UGC NET 22nd DECEMBER 2018 PAPER 2 – COMMERCE QUESTIONS WITH ANSWERS

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UGC NET 22nd DECEMBER 2018 PAPER 2 – COMMERCE QUESTIONS WITH ANSWERS

Q.1) Which one of the following statements is correct?

Options

[a] The purpose of issuing different types of rules and regulations by SEBI is to bring monetary gains to investors.

[b] SEBI has been constituted under the Securities (Contract and Regulation) Act, 1956.

*[c] One of the objectives of setting up SEBI is to protect the interests of investors.

[d] SEBI is constituted from amongst the directors of various stock exchanges.

Q.2) Match the items of List I with the items of List Il and choose the correct answer from the code given below.

               LIST I              LIST II
(a) Rival Firms (i) External Environments
(b) Technology (ii) Social and Cultural Environment
(c) Improving Quality (iii) Internal Environment
(d) Ethics in Business (iv) Global Environment

 

Code :

Options:

*[a] (a)—(ii), (b)—(iii), (c)—(iv), (d)—(i)

[b] (a)—(iv), (b)—(i), (c)—(ii), (d)—(iii)

[c] (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)

[d] (a)—(iii), (b)—(i), (c)—(iv), (d)—(ii)

Q.3) Combined leverage can be used to measure the relationship between

Options:

*[a] Sales and EPS

[b] PAT and EPS

[c] EBIT and EPS

[c] Sales and EBIT

Q.4) Which among the following is not an internal factor of pricing decision ?

Options:

[a] Price elasticity as per sales of product

[b] Consumers expectation from company by past pricing

* [c] Consumer behaviour for given product

[d] Position of product in product cycle

Q.5) Match the items of List I with the items of List II and choose the correct answer from the code given below.

LIST I

 

LIST II

 

(a) Compensation received by an employee from his employer on termination of job

 

(i) Exemption up to specified limit

 

(b) Pension received by the widow of an employee

 

(ii) Profits in lieu of salary

 

(c) Foreign allowance for rendering services abroad (iii) Income from other sources
(d) Children hostel allowance (iv) Fully exempt from tax

Code :

Options:

[a] (a)—(ii), (b)—(iv), (c)—(iii), (d)—(i)

*[b] (a)—(ii), (b)—(iii), (c)—(iv), (d)—(i)

[c] (a)—(iv), (b)—(iii), (c)—(i), (d)—(ii)

[d] (a)—(iii), (b)—(iv), (c)—(ii), (d)—(i)

Q.6) The companies having business in a large number of countries around the world at present are called

Options

[a] Multinational Enterprises (MNEs)

* [b] Global Corporations (GCs)

[c] Transnational Corporations (TNCs)

[d] Multinational Corporations (MNCs)

Q.7) Banking Ombudsman Scheme was introduced by RBI with effect from

Options

[a] 2005

[b] 1998

[b] 2001

* [c] 1995

Q.8) If a perpendicular on X-axis from the point of intersection of both ‘less than’ and ‘more than’ frequency curves is drawn, it gives the value of

Options

*[a] Median

[b] Mode

[c] Third quartile

[d] Arithmetic mean

Q.9) Choose the correct code for the following statements being correct or incorrect

Statement I : An identifiable group of people contributing their efforts towards attainment of goals is called organization.

Statement II : In its broadest sense, organization refers to the relationship between the  various factors present in a given endeavour.

Code :

Options:

[a] Both the statements I and Il are incorrect.

*[b] Both the statements I and II are correct.

[c] Statement II is correct, but I is incorrect.

[d] Statement I is correct, but II is incorrect.

Q.10) Match the items of List I with the items of List Il and choose the correct answers from the  code given below.

               LIST I              LIST II
(a) Job context (i) Procedures used
(b) Job-related tangibles and intangibles (ii) Work schedule
(c) Work activities (iii) Work standards
(d) Work performance (iv) Services rendered

Code:                                                                                                                                                                    Options:

*[a] (a)—(ii), (b)—(iv), (c)—(i), (d)—(iii)

[b] (a)—(iv), (b)—(iii), (c)—(i), (d)—(ii)

[c] (a)—(iii), (b)—(iv), (c)—(ii), (d)—(i)

[d] (a)—(i), (b)—(iv), (c)—(ii), (d)—(iii)

Q.11) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : There exists excess capacity of the production for the firms if these incur losses

Reason (R) : Their production level has to remain below their economic capacity level.

Code :                                                                                                                                                                    Options:

[a] (A) is incorrect but (R) is correct.

[b] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[c]  (A) is correct but (R) is incorrect.

*[d] Both (A) and (R) are correct and (R) is the right explanation of (A).

Q.12) Second generation reforms in our country do not comprise of which one of the following?

