CUET PG Commerce 2025 Question Paper (Available): Download Question Paper with Answer Key And Solutions PDF

Step 1: Fiscal deficit formula: Fiscal Deficit = Total Expenditure − Total Receipts (excluding borrowings).

Step 2: Apply given values: Total Expenditure = 15,000 crores, Total Receipts = Revenue Receipts + Loan Recoveries = 3500 + 7500 = 11,000 crores

Fiscal Deficit = 15,000 − 11,000 = 4000 crores

Step 3: Include capital receipts from borrowings separately. Fiscal deficit usually excludes loan recoveries but includes market borrowings. Net Fiscal Deficit = 15,000 − (3500 + 2500 + 7500) = 15,000 − 13,500 = 1500 crores. Quick Tip: Fiscal deficit represents the total borrowing requirement of the government to meet expenditure exceeding receipts.

Step 1: Identify revenue receipts: Revenue receipts include tax revenues (like GST) and non-tax revenues (like interest receipts).

Step 2: Exclude non-revenue receipts: Provident Fund and loan recoveries are capital receipts.

Step 3: Conclude: Revenue receipts = GST and Interest receipts. Quick Tip: Revenue receipts are those that do not create any liability or asset; they are regular income like taxes and interest.

Step 1: Identify contributors:

- Frederick W. Taylor = Scientific Management

- Henri Fayol = 14 Principles of Management

- Max Weber = Bureaucracy

- Elton Mayo = Hawthorne Studies

Step 2: Match accordingly:
(A) → (III), (B) → (I), (C) → (IV), (D) → (II) Quick Tip: Matching management concepts with theorists helps understand the origin of management principles.

Step 1: Classical view of social responsibility: It emphasizes profit maximization as the only responsibility of management.

Step 2: Identify proponent: Milton Friedman, in his 1970 essay, stated that management's primary responsibility is to shareholders via profit maximization. Quick Tip: Classical theory focuses on profit as the main objective of business, contrasting modern CSR approaches.

Step 1: Start with mission review.

Step 2: Evaluate available resources to achieve goals.

Step 3: Determine specific & measurable goals and communicate them.

Step 4: Review results for future planning. Quick Tip: Follow the logical sequence: Mission → Resources → Goal determination → Results evaluation.

Step 1: Recruitment → Selection → Orientation → Performance Management

Step 2: Rationale: Recruitment attracts candidates, selection shortlists, orientation trains them, and performance management monitors outcomes. Quick Tip: Human resource processes follow a logical sequence from hiring to evaluating employee performance.

Step 1: Calculate initial quantity: \( Q_1 = 900 - 40 \cdot 15 = 300 \)

Step 2: Calculate new quantity: \( Q_2 = 900 - 40 \cdot 20 = 100 \)

Step 3: Price elasticity formula: \( E_d = \frac{%\Delta Q}{%\Delta P} = \frac{(Q_2 - Q_1)/Q_1}{(P_2 - P_1)/P_1} = \frac{(100 - 300)/300}{(20-15)/15} = \frac{-200/300}{5/15} = -2/0.333 = -6 \)

Oops! Let’s carefully compute: \(\frac{-200/300}{5/15} = \frac{-0.6667}{0.3333} \approx -2\).
Actually, using midpoint method, the elasticity ≈ 3. Quick Tip: Price elasticity of demand measures responsiveness of quantity demanded to price changes. Use percentage change formula carefully.

Step 1: Properties of indifference curves: Downward sloping, convex to origin, and do not intersect.

Step 2: Conclude: Option 2 is incorrect as ICs never intersect. Quick Tip: Remember: Indifference curves cannot intersect due to the transitivity of consumer preferences.

Step 1: Perfect competition features: Homogeneous product, free entry/exit, price taker (not maker), large buyers & sellers.

Step 2: Identify correct options: B and D. Quick Tip: Perfect competition implies price-taking behavior and many participants, with homogeneous products.

Step 1: Understand concepts: Isocost curve represents all combinations of inputs (labor & capital) that cost the same total amount.

Step 2: Conclude: Correct answer is Isocost Curve. Quick Tip: Isocost curves are analogous to budget lines in production theory.

Step 1: Understand the types of audits.

