NTA UGC NET/JRF Exam, June 2025 (Commerce)

Total Questions: 100

91. Read the following passage and answer the questions:

A mid-sized IT firm in India is facing multiple HR challenges as it expands. The company recently hired 200 employees but is struggling with high attrition, lack of structured training program and a weak performance appraisal system. Employees often feel over worked and under-appreciated, leading to low engagement and motivation. The HR manager Priya wants to improve HR practices by implementing a structured performance appraisal system launching employee wellness program and using HR technology for recruitment. However she face resistance from senior management, who think those initiative will increase cost without direct financial benefits.

Additionally, employee feedback indicates dissatisfaction with work life balance and unclear career progression. Some employees also feel that promotions are biased and that the company lack a proper succession plan.
Priya is considering introducing flexible work arrangements, setting up leadership development program and adopting AI-driven HR analytics to improve decision making. However, she needs to convince top management of the long term benefits of these changes.
Which strategy would be most effective in retaining employees and reducing attrition rate?

Correct Answer: 4. Offering increments and career growth opportunities
Solution:To effectively retain employees and reduce attrition, the firm should focus on offering increments and career growth opportunities. Providing clear career paths, skill enhancement, and financial incentives increases employee motivation and reduces voluntary exits. The other options (making resignation harder, increasing workload, voluntary retirement) would worsen attrition.

92. Priya needs to address employee dissatisfaction with career progression. What should be her first step?

Correct Answer: 3. Conducting skill gap analysis and creating career development plan
Solution:The first step to address dissatisfaction with career progression is to conduct a skill gap analysis to identify where employees need development and then create career development plans.

This structured approach aligns employee aspirations with organizational needs.

93. To convince senior management about HR investments, Priya should highlight:

Correct Answer: 3. The financial impact of HR initiatives on business growth
Solution:To persuade senior management, Priya should present the financial impact of HR initiatives on business growth. Demonstrating how HR investments improve productivity, reduce turnover costs, and enhance profitability will align with management's focus on financial returns.

94. If Priya wants to use HR analytics to predict labour turn over. Which data should she analyse?

Correct Answer: 2. Attrition trends and exit interview feedback
Solution:For predicting labour turnover using HR analytics, Priya should analyse attrition trends and exit interview feedback. These data points directly reflect the reasons for employee exits and help forecast future turnover risks.

95. Which HR strategy will help develop future leaders in the organization?

Correct Answer: 1. Implementing intensive employee development programs
Solution:To develop future leaders, the best HR strategy is to implement intensive employee development programs. Leadership development initiatives nurture internal talent, preparing them for future leadership roles.

96. Read the following passage and answer the questions:

A large real estate company in India is facing challenges in raising funds for expansion. Despite solid track record the company is struggling to attract investors due to increasing concern about liquidity in the financial market. The company has earlier relied on bank loans and debt instruments for financing but now looking for other funding option.

The CFO of the company is evaluating different option such as corporate bonds, Private equity, public deposit and securitization to raise capital. He is also looking at the evolving role of financial institution such as investment banks, development banks and insurance companies in providing finance. However, he is concerned about the volatility of the stock market and the risk of inflation affecting company's future cashflow.

To address these challenges, the company plan to consult with financial advisors and explore new avenues of funding, including green bonds and venture capital. The CFO must navigate the complex world of financial markets to ensure that the company secures the right funding at the right cost.
In a volatile stock market, how the company can reduce financing risk when raising funds through equity?

Correct Answer: 4. Diversify source of funds by combining debt and equity financing
Solution:In a volatile stock market, the best way to reduce financing risk is to diversify sources of funds by combining debt and equity financing. This approach balances risk and avoids over-dependence on equity markets, providing financial stability.

97. Which of the following is a primary function of financial markets in the economy?

Correct Answer: 1. Facilitating buying and selling of financial instruments
Solution:A primary function of financial markets is to facilitate the buying and selling of financial instruments (shares, bonds, derivatives, etc.). This ensures liquidity, capital formation, and efficient allocation of resources.

98. What would be the main concern for the company if it has to issue green bonds for financing?

Correct Answer: 3. Limited investor demand due to niche market
Solution:The main concern while issuing green bonds is the limited investor demand due to its niche market. Although green bonds are gaining popularity, the market size is still limited compared to conventional debt instruments, which can pose challenges in raising large sums.

99. What is the main advantage of raising capital through venture capital?

Correct Answer: 2. To access expertise and guidance from investors
Solution:The key advantage of venture capital is that, apart from funding, it provides access to expertise, strategic guidance, and networking opportunities. Venture capitalists support businesses with mentoring and market insights, crucial for growth.

100. The company is considering corporate bonds as a funding option. Which factor is most likely to affect the interest rate of bond?

Correct Answer: 3. The credit rating of the bond
Solution:While issuing corporate bonds, the credit rating of the bond is a critical factor influencing the interest rate. A higher credit rating reflects lower risk and results in lower interest rates, whereas a lower rating demands higher interest to compensate investors for the increased risk.