Options

[a] Exploiting the knowledge based global economy

*[b] Population control measures

[c] Growing Indian transnational corporations

[d] Clean environment

Q.13) Match the items of List I with the items of List II and choose the correct answer from the code given below.

LIST I LIST II
(a) Claims i) Company car, club membership, paid holidays, furnished house
b) Fringe benefits (ii) Telephone/mobile allowance, internet allowance, medical allowance
(c) Perquisites (iii) Canteen, uniform, accident relief

[a] (a)—(iii), (b)—(ii), (c)—(i)

*[b] (a)—(ii), (b)—(iii), (c)—(i)

[c] (a)—(ii), (b)—(i), (c)—(iii)

[d] (a)—(i), (b)—(ii), (c)—(iii)

Q.14) The monopoly involves a social cost mainly due to its emphasis on which one of the following?

Options

[a] Earning net profit in all possible situations.

[b] Charging different prices from different categories of buyers of the same product.

[c] Attempting to stall entry of other firms in the market.

*[d] Lower output at a higher cost in a normal profit situation.

Q.15) Arrange the following stages of staffing in correct sequence and indicate the code of correct sequence.

(i) Performance appraisal

(ii) Recruitment

(iii) Transfers

(iv) Selection

(v) Induction and orientation

Choose the correct answer from the code given below.

Code :                                                                                                                                                                  Options:

[a] (iv), (ii), (v), (iii), (i)

[b] (i), (ii), (iv), (v), (iii)

*[c] (ii), (iv), (v), (i), (iii)

[d] (ii), (i), (iv), (v), (iii)

Q.16) Which one of the following demands states consumers are adequately buying all the products put into the marketplace ?

Options

[a] Latent demand

[b] Irregular demand

*[c] Full demand

[d] Overfull demand

Q.17) Choose the correct code for the following statements being correct or incorrect.

Statement I : Thousands of employees die every day in factories due to accidents.

Statement II : To make an accident-free plant adds to cost and decreases productivity.

Code :

Options:

[a] Both the statements I and Il are correct.

[b] Both the statements I and Il are incorrect.

*[c] Statement I is correct, but Il is incorrect.

[d] Statement Il is correct, but I is incorrect.

Q.18) Who among the following is not an observer country of the SAARC?

Options:

[a] Iran

[b] China

*[c] Canada

[d] USA

Q.19) Which one of the following is not true for introducing multiple brands in a category?

Options

[a] Increasing shelf presence and retailer dependence in the store

[b] Yielding economies of scale in advertising, sales, merchandising and physical distribution

*[c] Decreasing internal competition within the firm

[d] Attracting consumers seeking variety who may otherwise have switched to another brand

Q.20) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : Databases assist in market segmentation, especially behavioural segmentation such as developing loyalty segments.

Reason (R) : Customer Relationship Management (CRM) databases have become an asset for the analysis of customer behaviour. Code :

Options:

*[a] Both (A) and (R) are correct and (R) is the right explanation of (A).

[b] (A) is correct but (R) is not correct.

[c] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[d] Both (A) and (R) are incorrect.

Q.21) “Skimming” in e-banking is a method of

Options:

*[a] stealing credit card information.

[b] transferring cash from one account to another account.

[c] converting Debit Card into Credit Card.

[d] intimating the customer about his heavy withdrawals

Q.22) Everyone benefits when the focus is on common interest and promotion of harmony “is the underlying assumption of which one of the approaches to industrial relations

Options:

[a] Pluralistic approach

[b] Human relation approach

*[c] Unitary approach

[d] Marxist approach

Q.23) Sales firm are Rs 40 Lakh ;variable costs Rs 10 lakh; fixed costs Rs 15 lakh ; Interest Rs 5 lakh combined leverage of the firm will be

Options:

[a] 2

[b] 2-5

*[c] 3

[d] 8

Q.24) Under Sec. 194 1B of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds

Options

* [a] 50,000 per month

[b] 15,000 per month

[c] 25,000 per month

[d] 40,000 per month

Q.25) Which one of the following is not an advantage of external recruitment?

Options:

[a] Scope for resentment, jealousies and heartburn are avoided

[b] Benefits of new skills, new talents and new experiences to organisations are available

[c] Compliance with reservation policy becomes easy

* [d] Good performance is rewarded

Q.26) When RBI reduces CRR, it results into

Options:

[a] Increase in deposits

* [b] Increase in lendable resources

[c] Decrease in lendable resources

[d] Decrease in deposits

Q.27) The Industrial Policy, 1956 has been prompted by which combination of the following developments?

(i) Adoption of the Constitution of India.

(ii) Implementation of Economic Planning.

(iii) Acceleration of Economic Growth and Industrialisation.

(iv) Availability of Sufficient Funds for Investment in Public Sector.