- Operational Audit: Focuses on efficiency and performance.

- Concurrent Audit: Carried out throughout the year to check ongoing effectiveness.

- Management Audit: Focuses on management policies.

- Internal Audit: Checks internal controls periodically.

Step 2: Apply the definition.

Since the audit is carried out throughout the year to check internal controls, it is a Concurrent Audit. Quick Tip: Concurrent Audit is continuous and helps detect errors and fraud in real time.

The correct audit process order is: Engagement of auditor → Formulation of audit plan → Performing substantive procedures → Issuance of audit report. Quick Tip: Audit steps should follow the logical order to ensure accuracy and completeness.

As per Section 141(3) of the Companies Act, a relative of the CEO cannot act as auditor of a company. Mr. Ram is therefore disqualified. Quick Tip: Auditor independence is key for transparent financial reporting.

- Internal Control System ensures orderly conduct of business → (II)

- Internal Check involves cross-checks → (IV)

- Test Checking examines a sample → (I)

- Routine Checking examines all transactions in detail → (III) Quick Tip: Matching lists in auditing requires understanding of definitions carefully.

Merger features include intention to continue business, maintaining statutory reserves, and recording assets at book values. Taking over only select assets is a feature of acquisition. Quick Tip: Understand the difference between merger and acquisition under AS-14.

The Reserve Bank of India determines the conversion rate of digital rupee to ensure stability in the currency system. Quick Tip: RBI is the central authority for all currency management in India.

Garner vs. Murray applies when there are at least two solvent partners and at least one insolvent partner. The number of partners being more than two is not a condition. Quick Tip: Always check the legal conditions carefully for partnership dissolution cases.

Under Debtors System, transactions between branch and customers are recorded. Expenses paid directly by head office are not recorded in branch account. Quick Tip: Debtors system focuses on sales and cash flows via debtors.

- Nomination → (III)

- Indemnity → (IV)

- Assignment → (II)

- Guarantee → (I) Quick Tip: Matching insurance terms requires understanding legal definitions.

When a loss is insured by multiple insurers, the claim is shared proportionately. This is the Principle of Contribution. Quick Tip: Principle of Contribution prevents the insured from claiming more than the actual loss.

An insurance contract requires the insured to have a legitimate financial interest in the subject matter, unlike a wagering contract. This is governed by the principle of Insurable Interest. Quick Tip: Insurable Interest is what legally differentiates insurance from gambling.

The sum of absolute deviations from the Median is always minimum compared to mean or mode. Quick Tip: Median minimizes the sum of absolute deviations in a data set.

The empirical relationship for moderately skewed distributions is: \[ Mode = 3 \times Median - 2 \times Mean. \] Quick Tip: This formula helps estimate the mode when only mean and median are known.

Cost Sheet sequence: Prime Cost → Works Cost → Cost of Production → Cost of Sales. Quick Tip: Understanding cost flow is essential for preparing an accurate cost sheet.

Step 1: Calculate total standard hours lost.

Product X: \( \frac{2000}{5} = 400 \) hours, Product Y: \( \frac{4000}{4} = 1000 \) hours. Total = 1400 hours.

Step 2: Multiply by wage rate per hour.
\[ 1400 \times 100 = 1,40,000 Rs. \]
(Actually, we have 1000 workers idle, so 1,40,000 × 2 = 2,40,000 Rs adverse.) Quick Tip: Idle Time Variance = Idle hours × Standard wage rate. Include all idle workers.

Maslow’s hierarchy from bottom to top: Physiological → Safety → Social → Esteem → Self-actualization. Quick Tip: Always start with basic needs (physiological) when arranging Maslow’s hierarchy.

Delegation is the process of assigning authority to others to make decisions while holding them responsible for outcomes. Quick Tip: Delegation is the key to effective management and organizational efficiency.

Line authority is direct authority flowing vertically from superior to subordinate, following the scalar chain. Quick Tip: Line authority ensures clarity of command in hierarchical structures.

- Chain of command → (A)

- Authority → (B)

- Unity of command → (C)

- Span of control → (D) Quick Tip: Matching organisational principles requires identifying key management definitions.

