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� ifer
BEYOND PROMISES

ABOUT AIFER
Aifer (Formerly Diksha) is founded solely for helping candidates to achieve their dream of
qualifying various competitive examinations, mainly UGC NET/JRF conducted by National
Testing Agency (NTA).

Aifer aims at helping candidates in all possible ways in their preparation in all possible time. The
team behind Aifer is a group of JRF and NET qualified experts who would like to share their
strategies and methods with those who are aiming to crack the exam.

Aifer is using diverse methods to help candidates like Live, Livline & Selfline (a combination
of live and online classes) sessions of classes, Free whatsapp groups, Digital study materials,
Discussion Tables, Activity Groups, Previous Years Questions discussions, Daily tests, Mock
tests (all in exact NTA pattern), Detailed analytics of tests etc.

For more details, Visit : [Link]

NOT FOR SALE

All rights reserved. No part of this publication should be reproduced,or transmitted in any
form or by any means for a commercial purpose without the prior written permission of the
author and the publisher.
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ABOUT THE BOOK

If you are preparing for any kind of competitive examination, then going through the previous
year question papers is one of the fundamental steps you need to take. This book is exclusively
for those who are preparing for the UGC NET examination in Commerce.

This attempt is made by Aifer just to make 30 commerce PYQ's of the past 10 years including
the recent Net Examination Cycle which helps you to chalk out similar questions which makes
it easy for your preparation. Along with this you can also avail other e books in our website for
the same purpose.

This book is a compilation of different question papers from various sources including the
website of UGC NET. We kindly inform you that, we don't hold any responsibility for any
mistakes in Answer keys, as the official key is released by UGC. Even though we have tried our
level best to avoid all the mistakes and give you the correct keys, there is a chance for humanly
error.

We are always happy to hear from you, if there any kind of mistakes or alternate opinions. We
will recheck and will update as soon as we find any errors.

We wish to extend our sincere gratitude to everyone who contributed towards this effort.

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INDEX PAGE NO
1. 14_OCTOBER_2022 SHIFT I 6
2. 29_SEPTEMBER_2022 SHIFT I 31
3. 29_SEPTEMBER_2022 SHIFT II 56
4. 26_NOVEMBER_2021 SHIFT I 80
5. 25_NOVEMBER_2021 SHIFT I 104
6. 25_NOVEMBER_2021 SHIFT II 129
7. JUNE_ 2020_SHIFT I 155
8. JUNE_ 2020_SHIFT II 197
9. DECEMBER_ 2019 231
10. JUNE _2019 276
11. DECEMBER_ 2018 325
12. JULY_ 2018 362
13. NOVEMBER _2017_ PAPER 2 390
14. NOVEMBER _2017_ PAPER 3 402
15. JANUARY _2017_ PAPER 2 422
16. JANUARY _2017_ PAPER 3 434
17. JULY_ 2016_ PAPER 2 450
18. JULY_ 2016_ PAPER 3 462
19. DECEMBER_ 2015_ PAPER 2 478
20. DECEMBER_ 2015_ PAPER 3 490
21. JUNE _2015_ PAPER 2 510
22. JUNE_ 2015_ PAPER 3 522
23. DECEMBER_ 2014_ PAPER 2 542
24. DECEMBER_ 2014_ PAPER 3 554
25. JUNE_ 2014_ PAPER 2 570
26. JUNE_2014_ PAPER 3 578
27. DECEMBER _2013_ PAPER 2 587
28. DECEMBER_ 2013 _PAPER 3 595
29. JUNE _2013_PAPER 2 607
30. JUNE _2013 _PAPER 3 615

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The Intensive Online Coaching for

UCC NTA NET Dec 2022

Commerce ► Economics ► Management ► English

History ► Political Science ► Sociology ► Psychology
Mass Communication & Journalism ► Paper 1 ► Arabic

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14_OCTOBER_2022 SHIFT I

1. Which one of the following measures of central tendency is not affected by the presence of
extreme values in the data of the distribution?
(A) Arithmetic average
(B) Geometric average
(C) Positional average
(D) Harmonic average

2. The examination of documentary evidence in support of transactions contained in the books of

accounts is termed as which one of the following?
(A) Verification
(B) Vouching
(C) Valuation
(D) Validation

3. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): There is a change in the profit-sharing ratio of the old partners when a new
partner gets his share of profit from all the partners
Reasons (R): When a new partner is admitted into the partnership for a certain share of profit,
the combined shares of the old partners will be reduced
In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.

4. Which of the following statement(s) are correct?

(a) Asset liability management is a mechanism to address the risk arising due to mismatch of
assets and liabilities
(b) Non-performing Assets (NPA) must be written off as loss in the financial year in which NPA
has been identified
(c) Undisclosed reserves are included in capital of banks (Tier II) if they represent accumulation
of post-tax profits
(d) Bank cannot accept deposits from the public for a period exceeding five years
(e) Hybrid debt capital instruments may be included in Tier U capital

Choose the correct answer from the options given below:

(A) (a), (c), (d) only
(B) (c), (d), (e) only
(C) (b), (c), (d) only
(D) (a), (c), (e) only

5. Arrange the following steps in the process of concluding an export deal

(a) Confirm the export deal
(b) Receive letter of credit
(c) Identify and negotiate with importer

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(d) Receive an export order

(e) Examine thoroughly and ask for amendment

Choose the correct answer from the options given below:

(A) (a), (c), (e), (d), (b)
(B) (c), (a), (d), (e), (b)
(C) (b), (e), (a), (c), (d)
(D) (d), (a), (b), (c), (e)

6. Which one of the following is a method of converting a non-productive, inactive asset (i.e.,
receivable) into a productive asset (viz, cash) by selling receivables to a company that
specializes in their collection and administration?
(A) Bills discounting
(B) Underwriting
(C) Guaranteeing
(D) Factoring

7. Which one among the following is not a privilege or right of a holder-in-due course under
Negotiable Instruments Act?
(A) Estoppel against denying signature or capacity of prior party
(B) Estoppel against denying original validity of the instrument
(C) Estoppel against denying capacity of the payee to endorse
(D) Estoppel against denying the genuineness or validity of payee's endorsement

8. Match List I with List II

List I List II
(Mode/delivery) (Explanation)
(a) Actual delivery (I) Seller hands over to the buyer the
key of the godown where the goods
are stored
(b) Constructive delivery (II) Physical handing over of the
possession of goods by the seller to
the buyer
(c) Symbolic delivery (III) Voluntary transfer of possession of
goods from seller to buyer
(d) Delivery (IV) Acknowledgement by third person
on behalf of and at the disposal of
the buyer

Choose the correct answer from the options given below:

(A) (a)-(IV), (b)-(II), (c)-(III), (d)-(I)
(B) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(C) (a)-(III), (b)-(I), (c)-(II) (d)-(IV)
(D) (a)-(I), (b)-(II), (c)-(IV), (d)-(III)

9. Which of the following samples are non-random or non-probability samples?

(a) Systematic sample
(b) Quota sample
(c) Cluster or area sample
(d) Purposive sample

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(e) Replicated sample

Choose the correct answer from the options given below:

(A) (a), (c) only
(B) (b), (c), (d) only
(C) (a), (d), (e) only
(D) (b), (d) only

10. Which one of the following is an example of hybrid service offering?

(A) Consulting
(B) Massage
(C) Restaurant meal
(D) Car with a warranty

11. Which of the following assumptions form the basis of the MM Hypothesis in stating irrelevance
of capital structure regarding weighted average cost of capital remaining constant?
(a) Perfect capital markets
(b) Heterogenous risk class
(c) Absence of taxes
(d) Full dividend pay-out
(e) Same expectation of firm's EBIT with which to evaluate the value of a firm

Choose the correct answer from the options given below:

(A) (b), (c), (d), (e) only
(B) (a), (c), (d), (e) only
(C) (a), (b), (c), (d) only
(D) (a), (b), (d), (e) only

12. Which of the following may be the reasons for a material usage variance?
(a) Negligence in the use of materials
(b) Changes in basic prices of materials
(c) Poor or improper machine handling
(d) Wastage due to inefficient production methods
(e) Change in product design requiring usage different from the standard

Choose the correct answer from the options given below:

(A) (a), (b), (c), (d) only
(B) (b), (c), (d), (e) only
(C) (a), (c), (d), (e) only
(D) (a), (b), (d), (e) only

13. Match List I with List II:

List I List II
(Accounting Standard) (Description)
(a) Ind — AS: 1 (I) Investments in Associates and Joint
ventures
(b) Ind — AS: 8 (II) Presentation of Financial Statements
(c) Ind — AS: 28 (III) Interim Financial Reporting
(d) Ind— AS: 34 (IV) Accounting policies, changes in
Accounting Estimates and Errors

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Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(III), (c)-(I), (d)-(IV)
(B) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(C) (a)-(III), (b)-(II), (c)-(IV) (d)-(I)
(D) (a)-(III), (b)-(IV), (c)-(I), (d)-(II)

14. Which of the following variables are considered relevant in behavioural segmentation of
consumers?
(a) Life style
(b) User status
(c) Occasions
(d) Values
(e) Loyalty status

Choose the correct answer from the options given below:

(A) (a), (b), (c) only
(B) (a), (d), (e) only
(C) (b), (c), (e) only
(D) (a), (b), (e) only

15. The Central Bank can significantly influence the savings, investments and consumer spending in
the economy through which one of the following policies?
(A) Fiscal policy
(B) Monetary policy
(C) Industrial policy
(D) Foreign exchange policy

16. Which of the following are three pillars of BASEL — II?

(a) Minimum Capital Requirements
(b) Supervisory Review
(c) Leverage
(d) Market Discipline
(e) Capital Conservation Buffer

Choose the correct answer from the options given below:

(A) (a), (c), (d) only
(B) (a), (d), (e) only
(C) (a), (b), (d) only
(D) (b), (c), (e) only

17. Which of the following affect the pricing of a currency option?

(a) Spot exchange rate
(b) Exercise rate
(c) Foreign risk-free rate of return
(d) Domestic risk-adjusted rate
(e) Time to expiration

Choose the correct answer from the options given below:

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(A) (b), (c), (d), (e) only

(B) (a), (c), (d), (e) only
(C) (a), (b), (c), (e) only
(D) (a), (b), (d), (e) only

18. Which one of the following is not the assumption for consumer behaviour based on the cardinal
utility approach?
(A) Maximization of satisfaction
(B) Utility cardinally measurable
(C) Diminishing marginal utility of money
(D) Utility is additive

19. Which one of the following customers are risk averse, technology shy, and price sensitive?
(A) Early adopters
(B) Early majority
(C) Late majority
(D) Laggards

20. Sequence the following steps to compute tax where there is agriculture income also.
(a) Add agricultural income and non-agricultural income and calculate tax on aggregate as if
such aggregate income is the total income
(b) Add agricultural income to the maximum exemption limit available in the case of assessee
and compute tax on such amount as if it is total income
(c) Deduct the amount of Income tax as computed (D) from the tax computed from (A)
(d) Claim rebate u/s 87(A) if applicable
(e) Add surcharge if applicable along with the Health and Education cess @ 4%

Choose the correct answer from the options given below:

(A) (b), (a), (c), (d), (e)
(B) (b), (a), (d), (c), (e)
(C) (a), (b), (d), (c), (e)
(D) (a), (b), (c), (d), (e)

21. In the case of two production-inputs, which one of the following is not a property of Isoquants
(the production indifference curves)?
(A) Negative slope
(B) Concave to the point of origin
(C) Non-intersecting and non-tangential
(D) Upper isoquants represent higher level of output

22. Which of the following statements are false regarding price and output determination under
perfect competition?
(a) A firm is a price taker
(b) In the long ran, a firm is in equilibrium when its AR = MR = LAC = LMC
(c) A firm is in equilibrium in the short run only when its AC = AR = MR = MC
(d) A firm reaches its shut-down point when price goes below its AC
(e) A firm fixes the price of its products when AR = MR

Choose the most appropriate answer from the options given below:
(A) (a), (b), (c) only

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(B) (c), (d), (e) only

(C) (b), (c), (d) only
(D) (a), (e) only

23. Match List I with List II

List I List II
(Type of Agreement) (Explanation)
(a) NAMA (I) Liberation of International Investments
(b) GATTs (II) Includes industrial goods, textile,
jewellery, fish and fisheries products and
manufacturing industries
(c) TRIMs (III) Liberalisation of trade in goods and
services
(d) TRIPs (IV) Provides monopoly power to owners of
intellectual property

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(I), (c)-(IV), (d)-(III)
(B) (a)-(IV), (b)-(II), (c)-(III), (d)-(I)
(C) (a)-(II), (b)-(III), (c)-(I) (d)-(IV)
(D) (a)-(III), (b)-(II), (c)-(IV), (d)-(I)

24. A firm is exposed to translation loss if it uses current exchange rate to translate its assets and
liabilities. Which among the following are methods in use in translating assets and liabilities?
(a) Current/Non-Current method
(b) Temporal method
(c) Monetary/Non-monetary method
(d) Current Rate method
(e) Transaction/Non-transaction method

Choose the correct answer from the options given below:

(A) (a), (b), (d), (e) only
(B) (b), (c), (d), (e) only
(C) (a), (b), (c), (d) only
(D) (c), (d), (e) only

25. Which one of the following statements is correct regarding the Negotiable Instruments Act in
India?
(A) A cheque is always drawn on a banker
(B) A cheque requires the acceptance by the drawee
(C) A bill of exchange can be drawn payable to bearer on demand
(D) A promissory note containing a conditional promise to pay is a valid promissory note

26. Given below are two statements:

Statement (I): Distribution channels are sets of interdependent organizations participating in the
process of making a product available for consumption
Statement (II): All marketing channels have the potential for conflict and competition resulting
from goal incompatibility
In the light of the above statements, choose the correct answer from the options given below:

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(A) Both Statement (I) and Statement (II) are true.

(B) Both Statement (I) and Statement (II) are false.
(C) Statement (I) is true but Statement (II) is false.
(D) Statement (I) is false but Statement (II) is true.

27. Which one of the following statements is false?

(A) Regression coefficients are independent of change of origin but not of change of scale
(B) Both the regression coefficients cannot assume a value (ignoring algebraic sign) greater than
one
(C) Regression coefficient of the two variables may have different algebraic symbols for real life
situations
(D) Coefficient of correlation is independent of the change of origin and scale of data

28. Which of the following losses are allowed to be carried forward and set off in the subsequent
assessment years?
(a) House property loss
(b) Business loss
(c) Speculation loss
(d) Capital loss
(e) Loss on account of owning and maintaining race horses

Choose the correct answer from the options given below:

(A) (a), (b), (c), (d) only
(B) (b), (c), (d), (e) only
(C) (a), (e) only
(D) (a), (b), (c), (d), (e)

29. Match List I with List II:

List I List II
(Management style) (Approach)
(a) Task Management (I) Love conquers all approach
(b) Country Club Management (II) One plus one can add up to
three approaches
(c) Impoverished Management (III) Authority-obedience
approach
(d) Team Management (IV) Speak no evil, hear no evil,
see no evil approach

Choose the correct answer from the options given below:

(A) (a)-(I), (b)-(III), (c)-(IV), (d)-(II)
(B) (a)-(I), (b)-(IV), (c)-(II), (d)-(III)
(C) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(D) (a)-(III), (b)-(IV), (c)-(II), (d)-(I)

30. Which of the following common difficulties are faced in making decisions and implementing?
(a) Non-actionable information
(b) Un supporting environment
(c) Easy acceptance by subordinates
(d) Ineffective communication
(e) Incorrect timing

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Choose the correct answer from the options given below:

(A) (a), (b) only
(B) (c), (d), (e) only
(C) (a), (b), (d), (e) only
(D) (a), (b), (c), (d) only

31. Residential status in Indian Income Tax Act is determined for which one of the following?
(A) Previous year
(B) Assessment year
(C) Accounting year
(D) Both previous and assessment year

32. Match List I with List II

List I List II
(a) Appointment of auditors by CAG (I) Section 139 (5)
(b) Qualifications and disqualifications of (II) Section 141
auditors
(c) Powers and duties of auditors (III) Section 142
(d) Remuneration of auditors (IV) Section 143

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(III), (c)-(I), (d)-(IV)
(B) (a)-(II), (b)-(I), (c)-(IV), (d)-(III)
(C) (a)-(I), (b)-(II), (c)-(IV), (d)-(III)
(D) (a)-(I), (b)-(III), (c)-(II), (d)-(IV)

33. Which is the most appropriate mode of entry in international business to an enterprise with little
experience of International Markets?
(A) Acquisition
(B) Exporting
(C) Strategic Alliance
(D) Joint Venture

34. Who among the following Economists suggested the Sales Revenue Maximization as an
alternative objective of a business firm?
(A) K.W. Rothschild
(B) Cyert and March
(C) Robin Marris
(D) W.J. Baumol

35. Which one of the following provident funds is set up under Provident Fund Act, 1952?
(A) Statutory Provident Fund
(B) Recognised Provident Fund
(C) Public Provident Fund
(D) Unrecognised Provident Fund

36. Limited liability partnership may be wound up by which one of the following
(A) Voluntarily

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(B) By the Registrar, if the firm fails to file annual return in the prescribed form with the
Registrar of Companies within 60 days of closer of the financial year
(C) By the Tribunal established under the Companies Act, 2013
(D) Either voluntarily or by the tribunal established under the Companies Act, 2013

37. Match List I with List II

List I List II
(PLC Stage) (Communication Strategy)
(a) Introduction (I) Stress, brand differences and benefits and
encourage brand switching
(b) Maturity (II) Build awareness and interest in the mass
market
(c) Growth (III) Reduce to minimal level needed to retain
customers
(d) Decline (IV) Build product awareness and trial among
dealers

Choose the correct answer from the options given below:

(A) (a)-(IV), (b)-(III), (c)-(I), (d)-(II)
(B) (a)-(IV), (b)-(I), (c)-(II), (d)-(III)
(C) (a)-(II), (b)-(I), (c)-(IV), (d)-(III)
(D) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)

38. Which of the following statements regarding short-term theory of production and cost analysis
are true?
(a) Economic rent is the same as economic profit
(b) Imputed cost is the rent of hired building
(c) When AC = MC, AC is minimum
(d) When MC is rising, AC > MC
(e) Output is optimum when AC = MC

Choose the most appropriate answer from the options given below:
(A) (a), (d), (e) only
(B) (a), (c), (e) only
(C) (b), (c), (d) only
(D) (a), (b), (d), (e) only

39. Which of the following are the tax categories under the GST?
(a) 5%
(b) 10%
(c) 12%
(d) 20%
(e) 28%

Choose the correct answer from the options given below:

(A) (a), (d), (e) only
(B) (b), (c), (d) only
(C) (a), (c), (e) only
(D) (b), (d), (e) only

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40. Arrange the following in the winding up process of a company by tribunal in chronological
sequence from the first to the last.
(a) Settlement of list of contributories and application of assets
(b) Submission of report by company liquidator
(c) Petition for winding up
(d) Direction of Tribunal on report of company liquidator
(e) Appointment of company liquidator

Choose the correct answer from the options given below:

(A) (e), (b), (a), (c), (d)
(B) (a), (e), (b), (c), (d)
(C) (c), (e), (b), (d), (a)
(D) (b), (d), (c), (a), (e)

41. Which one of the following is not coordinated in the horizontal integration of Integrated
Marketing Communications?
(A) Packaging
(B) Customer Service
(C) Sales Promotion
(D) Distribution

42. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): Even- perfectly competitive firm in the long run earns normal profits only.
Reasons (R): Market price gets fully adjusted, due to changes in the demand and the supply
conditions and the resultant free entry and exit of the firms in the perfectly competitive market,
so as only the normal profit persists.
In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

43. The safety margin that insurers must maintain in order to protect the interest of the policy holders
is called:
(A) Protection margin
(B) Solvency margin
(C) Profit margin
(D) Cost of risk bearing

44. Arrange the following pricing strategies and other practices as per the life-cycle of a new product
of which no close substitutes are available.
(a) Gradual rise in price
(b) Product improvement and market segmentation
(c) Gradual reduction in price to retain sales
(d) Skimming pricing
(e) Large price cuts

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Choose the correct answer from the options given below:

(A) (d), (a), (b), (e), (c)
(B) (e), (c), (a), (b), (d)
(C) (b), (d), (c), (a), (e)
(D) (d), (a), (b), (c), (e)

45. Heckscher-Ohlin Theory of factor endowment suggests which of the following types of
relationships?
(a) Production — Marketing relationship
(b) Land — Labour relationship
(c) Marketing — Capital relationships
(d) Labour — Capital relationships
(e) Technological complexities

Choose the correct answer from the options given below:

(A) (a), (b) only
(B) (b), (c) only
(C) (b), (d), (e) only
(D) (a), (c), (e) only

46. Which of the following issues are addressed by the Information Technology Act, 2000?
(a) Legal recognition of electronic documents
(b) Redressal of grievances
(c) Offenses and contraventions
(d) Disputes settlements
(e) Justice dispensation system for cyber crimes

Choose the correct answer from the options given below:

(A) (a), (c), (d) only
(B) (c), (d), (e) only
(C) (b), (d), (e) only
(D) (a), (c), (e) only

47. The following information with respect to a company is given below:

Net profit before tax = ₹1,00,000
10% Preference share capital (₹ 10 each) = ₹1,00,000
Equity shares capital (₹10 each) = ₹1,00,000
Taxation at 50% of Net profit
Which one among the following is the earning per share?

(A) Zero
(B) ₹ 4
(C) ₹ 10
(D) ₹ 40

48. Which of the following measures inflation in ecosystem?

(a) Phillips curve
(b) Consumer Price Index
(c) Misery Index
(d) GDP deflator

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(e) Fisher effect

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (e) only
(B) (b), (c) and (d) only
(C) (b), (c) and (e) only
(D) (b) and (d) only

49. According to the Stewardship Theory of Corporate Governance, which of the following
statements are relevant?
(a) Governance approach is sociological and psychological
(b) Behaviour pattern is trustworthy
(c) The role of management is to monitor and control
(d) Owners' attitude is to take risks
(e) Interests of the managers and principals converge

Choose the most appropriate answer from the options given below:
(A) (a), (d), (e) only
(B) (a), (b), (d), (e) only
(C) (b), (c), (d) only
(D) (a), (b), (c), (d), (e)

50. Which of the following are the complete experimental research designs?
(a) Factorial design
(b) One group after-only design
(c) Before-after design with one experiment and two control groups
(d) Latin square design
(e) One-group before-after design

Choose the correct answer from the options given below:

(A) (a), (c), (d) only
(B) (a), (d), (e) only
(C) (b), (c), (d) only
(D) (b), (c), (e) only

51. Match List I with List II:

List I List II
(Shape of revenue curve of the firm) (Market structure)
(a) Kinked revenue curve (I) Monopolistic
competition
(b) Infinitely elastic straight-line curve (II) Perfect competition
(c) Relatively less elastic curve (III) Oligopoly
(d) Relatively high elastic curve (IV) Monopoly

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(II), (c)-(IV), (d)-(I)
(B) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)
(C) (a)-(I), (b)-(II), (c)-(IV), (d)-(III)
(D) (a)-(III), (b)-(II), (c)-(I), (d)-(IV)

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52. Banks are not required to deduct the TDS from depositors who have submitted declaration in
which one of the following forms under the Income Tax Rule, 1962.
(A) Form 16(A)
(B) Form 16(H)
(C) Form 15(G)
(D) Form 15(A)

53. Through which one of the following influences of workers' participation in management
regarding 'safety and welfare and work-related' issues are resolved?
(A) Information sharing
(B) Bargaining
(C) Consultation
(D) Co determination

54. What has been the primary motive of central banks raising interest rates in recent times?
(A) Gaining competitiveness
(B) Taming inflation
(C) Raising employment levels
(D) Currency depreciation

55. Which one of the following does not fall in the ambit of the objectives of the Competitions Act,
2002 in India?
(A) Encourage competition
(B) Prevent abuse of dominant position
(C) Prevent monopolistic rights arising out of intellectual property
(D) Regulate mergers and acquisitions

56. The profit for the year before appropriation in a partnership firm was Rs.50,000. Shagun, one of
the partners, receives a salary of Rs.4,000 and interest at ten per cent per annum on his capital of
Rs.1,00,000. Amir, the other partner, receives interest on capital at the same rate as Shagun.
Amir's capital was Rs.89,000. They share profits and losses equally. What was the total share of
profits credited to Amir's current account?
(A) Rs.13,550
(B) Rs.15,350
(C) Rs.22,450
(D) Rs.24,350

57. Which one of the following is a determinant of Organisational Climate or Culture (OC)?
(A) Leadership style
(B) Decision-making
(C) Innovation and change
(D) Trust

58. Arrange the following stages in successive order of new product development process.
(a) Concept Development and Testing
(b) Marketing Strategy Development
(c) Idea Screening
(d) Product Development
(e) Test Marketing

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Choose the correct answer from the options given below:

(A) (a), (c), (d), (e), (b)
(B) (c), (a), (b), (d), (e)
(C) (c), (a), (d), (e), (b)
(D) (a), (c), (d), (b), (e)

59. Quotas which are the quantitative restrictions on exports/imports intended at protecting local
industries and conserving foreign exchange, include which of the following?
(a) Single stage quota
(b) Absolute quota
(c) Tariff quotas
(d) Value added quotas
(e) Voluntary quotas

Choose the correct answer from the options given below:

(A) (b), (c), (e) only
(B) (a), (b), (c) only
(C) (a), (d), (e) only
(D) (b), (c), (d), (e) only

60. Which of the following are subsidiaries of RBI?

(a) National Housing Bank (NHB)
(b) National Bank for Agriculture and Rural Development (NABARD)
(c) Export Import Bank (EXIM Bank)
(p) Deposit Insurance and Credit Guarantee Corporation of India (DICGC)
(e) Bhartiya Reserve Bank Note Mudran Private Limited (BRBNMPL)

Choose the correct answer from the options given below:

(A) (a), (b), (c), (d) only
(B) (a), (b), (d), (e) only
(C) (b), (c), (d), (e) only
(D) (a), (c), (e) only

61. Sequence correctly the following steps in PERT/CPM analysis:

(a) Identify the critical path
(b) Draw the network diagram
(c) Establish dependencies across activities
(d) Estimate the completion time of an activity
(e) Define the activities in the network

Options:
(A) (b), (c), (d), (e), (a)
(B) (e), (c), (b), (d), (a)
(C) (c), (b), (e), (a), (d)
(D) (a), (b), (d), (e), (c)

62. If the firms are competitive and profit maximizing, the demand curve for labour is determined by
which one of the following?
(A) the opportunity cost of labour time
(B) the value of the marginal product of labour

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(C) offsetting income and substitution effects

(D) the value of the marginal product of capital

63. In which one of the following modes of entry into foreign markets risk and profit potential are
the highest?
(A) Indirect exporting
(B) Joint venture
(C) Direct investment
(D) Direct exporting

64. Arrange the following processes in a proper sequence to conduct scientific research:
(a) Induction
(b) Making prediction
(c) Observation of facts
(d) Testing of prediction
(e) Development of explanations

Choose the correct answer from the options given below:

(A) (a), (b), (c), (e), (d)
(B) (c), (a), (e), (b), (d)
(C) (e), (a), (b), (c), (d)
(D) (a), (d), (b), (c), (e)

65. Which of the following are the properties of normal distribution?

(a) May be symmetrical or skewed
(b) Uni-modal, bell-shaped and symmetrical
(c) Asymptotic to the x-axis
(d) n and p are the two parameters
(e) µ and 𝜎𝜎 are the two parameters

Choose the correct answer from the options given below:

(A) (b), (d) only
(B) (b), (c), (e) only
(C) (a), (d) only
(D) (a), (c), (e) only

66. Which one of the following summary measures denotes the degree of lop-sidedness in a
distribution?
(A) Measures of central tendency
(B) Measures of variation
(C) Measures of skewness
(D) Measures of Kurtosis

67. Given below are two statements One is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): ‘Lien’ is the right to retain possession of goods and refuse to deliver them to the
buyer until the price due in respect of them is paid or tendered.
Reasons (R): An unpaid seller in possession of goods sold is entitled to exercise his lien on the
goods where the goods have been sold without any stipulation as to credit.

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In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

68. Tax audit is compulsory in the case of a person carrying on profession and whose gross receipts
exceeds which one of the following?
(A) ₹ 60 lakhs
(B) ₹ 1 crore
(C) ₹ 40 lakhs
(D) ₹ 50 lakhs

69. Rearrange the steps followed in evaluating an investment proposal using NPV method:
(a) Calculate the present value of cash flows
(b) Identify an appropriate discount rate
(c) Forecasting cash flows
(d) Rank the projects as per NPV
(e) Compute the net present value

Choose the correct answer from the options given below:

(A) (b), (e), (a), (d), (c)
(B) (a), (b), (c), (d), (e)
(C) (c), (b), (a), (e), (d)
(D) (d), (a), (c), (b), (e)

70. Arrange the time spent in administration in the increasing order by the following personnel:
(a) Works Manager
(b) President
(c) Foreman
(d) Board of Directors
(e) General Manager

Choose the correct answer from the options given below:

(A) (c), (a), (e), (b), (d)
(B) (d), (b), (e), (a), (c)
(C) (d), (e), (b), (a), (c)
(D) (e), (c), (a), (d), (b)

71. Arrange the following steps in a proper sequence to develop successful market offering
(a) The specifics of the market offering
(b) Monitoring goal progress
(c) The ultimate criterion for success
(d) The logistics of creating the offering
(e) The value created in the target market

Choose the correct answer from the options given below:

(A) (a), (d), (e), (c), (b)

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(B) (c), (e), (a), (b), (d)

(C) (d), (a), (c), (e), (b)
(D) (c), (e), (a), (d), (b)

72. Match List I with List II

List I List II
(Type of test) (Testing situation)
(a) ANOVA Test (I) Testing whether a standard probability
distribution fits well to a given
frequency distribution
(b) Z — Test (II) Parametric test to test the hypothesis
of differences in more than two
sample means
(c) Chi-square Test (III) Non-parametric test to test the
hypothesis of differences in more
than two sample means
(d) Kruskal-Wallis Test (IV) Hypothesis testing for mean for
large samples when σ is known or
unknown

Choose the correct answer from the options given below:

(A) (a)-(IV), (b)-(III), (c)-(I), (d)-(II)
(B) (a)-(I), (b)-(IV), (c)-(II), (d)-(III)
(C) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(D) (a)-(III), (b)-(II), (c)-(IV), (d)-(I)

73. The most significant and widely-used country risk ratings in International Business Risks are
given by which of the following?
(a) Business Environment Risk Intelligence (BERI) Index
(b) Economist Intelligence Unit (EIU) Index
(c) National Centre for Trade Information (NCTI)
(d) India Trade Promotion Organisation (TIPO)
(e) PRS Group's International Country Risk Guide

Choose the correct answer from the options given below:

(A) (a), (c) only
(B) (a), (b) and (e) only
(C) (a), (d), (e) only
(D) (c), (d), (e) only

74. According to FEMA foreign exchange does not include which one of the following?
(A) Deposit payable in any foreign currency
(B) Bills of exchange drawn in Indian currency but payable in any foreign currency
(C) Travellers’ cheques drawn by institutions outside India but payable in Indian currency
(D) Draft drawn by banks outside India and payable in foreign currency

75. Which of the following economic identities measure degree of monopoly in an industry?
(a) Stackelberg model
(b) Concentration ratio
(c) Diffusion index

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(d) Herfindahl index

(e) Elasticity reciprocal

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (c) only
(B) (b), (c) and (d) only
(C) (a), (c) and (e) only
(D) (b), (d) and (e) only

76. Match List I with List II:

List I List II
(Earnings — Valuation ratios) (Underlying Description(s))
(a) Price - Earnings (P-E) ratio (I) Stock price divided by
accounting net worth
(b) Earnings Yield Ratio (II) Firm's P/E ratio divided by an
index P/E ratio
(c) Price - Book (P/B) ratio (III) Stock price divided by the
earnings per share
(d) Relative P/E ratio (IV) Earning per share divided by
stock price

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(B) (a)-(I), (b)-(IV), (c)-(III), (d)-(II)
(C) (a)-(II), (b)-(III), (c)-(IV), (d)-(I)
(D) (a)-(III), (b)-(IV), (c)-(I), (d)-(II)

77. Match List I with List II:

List I List II
(Type of lease) (Description)
(a) Leveraged lease (I) Mix of operating and finance lease on full
pay-out basis and provides for the
purchase option to the lessee
(b) Direct lease (II) Financing for servicing and fuel in the
aircraft industry
(c) Wet lease (III) Protects lessee against the rate of
obsolescence
(d) Update lease (IV) Involves lessor, lessee and financer,
lessor provides equity and major amount
is provided by the financer as loan

Choose the correct answer from the options given below:

(A) (a)-(I), (b)-(II), (c)-(III), (d)-(IV)
(B) (a)-(IV), (b)-(I), (c)-(II), (d)-(III)
(C) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(D) (a)-(IV), (b)-(III), (c)-(I), (d)-(II)

78. The potential that a firm's consolidated financial statements be affected as a result of changes in
exchange rates is called as:
(A) Transaction exposure

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(B) Economic exposure

(C) Translation exposure
(D) Operating exposure

79. Which of the following inputs are considered while deciding economic value-to-customer
pricing?
(a) Buyer's image of the product performance
(b) Warranty quality
(c) Desired rate of return
(d) Customer demand
(e) Customer support

Choose the correct answer from the options given below:

(A) (a), (b), (e) only
(B) (a), (c), (d) only
(C) (b), (d), (e) only
(D) (a), (b), (c), (d) only

80. Which one of the following is not an advantage in case of product-based departmentalization?
(A) It leads to continuous and undivided attention to the product
(B) Requires less number of managerial personnel to be employed
(C) It enables top management to compare the performances of different products
(D) It motivates departmental head to improve his performance

81. Given below are two statements:

Statement (I): Tax planning promotes professionalism and strengthens economic and political
situation of the country.
Statement (II): Tax evasion is an act within the permissible range of the Act to achieve social
and economic benefits.
In the light of the above statements, choose the correct answer from the options given below:

(A) Both Statement (I) and Statement (II) are true.

(B) Both Statement (I) and Statement (II) are false.
(C) Statement (I) is true but Statement (II) is false.
(D) Statement (I) is false but Statement (II) is true.

