C) Operational risk
(D) Systematic risk
57.
Financial break-even level of EBIT (Earnings Before Interest and Tax) is one at which:
(A) EPS is One
(B) EPS is Zero
(C) EPS is Highest
(D) EPS is Minimum
58.
Which of the following circumstances, in relation to the launch of a new product, does not favour a [penetration pricing strategy]?
(A) The firm wishes to discourage new entrants.
(B) Low ratio of variable to fixed cost.
(C) There are significant economies of scale.
(D) Demand is relatively inelastic.
59.
Price penetration strategy is adopted to:
(A) Recover research cost in shortest period
(B) Target premium customers with luxury pricing
(C) Maximize short-term profit at higher price
(D) Stimulate demand and capture large market share
60.
A pharmaceutical company applies for a patent for a new crystalline form of a known drug showing better stability with similar therapeutic efficacy, under the Indian Patents Act, 1970. What will be the decision of the patent-granting authority in this situation
(A) Patentable due to industrial applicability
(B) Non-patentable under Section 3(d)
(C) Rejectable only after pre-grant opposition
(D) Patentable as incremental innovation
61.
A pharmaceutical company applies for a patent for a new crystalline form of a known drug showing better stability with similar therapeutic efficacy. Under the Indian Patents Act, 1970, what will be the decision of the patent-granting authority in this situation?
(A) Patentable due to industrial applicability
(B) Non-patentable under Section 3(d)
(C) Rejectable only after pre-grant opposition
(D) Patentable as incremental innovation
62.
Match the List I with List II and select the correct answer using the codes given below:
List I — Test List II — Proponent
a. Karl Pearson i. Regression
b. Prof. Gosset ii. Chi-square test
c. Sir Francis Galton iii. t-test
d. R.A. Fisher iv. F-test
Codes:
(A) a-iii, b-i, c-iv, d-ii
(B) a-iv, b-ii, c-iii, d-i
(C) a-ii, b-iv, c-i, d-iii
(D) a-iii, b-ii, c-i, d-iv
63.
Country A specializes in producing labour-intensive goods due to abundant labour, while Country B exports capital-intensive goods because of abundant capital. Both countries gain through specialization and trade. Based on the information given above, which theory of international trade is being referred to?
(A) Absolute Advantage Theory — Adam Smith
(B) New Trade Theory — Paul Krugman
(C) Factor Endowment Theory — Eli Heckscher and Bertil Ohlin
(D) Comparative Advantage Theory — David Ricardo
64.
A firm believes that consumers will prefer products that offer maximum quality, performance and innovative features. This reflects:
(A) Selling concept
(B) Societal marketing concept
(C) Production concept
(D) Product concept
65.
In controlling function, “feedforward control” occurs:
(A) During evaluation
(B) Before actual performance
(C) At financial audit stage
(D) After performance deviation
66.
Under the Lev & Schwartz model, value of human resources is based on:
(A) Training cost incurred
(B) Present value of future earnings
(C) Replacement cost of employees
(D) Market value of similar workforce
67.
Phase I of Nationalization of commercial Banks in India took place in the year:
(A) 1977
(B) 1969
(C) 1971
(D) 1981
68.
Liquidity in mutual funds means that investors can:
(A) Trade shares only through stock exchange
(B) Convert units into company debenture
(C) Redeem units easily at prevailing Net Asset Value
(D) Withdraw funds after fixed maturity period
69.
If Operating Leverage is 3:1, Financial Leverage is 2:1, Interest charged is ₹20 lakhs, and Variable Cost is 60% of sales, then find the value of sales.
(A) ₹120 lakhs
(B) ₹300 lakhs
(C) ₹240 lakhs
(D) ₹400 lakhs
70.
Which of the following statements regarding Fiscal Policy are correct?
I. It is formulated by the Central Government.
II. It deals with government revenue and expenditure.
III. It is implemented by RBI.
Select the correct answer:
(A) I and III only
(B) I and II only
(C) II and III only
(D) I, II and III
71.
Before acquisition, the bills payable in the books of the transferee company amounted to ₹10,00,000. Out of these, ₹6,00,000 were shown in the form of bills receivable in the books of the transferor company. What journal entry should also be passed after acquisition in the books of the transferee company to mutually cancel these bills?
