UGC NET Questions (Paper – 1)

In commercial mathematics, if the selling price (SP) of an item is greater than its cost price (CP), the trader gains money on the transaction. This gain is called profit and is calculated as SP − CP. Profit indicates that the trader has sold the item for more than it cost to acquire. Therefore, the situation described in the question corresponds exactly to making a profit.

Option A:
Loss occurs when the cost price exceeds the selling price, meaning the trader receives less money than was spent on purchasing the item. This is the opposite situation to what is described in the question, where selling price is higher than cost price. Hence, loss cannot be the correct answer here.

Option B:
Profit is correct because it is the name given to the positive difference SP − CP when SP > CP. For example, if an article costs ₹500 and is sold for ₹600, the trader makes a profit of ₹100. Recognising this condition quickly is useful in many UGC NET aptitude problems involving multiple stages of buying and selling.

Option C:
A discount is a reduction given on the marked price of an item, usually to attract customers, and is calculated before determining the final selling price. While discounts can affect profit, the term itself does not directly describe the situation SP > CP. Therefore, discount does not match the definition in the stem.

Option D:
Commission is a fee or percentage of sales paid to an agent or salesperson for services rendered. It is not the difference between selling price and cost price. Since the question focuses on the trader's gain from SP exceeding CP, commission is not the appropriate term.