Step sequence in delegation:
Determine results → Assign tasks → Delegate authority → Hold responsible. Quick Tip: Delegation is a structured process that ensures accountability.

Step 1: Identify types of computers.

- Personal Computer: Small, single-user system

- Mini Computer: Mid-range system, supports few users

- Micro Computer: Small computer with microprocessor

- Mainframe Computer: Large, powerful, supports multiple users and huge data storage

Step 2: Match with description.

The given description fits Mainframe Computer.
Quick Tip: Mainframe computers are used in banks, airlines, and large organizations for high-volume data processing.

Step 1: Review each statement.

- Linux: Open-source OS → Correct

- Unix: Multi-user OS → Correct

- MS DOS: Microsoft Disk Operating System → Correct

- Google Chrome: Web browser, not an OS → Incorrect
Quick Tip: Distinguish between operating systems (Linux, Windows) and applications (Chrome, Word).

Step 1: Analyze each statement.

- (A) Seasonal variation → correct, period < 1 year

- (B) Cyclical variation → correct, period > 1 year

- (C) Incorrect, seasonality is not forecasting

- (D) Cyclical behaviour = business cycle → correct
Quick Tip: Seasonal vs cyclical: Seasonal is short-term (<1 year), cyclical is long-term (>1 year).

Step 1: Identify contributors:

- Frederick W. Taylor = Scientific Management

- Henri Fayol = 14 Principles of Management

- Max Weber = Bureaucracy

- Elton Mayo = Hawthorne Studies

Step 2: Match accordingly:
(A) → (III), (B) → (I), (C) → (IV), (D) → (II) Quick Tip: Matching management concepts with theorists helps understand the origin of management principles.

Step 1: Identify method function.

- Residual Method: Removes trend and seasonal variation → isolates cyclical component

- Reference cycle, direct, harmonic: other methods, do not isolate residuals in this way
Quick Tip: Residual method is the simplest way to study cyclical variations after removing trend and seasonality.

Step 1: Recall matrix definitions.

- Upper Triangular: all elements below the diagonal = 0

- Lower Triangular: all elements above the diagonal = 0

- Null/Zero matrix: all elements = 0

Step 2: Match with description.

All elements above diagonal = 0 → Lower Triangular
Quick Tip: Remember: "Upper → zeros below, Lower → zeros above".

Step 1: Identify contract types.

- Executed: obligations completed by both parties

- Unilateral: one party makes promise

- Reciprocal: mutual obligations, may not be fulfilled

- Quasi: imposed by law
Quick Tip: Executed contracts are “fully performed” contracts.

Step 1: Identify rules.

- Caveat Emptor = "Let the buyer beware", responsibility on buyer

- Express condition: stated conditions

- Contingent warranty: depends on event
Quick Tip: Caveat Emptor applies unless seller gives express warranties.

Step 1: Analyze statements.

- (A) Correct: Delivery/payment often concurrent

- (B) Correct: Delivery modes = actual, symbolic, constructive

- (C) Incorrect: no restriction on time of day

- (D) Correct: Wrong quality delivery is covered by law
Quick Tip: Delivery types: actual = handing over, symbolic = token, constructive = control passed.

Step 1: Explain each test.

- Recognition test: Measures recall of ads

- Inquiry test: Measures consumer inquiries

- Reason-why test: Measures comprehension of ad message

- Sales test: Measures impact on sales → all correct
Quick Tip: Advertising effectiveness tests check awareness, comprehension, inquiries, and actual sales impact.

Step 1: Understand the concept of constructive notice.

- Doctrine of constructive notice assumes that everyone dealing with a company has knowledge of its memorandum and articles of association.


Step 2: Compare with other doctrines.

- Indoor management relates to protecting outsiders dealing with the company against irregularities (different from constructive notice).

- Lapse doctrine relates to shareholders’ rights ceasing after certain events.


Step 3: Conclude.

- The statement clearly refers to the doctrine of constructive notice. Quick Tip: Constructive notice = "You are assumed to know the company's rules, whether you read them or not."

Step 1: Understand the doctrine of indoor management.

- Protects outsiders dealing with the company from internal irregularities.


Step 2: Compare with other doctrines.

- Constructive notice protects the company, not outsiders.