Choose the correct answer from the code given below :

Code:                                                                                                                                                                    Options:

[a] Only (i) and (ii)

[b] Only (ii), (iii) and (iv)

[c] Only (ii) and (iv)

* [d] Only (i), (ii) and (iv)

Q.28) Match the items of List I with the items of List Il and choose the correct answer from the code given below.

                              LIST I

 

                         LIST II

 

(a) Balance of trade (i) Imports and exports of goods and services and unilateral transfer of goods and services
(b) Current account (ii) Transactions leading to changes in the financial assets and liabilities of a country
(c) Balance of payments (iii) All economic transactions between a countries  residents and residents of other countries
(d) Capital account (iv) Value of exports and imports of a country

Code :

Options:

[a] (a)—(iii), (b)—(ii), (c)—(iv), (d)—(i)

[b] (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)

[c] (a)—(iv), (b)—(iii), (c)—(ii), (d)—(i)

* [d] (a)—(iv), (b)—(i), (c)—(iii), (d)—(ii)

Q.29) Choose the correct code for the following statements being correct or incorrect.

Statement I : Punctuality and team spirit among employees of an organisation has great contribution in enhancing profits of the business but they do not appear as an asset in the balance sheet.

Statement II : Financial statements do not reflect the correct financial position of a business.

Code :

Options

[a] Both the statements I and II are incorrect.

* [b] Both the statements I and II are correct.

[c] Statement I is correct, but II is incorrect.

[d] Statement I is incorrect, but II is correct.

Q.30) Choose the correct code for the following statements being correct or incorrect.

Statement I : Intellectual Property (IP) is a category of property that includes intangible creations of the human intellect.

Statement II : IPR does not include trade secrets and moral rights.

Options

[a] Both the statements I and II are incorrect.

[b] Statement II is correct, but I is incorrect.

[c] Both the statements I and II are correct.

* [d] Statement I is correct, but II is incorrect.

Q.31) Choose the correct code for the following statements being correct or incorrect.

Statement I:If the value of ß2, i.e., µ4/σ4, of a distribution gives the  value more than 3, its Curve is platykurtic.

Statement II: In a moderately asymmetrical distribution, the standard deviation is 1.25 times of mean deviation.

Code :

Options:

[a] Both the statements I and II are incorrect.

[b] Both the statements I and II are correct.

[c] Statement I is correct, but II is incorrect.

* [d] Statement II is correct, but I is incorrect.

Q.32) Which one of the following statements is not true?

Options:

[a] Cost of sales is a better numerator than sales while calculating stock turnover.

[b] Conversion of debentures into preference shares will decrease debt-equity ratio.

* [c] Higher operating ratio indicates higher profits.

[d] Long-term liabilities due for payment within a year should be treated as current liabilities.

Q.33) Which of the following sources of finance has an implicit cost of capital?

Options

[a] Equity share capital

[b] Preference share capital

[c] Debentures

* [d] Retained earnings

Q.34) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : Technological change and skill requirements have been made a subject of investigation in an organization.

Reason (R) : The neo-classical economic theory stated that technological changes require a broader variety of skills and higher average skills from the workers.

Code :

Options:

[a] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[b] (A) is correct but (R) is incorrect.

* [c] Both (A) and (R) are correct and (R) is the right explanation of (A).

[d] Both (A) and (R) are incorrect.

Q.35) Choose the correct code for the following statements being correct or incorrect.

Statement I : An option which gives its holder the privilege of selling to other party a fixed amount of some stock at a stated price on or before a predetermined date is known as call option.

Statement II : In an option, the holder has the privilege of purchasing from other party a fixed amount of some stock at a stated price on or before a predetermined date is known as put option.

Code :

Options

[a] Both the statements I and II are correct.

[b] Statement II is correct, but I is incorrect.

[c] Statement I is correct, but II is incorrect.

* [d] Both the statements I and II are incorrect.

Q.36) Which one of the following is agricultural income under Income Tax Act?

Options

* [a] Income from the sale of replanted trees where denuded parts of the forest are replanted and subsequent operations in forestry are carried out.

[b] Income from dairy farm, poultry farm, etc.

[c] Dividend from a company engaged in agriculture.

[d] Income from the land used for storing agricultural produce.

Q.37) The inverse relationship between the variation in the price and the variation in the quantity demanded is not due to

Options

[a] Price effect

[b] Gossen’s laws of consumption

[c] Entry and exit of buyers

* [d] Law of substitution

Q.38) Which one of the following is not the fund based business of commercial banks?

Options

[a] RTGS/NEFT transactions

* [b] Issuance of Letters of Credit

[c] Overdraft facility

[d] Acceptance of deposits

Q.39) For performance assessment of employees, “helping to meet legal requirements” is the application of which one of the following?

Options:

[a] Administrative purpose

[b] Organisational maintenance purpose

* [c] Documentation purpose

[d] Developmental purpose

Q.40) Which one of the following items is not a part of job specification?