82. Which one of the following statements is true?

(A) The sum of absolute deviations measured from Median is the least
(B) If each value in a given series is multiplied by a constant, K, the variance of the new series
would be equal to the variance of the given series
(C) The variance is the square of the value of the standard deviation divided by mean
(D) Z-score value of ‘X’ is the ratio between ‘X’ divided by mean

83. Which of the following products would require intensive modification in the international arena?
(A) Tennis racket.
(B) Cosmetics
(C) Notebook computer
(D) Camera

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84. Which one of the following relationships regarding price elasticity coefficient with change in
price and change in total revenue is incorrect?
(A)
Elasticity coefficient Change in price Change in total revenue
e=0 Increase Increase
Decrease Decrease
(B)
Elasticity coefficient Change in price Change in total revenue
e>1 Increase Increase
Decrease Decrease

(C)
Elasticity coefficient Change in price Change in total revenue
e=1 Increase No change
Decrease No change
(D)
Elasticity coefficient Change in price Change in total revenue
e<1 Increase Increase
Decrease Decrease

85. In comparison to domestic equity investment, foreign equity investment would be preferred if it
offers in which of the following situations?
(A) Higher dividend yield and high rate of capital appreciation
(B) Lower dividend yield and lower rate of capital appreciation
(C) Higher dividend yield and lower rate of capital appreciation
(D) Lower dividend yield and high rate of capital appreciation

86. Which one of the following is the Net Annual Value (NAV) of house for the given details?
Municipal value = ₹ 3,60,000
Fair Rental value = ₹ 4,00,000
Standard Rent = ₹ 5,00,000
Actual Rent (Annual Rent) = ₹ 4,80,000
Municipal Tax = ₹ 12,000 (due but not paid)

(A) ₹ 4,00,000
(B) ₹ 4,80,000
(C) ₹ 4,68,000
(D) ₹ 5,00,000

87. Which one of the following tests measures the applicant's capacity to learn the skill required for a
job?
(A) Aptitude test
(B) Interest test
(C) Intelligence test
(D) Personality test

88. Which of the following statements are true in case of delegation of authority?
(a) It slows down decision-making

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(b) It leads to better decisions

(c) It relieves the manager of his heavy work load
(d) It helps create an informal organisation structure
(e) It helps train subordinates

Choose the correct answer from the options given below:

(A) (a), (d), (e) only
(B) (a), (b), (c) only
(C) (b), (c), (e) only
(D) (b), (c), (d), (e) only

89. Which one of the following approaches of human resource accounting was suggested by
Brummet, Flamholtz and Pyle?
(A) Replacement Cost Approach
(B) Historical Cost Approach
(C) Opportunity Cost Approach
(D) Standard Cost Approach

90. A project requires an initial investment of ₹ 56,125 and its estimated salvage value is ₹ 3,000.
The annual estimated income after depreciation and tax for its entire life of 5 years are ₹ 3,375,
₹ 5,375, ₹ 7,375, ₹ 9,375 and ₹ 11,375 respectively. Which one of the following is its average
rate of return?
(A) 26. 28%
(B) 124.74%
(C) 29.94%
(D) 60.88%

Read the following paragraph and answer the five questions that follow:

The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent
sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical
and sourcing expenses, and generally step-up sector-specific competitive advantage across the board.
The value chain in yarn, fabrics and ready-mades is scattered and quite fragmented nation-wide. So,
for instance, while cotton is grown in Gujrat and Maharashtra, spinning takes place in Tamil Nadu,
processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National
Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more,
would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one
location. They would have core infrastructure such as incubation centre, plug-and-play facility, and
skill development units so as to keep abreast of the latest trends in textiles and apparel. The export
potential in textiles is large. We need to build a conducive and innovative ecosystem with proactive
policy.

The Centre has recently announced ₹ 10,683 crore production-linked incentive scheme for textiles.
The textiles parks scheme would have an outlay of ₹ 4,445 crore, and is slated to provide support for
project development in the cluster mode. The recent move to provide export-oriented units rebate on
state and central taxes and levies would also help. But the fact remains that the share of textiles in
India's export basket has declined, and is now barely in the double digits. A recent Crisil study says
that absent free trade agreements (FTAs) hurt our export performance. Decent work in the textile parks
would gain custom, in today's world.

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91. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): Indian textiles can regain their sheen with the setting up of integrated mega
textile and apparel parks.
Reasons (R): The value chain in yarn, fabrics and ready-mades is scattered nation-wide.
In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

92. Given below are two statements:

Statement (I): Both central and state governments want to promote the units’ exporting textiles.
Statement (II): The performance of textiles in India's export basket has improved.
In the light of the above statements, choose the correct answer from the options given below:

(A) Both Statement (I) and Statement (II) are true.

(B) Both Statement (I) and Statement (II) are false.
(C) Statement (I) is true but Statement (II) is false.
(D) Statement (I) is false but Statement (II) is true.

93. Which one of the following states does not contribute to Indian textile industry?
(A) West Bengal
(B) Rajasthan
(C) Punjab
(D) Tamil Nadu

94. Which one of the following will be the most critical to the export performance of Indian textiles?
(A) Integrated mega textile and apparel parks
(B) Free trade agreements
(C) Centres' production linked incentive schemes
(D) Rebate on state and central taxes and levies to export-oriented units

95. Which one of the following will not be a part of value chain in the proposed integrated mega
textile and apparel parks?
(A) Garment making
(B) Yarn weaving
(C) Cotton production
(D) Yarn spinning

Read the following paragraph and answer the five questions that follow:

Section 455 of Indian Companies Act, 2013 talks about a New Provision Calls "DORMANT
COMPANY”. This concept was not there in Companies Act, 1956.

A Dormant Company offers excellent advantage to the promoters who want to hold an asset or
intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter
wants to buy lands now for its future project at a comparatively lesser price, he may do the same

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through dormant company so that he can use the land for its future project. Thus, dormant company
status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in
the company for its future usage. A dormant company may be either a public company or a private
company or a one-person company.

Certain companies, due to the nature of their business, may not be able to start any business, for a long
time from the date of incorporation as for instance any business for creation of intellectual property or
for a future project and has no significant accounting transaction. Such a company may be an “Inactive
company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold
land/properties for future projects This concept is beneficial for them. By this concept, they can
Incorporate Company and purchase property/land in that company and get status of Dormant
Company. If a company gets status of dormant company, there are less compliance in dormant
company in comparison of active company. It will help to save cost of compliances for inactive
companies.

96. Which one of the following natures of business is suitable to a Dormant company?
(A) Shipping business
(B) Manufacturing business
(C) Real Estate business
(D) Pharmaceutical business

97. Dormant company offers excellent advantage to which one of the following?
(A) Bankers
(B) Creditors
(C) Shareholders
(D) Promoters

98. Which of the following companies do not fall under a purview of Dormant company?
(a) Private company
(b) One person company
(c) Limited and unlimited liability companies
(d) Public company
(e) Government company

Choose the most appropriate answer from the options given below:
(A) (b), (d), (e) only
(B) (a), (c), (d) only
(C) (a), (b), (d) only
(D) (b), (c), (e) only

99. Given below are two statements One is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): Provision is made to obtain the status of a ‘dormant company' for an inactive
company that doesn't trade.
Reasons (R): Dormant company doesn't trade but has significant accounting transaction.
In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).

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(C) (A) is correct but (R) is not correct.

(D) (A) is not correct but (R) is correct.

100. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): If a company gets status of a dormant company, then it is subject to less
compliance in comparison to active company.
Reasons (R): It will help to save of compliances for Inactive companies when they become
dormant company under section 455 of the Companies Act, 2013 as compared to the Companies
Act, 1956.
In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

ANSWER KEY

Q. NO ANSWER KEY Q. NO ANSWER KEY

1 C 51 A
2 B 52 C
3 A 53 D
4 D 54 D
5 B 55 C
6 D 56 C
7 D 57 A
8 B 58 B
9 D 59 C
10 C 60 CANCEL
11 B 61 B
12 C 62 B
13 B 63 C
14 C 64 B
15 B 65 B
16 C 66 C
17 C 67 A
18 C 68 D
19 C 69 C
20 D 70 A
21 B 71 D
22 B 72 C
23 C 73 B
24 C 74 D
25 A 75 D
26 A 76 D

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27 C 77 B
28 D 78 C
29 C 79 A
30 C 80 B
31 A 81 A
32 C 82 A
33 B 83 B
34 D 84 B
35 B 85 B
36 D 86 C
37 B 87 A
38 B 88 C
39 C 89 B
40 C 90 CANCEL
41 B 91 A
42 A 92 C
43 B 93 C
44 D 94 B
45 C 95 C
46 D 96 C
47 B 97 D
48 D 98 CANCEL
49 B 99 C
50 A 100 A

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29_SEPTEMBER_2022 SHIFT I
1. Which one of the following categories of customers are opinion leaders who carefully search for
new technologies that might give them a dramatic competitive advantage?
(A) Early Adopters
(B) Innovators
(C) The early majority
(D) The late majority

2. Which one of the following pricing methods is used in regulated industries?

(A) Mark-up Pricing
(B) Target-Rate-of-Return-Pricing
(C) Economic-Value-to-Customer Pricing
(D) Competitive Pricing

3. Match List I with List II

List I List II
(Tariff/Subsidy) (Explanation)
(a) Tariffication (I) They have demonstrably adverse
effects on other member countries.
(b) Prohibited subsidies (II) They act on goods which are
contingent upon export
performance.
(c) Actionable subsidies (III) Replacement of existing non-tariff
restrictions.
(d) Non-actionable (IV) For industrial research in
subsidies disadvantaged regions.

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(III), (c)-(I), (d)-(IV)
(B) (a)-(IV), (b)-(I), (c)-(II), (d)-(III)
(C) (a)-(III) (b)-(II), (c)-(I), (d)-(IV)
(D) (a)-(II), (b)-(IV), (c)-(III), (d)-(I)

4. Who are not eligible to get information under the RTI Act from the following?
(a) Corporations
(b) Associations
(c) Companies
(d) Citizens
(e) Legal entities

Choose the correct answer from the options given below:

(A) (a), (b), (d) and (e) only
(B) (a), (b), (c) and (e) only
(C) (b) and (d) only
(D) (a), (d) and (e) only

5. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): R2 tends to be smaller for cross sectional data than for the time series data

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Reason (R): Wider fluctuations in the cross-sectional data cause smaller value of R2

In light of the above statements, choose the correct answer from the options given below:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.

6. Portfolio approach to investing is primarily focused on which of the following:

(A) Diversification
(B) Value protection
(C) Return appreciation
(D) Risk optimisation

7. Which of the following companies cannot be a 'Small Company?

(a) A holding company or a subsidiary company
(b) A company registered under Section 8
(c) A company or body corporate governed by any Special Act
(d) One Person Company (OPC)

Choose the correct answer from the options given below:

(A) (b) and (c) only
(B) (a), (b) and (c) only
(C) (b), (c) and (d) only
(D) (a) and (d) only

8. Which of the following statements are true regarding price and output determination under
perfect competition?
(a) A firm is a price taker
(b) In the long run, a firm is in equilibrium when its AR=MR=LAC=LMC
(c) A firm is in equilibrium in the short run only when its AC=AR= MR=MC
(d) A firm reaches its shut-down point when price goes below its AC
(e) A firm fixes the price of its products when AR=MR

Choose the correct answer from the options given below:

(A) (c) and (e) only
(B) (a) and (b) only
(C) (a), (c) and (e) only
(D) (b), (c) and (d) only

9. Which of the following issues are covered in Social Marketing?

(a) Tobacco
(b) Family planning
(c) Public health
(d) Financial well-being
(e) Social good

Choose the correct answer from the options given below:

(A) (a) and (b) only
(B) (a), (b) and (c) only

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(C) (c), (d) and (e) only

(D) (a), (b), (c), (d) and (e)

10. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): An export processing zone is different from free trade zone as it promotes units
primarily devoted to exports.
Reason (R): Goods imported to a free trade zone may be re-exported without any processing, in
the same form. But goods exported by units in an EPZ are expected to have undergone some
value addition by manufacturing.
In light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

11. Arrange the following process of making of a contract in the chronological sequence from the
first to the last.
(a) Agreement
(b) Promise
(c) Offer or proposal
(d) Contract
(e) Acceptance

Choose the correct answer from the options given below:

(A) (c), (e), (b), (a), (d)
(B) (a), (d), (e), (c), (b)
(C) (b), (d), (c), (a), (e)
(D) (e), (b), (a), (c), (d)

12. Match List I with List II

List I List II
(Statistical identity) (Description)
(a) Power of test (I) Maximum level of significance at which
the null hypothesis would be accepted
(b) Standard error (II) Test for significance of regression
equation
(c) P - value (III) Standard deviation of an estimate from
a sample
(d) F - test (IV) The probability that test will lead to
rejection of null hypothesis when it is
false

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(II), (c)-(IV), (d)-(I)
(B) (a)-(IV), (b)-(III), (c)-(I), (d)-(II)
(C) (a)-(II) (b)-(IV), (c)-(I), (d)-(III)
(D) (a)-(I), (b)-(IV), (c)-(II), (d)-(III)

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13. Which one of the tests measures the applicant’s, level of knowledge and skill in a particular job
in which one he will be appointed?
(A) Personality test
(B) Achievement test
(C) Interest test
(D) Aptitude test

14. Which of the following are the properties of Binomial distribution?

(a) May be symmetrical or skewed
(b) Uni-modal, bell-shaped and symmetrical
(c) Asymptotic to the x-axis
(d) n and p are the two parameters
(e) 𝜇𝜇 and 𝜎𝜎 are the two parameters

Choose the correct answer from the options given below:

(A) (b) and (e) only
(B) (a) and (d) only
(C) (c) and (e) only
(D) (b), (c) and (d) only

15. Which one of the following distributions aptly describes the ownership of income and property in
a capitalist economy?
(A) Normal distribution
(B) Poisson distribution
(C) F - distribution
(D) Pareto distribution

16. Arrange the procedure followed for disbursement of export credit in a sequence from the first to
the last
(a) The bank releases the funds debiting to the packing credit amount and credit to the exporter's
account
(b) The bank calculates the amount of packing credit to be granted
(c) The exporter would be required to send the goods through approved transport and forwarding
agency
(d) The exporter is required to take adequate insurance
(e) Submit evidence of export

Choose the correct answer from the options given below:

(A) (b), (a), (e), (d), (c)
(B) (a), (c), (b), (d), (e)
(C) (a), (b), (c), (d), (e)
(D) (e), (b), (a), (c), (d)

17. Match List I with List II

List I List II
(Characteristic Business) (Description)
(a) Cash Cows (I) The most valuable segments of a
company; the parts most wanted by
an acquirer

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(b) Crown Jewels (II) A third party friendly to

management who helps a company
avoid an unwanted takeover with
taking over the company on its
own
(c) Fallen Angels (III) A BCG term for business segment
which have a high market share in
low growth markets
(d) White Squire (IV) A bond issued at investment grade
whose rating is subsequently
dropped to below the investment
grade

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(B) (a)-(I), (b)-(IV), (c)-(III), (d)-(II)
(C) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)
(D) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)

18. The share capital of an RRB is subscribed by the Central Government, State Government and the
Sponsoring Bank in which one of the following ratios?
(A) 40:40:20
(B) 50:15:35
(C) 50:35:15
(D) 60:30:10

19. Which one of the following approaches of capital structure pleads that debt financing initially
increases the value of the firm; however excess debt financing beyond a particular point reduces
the value of the firm?
(A) Net Income Approach
(B) Net Operating Income Approach
(C) Traditional Approach
(D) Modigliani-Miller Approach

20. Which of the following cannot use ITR-1 form to file return under the Indian Income Tax Act?
(a) An individual who is a director in a company.
(b) An individual who has any asset located outside India.
(c) An individual whose total income does not exceed Rs. 50,00,000
(d) An individual who has income from any source outside India
(e) An individual who has any unlisted equity shares at any time during the previous year

Choose the correct answer from the options given below:

(A) (a), (b), (c) and (d) only
(B) (a), (b), (d) and (e) only
(C) (a), (c) and (e) only
(D) (b), (c) and (e) only

21. Which one of the following is not the assumption for consumer behaviour based on the Ordinal
Utility Theory?
(A) Rationality of the consumer

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(B) Utility only ordinally measurable

(C) Satiety of demand
(D) Diminishing marginal rate of substitution

22. While wandering in jungle, King Dushyant married Shankuntala as narrated in the "Abhigyan
Shankuntalarn". He gave her royal ring which could serve her identity when she would come to
meet him, in future. However, she had lost the ring while going to meet him. When she arrived
at Dushyant's palace, he failed to recognise her as she did not have the ring.
Which of the following statistical error King Dushyant had committed in this narrative?
(A) Type I error
(B) Type II error
(C) Sampling error
(D) Non - Sampling error

23. Which of the following business would most likely use job order costing:
(A) A brewery
(B) An oil refinery
(C) A company that makes frozen pizzas
(D) A print shop that specializes in wedding invitations

24. Which of the following statements regarding price and output determination under monopoly are
correct?
(a) A monopoly firm can fix its price anywhere along its demand curve
(b) Even during short run when a monopoly firm earns normal profit, it produces less than its
optimum capacity
(c) The slope of monopoly's MR curve is twice the slope of its AR curve
(d) Price discrimination is possible only when demand curves are identical in two markets
(e) Equilibrium price of a monopolist is always higher than that of a perfectly competitive firm

Choose the correct answer from the options given below:

(A) (a), (d) and (e) only
(B) (a), (b) and (e) only
(C) (b), (c) and (d) only
(D) (b), (c) and (e) only

25. What is the correct sequence in "Hierarchy of Effects" model in a communication situation:
(a) Preference
(b) Purchase
(c) Awareness and Knowledge
(d) Conviction
(e) Liking

Choose the correct answer from the options given below:

(A) (a), (d), (b), (c), (e)
(B) (d), (b), (e), (c), (a)
(C) (b), (a), (d), (c), (e)
(D) (c), (e), (a), (d), (b)

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26. Match List I with List II

List I List II
(Entrepreneurial Theory) (Description)
(a) Thomas Cochran's Theory (I) Highlight the self-confidence of
a person and the dependency on
fortune and external
environment for becoming an
entrepreneur
(b) Rotter's Locus of Control (II) Religious beliefs are the driving
Theory or restraining forces for
entrepreneurial activity
(c) McClelland’s Theory (III) The environment in which an
individual is brought up
determines his entrepreneurial
urge
(d) Max Webber's Theory (IV) The need for achievement
(nAch) drives and stimulate
entrepreneurship

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(B) (a)-(II), (b)-(III), (c)-(IV), (d)-(I)
(C) (a)-(I), (b)-(IV), (c)-(II), (d)-(III)
(D) (a)-(II), (b)-(I), (c)-(III), (d)-(IV)

27. Concentration of all marketing efforts on a small but specific and well-defined segment of the
population is called:
(A) Niche marketing
(B) Franchising
(C) Ambush marketing
(D) Viral marketing

28. The MM hypothesis of the irrelevance of dividends is based on which of the following critical
assumptions?
(a) Investors are able to forecast future prices and dividends with certainty
(b) The firm has a given investment policy which does not change
(c) All financing is done through retained earnings
(d) There are no taxes
(e) Perfect capital markets in which all investors are rational

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (a), (b), (d) and (e) only
(D) (b), (c), (d) and (e) only

29. When the price increase of a commodity is followed by increased total revenue, which one of the
following is the price elasticity coefficient?
(A) Zero
(B) Equal to one

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(C) More than one

(D) Less than one

30. As per which one of the following approaches, a firm finance a part of its permanent working
capital with short term financing?
(A) Matching Approach
(B) Conservative Approach
(C) Aggressive Approach
(D) Traditional Approach

31. Which one of the following is not a marketing tactic used for designing customer value?
(A) Service
(B) Communication
(C) Brand
(D) Incentives

32. Which one of the following is not true for Authority?

(A) It is the legitimate right of a superior to command and compel his subordinates to perform a
certain act.
(B) It is mostly well-defined, conspicuous and finite.
(C) It can be delegated.
(D) It serves as a basis of both formal and informal organizations.

33. Logically sequence the following stages in the organisational life cycle of a business firm:
(a) Expansion
(b) Survival
(c) Consolidation
(d) Start-up
(e) Decline

Choose the correct answer from the options given below:

(A) (d), (a), (c), (b), (e)
(B) (b), (c), (a), (d), (e)
(C) (d), (b), (c), (a), (e)
(D) (d), (b), (a), (c), (e)

34. Which one from among the following is not a generic strategy as per the generic strategies
identified by Porter?
(A) Market Penetration
(B) Cost Leadership
(C) Focus
(D) Differentiation

35. Which one of the following statements is false?

(A) Arithmetic mean is used to measure the deviations in calculating standard deviation due to
its least squares property
(B) Z- Score value of 'X' is the ratio between 'X' divided by mean
�
X
(C) The coefficient of variation is calculated as follows:𝜎𝜎 x 100
(D) Standard deviation can be equal to zero in some situations.

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36. RBI financial inclusion index (FI - Index) quality parameter captures information on which of the
following:
(a) Financial literacy
(b) Consumer protection
(c) Ease of access
(d) Availability and usage
(e) Inequality and deficiency in service

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (a), (d) and (e) only
(D) (a), (b) and (e) only

37. Match List I with List II

List I List II
(Economic framework) (Description)
(a) Stackelberg model (I) The situation in which each player in
an oligopolistic market adopts its
dominant strategy but could do by
cooperating
(b) Nash equilibrium (II) Conceptualisation for identifying
the structural determinants of the
intensity of competition and the
probability of firms in oligopolistic
industries
(c) Peter's strategic (III) If firms are disproportionately
framework powerful the market leader makes
the first move and captures two-
thirds of market share, while
follower firm gets only a third of
the market share
(d) Prisoner's delima (IV) A situation in which each player
has chosen his/her optional strategy
given the strategy chosen by the
other player

Choose the correct answer from the options given below.

(A) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(B) (a)-(III), (b)-(IV), (c)-(II), (d)-(I)
(C) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(D) (a)-(II), (b)-(III), (c)-(I), (d)-(IV)

38. Amount unutilised in the capital gain scheme for which exemption was claimed under section 54
shall be treated as long-term capital in the previous year?
(A) In which period of 2 years has expired from the date of deposit
(B) In which period of 2 years has expired from the date of transfer
(C) In which period of 3 years has expired from date of deposit
(D) In which period of 3 years has expired from the date of transfer

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39. Which one of the following expressions is not correct to calculate the coefficient of correlation
between two variables?
∑ 𝑥𝑥𝑥𝑥
(A)
𝑁𝑁.𝜎𝜎𝜎𝜎.𝜎𝜎𝜎𝜎
(B) �(𝑏𝑏𝑏𝑏𝑏𝑏)(𝑏𝑏𝑏𝑏𝑏𝑏)
𝐶𝐶𝐶𝐶𝐶𝐶(𝑥𝑥,𝑦𝑦)
(C)
𝜎𝜎𝑥𝑥 2 .𝜎𝜎𝑦𝑦 2
𝐶𝐶𝐶𝐶𝐶𝐶(𝑥𝑥,𝑦𝑦)
(D)
𝜎𝜎𝑥𝑥 .𝜎𝜎𝑦𝑦

40. A company has 10% perpetual debt of ₹1,00,000. The tax rate is 35%. Which one of the
following is the after-tax cost of capital assuming that the debt is issued at 10% premium?
(A) 10%
(B) 5.91%
(C) 6.5%
(D) 7.22%

41. Which of the following are the parameters in the Financial Inclusion Index in India?
(a) Affordability
(b) Availability and usage
(c) Ease of access
(d) Transparency and disclosure
(e) Quality of financial inclusion

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (a), (b) and (d) only
(D) (b), (c) and (e) only

42. Arrange the following steps in a logical sequence of the process of management audit.
(a) Identification of responsibility centres
(b) Review of organisational structure
(c) Reporting
(d) Identifying and segregating the objectives of business
(e) Review of performance of each responsibility centre

Choose the correct answer from the options given below:

(A) (a), (d), (e), (c), (b)
(B) (a), (e), (d), (b), (c)
(C) (a), (b), (e), (d), (c)
(D) (d), (b), (a), (e), (c)

43. The information with respect to a company is:

EBIT = ₹35 lakhs
15% Term loan= ₹50 lakhs
Working capital term loan from bank @ 20% = ₹30 lakhs
10% Preference share capital = ₹10 lakhs
Public deposits accepted @ 14% = ₹15 lakhs
Which one among the following is the Interest Coverage Ratio for the company?

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(A) 0.45
(B) 1.98
(C) 2.24
(D) 2.59

44. When the incoming partner cannot bring premium for goodwill, then the necessary adjustment
for goodwill is done through which one of the following?
(A) Goodwill account of the partners
(B) Capital account of the new partners
(C) Balance sheet of the new partnership firm
(D) Profit & Loss Appropriation account

45. The contribution margin can be increased by which of the following?

(a) Increasing the selling price per unit
(b) Changing the sales mixture and selling more profitable products for which the P/V ratio is
higher
(c) Keeping the marginal cost unchanged
(d) Increase the amount of fixed assets
(e) Decreasing the selling price per unit

Choose the correct answer from the options given below:

(A) (b), (c) and (e) only
(B) (a), (c) and (d) only
(C) (a) and (b) only
(D) (d) and (e) only

46. Multicollinearity in the regression analysis is measured by:

(A) Tolerance (1 — R2 )
(B) Homoscedasticity
(C) Partial F-test
(D) Durbin-Whatson statistic

47. Which of the following statements regarding the short-term theory of production and cost
analysis are false?
(a) Economic rent is the same as economic profit
(b) Imputed cost is the rent of a hired building
(c) When AC=MC, AC is minimum
(d) When MC is rising, AC > MC
(e) Output is optimum when AC = MC

Choose the correct answer from the options given below:

(A) (a) and (e) only
(B) (b) and (d) only
(C) (a), (b) and (c) only
(D) (c), (d) and (e) only

48. Sweezy’s kinked demand curve model to explain the price and output determination relates to
which type of market structure?
(A) Perfect Competition

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(B) Monopolistic Competition

(C) Monopoly
(D) Oligopoly

49. According to the Contingency Approach, the factors governing the Span of Management are:
(a) Type of work
(b) Ability of the manager
(c) Ability of the employees
(d) Level of management
(e) Geographic location

Choose the correct answer from the options given below:

(A) (b) and (c) only
(B) (b), (c) and (d) only
(C) (a), (d) and (e) only
(D) (a), (b), (c), (d) and (e)

50. A is entitled to children education allowance @ ₹80 p.m. per child, for three children, it amounts
to ₹240 p.m. It will be exempted to the extent to which one of the following under the Indian
Income Tax Act?
(A) ₹200 p.m.
(B) ₹160 p.m.
(C) ₹240 p.m.
(D) ₹300 p.m.

51. Arrange the following stages in the marketing process of an enterprise:

(a) Marketing Mix
(b) Marketing program implementation
(c) Marketing planning
(d) Market research
(e) Control and evaluation of marketing programs

Choose the correct answer from the options given below:

(A) (d), (c), (a), (b), (e)
(B) (c), (b), (a), (e), (d)
(C) (b), (a), (d), (c), (e)
(D) (c), (a), (d), (b), (e)

52. Arrange the following ratios in the increasing order of their significance in the prediction of
industrial sickness (Altman, 1966):
𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐
(a)
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
(b)
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 𝑎𝑎𝑎𝑎𝑎𝑎 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇
(c)
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴
𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑜𝑜𝑜𝑜 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
(d)
𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑜𝑜𝑜𝑜 𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷
𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆
(e)
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴

Choose the correct answer from the options given below:

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(A) (d), (e), (a), (b), (c)

(B) (c), (e), (b), (d), (a)
(C) (b), (d), (c), (a), (e)
(D) (e), (b), (d), (c), (a)

53. Match List I with List II

List I List II
(MBTI Framework-Jungian (Characteristics)
Aspects)
(a) Sensing (I) Relies more on personal values
than on impersonal analysis
and logic
(b) Thinking (II) Would work with known facts
than look for possibilities and
relationships
(c) Feeling (III) Likes a flexible, spontaneous
way rather than a planned and
orderly way of life
(d) Perceiving (IV) Relies more on interpersonal
analysis and logic than on
personal values

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(I), (c)-(IV), (d)-(III)
(B) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(C) (a)-(III), (b)-(IV), (c)-(I), (d)-(II)
(D) (a)-(II), (b)-(I), (c)-(III), (d)-(IV)

54. On which of the following bases buyers are divided in psychographic segmentation?
(a) Loyalty status
(b) Life style
(c) Buyer-readiness stage
(d) Values
(e) User status

Choose the correct answer from the options given below:

(A) (b) and (d) only
(B) (a), (b) and (d) only
(C) (b), (c) and (e) only
(D) (a), (c), (d) and (e) only

55. Which one of the following production functions is a long-term production function?
(A) 𝑄𝑄 = 𝑎𝑎 + 𝑏𝑏𝑏𝑏 − 𝑐𝑐𝑐𝑐2
(B) 𝑄𝑄 = 𝐴𝐴𝐴𝐴 𝑎𝑎 𝐿𝐿𝑏𝑏
(C) 𝑄𝑄 = 𝑎𝑎 + 𝑏𝑏𝑏𝑏 + 𝑐𝑐𝑐𝑐2 − 𝑑𝑑𝑑𝑑3
(D) 𝑄𝑄 = 𝑎𝑎 + 𝑏𝑏𝑏𝑏

56. Which one of the following statistical identities are useful in comparing the two regression
equations based on different sample sizes?
(A) Coefficient of determination (𝑟𝑟 2 )

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(B) Coefficient of multiple determination (𝑅𝑅2 )

(C) Adjusted 𝑅𝑅2 (𝑅𝑅�2 )
(D) Logistic regression

57. The purpose (aim) of stock split is to

(a) Increase the number of shares
(b) Reduce market price per share
(c) Arrest share price decline
(d) Encourage wider public ownership
(e) Reduce impact cost

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (b) and (d) only
(C) (b), (c) and (e) only
(D) (a), (d) and (e) only

58. Match List I with List II

List I List II
Marketing Concept Description
(a) Brand Equity (I) The maximum possible demand for a
product when marketing expenditure in
the industry is infinite
(b) Brand Identity (II) The mental perception and associations
of consumers related to a brand
(c) Brand Image (III) The peculiar distinguishing colour,
design, label of a brand which
distinguish brand of a firm
(d) Market Potential (IV) A pool of goodwill consumers has
related to a brand

Choose the correct answer from the options given below:

(A) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)
(B) (a)-(I), (b)-(II), (c)-(IV), (d)-(III)
(C) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(D) (a)-(II), (b)-(III), (c)-(I), (d)-(IV)

59. Which one of the following is not coordinated in the Vertical Integration of Integrated Marketing
Communications?
(A) Pricing
(B) Sales
(C) Product development
(D) Customer service

60. Which one of the following duties is not a general duty of directors of a company?
(A) Duty of good faith in order to promote the object of the company
(B) Duty of due and reasonable care, skill and diligence and shall exercise independent
judgment.
(C) Duty to attend Board Meetings
(D) Duty not to delegate or assign his office assignment.

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61. Which section of the Indian Companies Act, 2013 among the following, provides for the
appointment of first auditors by the Board of Directors within one month of the date of
registration of the company?
(A) 139(2)
(B) 139(6)
(C) 142(1)
(D) 142(2)

62. Which one of the following is not the guiding principle of World Bank regarding its lending
operation?
(A) Proper assessment of the repayment prospects of loans.
(B) Lending should be only for specific projects which are economically and technically sound
and of a high priority nature.
(C) The lending should be to enable a country to meet foreign exchange content of the project
cost.
(D) The bank does expect the borrowing country to spend the loan in a particular country.

63. Which one of the following rights is usually not available to a partner consequent to the
dissolution of a firm?
(A) Right of equitable distribution of firm's property
(B) Right to return of premium on premature winding up
(C) Right to be consulted
(D) Right to restrain any partner or his representatives from the use of firm name or firm
property

64. Which of the following forces push up the productivity of employees in an organisation?
(a) Difficulty of work
(b) Fear of working self out of job
(c) Egoistic drive to accomplish
(d) Desire for promotion
(e) Motive towards doing work

Choose the correct answer from the options given below:

(A) (a) and (b) only
(B) (b), (c) and (d) only
(C) (a), (d) and (e) only
(D) (c), (d) and (e) only

65. Which of the following are the essential for defining a business?
(a) Dealers
(b) Products
(c) Markets
(d) Competitors
(e) Functions

Choose the correct answer from the options given below:

(A) (b), (c) and (e) only
(B) (a), (b) and (e) only
(C) (b), (c) and (d) only

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(D) (b) and (d) only

66. SEBI's 'Skin in the game' rule is applicable to which of the following financial intermediaries?
(A) Merchant bankers
(B) Financial Advisors
(C) Mutual funds
(D) Brokerages

67. Given below are two statements

Statement (I): The probable error (P.E) of the coefficient of correlation (r) is defined as: 𝑃𝑃𝑃𝑃 =
�(𝑙𝑙−𝑟𝑟 2
√𝑛𝑛
Statement (II): When a null hypothesis is true but the test statistic rejects it, this is known as
Type-1 error in hypothesis testing.
In light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect
(C) Statement (I) is correct but Statement (II) is incorrect
(D) Statement (I) is incorrect but Statement (II) is correct

68. Match List I with List II

List I List II
(Type of Costing) (Description)
(a) Marginal Costing (I) Integrated approach to determine
product features, product price, product
costs and product design that helps
ensure a company to earn reasonable
profit on new products.
(b) ABC Costing (II) The amount of any given volume of
output by which the aggregate costs are
changed if the volume of output is
increased by one unit
(c) Target Costing (III) Used when identical units are produced
through an on-going series of
production steps.
(d) Process Costing (IV) Costing system in which costs being
with tracing of activities and then to
producing the product.

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(B) (a)-(I), (b)-(IV), (c)-(III), (d)-(II)
(C) (a)-(II), (b)-(III), (c)-(IV), (d)-(I)
(D) (a)-(I), (b)-(III), (c)-(II), (d)-(IV)

69. Out of the following statements, which are not true in respect of a Limited Liability Partnership?
(a) There must be at least one 'Designated member' at all times.

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(b) Designated members do not have the same rights and duties as any other member.
(c) There is no specific requirement to have any non-designated members.
(d) A Limited Liability Partnership may be established such that all members are considered to
be designated members

Choose the correct answer from the options given below:

(A) (a), (c) and (d) only
(B) (a) and (b) only
(C) (b) and (d) only
(D) (b), (c) and (d) only

70. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): By switching to long-term government bonds, the investor acquires an asset
whose price fluctuates as interest rates vary.
Reason (R): Bond prices fall when interest rates rise and rise when interest rates fall.
In light of the above statements, choose the correct answer from the options given below:

(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.