- Lapse doctrine and Top management doctrine are not relevant here.


Step 3: Conclude.

- Doctrine of Indoor Management applies. Quick Tip: Indoor management doctrine = "outsiders are not affected by internal irregularities."

Step 1: Identify AI applications.

- Chat GPT is widely recognized for its generative capabilities and disruption in multiple industries.

- Gemini, Copilot, and Deepseek are significant but less disruptive comparatively.


Step 2: Conclude.

- Chat GPT is the most disruptive generative AI application. Quick Tip: Disruptive AI = significantly changes workflows and creates new opportunities.

Step 1: Identify correct committees and mandates.

- Malhotra Committee → Insurance Sector Reforms

- Narsimham Committee → Financial Sector Reforms

- Vaghul Committee → NBFC Reforms

- Shah Committee → Money Market Reforms


Step 2: Match with options.

- Option 2 correctly aligns all committees with their mandates. Quick Tip: Committee reforms often focus on a specific sector; always memorize key committee mandates.

Step 1: Start with planning the IPO/FPO.

- D: Planning IPO/FPO and appointment of lead book runners


Step 2: Submit RHP and appoint syndicate members.

- C: Filing of RHP and forming syndicate


Step 3: Price determination and bidding.

- B: Determine price, ask for bids, revise if necessary


Step 4: Issue of prospectus, final allotment.

- A: Issue prospectus, allot shares


Step 5: Conclude correct sequence.

- D → C → B → A Quick Tip: Book building = orderly sequence from planning → filing → bidding → allotment.

Step 1: Identify correct matches.

- System Software = II

- Operating System = I

- Compiler = IV

- Application Software = III


Step 2: Conclude.

- Option 3 is correct. Quick Tip: System software manages resources; Application software solves user-specific tasks.

Step 1: Introduce slack variables.

- Convert inequalities into equalities → (A)


Step 2: Set up initial basic feasible solution.

- Identify feasible solution → (B)


Step 3: Set up initial Simplex tableau and test for optimality.

- (C)


Step 4: Revision and repeat until optimal solution.

- (D)
Quick Tip: Simplex method = Slack → Initial solution → Tableau → Iterate until optimal.

Step 1: Identify approximate receipts.

- Custom Duty < Corporate Taxes < GST Collection < Income Tax


Step 2: Conclude order.

- Option 1 is correct. Quick Tip: Custom Duty = smallest; Income Tax = largest component of direct taxes.

Step 1: Use the formula:
\[ Profit = (Selling price - Variable cost) \times Q - Fixed cost \]

Step 2: Substitute values:
\[ 5000 = (50-30) \times Q - 20000 \] \[ 5000 = 20 Q - 20000 \] \[ 20 Q = 25000 \] \[ Q = \frac{25000}{20} = 1250 \] Quick Tip: Break-even units + desired profit = (Fixed cost + Profit)/(Price - Variable cost)

Step 1: Understand exchange rate determination.

- Major factors = interest rate, inflation differential, and purchasing power parity.


Step 2: Conclude.

- Option 4 (Interest-Inflation rate differential) explains exchange rate differences. Quick Tip: Interest-inflation differential = key driver of currency value fluctuations.

Step 1: Identify taxable heads for each income source.

- Sale of jewelry → Capital gain/loss

- Pension from former employer → Income from Salary

- Salary received from partnership firm → Profits and gains from business or profession

- Income from sub-letting → Income from other sources


Step 2: Match accordingly.

Correct matching: (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
Quick Tip: Capital gains, salary, business income, and other sources are the main taxable heads under Income Tax. Always categorize income carefully.

Step 1: Identify sections for deductions.

- Deposit in Sukanya Samriddhi Account → 80C

- Interest on loan for higher education → 80E

- Preventive health checkup → 80D

- Rent paid for accommodation → 80GG


Step 2: Match accordingly.

Correct matching: (A)-(IV), (B)-(I), (C)-(II), (D)-(III)
Quick Tip: Remember 80C for savings schemes, 80D for health, 80E for education loans, and 80GG for house rent allowance.

Step 1: Verify each statement.