Options

[a] Judgement

[b] Initiative

* [c] Location

[d] Emotional characteristics

Q.41) In which one of the following modes of entry into foreign market are risk and profit potential the highest?

Options

[a] Indirect exporting

* [b] Direct investment

[c] Direct exporting

[d] Joint ventures

Q.42) Cost plus pricing is considered appropriate for which combination of the following?

(i) Product Tailoring

(ii) Public Utility Pricing

(iii) Refusal Pricing

(iv) Monopoly Pricing

Choose the correct answer from the code given below:

Code :

Options:

[a] Only (i) and (ii)

[b] Only (ii), (iii) and (iv)

[c] Only (iii) and (iv)

* [d] Only (i), (ii) and (iii)

Q.43) Which one of the following is not the function of the Reserve Bank of India ?

Options

[a] Custodian of Cash Reserves of Commercial Banks

[b] Controller of credit

* [c] Accepting deposits and advancing loans to public

[d] Issue of Bank notes

Q.44) choose the correct code for the following statements being correct or incorrect.

Statement I : The geometric mean of the two regression coefficients of X and Y variables gives the value of the coefficient of correlation.

Statement II : If the population distribution is not normal and a sampling distribution of mean is prepared by taking small sized samples, the sampling distribution of mean is not normal.

Code :

Options:

[a] Statement I is correct, but II is incorrect.

[b] Statement Il is correct, but I is incorrect.

* [c] Both the statements I and II are correct.

[d] Both the statements I and II are incorrect.

Q.45) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : The multilateral trading system is an attempt by governments to make the business environment stable and predictable.

Reason (R) : Promising not to raise trade barriers can be as important as lowering one, because the promise gives businesses a clearer view of their future market opportunities.

Code :

Options:

[a] (A) is correct but (R) is incorrect.

* [b] Both (A) and (R) are correct and (R) is the right explanation of (A).

[c] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[d] Both (A) and (R) are incorrect.

Q.46) Which among the following is not included in seven Ps of marketing and Bitner?

Options

* [a] Politics

[b] Process

[c] People

[d] Physical Evidence mix given by Booms

Q.47 Match the items of List I with the items of List Il and choose the correct code given below.

                              LIST I

 

                         LIST II

 

(a) The economy was characterised by marketing small regional suppliers who sold goods on a local basis

 

(i) Mass marketing

(b) Standardised, branded goods were sold at national level

 

(ii) Hyper-segmentation

(c) Era of market differentiation based on demographic, socio-economic and life style factors

 

(iii) Segmentation

(d) Technological advancements, especially in the area of digital communication, allow marketers to communicate with individual consumers or very small groups

 

(iv) Fragmentation

Code :

Options:

* [a] (a)—(iv), (b)—(i), (c)—(iii), (d)—(ii)

[b] (a)—(iv), (b)—(i), (c)—(ii), (d)—(iii)

[c] (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)

[d] (a)—(i), (b)—(iv), (c)—(ii), (d)—(iii)

Chosen Option

Q.48) Which one among the following is the oldest form of organization?

Options:

[a] Project Organization

[b] Functional Organization

[c] Committee Organization

* [d] Line Organization

Q.49) Merger of two companies under the Board for Industrial and Financial Reconstruction (BIFR) supervision is known as

Options:

[a] Offer for sale

[b] Negotiated merger

[c] Reverse merger

* [d] Arranged merger

Q.50) According to Donald Kirkpatrick, training programmes can be evaluated at four levels. Indicate the code of correct sequence from the following:

(i) Result

(ii) Reaction

(iii)  Learning

(iv) Behaviour

Choose the correct answer from the code given below:

Code :

Options:

[a] (iv), (iii), (ii), (i)

[b] (i), (ii), (iii), (iv)

* [c] (ii), (iii), (iv), (i)

[d] (iii), (iv), (i), (ii)

Q.51) Which of the following statements relating to the sampling theory are correct?

(i) The values of the statistical measures based on the sampled units are called values of statistic.

(ii) In the simple random sampling technique, the element of the population and the unit of the sample are different.

(iii) Snow-ball sampling technique is a probability-based sampling technique.

(iv) The ‘law of statistical regularity’ and the ‘law of inertia of large are the main bases of the sample to become representative of the population.

Choose the correct answer from the code given below

Code :

Options:

* [a] (i) and (iv)

[b] (ii) and (iii)

[c] (ii), (iii) and (iv)

[d] (i), (ii) and (iii)

Q.52) Which one of the following statements is not true?

Options

[a] Profits earned from non-operating activities is added to net profit while calculating profits from operations.

[b] Major source of working capital in the long run, is profits from operations.

* [c] Depreciation is a source of funds.

[d] Any transaction that increases working capital is a source of funds.

Q.53) Which one of the following is not the advantage of database management system?

Options

[a] Improved data integrity

[b] Centralized control

* [c] High acquisition costs

[d] Shared data

Q.54) The probable error of the coefficient of correlation (r) is calculated by which one of the following formulae?