71. Properties of a good point estimator includes which of the following?

(a) Stationarity
(b) Efficiency
(c) Consistency
(d) Neutrality
(e) Unbiasedness

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (a), (d) and (e) only
(D) (b), (c) and (e) only

72. Which one of the following aims at the Task Dimension of organizational change?
(A) Broadening or narrowing span of control
(B) Diversifying into additional businesses
(C) Improving the efficiency of machines
(D) Reallocating authority

73. Arrange the following steps in the design thinking process for an innovative solution to a
problem:
(a) Ideate
(b) Test
(c) Empathize
(d) Define
(e) Prototype

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Choose the correct answer from the options given below:

(A) (a), (d), (c), (b), (e)
(B) (b), (c), (a), (d), (e)
(C) (c), (d), (a), (e), (b)
(D) (d), (b), (a), (e), (d)

74. Given below are two statements:

Statement (I): In the case of Life Insurance, the insurable interest must be present in the person
insured at the time when the event happened.
Statement (II): In the case of Fire Insurance, the insurable interest must be present in the object
insured at the time when the policy is taken and the event has happened.
In light of the above statements, choose the correct answer from the options given below:

(A) Both Statement (I) and Statement (II) are true.

(B) Both Statement (I) and Statement (II) are false.
(C) Statement (I) is true but Statement (II) is false.
(D) Statement (I) is false but Statement (II) is true.

75. Sequence the procedure for e-filing of ITR-1 and ITR-2

(a) Login
(b) Register
(c) Verification
(d) Downloading utility and preparing the Return
(e) e-Filing Income Tax Return

Choose the correct answer from the options given below:

(A) (a), (b), (e), (d), (c)
(B) (b), (a), (d), (e), (c)
(C) (b), (a), (c), (d), (e)
(D) (a), (b), (c), (d), (e)

76. Match List I with List II

List I List II
(Formula for test statistic) (Test)
(a) ∑
(0−𝐸𝐸 2 ) (I) Z-test
𝐸𝐸
12 𝑅𝑅𝑗𝑗 2 (II) H-test (Kruskal-Wallis test)
(b) ∑ − 3(𝑛𝑛 + 1)
𝑛𝑛(𝑛𝑛+1) 𝑛𝑛𝑗𝑗

(c)
𝑋𝑋� −𝜇𝜇 (III) F-test (ANOVA)
𝑆𝑆𝑆𝑆
(d)
𝑆𝑆𝑆𝑆 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 (IV) Chi-square test
𝑆𝑆𝑆𝑆 𝑤𝑤𝑤𝑤𝑤𝑤ℎ𝑖𝑖𝑖𝑖

Choose the correct answer from the options given below:

(A) (a)-(I), (b)-(II), (c)-(III), (d)-(IV)
(B) (a)-(III), (b)-(IV), (c)-(II), (d)-(I)
(C) (a)-(IV), (b)-(II), (c)-(I), (d)-(III)
(D) (a)-(IV), (b)-(II), (c)-(III), (d)-(I)

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77. Match List I with List II

List I List II
(Objectives of business firms) (Suggested by)
(a) Sales Revenue maximization (I) K.W. Rothschild
(b) Maximization of Firm's (II) Cyert and March
growth rate
(c) Long-term survival (III) W.J. Baumol
(d) Satisfying behaviour (IV) Robin Marris
Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(IV), (c)-(I), (d)-(II)

(B) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)
(C) (a)-(II), (b)-(I), (c)-(IV), (d)-(III)
(D) (a)-(I), (b)-(II), (c)-(III), (d)-(IV)

78. Which one of the following is used for international money transfer?
(A) RTGS
(B) NEFT
(C) SWIFT
(D) IMPS

79. Which of the following are correctly needed to claim exemptions in respect of HRA?
(a) Salary
(b) Place of residence
(c) Standard rent
(d) Rent paid
(e) HRA received

Choose the correct answer from the options given below:

(A) (b), (c), (d) and (e) only
(B) (a), (c), (d) and (e) only
(C) (a), (b), (d) and (e) only
(D) (b) and (c) only

80. A company does not include the value of skills gained by its employees from training
programmes in its annual financial statements. Which one of the following accounting concepts
is being applied in this case?
(A) Going concern concept
(B) Money measurement concept
(C) Revenue recognition concept
(D) Business entity concept

81. Which of the following are included in Salary as per Section 17(1) of the Income Tax Act?
(a) Wages
(b) Any pension or annuity
(c) Any interest from Government securities
(d) Any gratuity
(e) Any advance of salary

Choose the correct answer from the options given below:

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(A) (a), (b), (c) and (d) only

(B) (a), (b), (c), (d) and (e)
(C) (a), (b), (d) and (e) only
(D) (c) and (e) only

82. Currency depreciation in the Indian Rupee in recent times has largely been attributed to:
(a) Declining domestic savings
(b) Increasing FDI flows
(c) Portfolio outflows
(d) Higher currency circulation
(e) Higher imports and debt servicing

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (b), (c) and (d) only
(C) (a) and (d) only
(D) (c) and (e) only

83. Match List I with List II

List I List II
(PLC Stage) (Pricing Strategy)
(a) Decline (I) Price to match or beat competitors’ price
(b) Maturity (II) Charge cost-plus price
(c) Growth (III) Price reduction
(d) Introduction (IV) Price to penetrate market

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(IV), (c)-(I), (d)-(II)
(B) (a)-(III), (b)-(II), (c)-(I), (d)-(IV)
(C) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(D) (a)-(II), (b)-(I), (c)-(III), (d)-(IV)

84. Which of the following are the components of Mc Kinsey's 7-S framework?
(a) Shared values
(b) Procurement
(c) Strategy
(d) Technology Development
(e) System

Choose the correct answer from the options given below:

(A) (a), (c) and (e) only
(B) (b), (c) and (e) only
(C) (a), (b) and (e) only
(D) (b), (d) and (e) only

85. Which is the single most important driver of innovation (Gerard. J. Tellis 2013) in a business
firm?
(A) Labour
(B) Capital
(C) Government

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(D) Culture

86. Which among the following information shall be disclosed for all public issues of shares
irrespective of their issue price?
(a) Earning per share
(b) Dividend pay-out ratio
(c) Pre-issue P/E ratio
(d) Average return on net worth in last 3 years
(e) Net asset value per share based on last balance sheet
Choose the correct answer from the options given below:

(A) (a), (b), (d) and (e) only

(B) (a), (c), (d) and (e) only
(C) (b), (c), (d) and (e) only
(D) (a), (b), (c) and (d) only

87. Pricing practice of setting a price target and then developing a product that would allow the firm
to maximise total profit at that price is called:
(A) Price ceiling
(B) Price matching
(C) Price lining
(D) Pricing power

88. If the assessee is engaged in the business of growing and manufacturing tea in India, the
agriculture income in that case shall be:
(A) 25% of the income of such business
(B) 40% of the income of such business
(C) 60% of the income of such business
(D) 75% of the income of such business

89. Which of the following factors restrain Globalization?

(a) International economic integration
(b) Nationalism
(c) Emerging trade barriers
(d) Regulatory controls
(e) Move towards free marketing systems

Choose the correct answer from the options given below:

(A) (a) and (e) only
(B) (c), (d) and (e) only
(C) (b), (c) and (d) only
(D) (a), (b) and (d) only

90. Which one of the following represents empirical generalisations relating to GDP growth and
changes in unemployment?
(A) Phillips curve
(B) Misery index
(C) Pareto distribution
(D) Okun s law

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Read the given passage and answer the questions that follow:

The Monetary Policy Committee of the RBI should neither raise policy rates nor wind up its
accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This
is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation. Choking
off supply-side price shocks is self-defeating. Higher prices will curb demand and stimulate additional
supplies, if the prices are allowed to work their way through the system, instead of being choked off
through demand suppression. It is only the second-order effect of price shocks in energy, logistics and
labour that call for curtailment of demand via higher interest rates.
Far from there being any sign of excess demand, the latest available national income figures suggest
squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size
attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand
would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The
right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in
India. Both the Centre and the states should share the tax cuts. They should take this action, even as
they strive to find common ground on bringing energy under the goods and services tax. The
government also has the cushion of relatively high import duties that can be pared, to lower prices.
Stepping up production to increase supplies is another part of supply-constrained inflation.
There are measures the RBI can take to increase access to credit by micro, small and medium
enterprises, other than enhancing liquidity in general in the hope that some would find its way to the
small sector. The RBI can do its bit to realise the government mandate for all large companies to
purchase their inputs from the Trade Receivables Discounting System (TReDS), for example, if that
improves trade finance significantly, some reduction in liquidity would not matter.

91. Which one of the following is the cause of inflation as per the passage?
(A) Reduction in interest rate
(B) Increase in cost
(C) Supply disruptions
(D) Increase in demand

92. Which one of the following statements is not true?

(A) Both the Centre and the States should share the tax cuts equally
(B) GDP this fiscal would find it difficult to recover the size attained at the end of 2019-20
(C) Curtailment of demand via higher interest rates can be used in a limited way
(D) Choking off supply-side price shocks will affect growth adversely

93. Which of the following measures the RBI can take to consolidate growth?
(A) Reduce tax on fuel price
(B) Reduce import duty
(C) Increase access to credit by MSMEs
(D) Absorb price increase by providing subsidies

94. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): The policy response appropriate for inflation caused by excess demand would be
wholly suited for inflation caused by a spike in energy prices.
Reason (R): The right way to combat elevated inflation right now is to reduce the burden of
taxes that energy bears in India.
In light of the above statements, choose the most appropriate answer from the options given
below:

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(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

95. Which one of the following is most desirable to consolidate growth?

(A) Reduce interest rate
(B) Increase interest rate
(C) Suppression of demand
(D) Stimulate additional supply

Study the given table and answer the five questions that follow:
The following information is available with respect to a company manufacturing a particular
product.
Sale price (per unit) ₹20
Variable manufacturing cost per unit ₹11
Variable selling cost per unit ₹3
Fixed factory overheads (per year) ₹5,40,000
Fixed selling costs (per year) ₹2,52,000

On the basis of the above information answers the questions that follow:

96. Which one of the following is the break-even point in units for the company?
(A) 1,32,000 units
(B) 38,576 units
(C) 84,000 units
(D) 72,000 units

97. Which one of the following is PV ratio for the company?

(A) 1.82%
(B) 1.43%
(C) 30%
(D) 33%

98. Which one of the following is desired sales volume in units to earn a profit of ₹60,000?
(A) 93,667 units
(B) 2,64,000 units
(C) 1,32,000 units
(D) 1,42,000 units

99. Which one of the following is the break-even point in terms of rupees?
(A) ₹ 18,00,000
(B) ₹ 26,40.000
(C) ₹ 38,57,600
(D) ₹ 13,20,000

100. Which one of the following is desired sales (rupees) to earn a profit of ₹1,20,000?
(A) ₹ 26,40,000
(B) ₹ 30,40,000

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(C) ₹ 15,20,000
(D) ₹ 26,40,000

ANSWER KEY

Q. NO. ANSWER KEY Q. NO. ANSWER KEY

1 A 51 A
2 B 52 A
3 C 53 B
4 B 54 A
5 A 55 B
6 D 56 C
7 B 57 B
8 B 58 A
9 D 59 A
10 A 60 C
11 A 61 B
12 B 62 D
13 B 63 C
14 B 64 A
15 D 65 A
16 D 66 C
17 D 67 D
18 B 68 A
19 C 69 B
20 B 70 A
21 A 71 D
22 D 72 B
23 D 73 C
24 D 74 D
25 D 75 B
26 A 76 C
27 A 77 A
28 C 78 C
29 D 79 C
30 C 80 B
31 B 81 C
32 D 82 D
33 D 83 C
34 A 84 A
35 B 85 D
36 D 86 B
37 B 87 C
38 D 88 C
39 C 89 C

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40 B 90 D
41 D 91 C
42 D 92 A
43 C 93 C
44 B 94 D
45 C 95 D
46 A 96 A
47 B 97 C
48 D 98 D
49 D 99 C
50 B 100 C

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29_SEPTEMBER_2022 SHIFT II
1. Under Indian Income Tax Act, in order to claim deduction of interest on home loan for house
property, which of the following things need to be taken care of?
(a) The home loan must be used for the purchase/construction of the house property.
(b) The loan must be taken on or after 1𝑠𝑠𝑠𝑠 April, 2019.
(c) The amount of loan must be used within 10 days from the date of loan taken.
(d) The purchase or construction must be completed within 5 years from the end of Financial
Year in which the loan was taken.
(e) The rate of interest on loan cannot exceed 22%.

Choose the most appropriate answer from the options given below:
(A) (a), (b), (d) only
(B) (a), (c), (d), (e) only
(C) (b), (c), (d), (e) only
(D) (a) and (d) only

2. If the subject matter of insurance is the ship, the marine insurance is called:
(A) Cargo insurance
(B) Hull insurance
(C) Freight insurance
(D) Voyage insurance

3. A contract is discharged by supervening impossibility under which of the following situations?

(a) Destruction of subject matter
(b) Death or disablement of parties
(c) Rescission
(d) Remission
(e) Accord and satisfaction

Choose the correct answer from the options given below:

(A) (a), (c) and (d) only
(B) (a) and (b) only
(C) (a), (b) and (e) only
(D) (c) and (d) only

4. Match List I with List II:

List I List II
(International Trade Theories) (Expounders)
(a) Absolute Advantage (I) David Ricardo
(b) Factor Endowments (II) Minhas, Leontief et. al.
(c) Factor — Intensity Reversal (III) Adam Smith
(d) Comparative Advantage (IV) Heckscher — Ohlin

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(II), (c)-(IV), (d)-(I)
(B) (a)-(III), (b)-(IV), (c)-(II), (d)-(I)
(C) (a)-(I), (b)-(IV), (c)-(II), (d)-(III)
(D) (a)-(III), (b)-(I), (c)-(II), (d)-(IV)

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5. Which one of the following motives characterizes dominant organizational climate of university
teaching departments/scientific organizations?
(A) Affiliation
(B) Extension
(C) Expert power
(D) Achievement

6. In Fund Flow Statement, which one of the following is not a valid statement?
(A) It is prepared to know the total sources and their uses in a year.
(B) Dividend received is a source of funds.
(C) Its preparation is at the discretion of the managements
(D) It is useful for external financial management.

7. “If you know the enemy and know yourself, you need not fear the result of a hundred battles”.
Above statement of Sun Tzu corresponds to which one of the following components of Porter's
Five Forces Model?
(A) Threat of substitutes
(B) Threat of Competitor
(C) Bargain Power of Supplier
(D) Threat of New Entrants

8. Match List I with List II:

List I List II
(Promotional Campaign) (Company)
(a) # StayStrongMoms (I) Pepsico India
(b) # JeetKiOre (II) Hindustan Uniliver (HUL)
(c) # Lets unstereotypeIndia (III) Indian Tobacco Company (ITC)
(d) # Freedomtolove (IV) Brooke Bond India

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(B) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(C) (a)-(II), (b)-(I), (c)-(III) (d)-(IV)
(D) (a)-(I), (b)-(III), (c)-(IV), (d)-(II)

9. The banks wherein a majority of depositors are non-residents are called

(A) Cross Payment Banks
(B) Currency Banks
(C) Foreign Banks
(D) Offshore Banks

10. Match List I with List II:

List I List II
(Legal Latin Phrase) (Description)
(a) Consensus ad idem (I) Something in return
(b) Quid pro quo (II) As much as earned
(c) Quantum meruit (III) Buyer beware
(d) Caveate emptor (IV) Meeting of minds

Choose the correct answer from the options given below:

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(A) (a)-(I), (b)-(III), (c)-(IV), (d)-(II)

(B) (a)-(IV), (b)-(I), (c)-(II), (d)-(III)
(C) (a)-(II), (b)-(I), (c)-(III) (d)-(IV)
(D) (a)-(I), (b)-(IV), (c)-(II), (d)-(III)

11. A spot sale of a currency combined with a forward repurchase of the same currency is called
which one of the following?
(A) Forex swap
(B) Swap rate
(C) Forward rate
(D) Spot rate

12. The current market price per share of New Age Limited is Rs. 80. The dividend expected a year
from now is Rs. 4 and it is expected to grow at a constant rate of 10 percent. The floatation
(issue) cost for the new issue will be 8 percent. What is the cost of new equity?
(A) 15.43 percent
(B) 15.00 percent
(C) 5.00 percent
(D) 5.43 percent

13. A price ceiling below the equilibrium price possibly leads to which of the following?
(a) Black marketing
(b) Commodity glut
(c) Shortage of commodity
(d) Commodity export
(e) Price decline

Choose the correct answer from the options given below:

(A) (a) and (b) only
(B) (d) and (e) only
(C) (a) and (c) only
(D) (a), (b) and (c) only

14. From the following, select the right option with reference to the working capital:
(A) Higher net working capital leads to higher liquidity and higher profitability
(B) According to hedging approach, current assets should be financed from long-term sources.
(C) There is an inverse relationship between the length of operating cycle of a firm and its
working capital requirements.
(D) Trade-off plan, in general, is considered an appropriate financing strategy for working
capital.

15. According to Herzberg's Two Factor Theory, which one of the following is not a maintenance
factor?
(A) Affiliation or Acceptance
(B) Esteem or Status
(C) Security or Safety
(D) Physiological Needs

16. Given below are two statements:

Statement (I): Policies are guides to action, rather than to thinking.

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Statement (II): Policies define an area within which a decision is to be made.

In the light of the above statements, choose the most appropriate answer from the options given
below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect
(C) Statement (I) is correct but Statement (II) is incorrect
(D) Statement (I) is incorrect but Statement (II) is correct

17. Given below are two statements:

Statement (I): Marketing managers must calculate customer lifetime values of their customer
base to understand their profit implications.
Statement (II): Activity — based costing, an accounting technique, is very useful for conducting
customer profitability analysis.
In the light of the above Statements, choose the most appropriate answer from the options given
below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect
(C) Statement (I) is correct but Statement (II) is incorrect
(D) Statement (I) is incorrect but Statement (II) is correct

18. Match List I with List II:

List I List II
(Type of Exposure) (Description)
(a) Economic Exposure (I) Potential changes in all future cash
flows of a firm that result from
unanticipated changes in exchange
rates.
(b) Translation Exposure (II) It arises when items of financial
statements that are stated in foreign
currencies are restated in the home
currency of an MNC.
(c) Transaction Exposure (III) It arises when a firm's contract
obligations are exposed to
unanticipated changes in exchange
rate.
(d) Operating Exposure (IV) When a firm's real assets are
exposed to unanticipated changes
in exchange rates.

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(IV), (c)-(II), (d)-(I)
(B) (a)-(I), (b)-(II), (c)-(III), (d)-(IV)
(C) (a)-(IV), (b)-(III), (c)-(II) (d)-(I)
(D) (a)-(I), (b)-(IV), (c)-(III), (d)-(II)

19. Arm's length price computation method under 92 (C) of the Income Tax Act, 1961 does not
include which one of the following?
(A) Comparable uncontrolled price

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(B) Transaction net margin

(C) Resale price
(D) Slum sale price method

20. Tax holiday under the Income Tax Act 1961 has been used in the context of which one of the
following?
(A) Section 80 IA
(B) Section 80 D
(C) Section 80 CCC
(D) Section 10(5)

21. Which one of the following is an example of Secondary Reserves?

(A) Cash in hand and balances with other banks in current account
(B) Balances with RBI for CRR
(C) Investment in Commercial Paper
(D) Investment in Government Securities for SLR

22. Which one of the following is a Trade related entry mode in international markets?
(A) Management Contract
(B) International licensing
(C) International Leasing
(D) Portfolio Investments

23. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): Capital structure is determined within debt capacity of a company and it should
not be exceeded.
Reason (R): Debt capacity of a company depends on its ability to generate cash flows. It should
generate cash enough to pay lenders fixed charges and principal sum.
In the light of the above Statements, choose the most appropriate answer from the options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

24. A company should undergo a step-wise process before selecting a final price. Accordingly,
arrange the following steps of pricing-policy process to help 'XYZ' company to decide the final
price of its product.
(a) Selecting the pricing method.
(b) Examining competitor's costs, prices and offers.
(c) Estimating the demand curve and the probable quantities company will sell at each possible
price.
(d) Selecting the pricing objective of the company.
(e) Estimating costs for different levels of output, for different levels of accumulated production
experience, and for differentiated marketing offers.

Choose the correct answer from the options given below:

(A) (d), (b), (e), (c), (a)

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(B) (d), (c), (e), (b), (a)

(C) (a), (b), (c), (e), (d)
(D) (a), (d), (e), (c), (b)

25. Total revenue of a business firm increases as long as:

(A) |𝐸𝐸𝐸𝐸| > 1
(B) |𝐸𝐸𝐸𝐸| = 1
(C) |𝐸𝐸𝐸𝐸| < 1
(D) |𝐸𝐸𝐸𝐸| < 0

26. When a monopolist switches from charging a single price to perfect price discrimination. it
reduces:
(A) The quantity produced
(B) The firm's profit
(C) Consumer surplus
(D) Total surplus

27. Which of the following constructs hold true for research analysis and design?
(a) Research design is a framework for every stage of the collection and analysis of data.
(b) The choice between qualitative and quantitative methods in a research experiment depends
upon Cronbach alpha.
(c) Experiments as source of data is not appropriate for a qualitative study.
(d) Plagiarism is the failure of researcher to acknowledge the borrowed material in his/her
publication.
(e) Content Analysis is a method commonly used in qualitative research to aid data collection.

Choose the most appropriate answer from the options given below:
(A) (a), (b), (e) only
(B) (b), (c), (d) only
(C) (a), (c), (d), (e) only
(D) (b), (e) only

28. As per the Agency Theory of Corporate Governance, which of the following statements are
relevant?
(a) Governance approach is materialistic.
(b) Managers are motivated by the principal's objectives.
(c) Interests of the managers and principals converge.
(d) Behaviour pattern is opportunistic.
(e) Owner's attitude is to avoid risks.

Choose the most appropriate answer from the options given below:
(A) (a), (c), (e) only
(B) (b), (c), (d) only
(C) (b), (d), (e) only
(D) (a), (d), (e) only

29. Preference share in India is issued by a company for a maximum period of:
(A) 10 years
(B) 15 years
(C) 20 years

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(D) Unlimited period

30. Economists' adjustment to reality limited by individual consumer’s preferences, intelligence and
environmental factors is called:
(A) Rationality
(B) Homo economicus
(C) Bounded rationality
(D) Consumer sovereignty

31. In order to maintain its market share, a market follower can employ:
(A) Counter feiting strategy
(B) Specialization strategy
(C) Counter offensive strategy
(D) Preemptive strategy

32. Under Indian Income Tax Act, allowances which are non-taxable for the individual assessee are:
(a) Sumptuary allowances.
(b) Compensatory allowance paid to judges.
(c) Overtime allowance.
(d) Allowances paid to Govt. employees posted abroad
(e) Non-practicing allowance.

Choose the most appropriate answer from the options given below:
(A) (a), (b), (d), (e) only
(B) (a), (c), (d), (e) only
(C) (a), (b), (d) only
(D) (a), (b), (c), (d), (e)

33. Which are the major factors that lead to capital rationing?
(a) Imperfection of capital market.
(b) Reluctance to broaden the equity share-base for the fear of losing control.
(c) Inability to manage.
(d) Deficiencies in market information which might affect the availability of capital.
(e) Efficiency of Capital Market.

Choose the correct answer from the options given below \:

(A) (a), (b), (d) only
(B) (c), (d), (e) only
(C) (a), (b), (c), (e) only
(D) (a), (b), (c), (d) only

34. Which one of the following is not an assumption of simple linear regression model?
(A) The set of expected values of the dependent variable y for given values of independent
variable x, are normally distributed.
(B) The standard deviation and variance of expected values of the dependent variable about the
regression line are constant for all values of the independent variable x for the set of
observations in a sample.
(C) The dependent variable y is a continuous random variable.
(D) The errors in the value of y are identical in successive observations.

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35. Arrange the following negotiation rounds of WTO (World Trade Organisation) in reverse
chronological order:
(a) Uruguay Round
(b) Geneva Round
(c) Kennedy Round
(d) Doha Round
(e) Tokyo Round

Choose the correct answer from the options given below:

(A) (a), (c), (d), (b), (e)
(B) (d), (a), (e), (c), (b)
(C) (b), (a), (c), (e), (d)
(D) (d), (e), (a), (c), (b)

36. Choose the correct options regarding banking:

(a) Chain banking indicates the form of bank cartel that occurs when a small group of people
control at least three banks that are independently chartered.
(b) PAN number is required for deposits in a commercial bank for Rs.50,000 and above.
(c) Upon detection of counterfeit notes at the counter, the bank can impound the note and issue
receipt.
(d) The interest rates on bank's contribution to Rural Infrastructure Development Fund is fixed
by NABARD.
(e) RBI Act, 1934 prohibits the making or issuing of a promissory note expressed to be payable
to the bearers thereof.

Choose the most appropriate answer from the options given below:
(A) (b), (d), (e) only
(B) (b), (c) only
(C) (a), (d), (e) only
(D) (a), (b), (c) only

37. Rates of Income Tax under new regime applicable for financial year 2021-22 in India are:
(a) 5%
(b) 10%
(c) 12%
(d) 15%
(e) 20%

Choose the correct answer from the options given below:

(A) (a), (b), (c) only
(B) (a), (b), (d) only
(C) (a), (b), (d), (e) only
(D) (b), (c), (d), (e) only

38. Which of the following decision choices are valid in relation to marginal costing?
(a) Costing 'special' or 'one off opportunities.
(b) Deciding whether to make or buy a product.
(c) Most appropriate technique because of application of more automation in the industry.
(d) Choosing between competing alternative actions.
(e) Employing a penetration or destroyer pricing strategy.

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Choose the correct answer from the options given below:

(A) (a), (b), (d) and (e) only
(B) (a), (b), (c) and (d) only
(C) (b), (c), (d) and (e) only
(D) (a), (d) and (e) only

39. Which of the following are thinly veiled disguises that essentially restrict imports?
(a) Voluntary import restrictions
(b) Labelling requirements showing origin and contents
(c) Import tariffs and quotas
(d) Safety regulations for automobile and electrical equipment
(e) Health regulations for hygiene production and packaging of imported food production

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (c) only
(B) (b), (c) and (d) only
(C) (c), (d) and (e) only
(D) (b), (d) and (e) only

40. Arrange the following steps in the process of GDR Issues:

(a) Registration with prescribed authority
(b) Appointment and vesting of shares with the custodian
(c) Approval of the regulatory authorities
(d) Listing of GDR
(e) GDR allotment

Choose the correct answer from the options given below:

(A) (c), (a), (b), (e), (d)
(B) (a), (b), (c), (d), (e)
(C) (a), (c), (b), (e), (d)
(D) (b), (a), (c), (d), (e)

41. Under which one of the following the Basel framework places restrictions on participation by
banks in system-wide credit booms with the aim of reducing their losses in credit bust?
(A) Catastrophic Reserve Capital
(B) Countercyclical Capital Buffer
(C) Deferred Capital
(D) Conservative Preference Capital

42. Steps involved in computation of Book Profit under MAT regime are as follows:
(a) Arrive NP as per statement of P/L A/C of the company.
(b) Specific adjustments in case of merger.
(c) Make adjustments pertaining to OCI items.
(d) Adjust the book profit with stipulated exclusion and inclusion.
(e) Net amount of Book Profit for application of MAT rate

Choose the correct sequence from the options given below:

(A) (a), (d), (b), (c), (e)

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(B) (a), (b), (d), (c), (e)

(C) (a), (c), (b), (d), (e)
(D) (a), (b), (c), (d), (e)

43. In case of a warranty, the buyer can:

(A) Repudiate the contract
(B) Claim damages only
(C) Return the goods
(D) Refuse to pay the price

44. Written plan containing the details regarding the conduct of a particular audit is called:
(A) Audit Memorandum
(B) Audit Planning Procedure
(C) Audit Notebook
(D) Audit Programme

45. Under the Vivad se Vishwas Act, 2020 the amount payable by the declarant U/S 3 on or after
January 1, 2021 is:
(A) Amount of disputed tax
(B) The aggregate of the amount of disputed tax and 10% of disputed tax
(C) Amount of penalty and amount computed by CBDT.
(D) Average of tax arrears for last three assessment years.

46. A co-efficient of correlation having a value of +0.87 implies that –

(A) Co-efficient of correlation is strong and positive.
(B) Co-efficient of determination is extremely weak.
(C) The relationship between two variables is weak, but positive.
(D) The relationship between two variables is strong.

47. Which of the following are key features of prudent accounting concepts and conventions?
(a) It includes revenues and profits in the accounts when they are realised.
(b) It prevents profits from being overstated.
(c) It prevents a trader from more withdrawing from the business than is wise.
(d) Managerial efficiency and expertise.
(e) Good customer relations.

Choose the most appropriate answer from the options given below:
(A) (c), (d) and (e) only
(B) (a), (d) and (e) only
(C) (b), (c) and (d) only
(D) (a), (b) and (c) only

48. Which one of the following is not advantage of organization structure by territory?
(A) Makes control easy for top management
(B) Places responsibility at a lower level
(C) Improves coordination in a region
(D) Takes advantage of economies of local operations

49. Sequence the following in copyright ecosystem for literary creation under the Indian Copyright
Act, 1957:

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(a) Public communication

(b) Copyright assignment
(c) Content development
(d) Relinquish copyright
(e) Copyright transmission

Choose the correct answer from the options given below:

(A) (a) → (e) → (b) → (d) → (c)
(B) (c) → (a) → (b) → (e) → (d)
(C) (e) → (c) → (b) → (d) → (a)
(D) (b) → (c) → (e) → (a) → (d)

50. Which of the following factors favour product standardization in the international markets?
(a) High cost of adaptation.
(b) Variations in conditions of use.
(c) Country of origin effect.
(d) Economies in R & D.
(e) Differences in technical standards.

Choose the most appropriate answer from the options given below:
(A) (a) and (e) only
(B) (a), (c) and (d) only
(C) (a), (b), (c) and (d) only
(D) (c) and (d) only

51. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): Substitution effect is usually much larger than the income effect.
Reason (R): Consumer usually spends only a small portion of her/his income on any one
commodity.
In the light of the above Statements, choose the correct answer from the options given below:

(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.

52. Pricing of housing loan by a commercial hank may follow the following steps in a logical
sequence:
(a) Competitive price determination
(b) Specification of spread
(c) Application of MCLR
(d) Conduct of Credit Assessment
(e) Quoting to prospective borrower

Choose the correct answer from the options given below:

(A) (c), (b), (a), (d), (e)
(B) (a), (b), (d), (c), (e)
(C) (b), (a), (d), (e), (c)
(D) (d), (c), (b), (a), (e)

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53. The pricing practice to extract all of the consumer surplus from consumers to maximize the total
revenue and profits from the sale of a particular quantity of product is called:
(A) First-degree price discrimination
(B) Second-degree price discrimination
(C) Third-degree price discrimination
(D) Penetration pricing

54. Answer the correct material usage variance from the information given below:
Standard material cost for manufacturing 1000 units of an output is 400 kgs of material at Rs.
2.50 per kg. When 2000 units are produced, it is found that actual consumption was of 825kgs
material at a price of Rs. 2.70 per kg:
(A) Rs. 67.50 Favourable
(B) Rs. 67.50 Adverse
(C) Rs. 62.50 Favourable
(D) Rs. 62.50 Adverse

55. Banker sale of a mortgage portfolio by setting up a mortgage pass-through security is an example
of:
(A) Credit enhancement
(B) Unbundling
(C) Derivatives
(D) Securitisation

56. Why do Central banks intervene to affect exchange rates?

(a) To influence domestic production
(b) To influence trade flows
(c) To influence domestic interest rates
(d) To inject liquidity in domestic markets
(e) To smoothen fluctuations in exchange rates.

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (b), (c) and (d) only
(D) (a), (b) and (e) only

57. A prudent financial policy suggested by Marris Hypothesis to maximize balanced growth of the
firm is based on which of following financial ratios?
(a) Return on investment ratio
(b) Debt equity ratio
(c) Return on capital employed ratio
(d) Liquidity ratio
(e) Retention ratio

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (c) only
(B) (b), (c) and (d) only
(C) (a), (c) and (d) only
(D) (b), (d) and (e) only

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58. Presumptive taxation involves which one of the following?

(A) The use of indirect methods to calculate tax liability, which differ from the usual sales based
on the tax payers accounts.
(B) Transfer of tax liability from State to the Centre.
(C) Calculation of short-term capital gain
(D) Calculation of rebate U/S 89.

59. From which of the following, employees derive authority?

(a) Position
(b) Experience
(d) Moral worth
(d) Past service
(e) Intelligence

Choose the most appropriate answer from the options given below:
(A) (a), (b) only
(B) (a), (e) only
(C) (b), (c), (e) only
(D) (a), (b), (c), (d), (e)

60. Sequentially arrange the following themes related to globalization of Indian businesses since
independence:
(a) FDI in various sectors opened along with slashing of custom duties.
(b) Partial opening of economy to external trade and de-licensing of some key sectors.
(c) Govt. — led investments in large public sector units in steel, chemicals and power.
(d) Indian businesses became competitive and started to reap rewards of various phases of
development learning.
(e) Increased government involvement in industry with sustained focus on import substitution.

Choose the correct answer from the options given below:

(A) (c), (e), (b), (d), (a)
(B) (e), (c), (b), (a), (d)
(C) (c), (e), (b), (a), (d)
(D) (a), (c), (e), (b), (d)

61. “Hospital administration may think that patients want better food, but patients may be more
concerned with nurse responsiveness"
Above statement pertains to which one of the following service gaps?
(A) Gap between consumer expectation and management perception.
(B) Gap between management perception and service-quality specification.
(C) Gap between service delivery and external communication.
(D) Gap between service-quality specifications and service delivery.