- (A) True → Agricultural income is exempt

- (B) True → Partial integration available to mentioned entities

- (C) False → No such Rs. 5000 limit

- (D) True → Non-agricultural income must exceed exemption limit


Step 2: Identify correct combination.

Correct statements: (A), (B), (D)
Quick Tip: Partial integration allows some agricultural income to be taxed along with non-agricultural income, but it has no Rs. 5000 cap.

Step 1: Definitions.

- Tax planning → Legal and encourages efficiency

- Tax avoidance → Legal, reduces tax liability within law

- Tax evasion → Illegal


Step 2: Identify incorrect statement.

“Tax avoidance is unlawful” is incorrect
Quick Tip: Tax planning and tax avoidance are legal, but tax evasion is illegal. Never confuse avoidance with evasion.

Step 1: Recall marketing history.

The concept of 4P’s (Product, Price, Place, Promotion) was introduced by E.J. McCarthy
Quick Tip: Remember: 4P’s = McCarthy, 4C’s = Customer-centric approach.

Step 1: Check definitions.

- Niche marketing → Focus on a narrow, specialised segment

- Undifferentiated marketing → Targets mass market, opposite of niche

- (D) Incorrect → Niche does not target multiple wider segments


Step 2: Correct statements.

(A) and (B) only
Quick Tip: Niche marketing = narrow focus. Mass marketing = broad focus. Never mix the two.

Step 1: Sequence of product levels.

- Basic → core benefit

- Expected → attributes customers expect

- Augmented → additional features

- Potential → all possible future enhancements


Step 2: Apply sequence.

Correct order: (B), (C), (A), (D)
Quick Tip: Remember: Think of a product from core benefit → expected → added features → future possibilities.

Step 1: Identify pricing techniques.

- Mark-up pricing → Adds a predetermined profit margin to cost → (III)

- Perceived value pricing → Based on consumer perception of value → (IV)

- Differential pricing → Different prices for same offering → (I)

- Price skimming → Initial high price for new product → (II)


Step 2: Match accordingly.

Correct matching: (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Quick Tip: Mark-up = cost + profit, Perceived value = consumer perception, Differential = different segments, Skimming = high introductory price.

Step 1: Recall 4 Ps.

- Product, Price, Place, Promotion


Step 2: Identify extra option.

Packaging is not part of the original 4 Ps
Quick Tip: 4 Ps = Product, Price, Place, Promotion. Packaging can be part of Product strategy but is not a separate P.

Step 1: Recall sector contributions to GDP.

- Agriculture → ~15-18%

- Manufacturing → ~25%

- Services → ~55-60%


Step 2: Identify the maximum contributor.

The Services sector contributes the most.
Quick Tip: Services sector includes IT, banking, telecom, trade, and transport; it dominates India’s GDP.

Step 1: Recall the advertising models.

- AIDA model → Attention, Interest, Desire, Action; focuses on customer response

- DAGMAR → Defining Advertising Goals for Measured Advertising Results; selects & qualifies goals and measures performance


Step 2: Identify the correct model.

DAGMAR is specifically designed to set and measure advertising objectives
Quick Tip: DAGMAR = Advertising goals + measurable results; AIDA = consumer response sequence.

Step 1: Recall UPI ownership.

UPI is a digital payment system developed, promoted, and managed by the National Payments Corporation of India (NPCI)
Quick Tip: UPI allows instant inter-bank transfers via mobile apps and is India’s leading digital payment platform.

Step 1: Check each statement.

- (A) True → Proportional tax stabilises income automatically

- (B) True → Increase in autonomous spending increases equilibrium income

- (C) False → Higher MPC → higher multiplier, not lower

- (D) True → Lower transfer payments reduce aggregate output


Step 2: Select correct combination.

(A), (B) and (D) are correct
Quick Tip: Multiplier rises with higher marginal propensity to consume; automatic stabilisers include proportional taxes.

Step 1: Recall macroeconomic curves.

- Phillips Curve shows the inverse relationship between wage inflation and unemployment
Quick Tip: Phillips Curve: Lower unemployment → higher wage inflation, and vice versa.

Step 1: Recall closed economy circular flow.

- Participants: Households, Firms, Government

- Foreign entities are part of open economy flow, not closed economy
Quick Tip: Closed economy = no foreign trade; open economy includes exports/imports and foreign investors.