Options

[a] 1

[b] 2

[c] 3

* [d] 4

Q.55) To examine whether the company is pursuing its best opportunities with respect to markets, products, and channels is the purpose of which one of the following types of marketing control ?

Options:

* [a] Strategic control

[b] Annual-plan control

[c] Efficiency control

[d] Profitability control

Q.56) Choose the correct code for the following statements being correct or incorrect.

Statement I : A well-chosen marketing channel must be aligned to company’s marketing strategy with respect to segmentation, targeting and positioning.

Statement II : Marketing channels are set of interdependent organizations participating in the process of making the product available for the use of consumption.

Code :

Options

[a] Statement Il is correct, but I is incorrect.

[b] Both the statements I and Il are incorrect.

*  [c] Both the statements I and Il are correct.

[e] Statement I is correct, but Il is incorrect.

Q.57) Foreign investment can be made through which of the following routes ?

(i) Foreign Direct Investment (FDI)

(ii) Foreign Portfolio Investment (FPI)

(iii) Private Equity Investment (PEI)

(iv) Foreign Venture Capital Investors (FVCI)

Choose the correct answer from the code given below :

Code :

Options

[a] (i), (iii) and (iv)

* [b] (i), (ii), (iii) and (iv)

[c] (i), (ii) and (iv)

[d] (i) and (iv)

Q.58) Given below are two statements, one labelled as Assertion (A) and the other labelled as

Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): Training aids in encouraging and achieving self-development and self-confidence.

Reason (R): It helps a person handle stress, tension, frustration and conflict.

Code :

Options:

* [a] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[b] Both (A) and (R) are incorrect.

[c] (A) is correct but (R) is not correct.

[d] Both (A) and (R) are correct and (R) is the right explanation of (A).

Q.59) Match the items of List I with the items of List Il and choose the correct answer from the code given below.

LIST I LIST II
(a) AS-I (i) Accounting for fixed assets 
(b) AS-3 (ii) Disclosure of accounting policies
(c) AS – 10 (iii) Leases and its accounting
(d) AS – 19 (iv) Cash flow statements

 

Options:

[a] (a)—(iii), (b)—(i), (c)—(iv), (d)—(ii)

[b] (a)—(iii), (b)—(iv), (c)—(ii), (d)—(i)

[c] (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)

[d] (a)—(iii), (b)—(ii), (c)—(i), (d)—(iv)

*[e] (a)-(ii), (b)-(iv), (c)-(i), (d)-(iii)

Q.60) Which of the following are included in the international liquidity ? Indicate the correct code.

(i) Foreign exchange reserve

(i) Borrowing capacity of the various countries

(iii) Gold reserves

Choose the correct answer from the code given below :

Code :

Options:

[a] (ii) and (iii)

[b] (i) and (ii)

[c] (i) and (iii)

* [d] (i), (ii) and (iii)

Q.61) X Ltd. forfeited 40 shares of 10 each and on which 4 per share were paid. If the forfeited shares are reissued as 8 per share paid up, what is the minimum price the company must charge?

Options

[a] 2 per share

* [b] 4 per share

[c] 10 per share

[d] 8 per share

Q.62) Which one of the following initiatives is not the strategy for managing shortage of employees in an organisation ?

Options

[a] Attempt to reduce turnover

* [b] Employee training

[c] Hire temporary employees

[d] Offer incentives to postpone retirement

Q.63) A firm has inventory turnover of 3 and cost of goods sold is Rs.2,70,000/- with better inventory management, the inventory turnover is increased to 5. This would result in

Options

[a] Decrease in inventory by 90,000

[b] Increase in cost of goods sold by 20,000

* [c] Decrease in inventory by 36,000

[d] Increase in inventory by 54,000

Q.64) Which of the following variables is not known in Internal Rate of Return method of capital budgeting?

Options

[a] Life of the project

* [b] Discount rate

[c] Amount of cash outflows

[d] Amount of cash inflows

Q.65) Match the items of List I with the items of List Il and choose the correct answer from the code given below.

LIST I

(Propounder of Theory)

LIST II

(Theory of Motivation)

(a) Dr. William Ouchi (i) X theory
(b) Douglas McGregor (ii) Need Hierarchy Theory
(c) Frederick Herzberg (iii) Z Theory
(d) A.H. Maslow (iv) Hygiene Theory

Options:

* [a] (a)—(iii), (b)—(i), (c)—(iv), (d)—(ii)

[b] (a)—(iv), (b)—(i), (c)—(iii), (d)—(ii)

[c] (a)—(ii), (b)—(iii), (c)—(iv), (d)—(i)

[d] (a)—(ii), (b)—(i) ,(c)—(iii), (d)—(iv)

Q.66) Which one of the following is not the correct property of normal distribution?