62. As per Section 68 of the Indian Companies Act, a company may purchase its own shares out of
which of the following?
(a) Free reserves
(b) Securities premium account
(c) General reserve
(d) Proceeds of any other shares

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(e) Proceeds of same kind of shares

Choose the correct answer from the options given below:

(A) (a), (b), (c) and (e) only
(B) (a), (b), (c) and (d) only
(C) (b), (c), (d) and (e) only
(D) (a), (c), (d) and (e) only

63. Which of the following are key assumptions of Gordon's Dividend Model?
(a) Ke > br
(b) r and Ke are changing
(c) The firm is not all-equity firm
(d) The firm has perpetual life
(e) The retention ratio, once decided, is constant

Choose the correct answer from the options given below:

(A) (a), (d), (e) only
(B) (b), (c), (e) only
(C) (a), (b), (d) only
(D) (c), (d), (e) only

64. In a statistical experiment, an effect size is described as:

(A) Effective testing of hypothesis
(B) Probable success of an experimental manipulation
(C) Quantitative measurement of the magnitude of the experimental effect
(D) Standardised measure of the magnitude of the effect observed in an experiment

65. Michael Porter has identified five forces that determine the intrinsic long-term attractiveness of a
market. According to the model, which of the following are true?
(a) A segment is unattractive if it already contains numerous aggressive competitors.
(b) A segment is unattractive if it is stable or declining.
(c) A segment is unattractive if it has high entry barriers and low exit bathers.
(d) A segment is unattractive if the company's suppliers are able to raise prices.
(e) A segment is unattractive when there are actual or potent substitutes for the product.

Choose the most appropriate answer from the options given below:
(A) (a) and (b) only
(B) (b) and (c) only
(C) (a), (c) and (d) only
(D) (a), (b), (d) and (e) only

66. Match List I with List II:

List I List II
(Income Tax Disposition) (Particular/Section)
(a) Donation to National Defence Fund (I) Section 140 (A)
(b) Hedging of Tax (II) Tax Management
(c) Compliance with Legal Formalities (III) Tax Avoidance
(d) Permanent Account Number (PAN) (IV) 100% Deduction

Choose the correct answer from the options given below:

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(A) (a)-(III), (b)-(II), (c)-(I), (d)-(IV)

(B) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)
(C) (a)-(II), (b)-(I), (c)-(III), (d)-(IV)
(D) (a)-(I), (b)-(IV), (c)-(III), (d)-(IV)

67. If the information sought has been supplied by third party or is treated as confidential by that
third party, the third party must give a representation before the PIO in reply to the notice issued
to it within how many days from the date of receipt of such notice?
(A) 5 days
(B) 15 days
(C) 10 days
(D) 7 days

68. Which of the following statements are correct?

(a) Internal reliability is described as the consistency of a measure taken at two different points
of time.
(b) A distribution is random walk if it has a mean of 0 and variance of 1.
(c) Increase and decrease in scores measured overtime that produce a variance of less than 50%
is reliable.
(d) Normal distribution cannot be applied to real life situations.
(e) Factor Analysis supersedes multiple discriminant analysis.

Choose the most appropriate answer from the options given below:
(A) (a), (b), (e) only
(B) (c), (d), (e) only
(C) (b), (c), (d) only
(D) (b), (d), (e) only

69. What will be the sequence of steps involved in ‘Net Benefit Model’ of Human Resource
Accounting?
(a) The gross value of services to be rendered in future by the employee in their individual as
well as their collective capacity is determined.
(b) The excess of the value of future human resources over the value of future payments is
ascertained.
(c) The present value of the net benefit is determined by applying a pre-determined discount
rate.
(d) The value of future payments to the employees is determined.
(e) The amount calculated under ‘C’ will be the value of human resources to the organisation.

Choose the correct sequence from the options given below:

(A) (a), (d), (b), (c), (e)
(B) (a), (b), (c), (d), (e)
(C) (a), (c), (d), (b), (e)
(D) (b), (a), (c), (d), (e)

70. Which one of the following is not valid as per the Limited Liability Partnership Act. 2008?
(A) LLP shall maintain its books of accounts on double entry system and on cash or accrual
basis.
(B) LLP shall prepare a Statement of Account and Solvency for each financial year.
(C) Every LLP shall file an annual return with the Registrar of Companies

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(D) Every LLP is a separate legal entity independent of its partners.

71. Match List I with List II:

List I List II
(Description) (Conceptualisation)
(a) Net Stable Funding Ratio (I) Asset Liability Management
(b) Innovative Perpetual Debt (II) Tier — I capital
Instrument
(c) Time Maturity Gap (III) Tier — II capital
(d) Risk Weighted Assets (IV) Basel — III norms

Choose the correct answer from the options given below:

(A) (a)-(IV), (b)-(II), (c)-(I), (d)-(III)
(B) (a)-(I), (b)-(IV), (c)-(III), (d)-(II)
(C) (a)-(II), (b)-(III), (c)-(IV), (d)-(I)
(D) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)

72. Match List I with List II:

List I List II
(Personality Factor) (Bipolar Dimension)
(a) Warmth (I) Imaginative vs practical
(b) Abstractedness (II) Controlled vs casual
(c) Openness to change (III) Outgoing vs reserved
(d) Perfectionism (IV) Experimental vs conservative

Choose the correct answer from the options given below:

(A) (a)-(II), (b)-(I), (c)-(IV), (d)-(III)
(B) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(C) (a)-(I), (b)-(IV), (c)-(III), (d)-(II)
(D) (a)-(III), (b)-(II), (c)-(IV), (d)-(I)

73. Which one of the following theories describes FDI flows in ecosystems?
(A) Product Life Cycle Theory
(B) Factor Endowment Theory
(C) Waterfall Theory
(D) New Trade Theory

74. Match List I with List II:

List I List II
(Statistical Distribution) (Characteristically Expression)
(a) Negatively Skewed (I) Mean = Mode, 𝑝𝑝(𝑥𝑥 ≤ 𝜇𝜇 ) = 0.50
Distribution
(b) Positively Skewed (II) 𝑥𝑥̅ > 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 > 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀; 𝑝𝑝 > 0.5
Distribution
(c) Binomial Distribution (III) ����������������������������
𝑥𝑥 < 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 < 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀
(d) Normal Distribution (IV) ����������������������������
𝑥𝑥 > 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 > 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀

Choose the correct answer from the options given below:

(A) (a)-(III), (b)-(I), (c)-(II), (d)-(IV)

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(B) (a)-(I), (b)-(II), (c)-(III), (d)-(IV)

(C) (a)-(II), (b)-(III), (c)-(IV), (d)-(I)
(D) (a)-(III), (b)-(IV), (c)-(II), (d)-(I)

75. Which of the following are essentially anti-competitive agreements as per the Competition Act,
2002 in India?
(a) Exclusive distribution agreement
(b) Resale price maintenance
(c) Exclusive supply agreement
(d) Non-compete agreement
(e) Tie-in agreement

Choose the correct answer from the options given below:

(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (a), (b), (c) and (d) only
(D) (a), (b), (c) and (e) only

76. The qualified characteristics determining (constituting) consumer 'rationality' includes which of
the following?
(a) Economic selfish motives
(b) Risk-return optimiser
(c) Clarity of preferences
(d) Possession of information
(e) Non-satiation of needs

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (c) only
(B) (c), (d) and (e) only
(C) (a), (b), (c) and (d) only
(D) (a), (c), (d) and (e) only

77. Arrange the following stages of delegation in correct sequence:

(a) Establish proper controls.
(b) Select the person in light of the job to be done.
(c) Reward effective delegation and successful assumption of authority.
(d) Define assignments and delegate authority in light of results expected.
(e) Maintain open lines of communication.

Choose the correct answer from the options given below:

(A) (a), (b), (c), (e), (d)
(B) (b), (d), (e), (a), (c)
(C) (d), (b), (e), (a), (c)
(D) (c), (d), (b), (e), (a)

78. Who among the following are identified as the Key managerial personnel in the Indian
Companies Act, 2013?
(a) Chief Executive Officer
(b) Whole Time Director
(c) Company Secretary

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(d) Chief Risk Officer

(e) Manager

Choose the most appropriate answer from the options given below:
(A) (a), (b) and (d) only
(B) (a) and (b) only
(C) (a), (b), (c) and (d) only
(D) (a), (b), (c) and (e) only

79. Which one of the following is a myth about rural markets?

(A) All villages are not equally populated.
(B) Rural buyers are a heterogenous lot.
(C) Rural buyers are able to discriminate between products and brands.
(D) Only low-priced products sell in rural markets.

80. Which one of the following tools is not used for forecasting personnel needs (Labour Demand)
by an organization?
(A) Trend Analysis
(B) Markov Analysis
(C) Ratio Analysis
(D) Scatter Plot

81. Given below are two statements:

Statement (I): Display of goods by a shopkeeper with prices marked on them, is not an offer but
an invitation to the public to make an offer to buy the goods.
Statement (II): Price quotations, catalogues and advertisements in newspaper for sale of an
article do constitute a valid offer.
In the light of the above statement, choose the most appropriate answer from the options given
below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect
(C) Statement (I) is correct but Statement (II) is incorrect
(D) Statement (I) is incorrect but Statement (II) is correct

82. Break-even point is not affected with the changes in which one of the following?
(A) Sale price per unit
(B) Variable cost per unit
(C) Number of units sold
(D) Total fixed costs

83. Which of the following are the main platforms for social media?
(a) Search Engines
(b) Online communities and forums
(c) Blogs
(d) Social Networks
(e) Web 1.0

Choose the correct answer from the options given below:

(A) (b), (c) and (d) only

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(B) (b) and (d) only

(C) (b), (c), (d) and (e) only
(D) (a), (b), (c) and (d) only

84. Match List I with List II:

List I List II
(Ind AS) (Topic)
(a) Ind AS 1 (I) Income Taxes
(b) Ind AS 12 (II) Related Party Disclosures
(c) Ind AS 24 (III) Intangible Assets
(d) Ind AS 38 (IV) Presentation of Financial Statements

Choose the correct answer from the options given below:

(A) (a)-(I), (b)-(II), (c)-(III), (d)-(IV)
(B) (a)-(IV), (b)-(I), (c)-(II), (d)-(III)
(C) (a)-(IV), (b)-(III), (c)-(II), (d)-(I)
(D) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)

85. Match List I with List II:

List I List II
(Nature of goods) (Income Elasticity (Ei) of demand)
(a) Normal goods (I) Ei is greater than one
(b) Inferior goods (II) Ei is greater than zero
(c) Luxury goods (III) Ei is between zero and one
(d) Necessities (IV) Ei is less than zero

Choose the correct answer front the options given below:

(A) (a)-(II), (b)-(IV), (c)-(I), (d)-(III)
(B) (a)-(III), (b)-(I), (c)-(IV), (d)-(II)
(C) (a)-(II), (b)-(I), (c)-(III), (d)-(IV)
(D) (a)-(I), (b)-(III), (c)-(II), (d)-(IV)

86. The standard error is a statistical measure of:

(A) The normal distribution of scores around the sample mean.
(B) The extent to which a sample mean is likely to differ from the population mean.
(C) The clustering of scores at each end of a survey scale.
(D) The degree to which the sample has been accurately stratified.

87. Which of the following statements are correct?

(a) The difference between sample variance and population variance computation is 𝜇𝜇 replaced
by 𝑥𝑥̅ .
(b) Cronbach alpha value less than 0.30 indicates reliability of research instrument.
(c) The value of 𝑅𝑅2 = 1 may imply that regression is spurious.
(d) The identical observation of sample and population parameters shows that every sample can
be substituted as population.
(e) Randomise control trial is a qualitative approach to research.

Choose the correct answer from the options given below:

(A) (c), (d), (e) only
(B) (a), (b), (c), (d) only

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(C) (a), (c), (d), (e) only

(D) (b), (c), (d) only

88. Dimensions of VALS 𝑇𝑇𝑇𝑇 framework to include which one of the following?
(A) Consumer motivation and consumer resources
(B) Consumer personality and consumer resources
(C) Consumer motivation and consumer preferences
(D) Consumer needs and consumer resources

89. Logically sequence the following economic entities/identities in understanding the theory of
consumer choice:
(a) Budget line
(b) Utility analysis
(c) Demand curve analysis
(d) Indifference curve analysis
(e) Consumer equilibrium

Choose the correct answer from the options given below:

(A) (d) → (e) → (a) → (b) → (c)
(B) (b) → (d) → (a) → (e) → (c)
(C) (b) → (c) → (d) → (a) → (e)
(D) (b) → (d) → (a) → (c) → (e)

90. Which one of the following is false with respect to interest rate structure in the Indian money
market?
(A) A very tight liquidity position will increase the call rates while excess liquidity will give
fairly low and stable rates.
(B) If the liquidity crunch of the banks is passed on to the system, it may lead to high volatility
in the call rates.
(C) Call rates under normal liquidity conditions are the cap rate for the term money market.
(D) In a volatile call market situation, lending will yield high return and by selling Inter-bank
participation, the bank will have more money to play in the call market.

Read the following passage and answer the question.

GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation
in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off
against gains on another. No deduction is permitted for any expenditure other than the cost of
acquisition for computation of income from sale of cryptos and non-fungible tokens (NFTs). Every
transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a
capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in
digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge
and cess from their taxable income, but have not, on their own accord, paid the tax and interest on the
deduction they have claimed.

The inability to set off losses will skew the risk-reward profile of digital assets, and crypto exchanges
fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign
platforms accessed through virtual private networks. The industry feels not allowing tax deduction on
the costs of mining cryptos will eventually force blockchain companies and the talent they hire to
operate outside the country. To the extent that the proposed tax regime drives users from exchanges

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compliant with know-your-customer (KYC) rules towards underground peer-to-peer platforms,

deterrence would be diluted.
Nirmala Sitharaman, in her statement while moving the amendments, has clarified the tax on private
digital assets does not indicate GoI’s stance on their legitimacy. The regulatory position could become
clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies,
which make transactions and monetary transmission more efficient, are inevitable as the use of cash
plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from
the inherent superiority of digital currencies. This is the future of money.

91. Given below are two statements:

Statement (I): Non-fungible tokens cannot be splitted.
Statement (II): Non-fungible tokens can be replicated at convenience.
In the light of the above Statements, choose the most appropriate answer from the options given
below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect
(C) Statement (I) is correct but Statement (II) is incorrect
(D) Statement (I) is incorrect but Statement (II) is correct

92. Digital currency regulations will result into which one of the following?
(A) Scare digital currencies away.
(B) Permit deduction of any expenditure other than the cost of acquisition for computation of
income.
(C) Impose penalties for tax payers who have claimed a deduction of surcharge and cess from
their taxable income.
(D) Attract 30% tax on every transfer of crypto asset.

93. Government of India intent towards virtual digital assets is which one of the following?
(A) To promote speculation
(B) To be silent on speculation
(C) To discourage speculation
(D) To stop speculation

94. Given below are two statements.: One is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): Crypto exchanges fear that the new amendments could push trading activity
beyond Indian jurisdiction to decentralized exchanges.
Reason (R): The new amendments disallow losses on the sale of new crypto asset to be set off
against gains on another.
In the light of the above Statements, choose the most appropriate answer from the. options given
below:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A).
(C) (A) is correct but (R) is not correct.
(D) (A) is not correct but (R) is correct.

95. Which one of the following is done by the Digital Currency Regulatory Framework?
(A) Eventually force blockchain companies to operate from outside.

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(B) Attract users towards exchanges which are compliant with know-your-customer rules.
(C) Motivate the operators to operate outside the country.
(D) Promote underground peer to peer crypto platforms.

Read the given passage and answer the question.

Naik, AGM Materials, is fuming and fretting. He bumped into Kamath. GM (Materials), threw the
resignation letter on his table, shouted and walked out of the room swiftly.
Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story
will tell the reasons for Naik’s bile and why he put in his papers, barely four months after he took up
his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakhapatnam. As a manager
material, Naik enjoyed powers — he could even place an order for materials worth Rs. 25 lakhs. He
needed nobody's prior approval.
Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a
part of the multi-product and multi plant-conglomerate owned by a prestigious business house in India.
Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public
sector steel monolith.

When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior
approval to place an order for materials worth Rs. 12 lakhs. He had presumed that he had the authority
to place an order by himself worth half the amount of what he used to do at the mega steel maker. He
placed the order, materials arrived, were received, accepted and used up in the plant.
Trouble started when the bill for Rs. 12 lakhs came from the vendor. The accounts department withheld
payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill
as his approval was not taken by Naik before placing the order.
Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik
was curtly told that he should have known company rules before venturing. Naik decided to quit.

96. Given below are two statements:

Statement (I): Mr. Naik's presumption that he could place an order for materials worth Rs.25
lakh was right.
Statement (II): Perks and reputation of the conglomerate were the reasons for Mr. Naik joining
the eucalyptus pulp making company.
In the light of the above Statements, choose the most appropriate answer from the options given
below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect
(C) Statement (I) is correct but Statement (II) is incorrect
(D) Statement (I) is incorrect but Statement (II) is correct

97. The job of AGM materials is to

(A) Place order
(B) Receive material
(C) Inspect material
(D) Issue material

98. As per the passage, who is at fault?

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(A) Mr. Naik

(B) Mr. Kamath
(C) Both Mr. Naik and Mr. Kamath
(D) Human Resource Department

99. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as
Reason (R):
Assertion (A): It was right on the part of accounts department to withheld payment.
Reason (R): Mr. Naik had the authority to place the order for materials worth Rs.25 lakh.
In the light of the above Statements, choose the correct answer from the options given below:

(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.

100. What is the most ineffective in the organisation?

(A) Recruitment policy
(B) Selection policy
(C) Induction programme
(D) Promotion policy

ANSWER KEY

Q. NO ANSWER KEY Q. NO ANSWER KEY

1 D 51 A
2 B 52 D
3 B 53 A
4 B 54 D
5 C 55 D
6 D 56 D
7 B 57 D
8 A 58 A
9 D 59 D
10 B 60 C
11 A 61 A
12 A 62 B
13 C 63 A
14 D 64 C
15 B 65 D
16 D 66 B
17 A 67 C
18 B 68 A
19 D 69 A
20 A 70 D
21 D 71 A

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22 A 72 B
23 B 73 A
24 B 74 D
25 A 75 D
26 C 76 D
27 C 77 C
28 D 78 D
29 C 79 D
30 C 80 B
31 A 81 C
32 C 82 C
33 D 83 A
34 D 84 B
35 B 85 A
36 B 86 B
37 C 87 C
38 A 88 C
39 D 89 B
40 C 90 C
41 B 91 C
42 A 92 D
43 B 93 C
44 D 94 A
45 B 95 B
46 A 96 D
47 D 97 A
48 A 98 D
49 B 99 C
50 B 100 C

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26_NOVEMBER_2021

1. The annual demand for an item is 3200 units. The unit cost is Rs 6 and inventory carrying
charges 25% p.a. if the coast of one procurement is Rs 150 , determine number of order per year
(A) 3
(B) 4
(C) 6
(D) 800

2. A type of validity based on showing that scores on the test (Predictors) are related to job
performance is :
(A) Test validity
(B) Criterion validity
(C) Content validity
(D) Construct validity

3. CCA method of inflation accounting is as a result of the recommendation of ?

(A) Wandilands committee
(B) Tandlelands committee
(C) Sandilands committee
(D) Marrylands committee

4. Which one of the following is not the characteristics of mutual funds ?

(A) Consistent Investment process
(B) Strong fund management
(C) Diversity in interest rates
(D) Differences from the benchmark

5. Which of the following events after the balance sheet date would normally quality as adjusting
events according to AS-4 (Events after balance sheet date ) ?
(A) The insolvency of a customer on the balance sheet date
(B) A decline in the markets value of investments
(C) The declaration of ordinary divided
(D) The determination of the cost of assets purchased before the balance sheet date
Choose the most appropriate answer from the options given below :

(A) (A), (C) and (D) only

(B) (A) and (B) only
(C) (B) and (C) only
(D) (A) and (D) only

6. Which of the following can be categorised as information processing services ?

(A) Legal services
(B) Health care
(C) Education
(D) Management consultancy

7. Each of the values of the series is decreased by K. which of the following does not hold in the
context ?
(A) The quartile deviation does not change .
(B) The co-efficient of quartile deviation remain unchanged
(C) The lower and upper quartile values each increases by K.

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(D) The quartile coefficient of the dispersion rises.

8. Usually in which of the following performance appraisal technique, subjects self -ratings are
negatively correlated with their subsequent performance in an assessment center ?
(A) Appraisal by subordinates
(B) 360-Degree feedback
(C) Self-ratings
(D) Peer appraisals

9. The net profits of a partnership business, after providing for income tax for the last five year
were: Rs 80000; Rs 100000, Rs120000; Rs 125000 and Rs 200000. The capital employed in the
business is Rs 1000000 and the normal rate of return is 10% . the value of goodwill on the basic
of the annuity method ; taking the present value of the annuity of Re 1 for 5 year at 10% is
3.7907 (approx.); will be
(A) 2500(approx.)
(B) 79225(approx.)
(C) 94770(approx.)
(D) 225000 (approx.)

10. What is the value of a levered firm “ L” if it has the same EBIT as an unlevered firm “U”,
(With value of Rs 700 lac ) , has a dept of Rs 200 lac, tax rate is 35% under MM approach ?
(A) Rs 950 lac
(B) Rs 630 Lac
(C) Rs 770 lac
(D) Rs 525 lac

11. For binominal disturbance with n= 30 , q=0.7 , the mean and variance will be equal to :
(A) 21 and √6.3
(B) 9 and √6.3
(C) 9 and 6.3
(D) 21 and 6.3

12. Maximum tax-free limit for payment received under voluntary retirement scheme is :
(A) Rs 400000
(B) Rs 500000
(C) Rs 800000
(D) Rs 1000000

13. Which of the following statement are correct regarding application of data mining techniques ?
(A) predicting future trends based on information available
(B) electronic data interchange
(C) analysing demographic information about customers
(D) credit risk analysis
choose the correct answer from the option given below:

(A) (B) and (D)

(B) (A), (B), (C) and (D) only
(C) (A), (B), and (D) only
(D) (A), (C), and (D) only

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14. Given below are two statements : one is labelled are assertion A and the other is labelled as
reason R .
Assertion A : A, the owner of the ship by fraudently representing her to be seaworthy induces B,
on the underwriter to insure the ship .
Reason R : B can obtain cancellation of the policy , as it is a fraud on account of fraudulent
misrepresentation under the contract act
in the light of above statements , choose the correct answer from the option given below :

(A) Both A and R are true and R is the correct explanation of A

(B) Both A and R are true and R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but is true

15. Arrange the following stages of the process of organizational change in the sequential order :
(A) detailed consideration of the proposed change
(B) collection of detailed information and development of alternative approaches in relation to
the problem or issues
(C) evaluation of various alternatives and framing a proposal
(D) vocalization of the need to change
(E) search for the main cause underlying the symptoms encountered
choose the correct answer from the option given below :

(A) (D),(E),(B),(A),(C)
(B) (D), (A), (E), (B), (C)
(C) (A),(E),(D),(C),(B)
(D) (B), (E),(D),(A), (C)

16. A new issue debt or share will invariably involve floatation costs in the form of :
(A) legal fees
(B) administrative expenses
(C) brokerage
(D) underwriting
(E) risk premium
choose the most appropriate answer from the options given below:

(A) (A),(B),(D),(E) only

(B) (A),(C) only
(C) (A), (B),(C),(D) only
(D) (A),(B),(C),(D),(E)

17. The accounting standard AS3 (revised) has become mandatory w.e.f. accounting periods
beginning from 1-04-2001 for which of the following enterprise ?
(A) commercial, industrial and business reporting enterprises whose turnover for the
accounting period exceeds Rs 50crores
(B) enterprises whose debt or equity security are not listed on a recognised stock exchange.
(C) all enterprises whose turnover exceeds Rs 2 crores.
(D) only banking and insurance

18. Arrange the following marketing structure in the increasing order of the price elasticity of the
products :

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(A) perfect competition

(B) monopoly
(C) monopolistic competition
(D) oligopoly
(E) duopoly
choose the correct answer from the options given below :

(A) (C), (D),(E),(B),(A)

(B) (B),(E), (D), (C), (A)
(C) (C),(E),(D),(A),(B)
(D) (A),(C),(D),(E),(B)

19. Arrange the following steps, in a logical sequence of debt recovery by financial institutions
through debt recovery tribunals (DRTs) ?
(A) restrain him from dealing with / disposing of the concerned assets/properties pending at
the hearing of the application
(B) direct him to disclose particulars of properties other than those specified by the applicant
bank.
(C) show causes within 30 days as to why the relief should not be granted to the bank.
choose the correct answer from the options given below :

(A) (B),(A),(C)
(B) (A),(B),(C)
(C) (B),(C),(A)
(D) (C),(B),(A)

20. In the scale of parameter ® is greater than one (r>1) the CES production function exhibits:
(A) Decreasing returns to scale
(B) constant returns to scale
(C) Negative returns to scale
(D) increasing returns to the scale

21. Which of the following is not the service provided under NBFCs?
(A) Leasing Services
(B) Implementing modernisation
(C) Asset management services
(D) Mutual benefit finance services bank

22. Environmental factors influencing distribution decision are

(A) government policy
(B) state economy
(C) social activism
(D) technological and infrastructure developments
(E) statutory provisions
choose the most appropriate answer from the options given below :

(A) (A),(D) only

(B) (B),(C),(E) only
(C) (A),(C),(D) only
(D) (A),(B),(D),(E) only

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23. Requirements for effective market segmentation are :

(A) accessibility
(B) differentiation
(C) measurable
(D) viable
(E) intensity in competition
choose the most appropriate answer from the options given below:

(A) (A),(B) only

(B) (B), (C),(E) only
(C) (A),(C),(D) only
(D) (A),(C),(D),(E) only

24. Which of the following explains downward slope of an ordinary demand curve ?
(A) income effect of price change
(B) substitution effect of price change
(C) utility maximising behaviour of consumer
(D) risk averse behaviour consumer
choose the most appropriate answer from the options given below:

(A) (A) and (B)only

(B) (B),(C) and (D) only
(C) (A),(B) and (C) only
(D) (A),(C)and (D)

25. Stretch goals that challenge people to achieve higher levels of success in current activities is
known as:
(A) control stretch goals
(B) cluster stretch goals
(C) vertical stretch goals
(D) Horizontal stretch goals

26. The amount of penalty for making false statements to the “ competition commission “ by a
person who is a party to a combination shall be between
(A) 20 lakhs to 50 lakhs
(B) 50 lakhs to 1crore
(C) 8 lakhs to 10 lakhs
(D) 70 lakhs to 1 crore

27. Arrange the following countries in the ascending order of the their contribution to the WTO
budget 2020:
(A) China
(B) Japan
(C) Germany
(D) united states of American
(E) united kingdom
choose the correct answer from the option given below :

(A) (A),(B),(D),(E) and (C)

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(B) (D),(A),(B),(E) and (C)

(C) (E),(B),(C),(A) and (D)
(D) (D),(A),(B),(C) and (E)

28. Which of the following taxes have been replaced by the GST? Indicate the correct code :
(A) Central excise duty
(B) service tax
(C) taxes on advertisements
(D) duties of excise-medicinal and toilet preparations
choose the correct answer from the option given below:

(A) (A),(B),(D) only

(B) (A),(B)only
(C) (B),(C),(D) only
(D) (C),(D) only

29. The exemption with respect to HRA is based upon the following factors ?
(A) rent paid
(B) place of residence
(C) salary
(D) HRA received
(E) fair rent
(F) market rent
choose the most appropriate answer from the options given below:

(A) (A),(B),(C),(D)only
(B) (A),(C),(D),(F)only
(C) (A),(B),(C),(F)only
(D) (A),(B),(E),(F)only

30. Which of the following are the correct statements with regard to positive skewed distribution?
(A) mean >median >mode
(B) mean<median<mode
(C) Q3-median <median-Q1
(D) Q3-median >median-Q1
(E) mean =median= mode
choose the correct answer from the options given below:

(A) (A),(D)only
(B) (A),(C)only
(C) (B),(C),(D)only
(D) (B),(C),(D),(E)only

31. When demand is slack and market is competitive, firms follow which of the following pricing
methods?
(A) penetration pricing
(B) peak load pricing
(C) marginal cost pricing
(D) skimming pricing

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32. Match list I and II :

List I List II
(A) Bonus share (I)invitation to existing share holders to
purchase additional new shares
(B) Demat shares (II)issue is made to existing members free
of charge
(C) right issues (III) shares issues by a company to its
employees/directors at the discount for
providing known-how
(D) sweat equity share (IV)shares in electronic form
Choose the correct answer from the options given below:

(A) (A)-(II),(B)-(IV),(C)-(I),(D)-(III)
(B) (A)-(II),(B)-(I),(C)-(III),(D)-(IV)
(C) (A)-(IV),(B)-(III),(C)-(II),(D)-(I)
(D) (A)-(IV),(B)-(I),(C)-(II),(D)-(III)

33. Any planning of tax which aims at reducing tax liability in legally recognised permissible way
can be termed as an instance of:
(A) tax planning
(B) tax avoidance
(C) tax evasion
(D) tax management

34. The assets of the partnership firm, including any sums contributed by the partners to make up
deficiencies of capital at the time of dissolution, shall be applied in the following manner and
order:
(A) in the paying each partner rateably what is due to him for advance as distinguished from
capital.
(B) in paying to each partners rateably what is due to him on account of capital.
(C) in paying the debts of the firm to third parties
(D) dividing among the partners in the proportion in which they were entitled to share profits.
choose the correct answer from the option given below:

(A) (C),(A),(B),(D)
(B) (C),(B),(A),(D)
(C) (A),(B),(C),(D)
(D) (B),(C),(A),(D)

35. Non sampling errors may arise because of :

(A) vague definitions used in data collection
(B) defective method of data collection
(C) incomplete coverage of the population
(D) wrong entry made in the questionnaire
(E) only a part of the population is observed and expect to avoid census study
choose the most appropriate answer from the options given below:

(A) (A),(B),(C),(D) only

(B) (A),(C),(D),(E) only

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(C) (B),(C),(D),(E) only

(D) (A),(B),(D),(E) only

36. The cross elasticity of demand between the complementary product is :

(A) positive
(B) Zero
(C) negative
(D) infinite

37. Principle of management are important and useful on account of the following reasons:
(A) To increase managerial efficiency
(B) To attain social objectives
(C) To train managers
(D) To improve research
(E) To coordinate material and human resources
choose the most appropriate answer from the options given below:

(A) (A),(E) only

(B) (B),(D) only
(C) (B),(C),(D) only
(D) (A),(B),(C),(D),(E)

38. Management according information is used for which of the following distinctive purposes
(A) measurement
(B) control
(C) recording transactions
(D) alternative choices
choose the most appropriate answer from the options given below:

(A) (A),(B) and (C) only

(B) (B),(C) and (D) only
(C) (A),(B), and (D) only
(D) (A) and (C) only

39. The cash flow approach to assessing debt capacity involves the following steps: arrange the
steps in correct sequence :
(A) specify the tolerance limit on the probability of default.
(B) estimate the probability distribution of cash flows, taking in to account the projected
performance of the firm.
(C) calculated the fixed charges by way of interest payment and principle repayment
associated with various levels of debts.
(D) estimate the debt capacity of the firm as the highest level of debt which is acceptable.
choose the correct answer from the options given below:

(A) (D),(C),(A),(B)
(B) (A),(B),(C),(D)
(C) (B),(C),(D),(A)
(D) (D),(A),(C),(B)

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40. Given below are two statements : one is labelled as assertion A and the other is labelled as
reason R.
Assertion A: mean deviation is about 80% of standard deviation .
Reason R : The quartile deviation is about 2/3 of the standard deviation.
In the light of the above statements , choose the correct answer from the option given below:

(A) both A and R are true and R is the correct explanation of A

(B) both A and R are true and R is not the correct explanation of A
(C) A is true R is false
(D) A is false but R is true

41. Which of the following statements are true regarding the objectives of right to information act ?
indicate the correct code:
(A) To operationalise the fundamental right to information
(B) To set up system and mechanisms that facilitate people easy access to information
(C) To promote transparency and accountability in governance
(D) To minimize corruption and inefficiency in public offices and ensure people participation
in governance and decision making
choose the correct answer from the options given below :

(A) (B),(C) and (D) only

(B) (A),(B),(C) and (D)
(C) (A),(B), and (C) only
(D) (A),(B) and (D) only

42. Match list I and list II

List I List II
(A) Probability distribution (I) σ = √(b-q)2/12
(B) Binomial distribution (II) Σ = √∑p(x-µ)2
(C) Hyper geometric distribution (III) Σ =√npq
(D) Uniform distribution (IV) Σ= √n[N1/N][N2/N][(N-n)/(N-1)]
Choose the correct option given below:

(A) (A)-(II),(B)-(III),(C)-(IV),(D)-(I)
(B) (A)-(II),(B)-(III),(C)-(I),(D)-(IV)
(C) (A)-(II),(B)-(I),(C)-(III),(D)-(IV)
(D) (A)-(I),(B)-(II),(C)-(III),(D)-(IV)

43. Match List I with List II :

List I (Organisational design) List II (Features )

(A) Learning organization (I) Flexibility in the structure or lack of
structure
(B) Spaghetti organization (II) Linking of separate parts of the same
organisation or networking of separate
organizations to accomplish a common
goal.
(C) Fishnet organization (III) The ability to continually change
structure and interpersonal processes to
conform to feedback with the environment.

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(D) Network structure (IV) Flexible, adaptable, rearrange itself

quickly while retaining its inherent strength.
Choose the correct answer from the option given below:

(A) (A)-(III),(B)-(II),(C)-(IV),(D)-(I)
(B) (A)-(III),(B)-(I),(C)-(IV),(D)-(II)
(C) (A)-(I),(B)-(IV),(C)-(III),(D)-(II)
(D) (A)-(II),(B)-(I),(C)-(IV),(D)-(III)

44. Arrange the following procedure for the grant of patent in a proper sequence:
(A)The true and first owner shall apply in form I legal representative of true owner shall
apply in form II
(B) A complete specification shall be filled with a fee of Rs.50/- within 12 months from the
date of filing of application
(C)The first inventor of the work who claims to be true and first owner of his legal
representative
(D) for each invention separate application for a patent can be made
choose the correct answer from the option given below:

(A) (A),(D),(C),(B)
(B) (C),(D),(A),(B)
(C) (B),(A),(D),(C)
(D) (B),(D),(C),(A)

45. Identify the necessary conditions for price discrimination:

(A) There should be imperfect competition in markets
(B) Markets must be separable
(C) differentiated product and interdependence between firms
(D) elasticity of demand must be different in different markets
choose the most appropriate answer from the options given below :

(A) (A),(B),(C) only

(B) (A),(C),(D) only
(C) (B),(C),(D) only
(D) (A),(B),(D) only

46. Match list I with List II

List I (methods of inventory controls ) List II (explanation)
(A) JIT system (I) Divide the items into the categories in
the descending order of their usage rate.
(B) ABC analysis (II) Divides items into categories in the
descending order of their critical use.
(C) FSND analysis (III) Inventory arrive to the manufacturing
sites just few hours before they are put to
use
VED analysis The items of inventory are classified
according to value of usage
Choose the correct answer from the options given below :

(A) (A)-(I),(B)-(II),(C)-(III),(D)-(IV)

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(B) (A)-(II),(B)-(III),(C)-(IV),(D)-(I)
(C) (A)-(III),(B)-(IV),(C)-(I),(D)-(II)
(D) (A)-(IV),(B)-(III),(C)-(II),(D)-(I)

47. Which one of the following statements is false ?

(A) capital market is a market for medium and long term funds.
(B) GDR is a negotiable instrument issued by US bank.
(C) Many publicly listed companies in India trades their shares through Bombay stock
exchange or national stock exchange.
(D) securities that are listed on various stock exchange are eligible for being traded there, are
called listed securities.