(A) Bills Receivable A/c Dr. ₹6,00,000
To Bills Payable A/c ₹6,00,000
(B) Bills Payable A/c Dr. ₹10,00,000
To Bills Receivable A/c ₹4,00,000
To Capital Reserve A/c ₹6,00,000
(C) Bills Payable A/c Dr. ₹10,00,000
To Bills Receivable A/c ₹10,00,000
(D) Bills Payable A/c Dr. ₹6,00,000
To Bills Receivable A/c ₹6,00,000
72.
Spearman’s rank correlation coefficient is used when:
(A) Population is not normally distributed
(B) Sample size is large
(C) Data are normally distributed
(D) Variables are quantitative
73.
In factoring, finance is provided against:
(A) Trade receivables
(B) Fixed assets
(C) Share capital
(D) Inventory
74.
In process costing, the cost of abnormal wastage is recorded by:
(A) Abnormal Wastage Account debited and Process Account credited
(B) Normal Loss Account debited and Process Account credited
(C) Profit and Loss Account debited and Process Account credited
(D) Process Account debited and Abnormal Wastage Account credited
75.
Under the provisions relating to quasi-contracts, S supplies necessaries suitable to the condition in life of L, a lunatic. There is no valid contract between S and L. In this situation, S is entitled to:
(A) Claim damages for breach of contract
(B) Sue L personally for breach of contract
(C) Recover nothing, as agreements with lunatics are void
(D) Recover reasonable compensation from the property of L
76.
Which of the statements given below is false?
(A) When demand is perfectly elastic, Average Revenue equals Marginal Revenue.
(B) When demand is unit elastic, Marginal Revenue equals zero.
(C) When demand is inelastic, Marginal Revenue is positive.
(D) Total revenue is maximum at unit elasticity.
77.
Which of the following incomes is fully exempt under Section 10(1) of the Income-tax Act, 1961?
(A) Income from house property used for self-residence
(B) Capital gains on sale of rural land
(C) Agricultural income
(D) Interest on bank fixed deposits
78.
Which of the following statements regarding clubbing of income is correct?
(A) Clubbing provisions apply only to individual members.
(B) Rent received by spouse from a concern is always clubbed.
(C) Income of a minor child is always taxable in the hands of parents.
(D) Income transferred without transfer of asset is clubbed.
79.
Assertion (A): Halo effect reduces objectivity in performance appraisal.
Reason (R): Halo effect occurs when recent performance dominates evaluation.
Select the correct answer:
(A) Assertion (A) is false, but Reason (R) is true.
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(C) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(D) Assertion (A) is true, but Reason (R) is false.
80.
What is meant by Gross National Product?
(A) The total value of all the transactions in the country
(B) Total value of goods and services produced in the country – Depreciation
(C) Total value of goods and services produced in the country + Net factor income from abroad
(D) Total value of goods and services produced in the country + Gross factor income from abroad
81.
In the context of strategic marketing planning, market segmentation enables a firm to:
(A) Anticipate and neutralise macro-environmental uncertainties through adaptive positioning.
(B) Evaluate heterogeneous consumer preferences and select segments that align with the firm’s competitive capabilities.
(C) Achieve cost efficiencies by standardising output across heterogeneous customer groups.
(D) Reduce competitive rivalry by fragmenting the market into smaller, uncontested spaces.
82.
BARS combines the features of which two methods of performance appraisal?
(A) Graphic Rating Scale and Critical Incident Method
(B) Essay method and Ranking method
(C) MBO and 360-Degree Feedback
(D) Checklist method and Forced Distribution method
83.
Which account is the loss incurred during the pre-incorporation period debited?
(A) Trading Account
(B) General Reserve Account
(C) Profit and Loss Account
(D) Goodwill Account
84.
Assertion (A): Increasing salary always increases employee motivation.
Reason (R): Salary is classified as a hygiene factor in Herzberg’s theory.
Select the correct answer:
(A) Assertion (A) is false, but Reason (R) is true.
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(D) Assertion (A) is true, but Reason (R) is false.
85.
Customs duty is a tax levied on the basis of:
(A) Weight of goods
(B) Quantity of goods
(C) Value of goods
(D) Place of origin
86.
Which of the following is not part of the augmented product?