Options:

[a] Equality of central values (Mean, Mode and Median)

[b] Uni-modal distribution

* [c] Standard deviation is the sole parameter of the distribution

[d] Continuous distribution

Q.67) Production function is based on which combination of the main characteristics of the inputs from the following:

(i) Substitutability

(ii) Complementarity

(iii) Flexibility

(iv) Specificity

Choose the correct answer from the code given below :

Code :

Options

[a] Only (iii) and (iv)

* [b] Only (i), (ii) and (iv)

[c] Only (i) and (ii)

[d] Only (ii), (iii) and (iv)

Q.68) Indicate the most popular route of privatisation adopted by the Government of India in recent decades.

Options

[a] Spontaneous Privatisation

[b]  Cross Holdings

[c] Management-Employee Buyout

* [d] Strategic sale

Q.69) Which of the following is not a method of preparation of cash budget?

Options

[a] Adjusted Net Income method

* [b] Proforma Balance Sheet method

[c] Cash Cycle method

[d] Receipts and Payments method

Q.70) Corporations are controlled and directed by which one of the following?

Options

[a] Corporate codes

* [b] Corporate governance

[c] Corporate ethics

[d] Corporate mechanism

Q.71) Choose the correct code for the following statements being correct or incorrect.

Statement I : FX Spot is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date.

Statement II : The date of maturity of a forward contract is more than two business days in future.

Code :

Options:

* [a] Both the statements I and II are correct.

[b] Statement II is correct, but I is incorrect.

[c] Statement I is correct, but II is incorrect.

[d] Both the statements I and II are incorrect.

Q.72) Which of the following statements is/are  true?

1.Tax-shield on depreciation and interest is an important variable both for the lessor and the lessee.

  1. Lease transactions in India are governed by the Lease Act.
  2. A lessee should evaluate the lease options against the buying option.
  3. As per AS — 19, financial lease is shown in the balance sheet of the lessee as an asset.

Choose the correct answer from the code given below :

Code :

Options:

* [a] (i), (iii) and (iv)

[b] Only (ii)

[c] (ii), (iii) and (iv)

[d] (i) and (iv)

Q.73) A company proposes to introduce a new product in the market. The company wants to maintain P/V ratio at 25%,If variable cost of the product is 300, what will be the selling price?

Options

* [a] Rs 400

[b] Rs 100

[c] Rs 200

[d] Rs 300

Q.74) the correct code for the following statements being correct or incorrect. Choose

Statement I: When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities. In such case, diversification does not provide risk reduction but only risk averaging.

Statement II : Total risk of a portfolio of two risk securities can be completely eliminated when their returns are perfectly negatively correlated and their proportionate holdings in the portfolio are inversely related to the relative individual risks of the securities.

Code :

Options:

[a] Both the statements I and II are incorrect.

* [b] Both the statements I and II are correct.

[c] Statement I is correct, but II is incorrect.

[d] Statement II is correct, but I is incorrect.

Q.75) Match the items of List I with the items of List 11 and choose the correct answer from the code given below.

         LIST I

(Type of Interview)

         LIST II

(Usual Application)

(a) Structured (i) ) A realistic approach that yields comparable answers plus in-depth insights
(b) Unstructured (ii) Useful to understand applicants reasoning and analytical abilities under modest stress
(c) Mixed (iii) ) Useful for valid results, especially when dealing with large number of applicants
(d) Behavioural (iv) Useful when the interviewer tries to probe personal details of the candidate to analyse why they are not fit for the job

 

Options:

[a] (a)—(iii), (b)—(i), (c)—(ii), (d)—(iv)

[b] (a)—(i), (b)—(iv), (c)—(ii), (d)—(iii)

* [c] (a)—(iii), (b)—(iv), (c)—(i), (d)—(ii)

[d] (a)—(iv), (b)—(ii) ,(c)—(i), (d)—(iii)

Q.76) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : Consumers need to be given legal protection against certain trade practices and business methods.

Reason (R) : Protection as per market forces and ‘Caveat Emptor’ is not enough as perfectly competitive market is an economics dream and consumer sovereignty is a myth.

Code :

Options:

* [a] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[b] (A) is correct but (R) is incorrect.

[c] (A) is incorrect but (R) is correct.

[d] Both (A) and (R) are correct and (R) is the right explanation of (A).

Q.77) Banks are required to classify Non-Performing Assets into

Options

[a] Doubtful assets, bad debts and loss assets

[b] Standard assets, and sub-standard assets

* [c] Sub-standard assets, doubtful assets, and loss assets

[d] Doubtful assets, and bad debts

Q.78) Cardinal utility analysis of consume/s behaviour is based on which combination of the following assumptions:

(i) Utility is measurable in terms of cardinal numbers.

(ii) Constancy of the marginal utility of money.

(iii) Utilities of different goods are interdependent.

(iv) Gossen’s first law of consumption.