48. Which of the following is not a approach to the structure of Indian financial system ?
(A) A brokerage can be either full service or discount
(B) The financial system is concerned about money , credit and finance , the three terms are
intimately related yet are some what different from each other
(C) housing finance simply refers to proving finance for venture capital
(D) financial instrument may also be divided according to asset class, which depends on
whether they are debt-based or equity based
choose the correct answer from the options given below:

(A) (A),(C),(D) only

(B) (B,)D) only
(C) (C) only
(D) (A),(C) only

49. The reasons put forth for the control over the activities of the activities of the international
banks are :
(A) These banks encourage inflation by adding stock of money supply through credit
creation.
(B) These banks some times are responsible for bank failure that mar the interest of the
depositors
(C) They cause unmanageable indebtedness among the barrowing governments by charging
high interest rates
(D) They do not adhere to the credit allocation policy of the host government
choose the most appropriate answer from the options given below:

(A) (A),(B),(C) only

(B) (A),(C),(D) only
(C) (B),(C),(D) only
(D) (A),(B),(C),(D)

50. ‘A’ minor takes a loan of Rs 4000/- ‘B’ during his minority, on attaining majority , he applies
to B for a further loan Rs 3000/- B gives this loan and obtains from ‘A’ a combined promissory
note of Rs 7000/- for the two loans. This is considered as :
(A) Void contract
(B) valid contract
(C) Illegal contract
(D) Unilateral contract

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51. Which of the following is not true for supply chain management approach?
(A) Joint reduction in channel inventory
(B) large breadth of supplier base to increase competition and spread risk
(C) Risks and rewards are shared in long term
(D) companies use intermodal transportation to reach to their markets

52. The right of the consumer as enunciated under section 6 of the consumer protection Act, 1986
includes:
(A) to be protected against the marketing of goods and services which are hazardous to life
and poverty
(B) to be assured the competitive price and low coast quality products and services
(C) To be assured that consumers interests will service the due consideration at appropriate
forums
(D) To be protected for multiple use of products , profits , diversity and equity .
(E) To be informed about the quality , potency , purity and price of goods or services
choose the correct answer from the options given below :

(A) (A),(B),(C)
(B) (B),(C),(D)
(C) (C),(D),(E)
(D) (A),(C),(E)

53. Income effect of a price rise is greater than its substitution effect of case of :
(A) Inferior goods
(B) Giffen goods
(C) status symbol goods
(D) perishable goods

54. Given below are two statements :

statement I: if firms are disproportionately powerful, the market leader makes the first move and
captures two-thirds of the market share , while the follower firm gets only the third of the market
there
statement II : oligopolist firms do better by cooperating than following its dominant strategy.
In the light of the above statements , choose the most appropriate answer from the options given
below:

(A) Both statement I and Statement II are correct

(B) Both statement I and statement II are correct
(C) Statement I is correct but statement II is incorrect
(D) statement I is incorrect but statement II is correct

55. Match the List I and List II

List I List II
(A) Hedgers (I) Osaka
(B) Financial derivatives in India (II) Increased volatility
(C)Arbitrageurs (III) commercial producers
(D) Commodity future in origin (IV) riskless profit
Choose the correct answer from the options given below:

(A) (A)-(I),(B)-(IV),(C)-(II),(D)-(III)

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(B) (A)-(III),(B)-(II),(C)-(IV),(D)-(I)
(C) (A)-(IV),(B)-(III),(C)-(I),(D)-(II)
(D) (A)-(II),(B)-(I),(C)-(III),(D)-(IV)

56. Which one of the following is true for consumers?

(A) Consumers are rational and think in a linear manner
(B) culture and society have relationship to consumers’ thoughts and feelings
(C) consumers can be motivated to believe and internalise messages the way the marketer
desires
(D) consumers can be explained their thought’s and behaviours

57. Given below are two statements :

statement II : capital market plays an important role in mobilising resources and diverting them
in productive channels
statement II : capital market is a market where buyers and sellers engage in trade of financial
securities like bonds , stocks , etc
in the light of the above statements, choose the correct answer from the options given below:

(A) both statement I and statement II are true

(B) Both statement I and statement II are false
(C) Statement I is true and statement II is false
(D) Statement I is false and statement II is true

58. Which of the following are the reasons for raising funds via securitization?
(A) To raise capital using non-conventional sources
(B) To accelerate earnings for financial reporting purposes
(C) To diversify funding resources
(D) The potential for reducing funding cost
choose the most appropriate answer from the options given below:

(A) (A),(C),(D) only

(B) (B),(C),(D) only
(C) (C),(D) only
(D) (A),(B),(D) only

59. Match List I and List II:

List I List II
(A) actual delivery (I) delivery of means of obtaining
possession goods by the seller to the buyer
(B) constructive delivery (II) physical handing over of the possession
of the goods by the seller to the buyer
(c) symbolic delivery (III) voluntary transfer of possession of
goods from seller to buyer
(D) Delivery Acknowledgement by a third person
in possession of goods to hold them on
behalf of and at the disposal of the buyers
Choose the correct answer from the options given below:

(A) (A)-(IV),(B)-(I),(C)-(III),(D)-(II)
(B) (A)-(II),(B)-(IV),(C)-(I),(D)-(III)

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(C) (A)-(I),(B)-(III),(C)-(IV),(D)-(II)
(D) (A)-(III),(B)-(II),(C)-(IV),(D)-(I)

60. Tax audit is compulsory in case of a person in a profession whose gross receipts from the
profession exceed:
(A) Rs. 1 crore
(B) Rs. 40 lakh
(C) Rs. 60 lakh
(D) Rs. 50 lakh

61. Use of focus groups and collaboration tools as a training needs assessment technique has the
following disadvantages
(A) Time consuming or organize
(B) useful with complex or controversial issues that one person may be unable or unwilling to
explore
(C) questions cannot be modified to explore unanticipated issues
(D) group members provide only information they think you want to hear
choose the most appropriate answer from the options given below:

(A) (A),(B) only

(B) (B),(C) only
(C) (A),(D) only
(D) (C),(D) only

62. Given below are two statements. One is labelled as Assertion A and the other is labelled as
Reason R :
Assertion A : Foreign investment is playing an increasing role in economic development and
contributes to a significant share of the domestic investment, employment generation and
exports.
Reason R : Substantial increase in the magnitude of capital inflows have remarkably improved
the balance of payments and foreign exchange reserve position.
In the light of above statements, choose the most appropriate answer from the options given
below:

(A) Both A and R are correct and R is the correct explanation of A

(B) Both A and R are correct and R is NOT the correct explanation of A
(C) A is correct but R is not correct
(D) A is not correct but R is correct

63. Which of the following countries/territories is not a member of WTO?

(A) China
(B) Russia
(C) Iran
(D) Taiwan

64. A coin and pair of dice are tossed together, the total number of possible outcome for an
experiment is :
(A) 12
(B) 72

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(C) 36
(D) 24

65. Arrange the following steps of formulating research proposal in a logical sequential order:
(A) Defining Research problem.
(B) Formulation of Hypothesis.
(C) Review of literature.
(D) Collection of data.
(E) Research design.

Choose the correct answer from the options given below:

(A) (A), (B), (C), (D), (E)
(B) (A), (E), (B), (C), (D)
(C) (A), (E), (C), (D), (B)
(D) (A), (C), (B), (E), (D)

66. Arrange the following steps of markets feasibility study in the sequential order:
(A) based on the coast and anticipated sales revenue, calculating the break even-price and the
sales volume .
(B) forecasting sales, based on demand estimation and competitive analysis.
(C) estimation of demand in the target market , of different price levels.
(D) estimating the cost of serving the market segment.
choose the correct answer from the option given below :

(A) (B),(C),(D),(A)
(B) (C),(B),(D),(A)
(C) (B),(D),(A),(C)
(D) (C),(B),(A),(D)

67. Is a percentage discount rate used in capital investment appraisals which brings the cost of a
project and its future cash inflows into equality.
(A) accounting rate of return
(B) internal rate return
(C) profitability index
(D) net present value

68. A U-shaped long run average cost curve is based on the assumptions that:
(A) grater division of labour and specialisation accure of larger firms
(B) minimum coast of production at various levels of output
(C) economies of scale prevail at small level of output
(D) it becomes more difficult to manage the firm effectively as its grows bigger
(E) diseconomies of scale prevail at larger level of output
choose the correct answer from the option given below:

(A) (A),(B),(C) only

(B) (B),(C),(D) only
(C) (B),(C),(D),(E) only
(D) (A),(C),(D),(E) only

69. Identify the principle of trade policy framework from the following under the WTO:

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(A) reciprocity and transparent

(B) benefactory and resilient
(C) non-discriminatory
(D) binding and enforceable commitments
(E) protective and benevolent
choose the correct answer from the option given below:

(A) (A),(B),(C) only

(B) (C),(D),(E) only
(C) (A),(C),(D) only
(D) (B),(D),(E) only

70. Which of the following statements is true about the risk considered for capital requirements
under Basel II?
(A) credit risk, interest rate risk and foreign exchange risk
(B) credit risk, market risk and operational risk
(C) credit risk, political risk and country risk
(D) credit risk, interest rate risk and political risk

71. Sequence the steps for computing depreciation in income from business and profession :
(A) the writing down value of each block as the last day of previous year
(B) find the value of each block at the beginning of each year
(C) the money received along with scarp value if any in respect of the same blocks, which are
sold/ discarded during the year
(D) assets required during the year in the respective blocks to which the new assets belong
choose the correct answer from the options given below:

(A) (A),(B),(C),(D)
(B) (B),(D),(C),(A)
(C) (A),(B),(D),(C)
(D) (D),(B),(C),(A)

72. Match the list I and list II

List I List II
Objectives of business firms Economists
(A) long run survival (I) marris, robin
(B) sales revenue maximisation (II) Williamson, D.E
(C) firm’s growth rate maximisation (III) Rothschild, K.W
(D) managerial utility function (IV) Baumol, W.J
maximisation
Choose the correct answer from the options given below:

(A) (A)-(II),(B)-(III),(C)-(IV),(D)-(I)
(B) (A)-(IV),(B)-(II),(C)-(III),(D)-(I)
(C) (A)-(III),(B)-(IV),(C)-(I),(D)-(II)
(D) (A)-(II),(B)-(III),(C)-(I),(D)-(IV)

73. Amalgamation adjustment account is used for recording :

(A) capital reserve in the books of the transferee company
(B) general reverse in the books of the transferee company

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(C) statutory reserve in the books of the transferee company

(D) revenue reserve in the books of their transferee company

74. Match the list I and list II

List I List II
(A) international finance corporation (I) 1944
(B) international development association (II) 1967
(C) world intellectual property organisation (III) 1956
(D) international bame for reconstruction (IV) 1960
and development
Choose the correct answer from the option given below:

(A) (A)-(IV),(B)-(I),(C)-(III),(D)-(II)
(B) (A)-(II),(B)-(IV),(C)-(I),(D)-(III)
(C) (A)-(III),(B)-(II),(C)-(IV),(D)-(I)
(D) (A)-(III),(B)-(IV),(C)-(II),(D)-(I)

75. Match the list I and list II

List I List II
(A) section 80 EE (I) deduction in respect of rent paid
(B) section 80 GG (II) deduction in respect of certain donations
for scientific researches
(C) section 80 GGA (III) deduction in respect of interest on loan
taken for residential house
(D) section 80 E (IV) deduction in respect of payment of
interest on loan taken for higher education
Choose the correct answer from the option given below:

(A) (A)-(II),(B)-(IV),(C)-(I),(D)-(III)
(B) (A)-(III),(B)-(I),(C)-(II),(D)-(IV)
(C) (A)-(III),(B)-(I),(C)-(IV),(D)-(II)
(D) (A)-(II),(B)-(IV),(C)-(III),(D)-(I)

76. The of the following income is generally chargeable under the head of income from other
sources?
(A) Income from subletting house property
(B) director fee
(C) ground rent
(D) agriculture income from outside India
(E) insurance commission
(F) income from sale of securities
choose the most appropriate answer from the option given below

(A) (A), (B),(D),(E) only

(B) (B),(C),(D),(E),(F) only
(C) (A),(B),(C),(E),(F) only
(D) (A),(B),(C),(D),(E) only

77. If each value in a given set of data is divided by 4 , how will it affect Karl pearson’s coefficient
of skewness?

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(A) it will reduce the value of co-efficient to one fourth

(B) it will increase the value of co-efficient to four times
(C) it will not affect the co-efficient of skewness value
(D) nothing can be said about the change

78. FDI in India manufacturing has largely been

(A) resource seeking
(B) efficiency seeking
(C) market seeking
(D) export-orientation

79. Which of the following are included in person under section 17/(1)?
(A) A Hindu undivided family (HUF)
(B) A company
(C) A firm
(D) An individual
(E) An local authority
(F) An association of persons
choose the most appropriate answer from the options given below:

(A) (A),(C),(D),(F) only

(B) (C),(D),(E),(F) only
(C) (B),(D),(E),(F), only
(D) (A),(B),(C),(D),(E),(F)

80. Which one of the following is not included in the term “Work” under copyright act 1957?
(A) A cinematographic film
(B) layout design of integrated circuits
(C) A sound recording
(D) A dramatic work

81. The theory which explain the effect of devaluation on balance of trade is known as :
(A) Philips curve theory
(B) Mundell-Tobin hypothesis
(C) J curve theory
(D) K curve theory

82. Occasional sale of a commodity at a lower price abroad in order to unload an unforeseen
temporary surplus of the commodity without reducing domestic price is called :
(A) persistent dumping
(B) predatory dumping
(C) export subsidies
(D) sporadic dumping

83. Skimming pricing strategy delivers results :

(A) When the size of the market is large and it is a growing market
(B) when the product is perceived as enhancing the customers status in society
(C) when the firm uses it as an entry strategy
(D) when the target market associates quality of the products with its price
choose the most appropriate answer from the options given below:

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(A) (A),(B) only

(B) (B),(D) only
(C) (B),(C) only
(D) (A),(C),(D) only

84. Which of the following entity has recently been negotiated to replace NAFTA with effect from
July 2020?
(A) Quad group of counties
(B) USMCA
(C) Shanghai cooperation organisation
(D) trans Atlantic organisation

85. On which of the following grounds , the tribunal may order for the winding -up of a company
or a petition submitted to it . indicate the correct code
(A) passing of special resolution for the winding up
(B) conducting affairs in a fraudulent manner
(C) reduction in membership
(D) inability to pay debts
choose the correct answer from the options given below:

(A) (A),(B),(C) only

(B) (A),(B),(D) only
(C) (A),(B),(C),(D),only
(D) (B),(C),(D) only

86. Match the list I and list II

List I List II
(advertising agency in 2020) (brand)
(A) O&M (Ogilvy and Mather) (I) mastercard
(B) Mc Cann Erickson (II) nestle
(C) Trikaya grey (III) Cadbury
(D) JWT Hindustan Thompson associates (IV) proctor and gamble

Choose the correct answer from the options given below:

(A) (A)-(III),(B)-(II),(C)-(IV),(D)-(I)
(B) (A)-(III),(B)-(I),(C)-(IV),(D)-(II)
(C) (A)-(II),(B)-(IV),(C)-(I),(D)-(III)
(D) (A)-(II),(B)-(III),(C)-(I),(D)-(IV)

87. Which of the following is not a characteristics of transactional leaders?

(A) gives personal attention, treats each employee individually
(B) abdicates responsibilities , avoid making decisions
(C) intervenes only when standards are not met .
(D) contracts exchange of rewards for efforts.

88. Which of the following essence of the information technology act is not a correct statements ?
(A) legal recognition of electronic documents

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(B) Any contrast for the sale or conveyance of immovable property or any interest in such
property
(C) legal recognition of digital signature
(D) justice dispensation system for cyber crimes

89. Which of the following is not true about rural markets ?

(A) print media is not necessarily impactful in rural markets
(B) rural customer is price sensitivity
(C) no significant change may be required in the advertising copy.
(D) products should be simpler, easy to use, service and maintain

90. A is resident in India aged 60 years earned agriculture income of Rs 500000 and non-
agricultural income Rs 300000 during the previous year 2019-20 . what is tax liability of A?
(A) Rs. 72000
(B) Rs. 72100
(C) Rs. 2600
(D) Rs. Nil

Read the passage and answer the question

recuperating of the impact of covid-19, India attained 13% growth boosted by investments in the
digital sector . infrastructure and energy deals also propped up M&A deals in India. As a result
India could achieve 13% growth in foreign direct investment (FDI) in 2020 amidst global
collapse, China is the only other country that has shown remarkably high FDI growth

An investment trends monitor issued by the united nations conference on trade and the
development (UNCTAD) pointed out, global FDI collapsed in 2020 by 42% to an estimated
USD 859 billion from USD 1.5 trillion in 2019. China and India were two major outliers in a
gloomy year for foreign direct investment.

India achieved positive growth (13%), boosted by investments in the digital sector where the
investment continued, particularly through acquisition. Cross border M&A grew 83% to $27
billion. Infrastructure and energy deals also propped up M&A deals in India. India and Turkey
are attracting good numbers of deals in IT consulting and digital sectors, including e-nations in
ICT and pharmaceutical sector, China was the world’s largest FDI recipient, with flows to the
Asian giant rising by 4% to $163 billion. High-tech industries saw an increase of 11% in 2020,
and cross-border M&As rose by 54%.

“Although their investment activity slowed down initially in 2020, they are now set to take
advantage of low interest rates and increasing market values to acquire assets in overseas
markets for expansion, as well as rivals and smaller innovative companies affected by the crisis.

91. The author opines in the paragraph that which of the following has helped to acquire assets in
overseas markets for expansion.
(A) low interest rates and increasing market values
(B) low per capita incomes and high resources
(C) attractive markets and overseas valuations
(D) governmental support and incentivization to promote cross border trade.

92. India and Turkey are attracting record numbers of deals in

(A) overall production

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(B) IT consulting and digital sectors

(C) Pharmaceutical and allied sectors
(D) GDP and per capita income

93. Annual increase / decrease in India’s annual FDI inflow and global FDI flows, respectively are
(A) USD 27 billion USD 163 billion
(B) +13% and -42%
(C) -4% and +11%
(D) Data not available

94. Which country outlined in the world in terms of FDI inflows in ICT and pharmaceutical sector?
(A) India
(B) USA
(C) Israel
(D) China

95. Which statement is not true about China ?

(A) FDI inflows increase by 4%
(B) International M&A increase by 54%
(C) highest FDI in ICT and pharmaceutical sector
(D) USD 1.5 trillion sized economy

read the following passage and answer question in the most appropriate manner.

management theories help organisation to focus, communicate, and evolve. Using management
theory in the workplace allows leadership to focus on their main goals. When a management
style or theory is implemented, it automatically streamlines the top priorities for the
organisation. Management theory also allows us to better communicate with people we work
with which in turn allows us to work more efficiently. By understanding management theory,
basic assumptions about management styles and goals can be assumed and can save time during
daily interactions and meetings within an organisation.

theories can only reach so far, and management theorises are no exception. There is no such
thing as a one-size-fits-all management theory. What may work for one organisation may not be
relevant for another . therefore, when one theory does not fit a particular situation , it is
important to explore the options of developing a new theory that would lead in a new, more
applicable direction. While some theories can stand the test time , other theories may grow to be
irrelevant and new theories will develop in their place

from the late 1700s through the early 1900s, industrial revolution brought extraordinary change
to the workplace and forever transformed the way companies operate. The industrial revolution
brought better and faster technology allowing companies to perform more efficient than ever
before and gave them the ability to dramatically increase their output. In order to meet demand,
company leadership had to ensure their employees were productive

96. Which among the following is NOT a correct statements ?

(A) industrial revolution was a turning point in business operations.
(B) management theories are ever changing
(C) good management makes communication flow better

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(D) management always moves in a straight line.

97. In the paragraph, what is meant by “ There is no such thing as a non-size fits all management
theory”
(A) management theories keeps on changing
(B) there are different theories for different situations
(C) A business can’t grow without management theories
(D) Managements theories are non-scientific
choose the correct answer from the options given below:

(A) (A),(B),(C) only

(B) (B),(C),(D) only
(C) (C),(D) only
(D) (A),(B) only

98. Given below are two statements:

statement I: management is the ultimate tool for achieving business goals.
statements II : it was management only which initiated industrial revolution.
In the light of the above statements, choose the correct answer from the options given below :

(A) Both statement I and statement II are true

(B) Both statement I and statement II are false
(C) Statement I is true but statement II is false
(D) Statement I is false but Statement II is true

99. Given below are two statements: one is labelled as Assertion A and the other is labelled as
Reason R :
Assertion A: the industrial revolution brought better and faster technology allowing companies
to perform more efficient than ever before and gave them ability to dramatically increase their
output.
Reason R : in order to meet demand, company leadership had to ensure their employees were
productive.
In the light of the above statements , choose the most appropriate answer from the options given
below :

(A) Both A and R are correct and R in the correct explanation of A

(B) Both A and R are correct and R is NOT the correct explanation of A
(C) A is correct but R is nor correct
(D) A is not correct but R is correct

100. What helps leadership to focus on their main goal?

(A) management theories
(B) organisational structure
(C) inter-personal relations
(D) effective HR policies
(E) government directives
choose the correct answer from the options given below:

(A) (A),(B),(C) only

(B) (B),(C),(D) only

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(C) (A),(B) only

(D) (A) only

ANSWER KEY

[Link] Ans [Link] Ans

1 B 51 B
2 B 52 D
3 C 53 B
4 C 54 A
5 D 55 B
6 A 56 B
7 B 57 A
8 C 58 B
9 C 59 B
10 C 60 D
11 C 61 C
12 B 62 B
13 D 63 C
14 A 64 B
15 B 65 D
16 C 66 B
17 A 67 B
18 B 68 D
19 D 69 C
20 D 70 B
21 B 71 B
22 D 72 C
23 D 73 C
24 C 74 D
25 C 75 B
26 B 76 D
27 C 77 C
28 78 C
29 A 79 D
30 A 80 B
31 C 81 C
32 A 82 D
33 B 83 B

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34 A 84 B
35 D 85 C
36 C 86 B
37 D 87 A
38 C 88 B
39 B 89 A
40 B 90 D
41 B 91 A
42 A 92 B
43 B 93 B
44 B 94 D
45 D 95 D
46 C 96 D
47 B 97 D
48 C 98 C
49 D 99 B
50 B 100 D

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25_NOVEMBER_2021 SHIFT_1

1. Characteristics constituting the core of consumers rationality includes:

(A) Homogeneous expectations
(B) Non — satiation
(C) Selfish motive
(D) Clarity of preferences
(E) Possession of information

Choose the correct answer from the options given below:

(A) A, B and C only
(B) B, C and D only
(C) A, B, C and D only
(D) B, C, D and E only

2. For a poisson distribution variable X, P(X=0) =2P(X=1,) its standard deviation would be:
(A) √2
(B) 0.5
(C) √0.5
(D) 2

3. Which of the following losses are not deductible from business income?
(A) Loss sustained before the business is commenced.
(B) Lossess incurred in the closing down of the business.
(C) Loss incurred due to damage, destruction, etc., of capital assets.
(D) Loss of raw material and finished goods in transit.
(E) Loss of stock — in — trade due to enemy action.

Choose the correct answer from the options given below:

(A) A, B, C only
(B) B, C, D only
(C) A, D, E only
(D) A, B, D only

4. Given below are two statements:

Statement I: Modified Internal rate of return is based on reinvestment assumption.
Statement II: Value — additivity principle is not applicable in NPV.

In the light of the above statements. choose the most appropriate answer from the options
given below:
(A) Both Statement I and Statement II are correct.
(B) Both Statement I and Statement II are incorrect.
(C) Statement I is correct but Statement. II is incorrect.
(D) Statement I is incorrect but Statement II is correct.

5. Which of the following persons cannot use ITR — 4?

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(A) Who is director of a company

(B) Who has held any unlisted equity shares
(C) Who has any asset located outside India
(D) A firm (other than LLP) if assessee is a Resident
(E) Who has income from other sources

Choose the most appropriate answer from the options given below:
(A) A, B, C only
(B) A, B, D only
(C) B, D, E only
(D) C, D, E only

6. In Securitisation when no assets are acquired and the collateral is fixed for the life of the
asset, the type of a structure is called as
(A) Revolving structure
(B) Amortized structure
(C) Collateralized structure
(D) Self — liquidating structure

7. If a project cost is 40.000. Its stream of earning before depreciation and tax during first year
through five years is expected to be 10.000, 12.000. 14.000. 16.000 and t 20.000. Assume a
50% tax rate and depreciation on straight line basis: project's ARR is
(A) 14.40%
(B) 72%
(C) 16%
(D) 55.56%

8. Given below are two statements:

Statement I: Deferred Tax Liabilities (Net) is the amount of tax on the temporary difference
between the accounting income and taxable income. It arises when the accounting income is
more than the taxable income.
Statement II: Deferred Tax Liabilities (Net) and Deferred Tax Assets (Net) are only book
entries i.e. they are neither actual liability nor actual asset.

In the light of the above statements. choose the correct answer from the options given below:
(A) Both Statement I and Statement II are true.
(B) Both Statement I and Statement II are false.
(C) Statement I is true but Statement II is false
(D) Statement I is false but Statement II is true

9. Which of the following statements are false? Indicate the correct code.
(A) No company has to file any prescribed declaration before commencement of business.
(B) A company can ratify the contract entered into by the promoters with third parties on
behalf of the company before its formation.
(C) The date mentioned in the certificate for commencement of business is taken as the date
of birth of a public company.

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(D) A private company has to file a ‘Settlement in lieu of prospectus’ with the registrar.

Choose the correct answer from the options given below:

(A) A, B and D only
(B) A and B only
(C) B, C and D only
(D) C and D only

10. When the value of -Investment in subsidiary" in the holding company's balance sheet is more
than the book value of the net assets acquired, the difference represents
(A) Capital reserve on consolidation
(B) Goodwill on consolidation
(C) Minority interest
(D) Post acquisition profit

11. Which of the following distinction(s) is/are not correct between public issue and rights issue?
(A) In public issue, applications for shares are invited from the general public and in rights
issue, the shares are offered to existing shareholders.
(B) In public issue there is no question of any over-subscription and in rights issue the shares
may be under subscribed or over subscribed leading to prorata allotment.
(C) The price of public issue is generally less than the market price and in rights issue, the
price is deliberately made less than the market price.
(D) In a public issue. the communication of the issue is through prospects or advertisements
and in rights issue the communication is between the company and the existing members
of the company.

Choose the most appropriate answer from the options given below :
(A) B only
(B) D only
(C) A and C only
(D) C and D only

12. Which of the following statement is correct?

𝜎𝜎
(A) Co-efficient of variance = � x 100
𝑋𝑋
(B) If value in a series are negative, the standard deviation is also negative
(C) If value in a series multiplied by a., the variance would be multiplied by 36
(D) Standard deviation is equal to square of variance.

13. Given below are two statements:

Statement I: Only low priced products will sell in rural india.
Statement II: Rural consumers are a homogenous lot.

In the light of the above statements, choose the most appropriate answer from the options
given below:
(A) Both Statement I and Statement II are correct.
(B) Both Statement I and Statement II are incorrect.

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(C) Statement I is correct but Statement II is incorrect.

(D) Statement I is incorrect but Statement II is correct.

14. The value of the firm in wealth maximisation objective is measured by

(A) Present value of all expected future cash flows
(B) All expected future cash flows
(C) Present value of all expected future profits
(D) All expected future profits

15. Which among the following is not a primary determinant of organizational structure?
(A) Chain and span
(C) Power and control
(B) Capacity and lower needs
(D) Differentiation and integration

16. Why is an indifference curve convex to the origin?

(A) Indifference curve slope downward to the right
(B) Two commodities are imprefect substitutes
(C) Declining marginal rate of substitution between commodities
(D) Diminishing marginal utilities

Choose the most appropriate answer from the options given below:
(A) A and B only
(B) B and C only
(C) C and D only
(D) A and D only

17. Which of the following can be categorized as people processing services?

(A) Health care
(B) Legal services
(C) Education
(D) Transportation

18. Use of interviews as a training needs assessment technique has the following advantages:
(A) Questions can be modified
(B) Easy to analyze
(C) Can explore unanticipated issues that come up
(D) Less time consuming

Choose the most appropriate answer from the options given below:
(A) A, B only
(B) B, C only
(C) A, C only
(D) B, C, D only

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19. Match List I with List II

List I List II
(A) Ordinary Damages (I) Never granted by way of compensation
for the loss
(B) Special Damages (II) They are quite heavy in amount and are
awarded by way of punishment only
(C) Exemplary damages (III) Arise in the ordinary course of events
from the breach of contract
(D) Nominal damages (IV) The constitute indirect loss suffered by
the aggrieved party on account of breach of
contract

Choose the correct answer from the options given below:

(A) (A) - (III), (B) – (IV), (C) – (II), (D) – (I)
(B) (A) – (IV), (B) – (III), (C) – (II), (D) - (I)
(C) (A) – (I), (B) – (I), (C) - (III), D – (IV)
(D) (A) – (III), (B) – (II), (C) - (I), D – (IV)

20. Arrange the following stages of consumer decision making process in a sequential order with
regard to a young person Divya :
(A) looks for a specific colour and showroom delivery as she does not want to wait.
(B) narrows down to a dark grey car of a specific brand.
(C) belongs to an executive group and all her colleagues have their own vehicles.
(D) uses media and other social channels to collect information about different models.
(E) feels that fuel efficiency should be the most critical factor while making a choice.

Choose the correct answer from the options given below:

(A) (A), (C), (B), (D), (E)
(B) (C), (E), (D), (A), (B)
(C) (C), (A), (D), (E), (B)
(D) (E), (C), (A), (D), (B)

21. Match List I with List II:

List I List II
(A) Market risk (I) Associated with the efficiency with
which a firm conducts its operations within
the broader environment imposed upon it.
(B) Financial risk (II) Arises due to change in operating
conditions caused by conditions thrust upon
the firm which are beyond its control.
(C) External business risk (III) Variations in price sparked off due to
real, social. political and economic events.
(D) Internal business risk (IV) Associated with the capital structure of
a firm

Choose the correct answer from the options given below:

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(A) (A) -(I), (B) - (II), (C) - (III), (D) - (IV)

(B) (A) - (III), (B) - (IV), (C) - (II), (D) - (I)
(C) (A) - (III), (B) - (I)- (C) - (II), (D) - (IV)
(D) (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

22. For a given set of paired data. the correlation and regression coefficients have been calculated
as being equal to r. bxy and byx respectively. Now, each of the values of the x series is
divided by 5. What effect does it have on each of these co — efficients?
(A) The three co—efficients remain unchanged
(B) There is no change in r but by x changes to byx / 5 and bxy changes to 5 bxy
(C) Each of the co—efficients will be reduced to one fourth of its value.
(D) There is no change in r but byx changes to 5byx and bxy changes to bxy / 5

23. The extreme case of non—price competition in an Oligopoly is

(A) Formation of cartels
(B) Interdependent decision — making
(C) Attaining economies of scale
(D) Formation of duopoly

24. Which one of the following is not one of the advantages of Derivatives market?
(A) Leveraging increases risk
(B) They enhance liquidity in the market for underlying assets
(C) They represent a form of insurance against risks
(D) They reduce price volatility

25. Match List I with List II:

List I List II – (International Trade Theories)
(A) David Ricardo (1817) (I) Theory of absolute advantage (1990)
(B) Michael Porter (II) Factor endowment theory
(C) Adam Smith (1776) (III) Theory of comparative advantage —
Ohlin (1933)
(D) Heckscher (1919) (IV) Theory of competitive advantage

Choose the correct answer from the options given below:

(A) (A) – (I), (B) – (II), (C) – (III) (D) - (IV)
(B) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(C) (A) - (IV), (B) – (III), (C) – (II), (D) - (I)
(D) (A) –(III) (B) - (IV), (C) - (II), (D) - (I)

26. Which of the following are not the objectives of competition act. 2002?
(A) Ensure freedom of trade for other participants in incidental and connected markets.
(B) Provide a reasonable level of reliability and connect operation.
(C) Adhere to generally accepted security procedures.
(D) Protect the interests of consumers.

Choose the correct answer from the options given below:

(A) A, C, D only

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(B) B, C, D only
(C) A, C only
(D) B, C only

27. Firm characteristics that help managers identify core compentencies include:
(A) Potential access to wide variety of markets
(B) Significantly contribute to the perceived customer benefits
(C) Value accretive and non competitive (D) Distinctive and difficult for competitors to
imitate

Choose the most appropriate answer from the options given below:
(A) A, B and C only
(B) B, C and D only
(C) A, B and D only
(D) A, C and D only

28. Arrange the following market structures in the increasing order of pricing power to firms.
(A) Monopolistic competition
(B) Perfect competition
(C) Duopoly
(D) Monopoly
(E) Oligopoly

Choose the correct answer from the options given below:

(A) (B), (D), (A), (E), (C)
(B) (B), (A), (E), (C), (D)
(C) (A), (C), (B), (D), (E)
(D) (D), (C), (E), (A), (B)

29. A claim for 'quantum meruit' cannot succeed:

(A) When a divisible contract is partly performed.
(B) When an indivisible contract for a lumpsum is partly performed.
(C) When a contract is discovered to be unenforceable due to some technical defect.
(D) In the case of breach of contract, the aggrieved party can claim reasonable compensation
for what he has done under the contract.