(A) Packaging
(B) After-sales service
(C) Installation
(D) Warranty
87.
Which distribution is called the Probability Distribution of Rare Events?
(A) Uniform distribution
(B) Poisson distribution
(C) Normal distribution
(D) Binomial distribution
88.
If a firm earns a profit margin of 10% and generates sales equal to three times its total assets, the ROI of the firm will be:
(A) 30%
(B) 13%
(C) 10%
(D) 3%
89.
Assertion (A): The demand curve of a Giffen good slopes upward.
Reason (R): Income effect is positive and stronger than the substitution effect.
Select the correct answer:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Assertion (A) is false, but Reason (R) is true.
(C) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(D) Assertion (A) is true, but Reason (R) is false.
90.
All partners of an LLP die in an accident. What happens to the LLP?
(A) It automatically dissolves
(B) It continues as a separate legal entity
(C) It converts into partnership
(D) It becomes government property
91.
Currency swap is a method of:
(A) Speculating in foreign exchange
(B) Hedging against foreign exchange risk
(C) Leverage instrument used by cooperative banks
(D) Payment in international trade
92.
Which of the following statements relating to Correlation and Regression are true?
I. The coefficient of correlation is independent of change of origin and scale.
II. The coefficient of correlation between the two variables is the arithmetic average of the two regression coefficients.
III. The probable error of the coefficient of correlation is 0.6745 times its standard error.
IV. Coefficient of correlation multiplied by the ratio between the standard deviations of the two variables denotes the slope of the regression line.
Options:
(A) II, III and IV
(B) II and IV
(C) I, II and III
(D) I, III and IV
93.
Banks can achieve capital adequacy by:
(A) Increasing short-term borrowings from capital market
(B) Reducing interest rates on term deposit liabilities
(C) Increasing own funds and reducing risk-weighted assets
(D) Expanding branch network across rural regions
94.
Zero-rated supply differs from exempt supply because zero-rated supply:
(A) Does not allow Input Tax Credit and refund.
(B) Allows Input Tax Credit and refund.
(C) Is outside the scope of GST.
(D) Applies only to services.
95.
Ltd. holds 48% of the equity share capital of Y Ltd. The remaining shares are widely dispersed among small shareholders. X Ltd. also has the contractual right to appoint the majority of directors of Y Ltd. Under the Companies Act, 2013, which of the following correctly describes the relationship between X Ltd. and Y Ltd.?
(A) Y Ltd. is not a subsidiary since X Ltd. holds less than 50% shares.
(B) Y Ltd. becomes an associate company due to minority shareholding.
(C) Y Ltd. is a subsidiary because control exists through board composition.
(D) Y Ltd. is a joint venture due to dispersed ownership.
96.
Mr. Ram is an Indian citizen who resides in Pune. He went to Italy for the purpose of employment on August 15, 2022 and came back to India on November 10, 2023. He has never been out of India in the past. What would be his residential status for the assessment year 2023–24?
(A) Non-Resident
(B) Non-Resident and Ordinarily Resident in India
(C) Resident but Not Ordinarily Resident
(D) Resident and Ordinarily Resident
97.
The following statements relate to sampling distribution. Choose the correct/incorrect option:
Statement I: Sampling distribution of mean is normally distributed irrespective of the type of population distribution and sample size.
Statement II: The standard deviation of the sampling distribution of mean is less than the standard deviation of the population distribution.
(A) Statement I is incorrect, but Statement II is correct.
(B) Statement I is correct, but Statement II is incorrect.
(C) Both Statements are correct.
(D) Both Statements are incorrect.
What was the maximum deduction available under Section 80TTB of the Income-tax Act, 1961?
(A) ₹10,000
(B) ₹50,000
(C) ₹1,00,000
(D) ₹25,000
Assertion (A): Real national income is a better indicator of economic welfare than nominal income.
Reason (R): Real income removes the effect of price level changes.
Select the correct answer:
(A) Assertion (A) is true, but Reason (R) is false.
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(C) Assertion (A) is false, but Reason (R) is true.
(D) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Organizational change resulting from planned programs is referred to as:
(A) Tuning
(B) Re-creation/Overhauling
(C) Redirecting/Reorienting
(D) Adapting
Questions 54, 60 and 66 are not sufficiently