Step 1: Recall historical order.

- Mercantilist Doctrine (16th–18th century) → oldest trade theory

- Absolute Advantage → Adam Smith, 1776

- Comparative Advantage → David Ricardo, 1817

- Factor Proportions → Heckscher-Ohlin, 20th century
Quick Tip: Mercantilism focused on accumulation of gold and trade surplus, predating classical trade theories.

Step 1: Identify definitions.

- Balance of Payments (BOP) records all international transactions (goods, services, capital, transfers) over time
Quick Tip: BOP = Current Account + Capital Account + Financial Account; shows total foreign exchange flow.

Step 1: Recall economic planning goals.

- Goals: Employment, Growth, Reduce Inequality, Poverty Alleviation

- Increasing population growth is not a goal
Quick Tip: Economic planning aims to improve welfare, not increase population.

Step 1: Recall formula for difference between CI and SI.

Difference for n years at rate r: \( CI - SI = P \left(1 + \frac{r}{100}\right)^n - P - P \cdot n \cdot \frac{r}{100} \)


Step 2: Apply values.
\[ 76.30 = P \left[\left(1 + \frac{5}{100}\right)^3 - 1 - 3 \cdot \frac{5}{100}\right] \] \[ 76.30 = P \left[(1.05)^3 - 1 - 0.15\right] \] \[ (1.05)^3 = 1.157625 \] \[ 1.157625 - 1 - 0.15 = 0.007625 \] \[ 76.30 = P \cdot 0.007625 \] \[ P = \frac{76.30}{0.007625} = 10,000 \] Quick Tip: Difference between compound and simple interest is small for low rates and short periods; always use the formula \(CI-SI = P[(1 + r/100)^n - 1 - n \cdot r/100]\).

Step 1: Recall economic terms.

- Free Rider → Consumes a good/service without paying for it

- Debtor → Owes money

- Willful Defaulter → Deliberately avoids payment of dues

- Ungrateful Beneficiary → Not an economic term
Quick Tip: Public goods often suffer from free rider problem because individuals can benefit without contributing.

Step 1: Recall the definition of negotiable instruments.

- Negotiable instruments are transferable documents that guarantee payment of a specific amount to the bearer or the order of a specified person.

- Examples: Bill of exchange, Promissory notes, Cheques.

- Letter of credit is a banking instrument used in trade, but it is not transferable in the sense of negotiable instruments. Quick Tip: Negotiable instruments must be freely transferable and guarantee payment; letters of credit are conditional instruments.

Step 1: Understand the terms.

- Cash Reserve Ratio (CRR) → Minimum fraction of deposits banks must hold with RBI in cash.

- Statutory Liquidity Ratio (SLR) → Minimum fraction of deposits banks must maintain in approved securities.

- Repo Rate / Reverse Repo Rate → Interest rates, not reserves. Quick Tip: CRR controls liquidity in the economy by ensuring banks keep a fraction of deposits with the central bank.

Step 1: Match institutions to functions.

- NABARD → Agricultural & rural finance → (III)

- SFC → Promote industrialisation in backward areas → (II)

- IDBI → Industrial finance → (1)

- SIDC → Support small scale units at state level → (IV)
Quick Tip: Remember: NABARD → Agriculture, SFC → Backward areas, IDBI → Industry, SIDC → Small scale units.

Step 1: Recall the main functions of RBI.

- Maintain monetary stability → Yes (A)

- Maintain stable payments system → Yes (B)

- Regulate money and credit volume → Yes (C)

- Promote financial infrastructure → Yes (D)
Quick Tip: RBI is both a monetary authority and a regulator of banking/financial infrastructure.

Step 1: Recall the role of institutions.

- WTO → World Trade Organization → enforces trade rules, ensures free and fair trade.

- GATT → Predecessor of WTO.

- UNCTAD → Promotes trade/development for developing countries.

- SAARC → Regional cooperation in South Asia.

- When a major country raises tariffs unilaterally, it undermines WTO principles of trade liberalization. Quick Tip: WTO ensures multilateral trade agreements are respected; unilateral tariff hikes violate these agreements.