Choose the correct answer from the code given below :

Code :

Options:

[a] Only (iii) and (iv)

* [b] Only (i), (ii) and (iv)

[c] Only (ii), (iii) and (iv)

[d] Only (i) and (ii)

Q.79) Which one of the following is the main government agency responsible for development and monitoring international trade in India?

Options

[a] Export Promotion Council

* [b] Department of Commerce

[c] Indian Institute of Foreign Trade

[d] Federation of Indian Export Organisations

Q.80) Which of the following statements Ware false?

(i) Capital profits can never be distributed as dividends to the shareholders.

(ii) Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.

(iii) Every company should follow the policy of low dividend payment.

(iv) Walter’s model suggests that dividend payment does not affect the market price of the

Choose the correct answer from the code given below :

Code :

Options:

[a] (iii) and (iv)

[b] (ii), (iii) and (iv)

* [c] (i), (ii), (iii) and (iv)

[d] (i), (ii) and (iii)

Q.81) A and B are partners in a firm sharing profits in the ratio of 3 : 2. They admit X as a partner for 1/3 share in profits of the firm. The new profit sharing ratio of A, B and X is

Options

[a] 3:2:2

[b] 3:2:1

* [c] 6:4:5

[d] 3:2:3

Q.82) Advertising method in which a commercial is broadcast simultaneously on several radio stations and/or television channels is known as

Options

* [a] Road block

[b] Road side

[c] Exclusive drive

[d] Intensified campaign

Q.83) Which one of the following is not the basic function of WTO?

Options

* [a] To facilitate the expansion and balanced growth of international trade

[b] To facilitate the implementation, administration and operation of trade agreements

[c] To settle differences and disputes among its member countries

[d] To carry out periodic reviews of the trade policies of its member countries

Q.84) Bretton Woods Conference resulted into the establishment of which of the following?

Options

[a] IBRD and IFC

[b] IMF and IDA

[c] IDA and ADB

* [d] IMF and IBRD

Q.85) Which one of the following modes is not an example of Direct and Database marketing communication?

Options

[a] Mailings

* [b] Social media marketing

[c] Catalogues

[d] Telemarketing

Q.86) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : A low debt-equity ratio is generally recommended for a newly started business.

Reason (R) : During the initial years of the business, debt servicing will prove to be less burdensome.

Code :

Options:

[a] (A) is not correct but (R) is correct.

* [b] Both (A) and (R) are correct and (R) is the correct explanation of (A).

[c] (A) is correct but (R) is not correct.

[d] Both (A) and (R) are correct but (R) is not the correct explanation of (A).

Q.87) Match the items of List I with the items of List II and choose the correct answer from the code given below.

                                   LIST I

 

         LIST II

 

(a) Direct investment overseas aimed at manufacturing products not manufactured by the firm in the home country (i) Inward FDI
(b) Direct investment in a foreign  country aimed to sell the output of the firm’s domestic production. (ii) Backward Vertical FDI
(c) Direct investment overseas aimed  at providing inputs for the firms production process in the home countr (iii) Conglomerate FDI
(d) Foreign firms investing overseas and taking control over foreign assets (iv) Forward Vertical FDI

Options:

[a] (a)—(iv), (b)—(iii), (c)—(ii), (d)—(i)

* [b] (a)—(iii), (b)—(iv), (c)—(ii), (d)—(i)

[c] (a)—(i), (b)—(iv), (c)—(ii), (d)—(iii)

[d] (a)—(iii), (b)—(ii) ,(c)—(i), (d)—(iv)

Q.88) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): Among all methods of charging depreciation on fixed assets, diminishing balance method is the best method.

Reason (R): Diminishing balance method of charging depreciation has been permitted under the Income Tax Act, 1961 for claiming deduction for depreciation.

Code :

Options:

[a] (A) is correct but (R) is not correct.

[b] Both (A) and (R) are correct but (R) is not the correct explanation of (A).

[c] Both (A) and (R) are correct and (R) is the correct explanation of (A).

* [d] (A) is incorrect but (R) is correct.

Q.89) The theory suggesting that the patterns of international trade are determined by factor endowment rather than productivity was propounded by which one of the following?

Options

[a] Adam Smith

[b] Michael Porter

[c] David Ricardo

* [d] Heckscher and Bertil Ohlin

Q.90) Match the items of List I with the items of List Il and choose the correct answer from the code given below.

List I                                                                      List II

(a) Behaviour referent                                 (i) Wide ranging cultural, structural and personnel strategies

(b) Focus of attention for interventions  (ii) Manage climate and culture

(c) Conflict handling                                    (iii) Few

(d) Job categories and grades                  (iv) Values/mission

Options:

[a] (a)—(i), (b)—(ii), (c)—(iv), (d)—(iii)

[b] (a)—(iii), (b)—(i), (c)—(ii), (d)—(iv)

* [c] (a)—(iv), (b)—(i), (c)—(ii), (d)—(iii)

[d] (a)—(iv), (b)—(ii), (c)—(i), (d)—(iii)

Q.91) Critical path indicates which one of the following?