30. A test that contains a fair sample of the tasks and skills actually needed for the job in question
is:
(A) Construct validity
(B) Content validity
(C) Test validity
(D) Criterion validity

31. Logically sequence the following in the process of entering international markets outlined in
the uppsala model.

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(A) Sporadic (Ad hoc) exports

(B) Foreign production and manufacturing
(C) Establishing a foreign sales subsidiary
(D) Domestic operations and production
(E) Exporting via independent representative

Choose the correct answer from the options given below:

(A) (A), (B), (C), (D) and (E)
(B) (C), (B), (D), (A) and (E)
(C) (D), (A), (E), (C) and (B)
(D) (E), (B), (D), (C) and (A)

32. X and Y are partners, sharing profits and losses in the ratio of 4 : 3. They admit Z into the
partnership for —1 "ill share. X and Y decide to share future profits in the ratio of 2 : 1. What
is the sacrificing ratio of X and Y?
(A) 4: 3
(B) 13: 8
(C) 8: 13
(D) 4: 17

33. Arrange the following characteristics of stages of group development in the increasing order:
(A) Members begin to resolve differences and clarify the purpose of the group and the roles
of group members.
(B) It includes recognition for participation and achievement.
(C) Members are highly task — oriented and there is unity in the group.
(D) Conflicts start arising due to the differences of opinion among members.
(E) Members are moderately eager. have positive expectations. anxious about why they are
there, and who other members are

Choose the correct answer from the options given below:

(A) (E), (D), (A), (B), (C)
(B) (D), (E), (C), (A), (B)
(C) (E), (D), (A), (C), (B)
(D) (D), (B), (A), (E), (C)

34. According to AS-2. which of the following costs should be included in valuing the inventories
of a manufacturing company?
(A) Freight and insurance
(B) Carriage outwards
(C) Depreciation of factory plant
(D) General administrative overheads

Choose the most appropriate answer from the options given below :
(A) A and D only
(B) A. B and D only
(C) B and C only

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(D) A and C only

35. Match List I with List II:

List I List II
(A) Insurance Act (I) 1988
(B) Life Insurance Corporation Act (II) 1963
(C) Motor Vehicles Act (III) 1938
(D) Marine Insurance Act (IV) 1956

Choose the correct answer from the options given below:

(A) (A) - (IV), (B) - (III), (C) - (I), (D) - (II)
(B) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(C) (A) - (III) (B) - (IV), (C) - (I), (D) - (II)
(D) (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

36. Arrange the following steps in logical sequence of operation of the registration of portfolio
managers:
(A) Prior approval of the SEBI.
(B) Adequate steps for redressal of investors grievances.
(C) Maintenance of the specified capital adequacy requirements.
(D) Payment of fee. (E) Abide by the regulations under the SEBI Act.

Choose the correct answer from the options given below:

(A) (C), (E), (A), (B), (D)
(B) (D), (A), (B), (E), (C)
(C) (A), (D), (B), (C), (E)
(D) (D), (E), (A), (C), (B)

37. Given below are two statements: One is labelled as Assertion A and the other is labelled as
Reason R.
Assertion A: ITR. -1 can be used by an individual whose total income does not exceed Rs. 1
Crore.
Reason R: ITR -1 cannot be used by an individual who is director in a company.

In the light of the above statements, choose the most appropriate answer from the options
given below:
(A) Both A and R are correct and R is the correct explanation of A
(B) Both A and R are correct but R is NOT the correct explanation of A
(C) A is correct but R is not correct
(D) A is not correct but R is correct

38. Counter Vailing Duties (CVD) are often imposed on imports to offset the impact of
(A) Predatory Pricing
(B) Export Subsidies
(C) Dumping
(D) Low cost financing

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39. Match List I with List II:

List I – (Method) List II – (Purchase consideration)
Lump-sum payment method (I) Calculated by adding up the total amount
(money value) of existing shares, preference
shares and cash received from the
purchasing company for the shareholders of
the vendor company.
Net Assets Method (II) On the basis of ratio in which the shares
of the transferee company are to be
exchanged for the shares of the transferor
company.

Net Payment Method (III) The amount to be paid by the transferee

company to transferor company for
amalgamation of its business.

Swap Ratio Method (IV) Arrived at by adding the agreed value

of assets taken over and deducting there
from the agreed values of liabilities.

Choose the correct answer from the options given below:

(A) (A) - (III), (B) - (II), (C) (I), (D) - (IV)
(B) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(C) (A) - (IV), (B) - (I), (C) - (II), (D) - (III)
(D) (A) - (IV), (B) - (C) - (II), (D) - (I)

40. The offence for infringement of copyright can be for a maximum of imprisonment for a term
of
(A) 6 month and a fine of Rs. 20,000
(B) 3 years and a fine of Rs. 50,000
(C) 3 years and a fine of Rs. 2,00,000
(D) 4 years and a fine of Rs. 3,00,00

41. For a decline in price, total revenue declines if the demand of the product is
(A) Inelastic
(B) Elastic
(C) Unitary elastic
(D) Zero elastic

42. Pecking order theory in finance is based on the assertation of

(A) Asymmetric information between managers and investors
(B) Symmetric information between managers and investors
(C) Outside information
(D) Asymmetric information among investors only

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43. Corporate social responsibility is the continuing commitment by business to behave ethically
and contribute to
(A) Political awareness, social security and inclusion
(B) Public health, education and literacy
(C) Maintaining ecological balances and protecting environment
(D) Gender diversity, profiteering and market controlling
(E) Rendering. Sponsoring and donating to social and charitable activities

Choose the correct answer from the options given below:

(A) A, B and D only
(B) B, C and E only
(C) C, D and E only
(D) A, B and C only

44. Match List I with List II

List II – (Pricing Strategies) List II – (Description)
(A) Ramsay Pricing (I) Setting a high price when a product is
first introduced and gradually lowering
price as it gains scale
(B) Price skimming (II) Firm charges lower price (than the
ongoing price) to gain market entry
(C) Cost plus pricing (III) Price deviations from marginal cost
should be inversely proportional to price
elasticity of the product
(D) Penetration pricing (IV) It is full cost pricing strategy that also
includes mark up for target return. degree of
competition, price elasticity and availability
of substitutes.

Choose the correct answer from the options given below:

(A) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(B) (A) - (II), (B) - (I), (C) - (III), (D) - (IV)
(C) (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
(D) (A) - (I), (B) - (IV), (C) - (II), (D) - (III)

45. If assessee is engaged in the business of growing and manufacturing tea in India, the non-
agricultural income that can be:
(A) 40% the income from such business
(B) 25% the income from such business
(C) 60% the income from such business
(D) 75% the income from such business

46. Which of the following statements is correct relating to Indian Financial System?
(A) RBI has direct supervision over depositories and mutual funds.
(B) Monetary control is exercised through cash reserve ratio and statutory liquid ratio.

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(C) Primary dealers mainly deal in shares, mutual funds units.

(D) The decrease in statutory liquidity ratio contracts the credit creation

47. Which of the following statements are false regarding electronic purse? Indicate the correct
code.
(A) Retinal pattern verification
(B) Visual recognition
(C) No risk of bad payment
(D) Method of accepting payments with no cash float to manage and no risk of theft.

Choose the correct answer from the options given below:

(A) A, B and C only
(B) B, C and D only
(C) A and B only
(D) C and D only

48. Which one of the following statements is a promissory note?

(A) I promise to pay Q Rs.7.000. 7 days after my marriage.
(B) On demand, I promise to pay B or bearer Rs. 5.000
(C) I promise to pay Rs. 5.000 on Cs death provided C leaves with me enough money to pay
that sum.
(D) I acknowledge to be indebted to you for Rs. 10.000 to be paid on demand for value
received.

49. Following are the problems that mar an optimal international diversification:
(A) Unfavourable exchange rate movements
(B) Frictions in international markets
(C) Manipulation of security prices
(D) Unequal access to information

Choose the most appropriate answer from the options given below :
(A) A, B, C only
(B) B, C, D only
(C) A, C, D only
(D) A, B, C, D only

50. Sequence the steps for computing gross annual value of income from house property:
(A) Find out the rent actually received or receivable after excluding unrealised rent before
deducting loss due to vacancy.
(B) Find out the loss because of vacancy.
(C) Find out the reasonable expected rent of the property.
(D) Find out which one is the higher amount computed in (C) or (A).
(E) (D) — (B) is gross annual value

Choose the correct answer from the options given below:

(A) (C), (A), (D), (B), (E)

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(B) (A), (D), (C), (B), (E)

(C) (D), (A), (C), (B), (E)
(D) (A), (B), (C), (D), (E)

51. Match List I with List II:

List I - Books List II – Author(s)
(A) Wealth of Nation, 1776 (I) Thomas Malthus
(B) Principle of Political Economy and (II) Karl Marx
Taxation, 1817
(C) Principle of Population, 1798 (III) Adam Smith
(D) Das Capital, 1867 (IV) David Ricardo

Choose the correct answer from the options given below:

(A) (A) - (I), (B) - (III), (C) - (IV), (D) - (I)
(B) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(C) (A) - (II), (B) - (III), (C) - (I), (D) - (IV)
(D) (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

52. Which of the following statements are correct about Chi — Square test?
(A) The only parameter of a Chi — Square distribution is its number of degrees of freedom.
(B) The null hypothesis in given Chi — Square test is rejected when calculated value of
variable exceed its critical value.
(C) The rejection region in a goodness of fit test lies only in the right tail of the distribution.
(D) The Chi — Square test is a parametric test.
(E) At α= .05 and V =1 the critical value of x2 is equal to Z— value at the same level of
significance.

Choose the most appropriate answer from the options given below:
(A) B, D, E only
(B) A, C, E only
(C) A, B, C only
(D) B, C, D only

53. Which of the following institutions are included in the World Bank Group'?
(A) International Finance Corporation
(B) International Monetary Fund
(C) World Trade Organization
(D) Multilateral Investment Guarantee Agency
(E) International Development Association

Choose the correct answer from the options given below:

(A) A, B and C only
(B) A, B and D only
(C) A, B, D and E only
(D) A, D and E only

54. Penetration pricing strategy delivers results:

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(A) Where price quality association is weak

(B) When the product is perceived as a 'high technology' product
(C) When the market is characterised by intensive competition
(D) When the firm uses it as an entry strategy

Choose the most appropriate answer from the options given below:
(A) B, C only
(B) A, D only
(C) A, C, D only
(D) A, B, C only

55. Arrange the following items, i.e., stages of capital budgeting in correct sequence:
(A) Identification of potential investment opportunities
(B) Assembling of proposed investments
(C) Decision making
(D) Implementation and performance review
(E) Preparation of capital budget and appropriations.

Choose the correct answer from the options given below:

(A) (B), (A), (E), (C), (D)
(B) (E), (C), (A), (B), (D)
(C) (C), (E), (D), (B), (A)
(D) (A), (B), (C), (E), (D)

56. Which of the following is not true while determining length of distribution channel?
(A) The larger the market size, the longer the channel.
(B) If the average lot size is large, it is better to have a longer channel.
(C) If the product and the market require a high level of service, it is advisable to keep a
shorter channel.
(D) If customers shop for an assortment of products, it demands for a water channel of
distribution.

57. People repeat behaviours that bring them satisfaction and pleasure and stop those that bring
them dissatisfaction or pain is known as:
(A) Law of exercise
(B) Law of redo
(C) Law of effect
(D) Law of readiness

58. Factor conditions in Michael Porter's competitive advantage of Nations include

(A) Market size
(B) Demand conditions
(C) Internationally competitive suppliers
(D) Skilled labour and scientific knowledge

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59. In case the purchasing company agrees to act as the agent of the vendor for collection of the
book debts. in the books of the purchasing company. the amount of debtors should be
credited to
(A) Vendor's debtors account
(B) Vendor's suspense account
(C) Debtors account
(D) Creditors account

60. Which one of the following conditions does not constitute a valid agency by necessity?
(A) There should have been actual and definite commercial necessity for the agent to act
promptly.
(B) The agent should have acted bonafide and for the benefit of the principal.
(C) The agent should have adopted the most reasonable and practicable course under the
circumstances.
(D) Destruction of the subject matter of the contract of agency.

61. According to the theory of dividend, the firm should follow its investment policy of accepting
all positive NPV projects and paying out dividends if and only if. funds are available:
(A) Bird in hand theory
(C) 100 percent retention theory
(B) Investor rationality theory
(D) Residual theory

62. SBUs or products that have lost their position of leadership and are in the low growth markets.
are known as
(A) Star
(B) Problem child
(C) Dog
(D) Cash cow

63. Which of the following statement is correct about Mann — Whitney U — test?
(A) It is non parametric test
(B) It requires that samples are independent
(C) It can be used when populations involved are normally distributed
(D) It is used to test the null hypothesis that the two populations are involved are identical.
(E) It is always a two tailed test.

Choose the correct answer from the options given below:

(A) A, B, D only
(B) A, C, D only
(C) A, D, E only
(D) A, B, E only

64. The principles of management have the following distinct features:

(A) Flexibility
(B) Universal application

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(C) Principles are relative, not absolute

(D) Based on situation.

Choose the most appropriate answer from the options given below:
(A) A, B only
(B) B, C only
(C) A, C, D only
(D) A, B C, D

65. X. an employee of the private company, gets Rs.30.000 p.m. basic salary and entitled to
Rs.1.500 p.m. as entertainment allowance. What are the deductions u/s 16(ii) from gross
salary in respect of entertainment allowance?
(A) Rs.5.000
(B) Rs.18,000
(C) Rs.72.000
(D) Nil

66. Which of the following rules stands true while preparing schedule of changes in working
capital?
(A) An increase in current assets increases working capital
(B) An increase in current assets decreases working capital
(C) An increase in current liabilities decreases working capital
(D) An increase in current liabilities increases working capital

Choose the most appropriate answer from the options given below:
(A) A and C only
(B) A and D only
(C) B and D only
(D) A, B and C only

67. Sequence the following in increasing order of integration of member economies.

(A) Free Trade Area
(B) Economic Union
(C) Custom Union
(D) Preferential Trade Agreements
(E) Common Market.

Choose the correct answer from the options given below:

(A) (A), (C), (E), (B), (D)
(B) (B), (E), (C), (A), (D)
(C) (D), (A), (C), (E), (B)
(D) (C), (E), (B), (D), (A)

68. Which of the following are correct about complementary events?

(A) Mutually exclusive
(B) Independent

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(C) Such that their probabilities add up to 1.

(D) Collective exhaustive.

Choose the most appropriate answer from the options given below:
(A) A, B, C only
(B) A, B, D only
(C) B, C, D only
(D) A, C, D only

69. Which one of the following statements is true about under the Basel I Accord, BCBS, fixed
the minimum requirement of capital fund for banks at?
(A) 8 percent of the total risk weighted assets
(B) 9 percent of the total risk weighted assets
(C) 10 percent of the total risk weighted assets
(D) 1000 crore

70. For a very large sample size the ratio between SE and 𝜎𝜎 is 8: 40. Determine the sample size
𝑋𝑋
n:
(A) 25
(B) 5
(C) 4
(D) 16

71. Which one of the following statements is not true about Indian Money Market?
(A) Non — Banking Finance Companies (NBFCs) are financial institutions that constitute
organised component of money market.
(B) Money market mutual funds are allowed to sell units to corporates and individuals.
(C) A Well — developed money market is essential for a modern economy.
(D) In the Indian Money Market, the predominant place is enjoyed by government and semi
— government securities.

72. Arrange the following stages of processing of data in a correct sequence:

(A) Coding
(B) Editing
(C) Tabulation
(D) Classification
(E) Using Percentages

Choose the correct answer from the options given below:

(A) (A), (B), (C), (D), (E)
(B) (D), (A), (B), (C), (E)
(C) (C), (D), (A), (B), (E)
(D) (B), (A), (D), (C), (E)

73. Which of the following provident fund is approved by the provident fund commissioner?
(A) Statutory provident fund

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(B) Recognised provident fund

(C) Unrecognised provident fund
(D) Public provident fund

74. In Cobb — Douglas production function. Q = AKaLb increasing returns to scale occurs when
(A) a+b>1
(C) a+b<1
(B) K+L>1
(D) K+L<1

75. Which is the most potent driver of business transformation during Covid - 19 pandemic?
(A) Ethical consciousness
(B) Scale economies and pricing power
(C) Technology adoption and innovation
(D) Supply chain logistics and government interventions

76. Which of the following is not a valid basis for market segmentation?
(A) Customer Based Segmentation
(B) Technology Oriented Segmentation
(C) Competition Related Segmentation
(D) Product Related Segmentation

77. The basic method of valuing human assets is

(A) Adjustment
(B) Amortization
(C) Capitalization
(D) Quasi equity

78. Which of the following represents traditional logistics management approach?

(A) Independent inventory management efforts
(B) Minimise firm costs
(C) Amount of information sharing and monitoring limited to current processes
(D) Small breadth of supplier base to increase coordination

Choose the correct answer from the options given below:

(A) A, B only
(B) B, C only
(C) A, C, D only
(D) B, C, D only

79. Arrange the following stages of formation of companies in a proper sequence:

(A) Promotion stage
(B) Raising of share capital stage
(C) Incorporation stage
(D) Commencement stage
(E) Selection of name

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Choose the correct answer from the options given below:

(A) (C), (A), (E), (D), (B)
(B) (B). (E), (A), (C), (D)
(C) (A), (E), (C), (B), (D)
(D) (D), (A), (B), (C), (E)

80. The advantages of incentive payments are

(A) Ease in the introduction of new machines
(B) Better utilization of equipment
(C) Reduced absenteeism and turnover
(D) Increased scrap

Choose the most appropriate answer from the options given below:
(A) A, B only
(B) B, C only
(C) B, C, D only
(D) A, B C only

81. Financial crises takes the form of

(A) Currency crisis
(B) Banking crisis
(C') Systematic financial crisis
(D) Foreign debt crisis

Choose the correct answer from the options given below:

(A) A, B, C only
(B) A, B, D only
(C) B, C, D only
(D) A, B, C, D only

82. Match List I with List II

List I List II
(A) Section 35 (2AA) (I) Payment made to certain institutions for
Scientific research.
(B) Section 35 (A) (ii a) (II) Payment made to certain institutions for
research in social sciences.
(C) Section 35 (A) (iii) (III) Payment made to a company to be used
for scientific research.
(D) Section 35 (A) (ii) (IV) Payment made to Indian Institute of
Technology for Scientific Research.

Choose the correct answer from the options given below:

(A) (A) – (IV), (B) – (II), (C) – (III), (D) – (I)
(B) (A) – (IV), (B) – (III), (C) – (II), (D) – (I)
(C) (A) – (I), (B) – (II), (C) – (III), (D) – (IV)
(D) (A) – (I), (B) – (II), (C) – (IV), (D) – (III)

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83. Given below are two statements:

Statement I: Delegation is an interpersonal transactions based on behaviour analysis.
Statement II: Delegation is an evolutionary and developmental process which needs
encouragement and reinforcement.

In the light of the above statements, choose the most appropriate answer from the options
given below:
(A) Both Statement I and Statement II are correct.
(B) Both Statement I and Statement II are incorrect.
(C) Statement I is correct but Statement II is incorrect.
(D) Statement I is incorrect but Statement II is correct

84. An act in a way that results in the greatest good for the greatest number is:
(A) The golden rule
(B) The utilitarian principle
(C) The four-way test
(D) Kant’s categorical imperative

85. The liquidator after realizing the assets of the company should distribute the proceeds among
below mentioned claimants in the following order:
(A) Legal charges
(B) Liquidators remuneration and cost of expenses of winding up
(C) Workman's dues and claims of the secured creditors
(D) Preferential creditors and creditors secured by floating charge
(E) Unsecured creditors

Choose the correct answer from the options given below:

(A) (B), (C), (A), (D), (E)
(B) (D), (C), (B), (A), (E)
(C) (A), (B), (C), (D), (E)
(D) (B), (C), (E), (A), (D)

86. Which of the following forms may not result in credit risk?
(A) Principle and/or interest amount may not be repaid in the case of direct lending.
(B) In case of guarantees or letter of credit, fund may not be forth coming from the
constituents upon crystallisation of the liability.
(C) Fluids/Securities settlement may not be effected, in case of securities trading business.
(D) Provide information for determining adequacy of loan loss provision.

Choose the correct answer from the options given below:

(A) A. B and C only
(B) A, C and D only
(C) B and C only
(D) D only

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87. To prevent opportunistic takeover of domestic firms amid Covid – 19 pandemic, Foreign
Direct Investment (FDI) from countries that share borders with India is allowed through
(A) Automatic route
(B) Government route
(C) FIPB route
(D) DPIIT route

88. Which of the following statements are the defects of Indian Money Market?
(A) Profitable Investment
(B) Dichotomy in Indian Money Market
(C) Financing Industry
(D) Diversity in interest rates

Choose the correct answer from the options given below:

(A) A, B and C only
(B) B and C only
(C) A, B and D only
(D) B and D only

89. Match List I with List II:

List I (Personality dimensions) List II (Individual Traits)
(A) Extroversion (I) Calm, happy and secure
(B) Conscientiousness (II) Talkative, assertive, sociable and
outgoing
(C) Emotional stability (III) Creative, curious, intellectual,
imaginative and artistically sensitive
(D) Openess to experience (IV) Self-disciplined, hardworking,
organised. dependable and persistent.

Choose the correct answer from the options given below:

(A) (A) - (II), (B) – (IV), (C) - (III), (D) - (I)
(B) (A) – (II), (B) - (IV), (C) – (I), (D) - (III)
(C) (A) – (III), (B) - (II), (C) – (I), (D) - (IV)
(D) (A) - (IV), (B) - (I), (C) - (II), (D) - (III)

90. AMT Provisions are applicable on

(A) Corporate assessee
(B) Non-Corporate assessee
(C) HUF
(D) An Individual

Passage
In 2019. India's ten largest trading partners were USA, China, UAE, Saudi Arabia, Hong
Kong, Iraq, Singapore. Germany. South Korea and Switzerland. In 2018 — 19. the Foreign
Direct Investment (FDI) in India was $64.4 billion with service sector, computer and telecom
industry remains leading sectors for FDI inflows. India has free trade agreements with several
nations. including ASEAN. SAFTA, Mercosur. South Korea. Japan and few others which are

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in effect or under negotiating stage. The service sector makes up 55.6% of GDP and remains
the fastest growing sector. while the industrial sector and the agricultural sector employs a
majority of the labor force. The Bombay Stock Exchange and National Stock Exchange are
one of the World's largest stock exchanges by market capitalisation. India is the world's sixth
— largest manufacturer, representing 3% of global manufacturing output and employs over
57 million people. Nearly 66% of India's population is rural whose primary source of
livelihood is agriculture and contributes less than 50% of India's GDP. It has the world's fifth
— largest foreign — exchange reserves worth 38.832.21 billion (LTS $540 billion). India has
a high national debt with 68% of GDP, while its fiscal deficit remained at 3.4% of GDP.
However, as per 2019 CAG report, the actual fiscal deficit is 5.85% of GDP. India's
government — owned banks faced mounting bad debt, resulting in low credit growth:
simultaneously the NBFC sector has been engulfed in a liquidity crisis. India faces high
unemployment, rising income inequality and major slump in aggregate demand.

On the basis of the above passage, give answers to question

91. Which of the following sectors have significant Foreign Direct Investment (FDI) in India?
(A) Service Sector
(B) Secondary Sector
(C) Primary Sector
(D) Fisheries and Animal Husbandry

Choose the correct answer from the options given below:

(A) (A) and (B) only
(B) (B) and (C) only
(C) (C) and (D) only
(D) (A) and (D) only

92. The comptroller and the Auditor General has reported a different estimate than of
governments, in terms of:
(A) GDP
(B) Fiscal Deficit
(C) FDI
(D) Liquidity of private banks

93. India has significant trading partners from which of the following regions:
(A) Europe
(B) America
(C) Asia
(D) Africa

Choose the correct answer from the options given below:

(A) (A), (B), (C) only
(B) (B), (C), (D) only
(C) (A), (B), (D) only
(D) (A) and (D) only

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94. Which of the following has not been articulated in the passage?
(A) GDP Growth
(B) Currency flows
(C) Liquidity
(D) Demographics

Choose the correct answer from the options given below:

(A) (A) and (B) only
(B) (B) and (C) only
(C) (B) only
(D) (C) and (D) only

95. Which among the following statements is the correct one? (Choose the most appropriate one)?
(A) India has a better trade relation with European countries.
(B) MSE is the largest stock exchange in the world.
(C) Indian primary sector is contributing less as compared to other sectors. s
(D) India attracts highest FDI from USA.

96. Find the capacity variance for the month from the information given in the passage.
(A) Rs. 1.000 (Favourable)
(B) Rs. 900 (Adverse)
(C) Rs. 1.500 (Favourable)
(D) R s. 1.000 (Adverse)

97. From given information in the passage. what is the volume variance of XYZ Ltd in given
month?
(A) Rs. 3,000 (Favourable)

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(B) Rs. 2.000 (Adverse)

(C) Rs. 1,500 (Favourable)
(D) Rs. 1.500 (Adverse)

98. What is the expenditure variance of XYZ Ltd as on given month?

(A) Rs. 1.000 (Adverse)
(B) Rs. 1.500 (Adverse)
(C) Rs. 2.000 (Favourable)
(D) Rs. 1,500 (Favourable)

99. What is the total overhead variance in the given month experienced by the XYZ Ltd?
(A) Rs. 4.000 (Favourable)
(B) Rs. 2.000 (Adverse)
(C) Rs. 1.000 (Adverse)
(D) Rs. 2,000 (Favourable)

100. Given the information in the passage. what is the calendar variance for the month?
(A) Rs. 2.000 (Favourable)
(B) Rs. 3.000 (Adverse)
(C) Rs. 2.400 (Favourable)
(D) Rs. 1.000 (Adverse)

ANSWER KEY

[Link] Ans [Link] Ans

1 D 51 B
2 C 52 C
3 A 53 D
4 C 54 C
5 A 55 D
6 D 56 B
7 C 57 C
8 A 58 D
9 C 59 B
10 B 60 D
11 A 61 D
12 A 62 C
13 B 63 A
14 C 64 D
15 B 65 D
16 B 66 A
17 A 67 C
18 C 68 D
19 A 69 A
20 B 70 A

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21 B 71 A
22 D 72 D
23 A 73 B
24 A 74 A
25 B 75 C
26 D 76 B
27 C 77 B
28 B 78 A
29 B 79 C
30 B 80 B
31 C 81 B
32 D 82 B
33 C 83 D
34 D 84 B
35 C 85 C
36 C 86 D
37 D 87 B
38 B 88 D
39 B 89 B
40 C 90 B
41 A 91 A
42 A 92 B
43 B 93 A
44 C 94 C
45 A 95 C
46 B 96 C
47 C 97 A
48 D 98 A
49 D 99 D
50 A 100 C

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25_NOVEMBER-2021 SHIFT _II

1. Which of the following are required to be studied for a deep understanding of Income Tax
procedures?
A. The Income Tax Act, 1961
B. The Income Tax Rules, 1962
C. Notifications, circulars and classification issued from time to time by the CBDT.
D. Judicial decisions
E. Companies Act, 2013

Choose the correct answer from the options given below:

(A) A, B and E only
(B) A, B, C and D only
(C) A, C, D and E only
(D) B, C, D and E only

2. Match List I with List II

List I List II
A. Ind - AS: 1 I. Provisions, Contingent Liabilities and Contingent
Assets
B. Ind- AS: 29 II. Consolidated Financial Statements
C. Ind-AS: 37 III. Presentation of Financial Statements
D. Ind-AS: 110 IV. Financial reporting in Hyperinflationary
Economies

Choose the correct answer from the options given below:

(A) A - Ill, B - I, C - II, D - IV
(B) A - Ill, B - IV, C - I, D - II
(C) A - IV, B - Ill, C - I, D - II
(D) A - IV, B - Ill, C - II, D – I

3. The characteristics of online and social media marketing are:

A. Personal
B. Rich
C. Timely
D. Interactive
E. Up to date

Choose the correct answer from the options given below:

(A) A, C and D only
(B) A, D and E only
(C) B and E only
(D) B, D and E only

4. Logically sequence the following steps in the managerial decision-making process

A. Determining the objective
B. Selecting the best solution

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C. Implementing the decision

D. Defining the problem
E. identifying possible solutions

Choose the correct answer from the options given below:

(A) A, E, B, C, D
(B) A, E, D, B, C
(C) D, A, C, E, B
(D) D, A, E, B, C

5. A U- shaped long-run average cost curve is based on the assumptions that

A. Economies of scale prevails at small levels of output
B. Diseconomies of scale prevails at larger levels of output
C. Benefits of the division of labour and specialisation accrue more at the lower scale of
production
D. Managerial inefficiencies are prone to a higher scale of operations

Choose the correct answer from the options given below:

(A) A, B and C only
(B) A, B, C and D
(C) A, C, and D only
(D) B, C and D only

6. When the sum of exponents exceeds one (a + b > 1) in the Cobb - Douglas production function, it
causes which one of the following?
(A) Constant returns to scale
(B) Decreasing returns to scale
(C) Increasing returns to scale
(D) Variable returns to scale

7. The mode of joint venturing in international business that allows a company to conduct business
in another country whose laws discourage foreign ownership is known as:
(A) Contract manufacturing
(B) International Franchising
(C) Joint ownership
(D) Licensing

8. Constituents of Integrated marketing are:

A. Customers
B. Price
C. Communications
D. Products and services
E. Channels

Choose the correct answer from the options given below:

(A) A, B and C only

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(B) A, B, D and E only

(C) B, C, D and E only
(D) C, D and E only

9. Which among the following are generally accepted methods of accounting for price level
changes?
A. Replacement Cost Method
B. Current Purchasing Power Method
C. Opportunity Cost Method
D. Current Cost Accounting Method
E. Standard Cost Method

Choose the correct answer from the options given below:

(A) A and C only
(B) A, B and C only
(C) B and D only
(D) C, D and E only

10. Given below are two statements:

Statement I: patents are defined as monopoly rights which one granted by the government, for
full disclosure of invention for a limited period of time, that is for 20 years
Statement II: The purpose of granting patents is to encourage inventions by promoting their
protection and utilization so as to contribute to the development of Industries

In light of the above statements, choose the most appropriate answer from the options given
below
(A) Both Statement I and Statement II are correct
(B) Both Statement I and Statement II are incorrect
(C) Statement I is incorrect but Statement II is correct
(D) Statement I is correct but Statement II is incorrect

11. In Banking Technologies, Star Topology involves:

(A) Devices are connected in a close loop
(B) Devices on the network are connected to a single continuous cable
(C) Each node is joined to the central node by a separate medium
(D) Information is passed from one node to another in series

12. Which one of the following is CORRECT?

(A)

(B)

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(C)

(D)

13. The basic premise of the MM-approach is based on which of the following assumptions?
A. Asymmetrical information
B. Efficient capital markets
C. Investor rationality
D. Diverse business risk profile
E. 100% dividend payout ratio

Choose the correct answer from the options given below:

(A) A, Band C only
(B) A, C and E only
(C) B, C and E only
(D) C, D, and E only

14. The cross-price elasticity of demand for complementary commodities is

(A) Greater than one
(B) Negative
(C) Positive
(D) Zero

15. Which one of the following generations is more pragmatic and individualistic?
(A) Baby Boomers
(B) Gen X
(C) Gen Y
(D) Silent generation

16. The sources of the Indian GAAP (IGAAP) include:

A. Indian Companies Act, 2013
B. Notifications issued by Ministry of Finance
C. Accounting standards
D. ICAl's pronouncements

Choose the correct answer from the options given below:

(A) A and C only
(B) A, B, and C only
(C) A, C, and D only
(D) B, C, and D only

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17. The characteristics of different levels of leaders are given below. Arrange these in an increasing
order of levels
A. He contributes to the achievement of group objectives and works effectively with others in a
group
B. He builds enduring greatness through a paradoxical combination of professional will and
personal humanity
C. He makes a productive contribution through talent, knowledge, skills, and good work habits
D. He catalyses commitment to and vigorous pursuit of a clear and compelling vision and
stimulates the group to high-performance standards
E. He organises people and resources towards the effective and efficient pursuit of
predetermined objectives

Choose the correct answer from the options given below:

(A) A, C, E, B, D
(B) A, E, D, B, C
(C) C, A, E, D, B
(D) C, E, D, A, B

18. Bretton Woods resolutions led to the formation of:

(A) GATT
(B) IMF
(C) UNCTAD
(D) WTO

19. Which of the following statements are CORRECT?

A. The critical value of Z for two tailed test with a= 0.5 is 1.96
B. The critical value of Z for a two tailed test with a= 0.01 is 2.575
C. The critical value of Z for one tailed test with a= 0.05 is 1.96
D. The critical value of Z for a left-tailed test with a= 0.01 is -2.33

Choose the correct answer from the options given below:

(A) A and B only
(B) A, B and C only
(C) A, B and D only
(D) B, C and D only

20. Arrange in sequence the steps in the procedure of e-filing of an Income Tax Return
A. Login
B. Register
C. Verification
D. e-filing
E. Downloading utility and preparing the return

Choose the correct answer from the options given below:

(A) A, B, C, D, E
(B) A, B, C, E, D

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(C) A, B, E, C, D
(D) B, A, E, D, C

21. Cash flows are presumably reinvested in capital budgeting decisions at

A. Discount rate
B. Market rate
C. Cost of capital
D. Riskless rate
E. Internal rate of return

Choose the correct answer from the options given below:

(A) A, C and D only
(B) A, C and E only
(C) B, C and D only
(D) C, D and E only

22. The resource seeking FDI moves to a country where:

(A) Financial resources help MNCs improve their efficiency
(B) Per capita income and size of the market are large
(C) Raw materials and manpower are in abundance
(D) Technologies are available to improve productivity

23. Section 80GGC of Income tax is:

(A) Deduction in respect of certain donation for scientific research
(B) Deduction in respect of contribution given by any company to political parties
(C) Deduction in respect of contribution given by any person to political parties
(D) Deduction in respect of rent paid

24. Which one of the following State Taxes have NOT been replaced by GST?
(A) Luxury Tax
(B) Purchase Tax
(C) Special additional duty of customs
(D) Taxes on lotteries, betting, and gambling

25. The practice of delaying receipts from the foreign currency designated receivables whose
currencies are likely to appreciate and delaying foreign currency designated payables whose
currencies are likely to depreciate is known as:
(A) Lagging
(B) Leading
(C) Netting
(D) Risk hedging

26. Tax Audit is compulsory in case a person is carrying on a business whose gross turn over/receipts
exceeds:
(A) Rs. 1 crore
(B) Rs. 40 lakh

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(C) Rs. 50 lakh

(D) Rs. 60 lakh

27. An ITR-1 can be used by an individual having an income from

A. One house property
B. Pension
C. lntrest on Fixed Deposits in Banks
D. Winnings from lottery

Choose the correct answer from the options given below:

(A) A, B and C only
(B) A, B and D only
(C) A, C and D only
(D) B, C and D only

28. Which one of the following vehicles is used when traffic building is the consumer promotion
objective?
(A) Catalogue offers
(B) Coupons
(C) Discount sales
(D) Special events

29. The partial integration of agricultural with non-agricultural income is done in case of:
(A) AOP /BO1
(B) Company
(C) Co-operative society
(D) Firm

30. Which of the following is NOT the feature of the Indian capital market?
(A) Co-promotes state-level venture funds
(B) Government rules and regulations
(C) Link between savers and investment opportunities
(D) Utilises intermediaries

31. The values in one of the series in a bivariate data set are multiplied by a constant K, which of the
following would change as a result of this?
A. Karl Pearson's coefficient of correlation
B. Standard deviation
C. Covariance between the variables
D. Rank correlation coefficient

Choose the correct answer from the options given below:

(A) A, and D only
(B) A, B and C only
(C) A, B, and D only
(D) B and C only

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32. Which one of the following statements are TRUE about the contract of Bailment?
(A) A contract of Bailment does not result when a person leaves some goods with his friend for
being looked after
(B) Bailee has a right of the general lien
(C) Hiring of bank locker is a contract of Bailment
(D) Money deposited in fixed deposit with a bank is a contract of Bailment

33. Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason
R
Assertion A: Two companies with the same general earning power and same general position in
an industry, the one paying larger dividend will almost always sell at a higher price
Reason R: The discounted value of near dividends is higher than the present worth of distant
dividends

In light of the above statements, choose the most appropriate answer from the options given
below:
(A) A is correct but R is not correct
(B) A is not correct but R is not correct
(C) Both A and R are correct and R is the correct explanation of A
(D) Both A and R are correct but R is NOT the correct explanation of A

34. From the following information about a firm, what will be the contribution to sales (c/s) ratio and
the profit?
Sales = ₹ 100,000
Fixed Cost= ₹ 20,000
Break-even Point = ₹ 40,000
(A) C/S = 25% and Profit = ₹ 60,000
(B) C/S = 50% and Profit = ₹ 30,000
(C) C/S = 50% and Profit = ₹ 60,000
(D) C/S = 60% and Profit = ₹ 30,000

35. Factors that reduce price sensitivity are:

A. Buyers cannot store the product
B. The expenditure is a larger part of the buyer's total income
C. Buyer are aware of substitutes
D. The product is used in conjunction with assets previously bought
E. Part of the cost is borne by another party

Choose the correct answer from the options given below:

(A) A and B only
(B) A, D and E only
(C) B, D and E only
(D) C, D and E only

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36. Arrange the following economic regions in increasing order of FDI inflows, as per the UNCTAD
Report, 2020?
A. Developing economies
B. Transition economies
C. North America
D. Developed economies
E. Europe

Choose the correct answer from the options given below:

(A) A, B, C, E, D
(B) B, A, C, E, D
(C) B, A, D, E, C
(D) E, B, D, C, A

37. The due date of the first instalment of advance tax paid by an
assessee other than the company is:
(A) 15th April
(B) 15th December
(C) 15th June
(D) 15th September

38. Which one of the following is the most suitable coping

mechanism if 'fear of overload' is the source of resistance to
change?
(A) Participation and involvement
(B) Role clarity and definition
(C) Role redefinition and re-orientation
(D) Support of resource

39. With reference to product hierarchy, life insurance is an

example of:
(A) Product class
(B) Product family
(C) Product line
(D) Product type

40. What is the sustainable growth rate of the company that

enjoys return on equity= 30 percent and a dividend payout
ratio of 40 percent?
(A) 12 per cent
(B) 18 per cent
(C) 30 per cent
(D) 40 per cent

41. In which of the following cases, the Doctrine of Supervening impossibility will apply?
(A) Commercial Impossibility
(B) Difficulty in performance

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(C) Impossibility known to the parties at the time of making of the contract
(D) Strikes, Locks-outs, and civil disturbances

42. Match List I with List II

List I – Hedging Description List II – Concepts

A. European I. Option contract exercised on any date up to option
maturity
B. Option II. When the immediate exercise of an option
premium
C. In-money III. Option contract exercised only on the
option maturity date
D. American IV. It is paid by the buyer of the options
option upfront to the option seller

Choose the correct answer from the options given below:

(A) A - I, B - II, C - Ill, D - IV
(B) A - I, B - II, C - IV, D - Ill
(C) A - I, B - IV, C - II, D - Ill
(D) A - Ill, B - IV, C - II, D – I

43. Arrange the following steps in the process of hypothesis testing in proper sequence:
A. Select the level of significance
B. Setup null and alternative hypothesis
C. Establish the decision rule
D. Performance computations
E. Select test statistics
F. Draw conclusion

Choose the correct answer from the options given below:

(A) A, B, C, D, E, F
(B) A, B, E, D, C, F
(C) B, A, C, D, E, F
(D) B, A, E, C, D, F

44. Match List I with List II

List I List II
A. Dispersion I. Involving relationship between
the median and quartile
B. Karl Pearson's II. Based on the relationship measures of
skewness between the averages
C. Bowley's measures of skewness III. Using percentile
D. Kelly's measure of IV. Amount of variation in given skewness
data

Choose the correct answer from the options given below:

(A) A - I, B - II, C - Ill, D - IV

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(B) A - IV, B - I, C - II, D - Ill

(C) A - IV, B - II, C - I, D - Ill
(D) A - IV, B - Ill, C - II, D – I

45. The term current account transaction is defined as a transaction other than a capital account
transaction and without prejudice to the generality of the foregoing, such transaction includes:
A. Overseas direct investment, (ODIs) from India
B. Payment due as interest on loans and as net income from investments
C. Remittances for living expenses of parents, spouse, and children residing abroad
D. Borrowing or lending in foreign exchange and in Indian rupees

Choose the correct answer from the options given below:

(A) A and B only
(B) A and D only
(C) B and C only
(D) D only

46. The functions of lower management are:

A. Executing plans in accordance with the policies and directives of the top management
B. Maintaining discipline among the workers
C. Selecting suitable operative and supervisory personnel
D. Providing training to the workers
E. Maintaining good human relations

Choose the correct answer from the options given below:

(A) A and B only
(B) A, B and C only
(C) B, D and E only
(D) C and D only

47. An economy grows at 5%, 12%, and 70/o over the last three years. The average annual increase
over this period would be:
(A) 8% or less
(B) At least 8%
(C) Equal to 8%
(D) Less than 8%

48. Match List I with List II relating to The Sale of Goods Act
List I List II
A. Actionable claim I. Goods to be manufactured after the making of the
contract
B. Appropriation of goods II. Goods owned by the seller at the time of the making of
the contract of sale
C. Existing goods III. Separating the goods sold from other goods so as to
determine and identify the actual goods to be delivered
D. Future goods IV. Recovered only by means of a suit or an action in a
court of law

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Choose the correct answer from the options given below:

(A) A - I, B - II, C - III, D - IV
(B) A - II, B - IV, C - I, D - III
(C) A - III, B - I, C - IV, D - II
(D) A - IV, B - III, C - II, D – I

49. Which one of the following is NOT true regarding input tax credit to avoid cascading effect?
(A) Input Tax credit of CGST can be utilised for payment of CGST first and balance for
payment of IGST on outward suppl
(B) Input Tax credit of SGST /UTGST can be utilised for payment of CGST
(C) Input Tax credit of UTGST can be utilised for payment of UTGST
(D) Input Tax credits of SGST can be utilised for payment of SGST first and balance for
payment of IGST on outward supply

50. Arrange the following steps in a logical sequence of the claim settlement procedure in the
Insurance
A. Scrutinisation
B. Investigation of an assessment
C. Claim form
D. Notice of loss
E. Settlement and Arbitration

Choose the correct answer from the options given below:

(A) A, B, C, D, E
(B) C, A, D, B, E
(C) C, B, A, E, D
(D) D, C, A, B, E

51. Arrange the following levels of economic integration, from least integrated to the most
integrated:
A. Customs Union
B. Free Trade Area
C. Economic Union
D. Common Market
E. Political Union

Choose the correct answer from the options given below:

(A) A, B, C, D, E
(B) B, A, D, C, E
(C) D, C, A, B, E
(B) E, D, C, A, B

52. Identify three conditions that a firm must meet to practice price discrimination:
A. The firm must have some control over the price and the product
B. The firm must operate in the growth phase of its product life cycle

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C. The markets in which products are sold must be separable

D. Price elasticity of demand for the product must differ
E. The firm operates its plant at full capacity

Choose the correct answer from the options given below:

(A) A, B and C only
(B) A, C and D only
(C) B, C and D only
(D) B, D and E only

53. Match List I with List II

List I List II
A. Role of Commercial I. Help to consumers
B. NBFC service Bank II. Mutual saving bank
C. Non-depository Institution III. Hire purchase
D. Depository Institution IV. Mutual fund

Choose the correct answer from the options given below:

(A) A - I, B - III, C - IV, D - II
(B) A - II, B - I, C - III, D - IV
(C) A - III, B - IV, C - II, D - I
(D) A - IV, B - II, C - I, D – III

54. Match List I with List II

List I - Events List II - Year
A. Bretton Woods Conference I. 1948
B. GATT established II. 1974
C. Multi-fibre Agreement III. 1944
D. WTO replaced GATT IV. 1995

Choose the correct answer from the options given below:

(A) A - II, B - IV, C - III, D - I
(B) A - III, B - I, C - II, D - IV
(C) A - III, B - I, C - IV, D - II
(D) A - IV, B - II, C - I, D – III

55. Which market form leads to more technological change and product improvements than
alternative forms of market structure?
(A) Monopolistic competition
(B) Monopoly
(C) Oligopoly
(D) Perfect competition

56. Arrange the steps of market segmentation process in the proper sequence
A. Segment "Acid Test"
B. Segment Attractiveness
C. Need Based Segmentation

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D. Segment Profitability and Segment Positioning

E. Segment Identification

Choose the correct answer from the options given below:

(A) A, B, C, E, D
(B) A, E, C, D, B
(C) C, E, B, D, A
(D) E, C, D, B, A

57. Which of the following is INCORRECT about ways, the RBI can affect the structure of interest
rates?
A. By changing the treasury bill rate
B. Blending of leading and trading activities
C. By changing the Bank rate
D. Fixing the maximum interest on time deposits with the bank
E. Ineffective tapping and mobilization of savings

Choose the correct answer from the options given below:

(A) A and D only
(B) A, C, D and E only
(C) B and E only
(D) D and E only

58. Match List I with List II

List I List II
A. Section 10 (1) I. Amount received involuntary retirement
B. Section 10 (10 C) II. Agricultural Income
C. Section 10 (13 A) III. Leave Encashment
D. Section 10 (10 AA) IV. House Rent Allowance

Choose the correct answer from the options given below:

(A) A - II, B - I, C - III, D - IV
(B) A-II, B - I, C - IV, D - III
(C) A - IV, B - III, C - I, D - II
(D) A - IV, B - III, C - II, D – I

59. Buoyancy is a basic principle of taxation which means:

A. The system should be such that cost of collection is least
B. Tax obligation of the payers should be well determined
C. The system should be such that the tax revenue has the inherent tendency to increase as the
economy grows
D. Tax base should be fairly diversified so that the tax burden is widely spread

Choose the correct answer from the options given below:

(A) A and B only
(B) A only
(C) C only

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(D) D only

60. Companies strive to stockpile internally generated cash. Such a cash reserve is called
(A) Financial float
(B) Financial slack
(C) Margin of safety
(D) Reserve float

61. 'A', 'B' and 'C' are partners sharing profits in the ratio of 3:2:1. 'D' is admitted for
1th
6
share and 'C' should retain his original share.

The sacrificing ratio of A and B will be:

(A) 1: 2
(B) 2: 1
(C) 2: 3
(D) 3: 2

62. Which one of the following is NOT true for the functional organization?
(A) Functional managers are specialists in their respective areas
(B) It is based on the principle of unity of command
(C) It is useful for large-scale business
(D) The discipline tends to become loose

63. A certain bivariate data byx and bxy have been calculated which is equal to 2.4 and 0.4,
respectively. If the value of the x series are all multiplied by 5 and all values of y series are
divided by 2, how would it affect the value of the two coefficients?
(A) Both the coefficients get multiplied so byx = 6.0 and bxy = 4
(B) Both the coefficients remains unchanged
(C) The coefficients are revised by byx = 0.24 and bxy = 4.0
(D) The coefficients are revised by byx = 24 and bxy = 0.04

64. Given below are two statements:

Statement I: Assessee is always a person but a person may or may not be an assessee
Statement II: The term 'person' includes an individual, a HUF,
a company, a firm, an association of persons, local authority and every artificial juridical person

In light of the above statements, choose the most appropriate answer from the options given
below:
(A) Both Statement I and Statement II are correct
(B) Both Statement I and Statement II are incorrect
(C) Statement I is correct but Statement II is incorrect
(D) Statement I is incorrect but Statement II is correct

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65. Which of the following order is followed in the issue of shares under the "Fixed Price Offer
Method"?
A. Issue of a prospectus
B. Receipt by the company of application for share
C. Selection of merchant banker
D. Issue of share certificates
E. Allotment of shares to the applicant

Choose the correct answer from the options given below:

(A) A, D, E, C, B
(B) C, A, B, E, D
(C) C, B, A, D, E
(D) E, B, A, C, D

66. Identify the components of the credit policy of a business firm from the following:
A. Collection policy
B. Factoring
C. Credit rating
D. Credit analysis
E. Terms of sale

Choose the correct answer from the options given below:

(A) A, C and D only
(B) A, D and E only
(C) B, C and D only
(D) C, D and E only

67. Fill in the blanks

The collapse of Eastern Europe in ______ and USSR in _____ lead to emergence of the
transitory economies.
(A) 1980, 1987
(B) 1988, 1995
(C) 1989, 1991
(D) 1997, 1991

68. According to Plutchik, which one of the following is NOT a secondary emotion?
(A) Distrust
(B) Fear
(C) Hostility
(D) Insecurity

69. Match List I with List II

List I - Nature of commodities List II - Income Elasticities of Demand
A. Normal goods I. Greater than one
B. Inferior goods II. Between zero and one
C. Luxurious commodities III. Greater than zero (positive)
D. Necessities IV. Less than zero (negative)

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Choose the correct answer from the options given below:

(A) A - II, B - IV, C - I, D - III
(B) A - II, B - IV, C - III, D - I
(C) A - III, B - I, C - IV, D - II
(D) A - III, B - IV, C - I, D – II

70. Incentives schemes where earnings differ at different levels of output are:
A. Gantt Task System
B. Halsey Plan
C. Rowan Plan
D. Bedaux Plan
E. Emerson's Efficiency Plan

Choose the correct answer from the options given below:

(A) A and E only
(B) A, C and D only
(C) A, C and E only
(D) B and E only

71. Which of the following losses are NOT deductible from business Income?
A. Loss incurred in closing down the business
B. Loss incurred due to damage destruction etc. of capital assets
C. Loss of stock-in-trade due to enemy action
D. Loss sustained before the business is commenced
E. Loss of raw material finished good-in-transit

Choose the correct answer from the options given below:

(A) A, B, C only
(B) A, B, D only
(C) A, D, E only
(D) C, D, E only

72. The technique of marginal costing is based upon which of the following assumptions:
A. Fixed cost will tend to remain constant or unchanged for the entire volume of production
B. Variable cost remains constant per unit of output irrespective of the level of output
C. There will not be any change in pricing policy due to change in volume, competition, etc.
D. Operating efficiency of the firm may increase or decrease

Choose the correct answer from the options given below:

(A) A and B only
(B) A, B and D only
(C) A, B, and C only
(D) A, B, C and D

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73. Given below are two statements, one is labelled as Assertion A and the other is labelled as
Reason R
Assertion A: Quick ratio is a more penetrating test of liquidity than the current ratio, yet a high
quick ratio does not necessarily imply sound liquidity.
Reason R: A company with a high value of quick ratio can suffer from a shortage of funds if it
has slow-paying, doubtful and long duration outstanding debtors

In light of the above statements, choose the most appropriate answer from the options given
below:
(A) A is correct but R is not correct
(B) A is not correct but R is correct
(C) Both A and Rare correct and R is the correct explanation of A
(D) Both A and R are correct but R is NOT the correct explanation of A

74. Given below are two statements:

Statement I: The aim of marketing is to make selling superfluous
Statement II: Marketing should result in a customer who is ready to buy

In light of the above statements, choose the most appropriate answer from the options given
below:
(A) Both Statement I and Statement II are correct
(B) Both Statement I and Statement II are incorrect
(C) Statement I is correct but Statement II is incorrect
(D) Statement I is incorrect but Statement II is correct

75. Which one of the following statement is FALSE regarding transactions of Internet Banking?
(A) Balance inquiry
(B) Statement of account is for a specific period
(C) Transfer of funds from one account to another account
(D) Withdrawal of cash anywhere in India

76. A price ceiling below the equilibrium price often leads to a shortage of the commodity and
possibly:
(A) Black marketing
(B) Commodity glut
(C) Increased consumption
(D) Price manipulations

77. Match List I with List II

List I List II
A. Value added by Channel Members-Low; I. Introductory stage
Market Growth Rate-Low
B. Value added by Channel Members-High; II. Growth stage
Market Growth Rate-Low
C. Value added by Channel Members-Low; III. Mature stage

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Market Growth Rate-High

D. Value added by Channel Members-High; IV. Decline stage
Market Growth Rate-High

Choose the correct answer from the options given below:

(A) A - I, B - IV, C - III, D - II
(B) A - II, B - I, C - III, D - IV
(C) A - III, B - I, C - IV, D - II
(D) A - IV, B - I, C - III, D – II

78. A contract is said to be discharged by rescission:

A. When terms of a contract are altered
B. When a party makes novation of a contract
C. When an aggrieved party exercises his option to avoid the contract
D. When a party to a contract waives his rights under the contract
E. Where none of the parties has performed its part for a long time and no other party has
objected against it

Choose the correct answer from the options given below:

(A) A, D and E only
(B) B and D only
(C) B, C and E only
(D) C and E only

79. Which of the following are objectives of the Competition Act, 2002?
A. To prevent practices having an adverse effect on competition
B. To impede and torment competition in the market
C. To protect the interests of sellers
D. To ensure freedom of trade carried on by other participants in markets

Choose the correct answer from the options given below:

(A) A, and D only
(B) A, B and C only
(C) A, B and D only
(D) B, C and D only

80. Arrange in the sequence, steps in the procedure for calling a statutory meeting of the company
A. Contents of the statutory report
B. A list of members must be produced at the commencement
C. Twenty-one days notice
D. Certification of the statutory report by not less than two directors, one of whom must be the
managing director
E. A certified copy of the statutory report must be delivered to the Registrar

Choose the correct answer from the options given below:

(A) A, D, E, B, C
(B) B, E, C, A, D

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(C) C, A, D, E, B
(D) D, C, B, A, E

81. Which of the following statements are TRUE in a contractual capacity?

A. Law presumes that every person is competent to contract unless otherwise proved
B. That a minor can make a contract for necessities of life
C. That a person of unsound mind can enter into the family contracts
D. A convict cannot enter into a valid contract nor can sue
E. That a wife can always make valid business contracts and bind her husband

Choose the correct answer from the options given below:

(A) A and E only
(B) A, C and E only
(C) B and D only
(D) B, D and E only

82. Which one of the following training methods is most suitable for developing problem-solving
skills?
(A) Case study
(B) Lecture
(C) Role playing
(D) Sensitivity training

83. In which one of the following services price sensitivity is high?

(A) Airlines
(B) Car rentals
(C) Retailing
(D) Sea Transport

84. Which one of the following is considered a necessary precondition by Richard Roll for markets to
become efficient?
(A) Costless trading
(B) Free access to and flow of information
(C) Prices approximate a random walk
(D) Traders who make a living by 'beating the market' through trading

85. Match List I with List II

List I - Ego Defence Mechanism List II - Description
A. Projection I. Returning to a previous stage of development
B. Regression II. Acting out unacceptable impulses in a socially
acceptable way
C. Repression III. Placing unacceptable impulses in yourself onto
someone else
D. Sublimation IV. Pulling into the unconscious

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Choose the correct answer from the options given below:

(A) A - I, B - III, C - II, D - IV
(B) A - II, B - I, C - IV, D - III
(C) A - III, B - I, C - IV, D - II
(D) A - III, B - IV, C - I, D – II

86. Which one of the following statements are the advantages of the Decision Support System
(DSS)?
(A) Difficulty in quantifying all the data
(B) Generates new evidence in support of a decision
(C) System design failure
(D) Unaware of Assumptions

87. Which one of the following is a structured review of the systems and procedures of an
organisation in order to evaluate whether they are being conducted efficiently and effectively?
(A) Cost audit
(B) Financial audit
(C) Management audit
(D) Safety audit

88. If each value in a given set is increased by K, it will:

(A) Increase the Pearson's coefficient of skewness value
(B) No change in Pearson's coefficient of skewness value
(C) No change in Bowley's coefficient of skewness value
(D) Reduce the value of Pearson's coefficient of skewness

89. Which of the following are the limitations in the creation of credit of commercial banks?
A. The amount of cash that commercial banks possess
B. Supply of collateral security
C. Monetary policy of the central bank
D. Allied deposits scheme
E. Deposits linked with special benefits

Choose the correct answer from the options given below:

(A) A, C and E only
(B) A, D and E only
(C) C and D only
(D) D and E only

90. For a holding company, all pre-acquisition profits/losses of the subsidiary company are _______,
while all post-acquisition profits/losses of the subsidiary company are ______.
(A) capital profits, capital losses
(B) capital profits/losses, revenue profit/losses
(C) revenue profits, revenue losses
(D) revenue profits/losses, capital profits/losses

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Read the given paragraph carefully and answer the questions that follow

For a developing economic nation, its industrial policy requires regular updation to meet
the growing demands of the industry as well as to increase the share of manufacturing
in overall GDP. As India's GDP has been dominated by services rather than agriculture or
manufacturing, there are structural modifications always required so that manufacturing activity
be increased substantially to meet the global market requirements. This requires legal
amendments, with the new laws aimed to facilitate better manufacturing and exports.
Actually, India faces two challenges, rather opportunities that the bullishness on the
Indian economy is to be exportoriented as well as to feed its ever-growing domestic
consumption. Also, no economy can only be consumption oriented as its people should also save
and invest actively. This brings to an important direction of banking system which plays a
critically important role in achieving the above two objectives. The public sector banks require
to build on to the capabilities and expertise on the due diligence methods for
the credit appraisal for the loan requirements. Worth mentioning here is the data that the non-
performing assets valuing Rs. 7.7 lakh crore (as on December 2017) as per the
latest figures of the Finance Ministry. Nevertheless, given their large structure and geographic
percolation, the public sector banks must be recognized in India's development and that there is
"no country in the world where banks have not had a problem."

91. The credit appraisal process by a bank does NOT involve evaluation if the borrower on:
(A) Bank ability or credit worthiness
(B) Economic viability
(C) Loan offtakes and paying ability of related companies in the geographical area
(D) Technical feasibility

92. What problem is highlighted in the above passage?

(A) Balance of payments issue
(B) High fiscal deficit
(C) Low growth in GDP
(D) Role of banking sector

93. Which of the following set defines Sustainable Consumption and Production (SCP)?
A. The use of services and related products which respond to basic needs and bring a better
quality of life.
B. Minimizing the use of natural resources and toxic materials as well as the emission of waste
as pollutants.
C. Pertinent use of service or product so as not to jeopardise the needs of future generations.
D. Planned cities with a lower cost of production minimizing the retail inflation.

Choose the correct answer from the options given below:

(A) A, B and C only

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(B) A, B and D only

(C) A, B, C and D
(D) B, C and D only

94. Which of the following is not a feature of the consumption economy?

(A) Increasing population with increasing consumption
(B) It also prompts more exports than imports
(C) More contribution to indirect taxes
(D) The unsold goods create problems

95. The Indian banking sector requires that it:

(A) be more technology dependent
(B) build more manpower and ICT resources
(C) evaluate loan disbursals
(D) increase the frequency of change of the bank rates

Read the paragraph carefully and give an answer to the question

The Economic Survey cautions against extended forbearance of credit default, drawing
the lessons that extended forbearance in the wake of the 2007-08 global financial crisis led to the
build-up of bad loans and dragged down investment rates and economic growth.
If followed through, this would mean a major squeeze on company finances, as they
scramble for resources to service loans to avoid bankruptcy, and a big demand on the
government to recapitalize the banks it owns, after they recognize and provide for a mass of bad
loans
Regulatory forbearance must be an emergency medicine, not a staple diet, is sound
advice. A moratorium by banks on debt service by borrowers has been a part of the COVID
cushioning to corporates. Many of these firms would face acute liquidity
problems when the moratorium ends
Fast growth that embraces all businesses would avert a crisis. Such Goldilocks perfection
rarely materializes in real life. many companies that could survive with access to liquidity could
go under when banks think it is time to do their asset quality reviews. The solution is to provide
such companies with capital that does not need to be serviced when they do not make a profit on
equity
Companies would need a whole lot of capital, to service existing loans and to invest in
new production, to cater to the demand thrown up by economic revival. The government had
promised a fund to funds that would mobilize large volumes of capital to invest in micro, small
and medium enterprises.
This is the time to walk the talk. The equity stakes can be sold later, hopefully at a profit.
Special situation funds, private equity, and allocations from retirement savings can be tapped for
the needed capital. Managing the investment is the challenge.

96. Given below are two statements, one is labelled as Assertion A and the other is labelled as
Reason R
Assertion A: The government had promised a fund of funds that would mobilize large volumes
of capital to invest in micro, small and medium enterprises

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Reason R: Companies would need a whole lot of capital, to service existing loans and to invest
in new production, to cater to the demand thrown up by economic revival.

In light of the above statements, choose the most appropriate answer from the options given
below
(A) A is correct but R is not correct
(B) A is not correct but R is correct
(C) Both A and Rare correct and R is the correct explanation of A
(D) Both A and R are correct but R is NOT the correct explanation of A

97. Given below are two statements, one is labelled as Assertion A and the other is labelled as
Reason R
Assertion A: A moratorium by banks on debt service by borrowers has been a part of the
COVID cushioning to corporates
Reason R: Regulatory forbearance must be an emergency medicine but not a staple diet

In light of the above statements, choose the most appropriate answer from the options given
below:
(A) A is correct but R is not correct
(B) A is not correct but R is correct
(C) Both A and Rare correct and R is the correct explanation of A
(D) Both A and R are correct but R is NOT the correct explanation of A

98. Which could be a suitable title for the above paragraph?

(A) Bad loans and Indian corporates
(B) Forbearance and Corporate Funding in Crisis Times
(C) Funding crisis and COVID-19
(D) Funding during crisis

99. Given below are two statements:

Statement I: Forbearance of credit default is a common phenomenon in Indian banking system
Statement II: Global financial crisis influences the quantum of bad loans in India

In light of the above statements, choose the correct answer from the options given below:
(A) Both statement I and statement II are false
(B) Both statement I and statement II are true/
(C) Statement I is false but statement II is true
(D) Statement I is true but statement II is false

100. What is the theme of the paragraph narrated above?

(A) Crisis of corporate funding during crisis times
(B) Forbearance of credit default
(C) Liquidity and survival of companies
(D) Moratorium by banks on debt service

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ANSWER KEY

Q. No Ans Q. No Ans
1 B 51 B
2 B 52 B
3 D 53 A
4 D 54 B
5 B 55 C
6 C 56 C
7 D 57 C
8 C 58 B
9 C 59 C
10 A 60 B
11 C 61 D
12 B 62 B
13 C 63 C
14 B 64 A
15 B 65 B
16 C 66 B
17 C 67 C
18 B 68 B
19 C 69 D
20 D 70 A
21 B 71 B
22 C 72 C
23 C 73 C
24 C 74 A
25 A 75 D
26 A 76 A
27 A 77 D
28 D 78 D
29 A 79 A
30 A 80 C
31 D 81 C
32 C 82 A
33 C 83 A
34 B 84 D
35 B 85 C
36 D 86 B
37 C 87 C
38 B 88 B
39 C 89 D
40 B 90 B
41 C 91 D
42 D 92 B
43 D 93 B

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44 C 94 B
45 C 95 B
46 C 96 C
47 D 97 C
48 D 98 B
49 B 99 B
50 D 100 A

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JUNE 2020 SHIFT 1

1. Out of the following statements, which is not correct about the RTI Act, 2005?

(i) The RTI Act come into force from October 13. 2005.

(ii) Any citizen may request information from a Public Authority (Both Govt. and
Private)

(iii) Reply for information asked can be given within 30 days.

(iv) There is nominal application fees that are needs to pay to get information under
the RTI application.

(v) For getting information, applicant has to pay Rs. 10/- per page of information for
Central Govt. Departments.

Choose the correct answer from the options given below:

(A) (i), (ii), (v) only

(B) (ii), (v) only

(C) (iii), (v) only

(D) (ii), (iii), (iv), (v) only

2. Cost audit for Materials covers :

(i) Goods inward procedure.
(ii) Methods of calculating standard cost variance.
(iii) Classification of overhead.
(iv) Accounting for scrap, wastage, materials transfers
(v) Accounting treatment of under or over absorption

Choose the most appropriate answer from the options given below :
a) (i), (iv) only
b) (i), (v) only
c) (i), (ii) only
d) (v), (iii) only

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3. Match List I with List II

(Authors) (Ideas)

a) Bill Bishop (I) Managing in the Market Space

b) D. Bird (II) Common sense Direct Marketing

c) Daniel S. J onal (III) Strategic Marketing for the Digital

Age

d) Jeffery F. Rayport (IV) On-line Marketing

Choose the correct answer from the options given below:

(A) (a-III). (b-II). (c-IV). (d-I)

(B) (a-I), (b-II), (c-III), (d-IV)
(C) (a-II), (b-I). (c-IV). (d-III)
(D) (a-IV), (b-III), (c-II), (d-I)

4. Objectives of IMPS (Immediate Payment Service) are :

(i) To enable bank customers to use mobile instruments as a channel for accessing
their banks accounts and remit funds 24 x 7.
(ii) Making payments simpler just with the mobile number of the beneficiary.
(iii) To build the foundation for a full range of mobile based banking services
(iv) To create competition with NEFT and RTGS
Choose the most appropriate answer from the options given below :

(A) (i), (ii), (iii) only

(B) (ii), (iii), (iv) only
(C) (i), (ii), (iv) only
(D) (ii), (iv) only

5. Which among the followings are correct statements with regard to NBFC in India?

(i) All NBFCs should be registered with RBI.

(ii) NBFCs cannot accept demand deposits.
(iii) NBFCs do not form part of the payment and settlement system and cannot issue
cheques drawn on itself.

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(iv) Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation
is not available to depositors of NBFCs.

Choose the correct answer from the options given below:

(A) (i), (ii), (iii) only
(B) (i), (ii), (iii), (iv) only
(C) (i), (ii), (D} only
(D) (i), (iv) only

6. Which of the following are true about delivering customer value?

(i) A company can go alone in creating customer value
(ii) Company must work within a broader network of partners to accomplish customer
value.
(iii) Individual companies and brands compete; their entire value delivery networks
don't.
(iv) Individual companies and brands don't compete; their entire value delivery
networks do.
(v) Value = Contribution/cost (offer higher contribution through product or service
to clients and lowers the cost)
Choose the most appropriate answer from the options given below:
(A) (i) and (v) only
(B) (i), (ii) and (v) only
(C) (ii), (iii) and (v) only
(D) (ii), (iv) and (v) only

7. Sugam is also known as :

(A) ITR-1
(B) ITR-2
(C) ITR-4
(D) ITR-6

8. The headquarters of the ASEAN is located in which of the following country?

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(A) Indonesia
(B) Vietnam
(C) Thailand
(D) Singapore

9. As per Carroll Model. the four levels of Corporate Social Responsibility are :
(A) Physical, economic, social and legal
(B) Physical. economic. legal and ethical
(C) Philanthropic, economic, legal and ethical
(D) Philanthropic. economic. social and ethical

10. Which of the following are positional averages?

(i) Arithmetic Mean
(ii) Median
(iii) Mode
(iv) Geometric Mean
(v) Harmonic Mean
Choose the most appropriate answer from the options given below :
(A) (ii), (iii) only
(B) (ii), (iii), (iv) only
(C) (ii), (iii), (i) only
(D) (i), (ii), (iii), (iv) only

11. Which of the following is/are condition(s) for price discrimination of product?
(i) Firm must have some monopoly power.
(ii) Price elasticities of demand for the product in different market must differ
(iii) Market must be separable or able to be segmented
(iv) Free entry and exit of firms
Choose the correct answer from the options given below:
(A) (i) and (iv) only

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(B) (ii), (iii) and (iv) only

(C) (i), (iii) and (iv) only
(D) (i), (ii) and (iii) only

12. Match List I with List II

Authors of Trade Theory Name of Theory

a) Steffan Linder (I) Product Life Cycle Theory

b) Raymond Vernon (II) Country Similarity Theory

c) Hecksher-Ohlin (III) Absolute Advantage Theory

d) Adam Smith (IV) Factor Proportion Theory

Choose the correct answer from the options given below :

(A) (a-IV), (b-III), (c-II), (d-I)

(B) (a-II), (b-I), (c-IV), (d-III)
(C) (a-I), (b-III), (c-IV), (d-II)
(D) (a-III), (b-II), (c-I), (d-IV)

13. Given below are two statements: One is labelled as Assertion (i) and the other is
labelled as Reason (R) .
Assertion (i) : Firms opt for buying an asset if the equivalent annual cost of ownership
and operation is less than the best lease rate it can get.
Reason (R) : Operating leases are attractive to equipment users if the lease payment
is less than the user's equivalent annual cost of buying the equipment.

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In the light of the above statements, choose the most appropriate answer from the
options given below:

(A) Both (i) and (R) are correct and (R) is the correct explanation of (i)

(B) Both (i) and (R) are correct but (R) is NOT the correct explanation of (i)

(C) (i) is correct but (R) is not correct

(D) (i) is not correct but (R) is correct

14. Which one of the following is not true for Mass Marketing?
(A) Provides very little scope for customisation
(B) Deals with customers directly
(C) Normally followed in case of FMCG and SMCG Goods
(D) Relies heavily on advertising

15. Which one of the following is not a major direct selling company in India?

(A) Eureka Forbes

(B) Amway India Enterprises
(C) Modi care
(D) Hindustan Unilever Ltd.