Options:

[a] Average time of completing a task

[b] Shortest route of completing a task

* [c] Longest route of completing a task

[c] Recorded time of completing a task

Q.92) Given is the information related to a house

Municipal Value (M. V.)    Rs.1,50,000/-

Fair Rent                              Rs.1,80,000/-

Standard Rent                    Rs.1,60,000/-

Actual Rent                         Rs.20000/-pm

Municipal tax paid by owner is 20% of M.V. Unrealised rent 40,000 (conditions of rule 4 satisfied). What is the annual value of the house?

Options:

[a] Rs.1,60,000/-

[b] Rs.1,50,000/-

[c] Rs.2,10,000/-

* [d] Rs.1,70,000/-

Q.93) Match the items of List I with the items of List Il and choose the correct answer from the code given below.

List I                                                               List II

(a)        Income elasticity less than unity       (i) Competitive goods

(b)        Cross elasticity less than unity          (ii) Inferior goods

(c)        Cross elasticity less than zero           (iii) Superior goods

(d)        Income elasticity less than zero        (iv) Complementary goods

Code:

[a] (a)—(i), (b)—(ii), (c)—(iii), (d)—(iv)

[b] (a)—(iv), (b)—(i), (c)—(ii), (d)—(iii)

* [c] (a)—(iii), (b)—(i), (c)—(iv), (d)—(ii)

[d] (a)—(iv), (b)—(iii), (c)—(i), (d)—(ii)

Q.94) Match the items of List I with the items of List 11 and choose the correct answer from the code given below.

 

List I List II
(a) Mobile Defense (i) Occupying the most desirable position in consumers’ minds, making the brand almost impregnable.
(b) Contraction Defense (ii) The leader stretches its domain over new territories through market broadening and market diversification.
(c) Position Defense (iii) Large companies give up weaker markets and reassign resources to stronger ones.

Code :

* [a] (a)—(ii), (b)—(iii), (c)—(i)

[b] (a)—(i), (b)—(ii), (c)—(iii)

[c] (a)—(i), (b)—(iii), (c)—(ii)

[d] (a)—(ii), (b)—(i), (c)—(iii)

Q.95) Options For the following two statements regarding infrastructural services in the country, choose the correct code for the statements being correct or incorrect.

Statement I : Most infrastructure services are provided by public monopolies which generally suffer with severe problems like lack of accountability, low productivity, poor financial performance and over-employment.

Statement II : There is a need now to induce more private sector investment and participation in provision of social overheads as it may encourage better risk sharing, accountability, monitoring and management of infrastructure sector.

[a] Both I and II are correct.

* [b] I is incorrect, but II is correct.

[c] Both I and II are incorrect.

[d] I is correct, but II is incorrect.

Q.96) Options In which one of the following forms of workers participation in management is the role of the workers council not just advisory but the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of the council?

* [a] Associative Participation

[b] Administrative Participation

[c] Consultative Participation

[d] Decisive Participation

Q.97) Match the items of List I with the items of List II and choose the correct answer from the code given below.

 

List I List II
(a) NPA (i)The percentage of deposits to be kept with RBI in the form of cash.
(b) SLR (ii) the rate at which RBI lends money to commercial banks.
(c) Repo Rate (iii) Loans and advances not paid for more than 90 days.
(d) CRR (iv) The percentage of net demand and time liabilities to be kept in the form of liquid assets.

Options:

[a] (a)—(iii), (b)—(ii), (c)—(iv), (d)—(i)

* [b] (a)—(iii), (b)—(iv), (c)—(ii), (d)—(i)

[c] (a)—(iii), (b)—(iv), (c)—(i), (d)—(ii)

[d] (a)—(ii), (b)—(iii), (c)—(iv), (d)—(i)

Q.98) Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A) : Purchase decisions are not based on how customers perceive prices but, on the marketers, stated price.

Reason (R) : Customers may have a lower price threshold, below which prices signal inferior or unacceptable quality, and an upper price threshold where the product appears not worth the money.

Code :

Options:

[a] Both (A) and (R) are correct but (R) is not the right explanation of (A).

[b] Both (A) and (R) are incorrect.

[c] Both (A) and (R) are correct and (R) is the right explanation of (A).

* [d] (A) is incorrect but (R) is correct.

Q.99) ‘Finance for exporting companies’ as part of major programmes of the Exim Bank of India does not include?

Options

* [a] Post-shipment credit

[b] Overseas investment finance

[c] Term loans

[d] Working capital

Q.100) On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for?

Options

[a] 10 years

[b] Unlimited period

[c] 5 years

* [d] 15 years

 

 

 

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