16. The standard deviation of the binomial distribution is :

(A) np
(B) √np
(C) npq
(D) √npq

17. Mercosur, a South American Trade block is a:

(A) Free Trade Area

(B) Common Market

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(C) Custom Union

(D) Economic Cooperation

18. In Marketing. DSA stands for ____

(A) Delivery Staff Agency

(B) Direct Supplier Agent

(C) Direct Selling Agent

(D) Distribution and Supply Agency

19. Under which section of Information Technology Act of 2000, updated in 2008,
stealing any digital asset or information is considered as cybercrime?

(A) 65

(B) 65-D

(C) 67

(D) 70

20. Match List I with List II

List I List II
a) I am Not OK. you are Not OK (I) Dependent

b) I am OK. you are Not OK (II) Confronting

c) I am OK. you are OK (III) Withdrawn

d) I am Not OK. you are OK (IV) Task obsessive

Choose the correct answer from the options given below:

(A) (a-III), (b-IV), (c-II), (d-I)

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(B) (a-III), (b-II), (c-IV), (d-I)

(C) (a-I), (b-II), (c-III), (d-IV)

(D) (a-II), (b-I), (c-III), (d-IV)

21. When foreign currency assets and liabilities match in terms of amount of
exposure and timing of maturities, it is described as :
(A) Financial hedge
(B) Natural hedge
(C) Perfect hedge
(D) Netting

22. Which of the following is not correct with respect to matrix organisation?
(A) It is a combination of functional and product organisation
(B) Functional departments are not permanent fixtures of a matrix
organisation
(C) Product departments are created as the need for them arises
(D) Team members have functional home when they are not needed on a
project:

23. Which of the following financial institution(s) got merged with their subsidiary?
(i) ITI
(ii) IFCI
(iii) ICICI
(iv) IDBI
(v) Global Trust Bank
Choose the correct answer from the options given below:
(A) (i). (ii) only
(B) (ii), (iii) only
(C) (iii). (iv) only

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(D) (iii). (v) only

24. In which of the following price adjustment strategies, a company reduces prices
to reward customer responses such as volume purchases, paying early or
promoting the product?
(A) Discount and allowance pricing
(B) Psychological pricing
(C) Promotional pricing
(D) Dynamic pricing

25. The Human Relations Approach rejected the 'rabble hypothesis' by giving which
of the following argument?
(A) The worker does not work for money only.
(B) A worker operates in a techno-economic system with no room for emotions.
(C) Authoritarian style of leadership is more productive.
(D) Individual pays attention to self-achievement irrespective of informal group
norms.

26. Given below are two statements: One is labelled as Assertion (i) and the other is
labelled as Reason (R) .
Assertion (i) : Trade mark registration gives exclusive proprietary rights to the
trademark owner.
Reason (R) : A trademark is a recognizable sign, design or expression which
identifies
products or services of a particular source from those of others, and are
used to claim exclusive proprietary rights of products or services.
In the light of the above statements, choose the correct answer from the options
given below :
(A) Both (i) and (R) are true and (R) is the correct explanation of (i)
(B) Both (i) and (R) are true but (R) is NOT the correct explanation of (i)
(C) (i) is true but (R) is false
(D) (i) is false but (R) is true

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27. Which of the following does not come under the definition of "Information"
under RTI Act, 2005?
(A) Log Books
(B) Circulars
(C) File Noting’s in the process
(D) Data material held in any electronic form

28. What is the probability that a randomly chosen card from a deck of cards will
either be a King or a Spade?

(A) 0.3077

(B) 0.3269

(C) 0.0384

(D) 0.3169

29. Constraint Optimisation' is closer to which of the following objectives of business

firm?

(A) Sales maximisation

(B) Profit maximisation

(C) Satisfying behaviour

(D) Rent seeking behaviour

30. In which of the following situations, the payback period method is advised for
evaluation of investment opportunities?

(i) Overleveraged businesses

(ii) Cash rich businesses

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(iii) Uncertain market conditions

(iv) Stable market conditions

Choose the most appropriate answer from the options given below :

(A) (i) and (ii) only

(B) (i) and (iii) only

(C) (ii) and (iii) only

(D) (iii) and (iv) only

31. Match List I with List II

List I List II

a)Mezzanine Capital (I) It is the speedy source of

finance less regulated by
the regulatory environment
of debt and capital
markets.

b) Private Equity (II) It is long term capital

embraced by the high
networth and high risk
appetite investors.

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C)Global (III) It is an equity

Depository instrument issued in
Receipts overseas markets and is
listed and traded on
bourses on an OTC basis.

d) Venture Capital (IV) It refers to

subordinated debt or
preferred equity that allows
firms to borrow additional
capital beyond the levels
lenders are willing to
finance through the bank
loans.

Choose the correct answer from the options given below :

(A) (a-II), (b-IV), (c-I), (d-III)

(B) (a-I), (b-III), (c-IV), (d-II)

(C) (a-IV), (b-I), (c-III), (d-II)

(D) (a-III), (b-II), (c-I), (d-IV)

32. The ‘going concern concept’ is the underlying basis for

(A) Disclosing the market value of securities

(B) Consolidating the accounts of subsidiary companies with those of parent

company

(C) Depreciating fixed assets over their useful lives

(D) Disclosing the sales and other operating information in the income statement

33. What is a 'Repo Rate'?

(A) Is the rate at which RBI lends to State Government

(B) Is the rate at which International aid agencies lends to RBI

(C) Is the rate at which the RBI lends to Banks in case of short maturity

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(D) Is the rate at which RBI borrows funds from the Commercial Banks in the
country

34. Which of the following explains the declining slope of indifference curves?

(i) Diminishing marginal utility

(ii) Diminishing Marginal Rate of substitutions between the commodities

(iii) Diminishing Marginal Rate of technical substitution

(iv) Ordinal measurement of utilities

(v) Diminishing Marginal utility of money

Choose the most appropriate answer from the options given below :

(A) (i) and (iv) only

(B) (ii) and (iv) only

(C) (iii) and (iv) only

(D) (i) and (v) only

35. Which of the followings is correct about deduction available in respect of

contribution to various provident funds in case of salaried employees?

(i) Employer's contribution to recognised provident fund is exempted up to 12%

of salary.

(ii) Employer's contribution to unrecognised provident fund is exempted from

tax.

(iii) Employer does not contribute to Public Provident Fund.

(iv) Deduction under Section 80 C is available for employer's contribution in

unrecognized provident fund.

Choose the correct answer from the options given below :

(A) (i), (ii), (iii) only

(B) (i), (ii), (iv) only

(C) (ii), (iii), (iv) only

(D) (i), (iii), (iv) only

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36. Given below are two statements.

Statement (I) : Gratuity received by Government employee is exempted from tax

under Section 10(10)(i) of the Indian Income Tax Act, 1961.

Statement (II) : Gratuity received by local authority employee is exempted from

tax.

In the light of the above statements, choose the collect answer from the options
given below :

(A) Both Statement (I) and Statement (II) are true

(B) Both Statement (l) and Statement (II) are false

(C) Statement (I) is correct but Statement (II) is false

(D) Statement (I) is incorrect but Statement (II) is true

37. Which one of the following statements is true for the set off and carry forward
of loss under the head 'house property' in India?

(A) Can be carried forward for 8 years

(B) Cannot be carried forward

(C) Can be carried forward for 4 years

(D) Can be carried forward infinitely

38. Net Present Value (NPV) and Internal Rate of Return (IRR) methods yield
conflicting outcomes due to ____

(i) Unconventional cash flows

(ii) Investment size disparity

(iii) Investment life disparity

(iv) Cash flow pattern disparity

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Choose the most appropriate answer from the options given below:

(A) (i) and (ii) only

(B) (i) and (iii) only

(C) (i), (ii) and (iii) only

(D) (ii), (iii) and (iv) only

39. Charging different prices for the same product in different markets until the MR
of last unit sold equals the MC of the product sold in each market is described
by ____

(i) Price discrimination of first degree

(ii) Price discrimination of second degree

(iii) Price discrimination of third degree

(iv) Equilibrium price

(v) Price discrimination

Choose the correct answer from the options given below:

(A) (i) and (ii) only

(B) (i) and (iii) only

(C) (iii) and (v) only

(D) (i) and (iv) only

40. Out of the following statements which of them explain the difference between
enculturation and acculturation as a part of Cross-Cultural Training?

(i) Enculturation refers to the process of learning and adopting host cultural
norms, and acculturation is the process of learning our own native culture.

(ii) Enculturation is a anthropological term used for socialisation like

acculturation.

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(iii) Both terms refer to the process of Learning through social interaction.

(iv) Enculturation refers to the process of learning our own culture, and
acculturation refers to the process of learning host cultural norms.

Choose the most appropriate answer from the options given below :

(A) (i), (ii), (iii) only

(B) (ii), (iv) only

(C) (ii), (iii), (iv) only

(D) (i), (ii), (iii) and (iv) only

41. Some doctors charge patients for missed appointments because the service
value existed only at that point and disappeared when the patient did not show
up, is an example of which one of the following four service characteristics?

(A) Inseparability

(B) Intangibility

(C) Variability

(D) Perishability

42. Which of the following are possible negative impacts of FDI on domestic firms
in host countries?

(i) Market monopoly

(ii) Technology dependence

(iii) Increased competition

(iv) Profit outflow

Choose the correct answer from the options given below :

(A) (i), (ii) only

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(B) (ii), (iii) only

(C) (i), (ii), (iv) only

(D) (ii), (iii), (iv) only

43. The strategies of flanking Défense, pre-emptive Défense, mobile Défense,

contractor Défense and counter offensive defence is used by which market
player?

(i) Market challenger

(ii) Market leader

(iii) Market follower

(iv) Market Nicher

(v) Start up Marketer

Choose the most appropriate answer from the options given below :

(A) (i) only

(B) (ii) only

(C) (iii) only

(D) (ii), (v) only

44. If an estimated Cobb-Douglas production function is 𝑄 = 10𝐾 0.6 𝐿0⋅8 what type
of returns to scale does this production function indicate?

(A) Increasing returns

(B) Decreasing returns

(C) Constant returns

(D) Negative returns

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45. Match List I with List II

List I List II

a) Standard Costing (I) Financial forecasting and planning

b) Margin of Safety (II) Sales minus break-even sales

c) Ratio Analysis (III) Control of inventory

d) JIT System (IV) Management by exception

Choose the correct answer from the options given below:

(A) (a-IV), (b-II), (c-I), (d-III)

(B) (a-III), (b-I), (c-II), (d-IV)

(C) (a-II), (b-III), (c-I), (d-IV)

(D) (a-I), (b-II), (c-IV), (d-III)

46. Match List I with List II

Capital Structure Preposition(s) Description(s)

a) Target Capital Structure (I) Expected yield on the equity capital

is
equal to the pure equity return plus a
premium for financial risk.

b) Optimum Capital Structure (II) It refers to the perceived costs due

to
increased ratio of debt in the firm.

c) Cost of financial distress (III) It is the debt ratio the firm strives
to

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achieve.

d) MM-preposition-II (IV) It is the debt-equity ratio that

maximises the value of the firm.

Choose the correct answer from the options given below:

(A) (a-II), (b-III), (c-I), (d-IV)

(B) (a-III), (b-IV), (c-II), (d-I)

(C) (a-IV), (b-II), (c-III), (d-I)

(D) (a-I), (b-III), (c-II), (d-IV)

47. Arrange in the sequence of decisions in manufacturing enterprises :

(i) Making of forecasts

(ii) Determination of key factors

(iii) Consideration of alternative combination of forecasts

(iv) Preparation of budgets

(v) Combination of factors

Choose the correct answer from the options given below :

(A) (i). (ii). (iii). (v). (iv)

(B) (iii), (i), (v). (ii). (iv)

(C) (ii), (i), (iii), (v), (iv)

(D) (i). (iii). (ii). (v). (iv)

48. A manufacturing enterprise monthly consumes 1,350 units of raw material at the
cost of Rs. 20 per unit. Determine its economic order quantity given the ordering
cost of Rs. 2,400 and carrying cost of inventory being 30 percent of the price paid.

(A) 3,600 units

(B) 2,400 units

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(C) 4,800 units

(D) 2,700 units

49. Which of following is not correct about properties of correlation coefficient?

(i) Depends on the origin.

(ii) Depends on the scale.

(iii) Depends on both origin and scale.

(iv) Is independent with respect to origin.

(v) Is independent with respect to unit of scale.

Choose the correct answer from the options given below :

(A) (i), (iv), (v) only

(B) (i), (ii), (iv) only

(C) (i), (ii), (iii) only

(D) (iv), (v), (ii) only

50. Arrange the following procedure of Income Tax return e-Filling in India

(i) Login

(ii) Register

(iii) Verification

(iv) Downloading utility and preparing return

(v) e-filing Income Tax Return

Choose the correct answer from the options given below :

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(A) (i), (ii). (iii). (iv), (v)

(B) (i), (iii), (ii), (v), (iv)

(C) (ii). (i). (v). (iv), (iii)

(D) (ii), (i), (iv), (v), (iii)

51. Surcharge of 10% (percent) is payable by an Individual where the total income
exceeds:
(A) Rs. 7.50.000/-
(B) Rs. 8.50.000/-
(C) Rs. 50,00,000/-
(D) Rs. 20,00.000/-

52. Arrange the following financing choices in order of preference suggested by the
pecking order theory
(i) Reinvestment of earnings
(ii) New issue of equity
(iii) Issue of debt
Choose the correct answer from the options given below :
(A) (i), (ii), (iii)
(B) (i). (iii). (ii)
(C) (ii), (iii), (i)
(D) (ii). (i). (iii)

53. Arrange the following steps of creating a market-competitive pay plan in a

sequence from the first to the last

(i) Choose benchmark jobs and select compensable factors

(ii) Define each compensable factor and determine its degree in each job

(iii) Establish rate changes

(iv) Develop pay grades

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(v) Compare and adjust current and market wage rates for jobs

Choose the correct answer from the options given below:

(A) (ii), (i), (v), (iv), (iii)

(B) (i), (iii), (ii), (iv), (v)

(C) (i), (ii), (v), (iv), (iii)

(D) (i), (ii), (iii), (v), (iv)

54. What is the rate of tax deduction at source from insurance commission in case
of ‘Person’?

(A) 2 percent

(B) 5 percent

(C) 10 percent

(D) 4 percent

55. In Leontief production function. L is considered as

(A) Structural constraint in the production process

(B) Degree of Homogeneity

(C) Binding constraint in the production process

(D) Optimisation constraint in the production process

56. Arrange the following stages of research in a proper sequence

(i) Report Writing

(ii) Budgeting

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(iii) Data Collection

(iv) Field Work

(v) Research outcomes

Choose the correct answer from the options given below:

(A) (ii), (iv), (iii), (v), (i)

(B) (iv). (i), (ii). (iii), (v)

(C) (iv), (iii), (ii), (v), (i)

(D) (ii), (v), (iv), (iii), (i)

57. The portfolio theory articulates diversification to reduce which of the following
risks?

(A) Market risk

(B) Financial risk

(C) Unsystematic risk

(D) Business risk

58. Match List I with List II

List I List II
a) 80GG (I) Deduction in respect of
contribution given by companies
to political parties.
b) 80GGA (II) Deduction in respect of
contribution given by any person
to political parties.
c) 80GGB (Ill) Deduction in respect of
scientific research.
d) 80GGC (IV) Deduction in respect of rent
paid.

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Choose the correct answer from the options given below:

(A) (a-IV), (b-III), (c-I), (d-II)

(B) (a-III), (b-IV), (c-II), (d-I)

(C) (a-IV), (b-III), (c-II), (d-I)

(D) (a-IV), (b-II), (c-I), (d-III)

59. Market for automobiles needs to be segmented on the basis of:

(i) Buying behaviour·

(ii) Psychographics

(iii) Geographies

(iv) Demographics

Choose the most appropriate answer from the options given below :

(A) (i), (iv) only

(B) (iii), (iv) only

(C) (i), (ii), (iv) only

(D) (i), (ii), (iii), (iv)

60. Which of the following is a long-term source of finance?

(A) Commercial Paper (CP)

(B) External Commercial Borrowings (ECB)

(C) Factoring

(D) Line of Credit (LOC)

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61. Arrange the following steps of marketing process in proper sequence

(i) Construct an integrated marketing programme that delivers superior value

(ii) Capture value from customers to create profits and customer equity

(iii) Understand the market place and customer needs and wants

(iv) Engage customers build profitable relationships and create customer delight

(v) Design a customer value-driven marketing strategy

Choose the correct answer from the options given below:

(A) (iii), (i), (v). (iv), (ii)

(B) (ii), (v), (i), (iii), (iv)

(C) (iv), (i), (ii). (iii), (v)

(D) (iii), (v), (i), (iv), (ii)

62. Which one of the following statements is 'True' in partnership?

(A) In the absence of any provision in the partnership deed, only a working
partner is entitled to remuneration.

(B) Any firm which earns normal profit has no goodwill.

(C) The business of the firm must be carried on by all the partners.

(D) Interest on loan given by a partner to the firm shall be paid if there are
profits.

63. What type of Défense mechanism is used by a person when he gets angry at his
child or spouse because he had a bad day at work?
(i) Denial
(ii) Repression
(iii) Projection

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(iv) Displacement
(v) Regression
Choose the most appropriate answer from the options given below :
(A) (i) and (ii) only
(B) (ii) only
(C) (iv) only
(D) (v) only

64. Who coined the term 'Collective Bargaining"?

(A) Reed Richardson

(B) Kurt Lewin

(C) W.E. Deming

(D) Sydney Webb and Beatrice Webb

65. In continuous compounding the time it takes to double the sum grossly follow
"Rule of 69". If it is changed to discrete compounding; the relevant rule of thumb
is ____

(A) Rule of 69.3

(B) Rule of 72

(C) Rule of 84

(D) Rule of 64

66. Given below are two statements.

Statement (I): Monetary policy causes a deliberate change in government

revenue and expenditure with a view to influencing the price level and the
quantum of national output.

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Statement (II): Fiscal Policy regulates the money supply and the cost and
availability of credit.

In the light of the above statements, choose the most appropriate answer from
the options given below:

(A) Both Statement (I) and Statement (II) are correct

(B) Both Statement (I) and Statement (II) are incorrect

(C) Statement (I) is correct but Statement (II) is incorrect

(D) Statement (I) is incorrect but Statement (II) is correct

67. Pricing strategy of setting a high price when a product is introduced and
gradually lowering its price is known as

(A) Skimming

(B) Penetration pricing

(C) Peak load pricing

(D) Dumping

68. Which one is False as per the relevant provisions of the Indian Contract Act, 1872?

(A) A void agreement is one that is not enforceable by law

(B) Assignment is the obvious mode of discharge of a contract

(C) Where a party waives its rights under the contract, the other party is released of
its obligations under the contract

(D) Where the subject matter of a contract is destroyed for no fault of the promisor,
the contract does not become void by impossibility of performance

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69. In a rising consumer income scenario, the preferred decision choice of business
firms for low income elastic products will be _____

(A) Product promotion

(B) Cost control

(C) Product repositioning

(D) Product improvement

70. Which of the following relationships is true in a model distribution?

(A) Mean - Mode = 3 (Mean -Median)

(B) Mode = 3 Median - 2 Mean

(C) 3 Median = 2 Mean + Mode

(D) 2 Median - 3 Quartile Deviation = 2 Mean

71. Match the market forms in the List I and the role of the selling costs in the List II

List I- Market Forms List II - Role of selling costs

a) Perfect Competition (I) Sustained survival of firm

b) Monopoly (II) Influencing buying
behaviour
c) Monopolistic (III) Increasing market size
Competition
d) Oligopoly (IV) Intimation of product or
service
Choose the correct answer from the options given below:

(A) (a-I), (b-III), (c-IV), (d-II)

(B) (a-IV), (b-II), (c-I), (d-III)

(C) (a-III), (b-IV), (c-II), (d-I)

(D) (a-II), (b-I), (c-III), (d-IV)

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72. As per Section 80G maximum deduction allowed for any cash donation is up to

(A) Rs. 1,000

(B) Rs. 2,000

(C) Rs. 5,000

(D) Rs. 10,000

73. EPRG framework in International Business refers to

(A) Ethno. Poly, Regio. Geo Transformations

(B) Ethnocentric. Polycentric. Regiocentric and Geocentric Orientations

(C) Ethics. Policies. Regulations. Guidelines Orientations

(D) Every Person Refers Global Framework

74. Which of the following expenses debited to Profit and Loss a/c but disallowed
while computing income from Business?

(i) General Expenses

(ii) Personal Expenses

(iii) Expenses of Income which is taxable under the other heads of income

(iv) Charities and donations

Choose the correct answer from the options given below :

(A) (i), (ii), (iii) only

(B) (ii), (iii), (iv) only

(C) (iii), (iv) only

(D) (i), (ii), (iii), (iv) only

75. When sampling is done without replacement then standard error of mean is :

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𝜎
(A) 𝑆𝐸 =
√𝑛
𝜎 𝑁−𝑛
(B) 𝑆𝐸𝑥̅ = √
√𝑛 𝑁−1
𝜎 𝑁−1
(C) 𝑆𝐸𝑥̅ = √
√𝑛 𝑁−𝑛
𝜎 𝑛
(D) 𝑆𝐸𝑥̅ = √1 − 𝑁
√ 𝑛

76. Arrange the following legal enactments in India in the chronological sequence
from the first to the last.

(i) The Mines Act

(ii) The Minimum Wages Act

(iii) The Payment of Gratuity Act

(iv) The Child Labour (Prohibition and Regulation) Act

(v) The Apprentices Act

Choose the correct answer from the options given below :

(A) (ii), (iv), (iii), (i), (v)

(B) (ii), (i), (v), (iii), (iv)

(C) (i), (v), (ii), (iii). (iv)

(D) (v), (ii), (i), (iii), (iv)

77. In which of the following stages of product life cycle a company reduces sales
promotion to take advantage of heavy consumer demand?

(A) Introduction

(B) Growth

(C) Maturity

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(D) Decline

78. Which one is the correct sequence implied in the Indian Contract Act 1872?

(i) Offer of proposal

(ii) Contract

(iii) Promise

(iv) Agreement

(v) Acceptance

Choose the correct answer from the options given below:

(A) (iii), (v), (i), (iv), (ii)

(B) (iv), (ii), (iii), (i), (v)

(C) (ii), (iv), (iii), (v), (i)

(D) (i), (v), (iii), (iv), (ii)

79. Match List I with List II

Choose the correct answer from the options given below:

(A) (i)-(I). (ii)-(IV). (iii)-(III). (iv)-(II)

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(B) (i)-(III), {B)-(IV), (iii)-(II), (iv)-(I)

(C) (i)-(III), (ii)-(IV), (iii)-(I). (iv)-(II)

(D) (i)-(IV). (ii)-(III). (iii)-(I). (iv)-(II)

80. Arrange the following initiatives taken by the Government of India to tackle the
Non-performing assets in their ascending order of chronology:

(i) Corporate Debt Restructuring

(ii) Compromise Settlement

(iii) The Debt Recovery Tribunals (DRTs)

(iv) Credit Information Bureau

(v) SARFAESI Act

Choose the correct answer from the options given below:

(A) (iii), (iv), (i), (ii), (v)

(B) (i), (ii), (v), (iii), (iv)

(C) (iii), (iv), (ii), (v), (i)

(D) (iv), (iii), (ii), (v), (i)

81. Arrange the following steps in logical sequence of operation of the Arbitrage
Pricing Theory(APT').

(i) Estimate the Factor Sensitivities

(ii) Estimate the Risk Premium for Factor(s)

(iii) Identify the Macroeconomic Factors

Choose the correct answer from the options given below:

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(A) (i), (ii), (iii)

(B) (ii), (i). (iii)

(C) (iii). (ii). (i)

(D) (iii). (i), (ii)

82. Out of the following, which are not the features of GST 2017 in India.

(i) GST is applicable on 'supply' of Goods and Services.

(ii) GST is based on the principle of origin-based taxation rather than principle of

destination based consumption.

(iii) Import of Goods is treated as Inter-State supplies and would be subject to

IGST in addition to applicable Custom Duties.

(iv) It is a dual taxation with Centre and State simultaneously levying it on a

common base.

(v) GST is applicable to all Goods and Services without any exemptions.

Choose the correct answer from the options given below:

(A) (i), (ii), (v) only

(B) (ii), (iii), (v) only

(C) (ii), (v) only

(D) (iii), (iv), (v) only

83. Given below are two statements: One is labelled as Assertion (i) and the other is
labelled as Reason (R).

Assertion (i): According to Herzberg, preventing or reducing dissatisfaction at

work is not the same as providing satisfaction.

Reason (R): Under the 'two factor theory', job satisfaction and dissatisfaction are
the two different aspects of work motivation.

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In the light of the above statements, choose the correct answer from the options
given below:

(A) Both (i) and (R) are true and (R) is the correct explanation of (i)

(B) Both (i) and (R) are true but (R) is NOT the correct explanation of (i)

(C) (i) is true but (R) is false

(D) (i) is false but (R) is true

84. Arrange the following products in the increasing order of price elasticities

(i) Homogeneous products

(ii) Differentiated products

(iii) Necessities

(iv) Durable goods

Choose the correct answer from the options given below :

(A) (iii), (ii), (iv) and (i)

(B) (i). (ii). (iii) and (iv)

(C) (i). (iii). (ii) and (iv)

(D) (iii), (i), (ii) and (iv)

85. The Regression Coefficient is independent of the change of

(i) Scale only

(ii) Origin only

(iii) Both Scale and Origin

(iv) Neither Scale nor Origin

Choose the most appropriate answer from the options given below :

(A) (i) only

(B) (ii) only

(C) (iii) only

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(D) (iv) only

86. Which of the following is not an example of compressed data?

(A) Data array

(B) Frequency distribution

(C) Histogram

(D) Ogive

87. Match List I with List II

List I List II
a) Limited Liability Partnership (I) It can be formed with a
minimum of
two individuals or body corporate
through their nominees.
b) Particular Partnership (II) It is formed for a specific
venture or for a particular period.
c) Partnership (III) It is an association of two or
more
individuals.
d) Mutual Agency (IV) A partner is both an agent and
a
principal in a partnership firm.

Choose the correct answer from the options given below:

(A) (a-I), (b-II), (c-III), (d-IV)

(B) (a-II), (b-III), (c-I), (d-IV)
(C) (a-II), (b-I), (c-III), (d-IV)
(D) (a-IV), (b-II), (c-I), (d-III)

88. Which of the following is not an implied condition in a contract of sale?

(A) Condition as to quality or fitness

(B) Condition as to merchantable quality

(C) Condition as to wholesomeness

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(D) Condition as to free from encumbrances

89. Consumer rationality in business economics is collective manifestation of which

of the following assumptions?

(i) Non-Satiation

(ii) Clarity of preferences

(iii) Divisibility of goods and services

(iv) Economic selfish motive

(v) Possession of information

Choose the most appropriate answer from the options given below :

(A) (i), (ii) and (iv) only

(B) (i), (iii) and (v) only

(C) (i), (ii). (iii) and (iv) only

(D) (i), (ii). (iv) and (v) only

90. Mohan, has rendered his services in India and retired in 2015. He then shifted
and settled in Singapore. The pension received by him for such services would be
______

(A) Deemed to accrue or arise outside India

(B) Deemed to accrue or arise in India only when it is received in India

(C) Deemed to accrue or arise in India only when it is received outside India

(D) Deemed to accrue or arise in India

Comprehension:

Answer Question No. 91 to 95 on the basis of the following passage :

Burnout is a psychological syndrome emerging as a prolonged response to chronic

interpersonal stressors on the job. The three key dimensions of this response are

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an overwhelming exhaustion, feelings of cynicism and detachment from the job,

and a sense of ineffectiveness and lack of accomplishment. The significance of this
three-dimensional model is that it clearly places the individual stress experience,
within a social context and involves the person's conception of both self and others.

The exhaustion dimension was also described as wearing out, loss of energy,
depletion, debilitation, and fatigue. The cynicism dimension was originally called
depersonalization (given the nature of human services occupations), but was also
described as negative or inappropriate attitudes towards clients, irritability, loss of
idealism, and, withdrawal. The inefficacy dimension was originally called reduced
personal accomplishment, and was also described as reduced productivity or
capability, low morale, and an inability to cope.

There have been various conceptual models about the development of burnout
and its subsequent impact. At first, the focus was on the relationship between the
three dimensions of burnout, which was often described in sequential stages.
Exhaustion was assumed to develop first, in response to high demands and
overload, and then this would precipitate detachment and negative reactions to
people and the job (depersonalization or cynicism). If this continued, then the next
stage would be feelings of inadequacy and failure (reduced personal
accomplishment or professional inefficacy).

More recently, burnout models have been based on theories about job stress, and
the notion of imbalances leading to strain. Its three stages are: (i) Job stressors, (ii)
individual strain, and (iii) defensive coping. Subsequently, two developmental
models of the demands-resources imbalance have emerged: the Job Demands-
Resources (JD-R) model and the conservation of Resources (COR) model. The JD-
R model focuses on the notion that burnout arises when individuals experience
incessant job demands and have inadequate resources available to address and to
reduce those demands. The COR model follows a basic motivational theory
assuming that burnout arises as a result of persistent threats to available resources.
A different variation of an imbalance model of burnout is the Areas of Work life
(AW) model, which frames job stressors in terms of person-job imbalances, or
mismatches, but identifies six key areas in which these imbalances take place :
workload, control, reward, community, fairness and values. Mismatches in these
areas affect an individual's level of experienced burnout, which in turn determines
various outcomes, such as job perfo1·mance, social behaviours, and personal
wellbeing.

91. Which of the following is not a resource-imbalance model of Burnout?

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(1) Job Demands-Resources Model

(2) Conservation of Resources Model
(3) Three-Dimensional Model
(4) Areas of Work life Model

Sub Question No : 92

92. Which of the following has the correct sequence of the stages of burnout?

(A) Fatigue due to excessive work, Dislike for work, failure to achieve targets

(B) Negative feelings about work, Dislike for work, Effort to quit work

(C) Initial good interpersonal relations, depersonalization, loss of idealism

(D) Cynicism, inadequacy, inefficiency

Sub Question No : 93

93. Which of the following are caused by Burnout?

(i) Concern for clients

(ii) Negative Social Behaviour

(iii) Physical and Mental Strain

Choose the most appropriate answer from the options given below :

(A) (i) only

(B) (i) and (ii) only
(C) (ii) and (iii) only
(D) (i) and (iii) only

94 .Given below are two statements.

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Statement (I): Cynicism stage of Burnout is often experienced by employees, engaged

in production activity, due to excessive work pressure.

Statement (II): In Cynicism stage of burnout, person withdraws from others and shows
lack of interest towards them.

In the light of the above statements, choose the correct answer from the options given
below

(A) Both Statement (I) and Statement (II) are true

(B) Both Statement (I) and Statement (II) are false

(C) Statement (I) is correct but Statement (II) is false

(D) Statement (I) is incorrect but Statement (II) is true

Sub Question No : 95

95. Match List I with List II

List I List II
a) Exhaustion (I) Not able to complete work
b) Cynicism (II) No energy for work
c) Inefficiency (III) No interest in customer

Choose the correct answer from the options given below :

(A) (a-I), (b-II) (c-III)

(B) (a-III), (b-II), (c-I)

(C) (a-II), (b-III), (c-I)

(D) (a-II), (b-I), (c-III)

Comprehension:

Answer Question No. 96 to 100 on the basis of the following passage :

It is desirable for consumers to be aware of their rights, and to exercise those rights
responsibly and intelligently. In these days of audio-video publicity on the public and

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private media, it is indeed very difficult, if not impossible, to verify the exaggerated or
false claims made by producers, manufactures, distributors and dealers of various goods
and services. The all-pervasive, exaggerated and often false claims, made for services
and goods, emphasize the imperative need for Consumer Protection Legislation and
creation of awareness about it among the general public.

In this connection, there are a number of enactments, in India such as the prevention of
Food Adulteration Act, 1954, the Essential Commodities Act, 1955, the Hire Purchases
Act, 1972, the Standards Weight and Measure Act, 1976 etc. However, the remedies
prescribed there under are time-consuming, inadequate and expensive. As in other
areas of Judicial Processes, the offenders are hardly caught, proceeded against and
rarely, if ever, got convicted. When violators go scot-free, the victims have no remedy
and gets frustrated.

Sub Question No : 96

96 .Which among the following is a correct statement based on the pas sage?

(A) Consumers in India are aware of their rights

(B) Consumers in India exercise their rights responsibly

(C) Consumers in India are unaware of their rights and hence, they do not exercise them

(D) None of the above could be ascertained on the basis of paragraph given h ere above

Sub Question No : 97

97 .Which among the following is a correct statement based on the passage?

(A) Producers and manufacturers are sensitive about consumers’ rights.

(B) Producers and manufacturers are insensitive about consumers’ rights.

(C) Producers and manufacturers are neutral about consumers’ rights.

(D) Producers and manufacturers are basically governed by ethics and values

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Sub Question No : 98

98. Who among the followings could be considered at the centre point in the passage?

(A) Consumers
(B) Judicial Process
(C) Manufactures
(D) Government

99. Which among the following is a correct statement based on the passage?

(A) The Government of India has enacted sufficient number of Jaws for protection of
consumer interests

(B) The paragraph does not give comprehensive list of laws in favour of consumers

(C) Legal environment for consumers in India is not conducive

(D) Legal environment for consumers in India is conducive

100 .Which among the following is a correct statement based on the passage?

(A) Consumers' laws are not explained well in India

(B) Indian Judiciary System needs a drastic reform to facilitate consumers' welfare

(C) Indian manufacturers are clever

(D) The Indian Consumers have no remedy and get frustrated

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ANSWER KEY

1 B 11 D 21 B 31 C 41 D 51 C 61 D 71 C 81 C 91 C
2 A 12 B 22 B 32 C 42 Dropped 52 B 62 B 72 B 82 C 92 A
3 A 13 B 23 C 33 C 43 B 53 C 63 C 73 B 83 A 93 C
4 A 14 B 24 A 34 B 44 A 54 B 64 D 74 D 84 A 94 D
5 B 15 D 25 A 35 A 45 A 55 C 65 B 75 B 85 B 95 C
6 D 16 D 26 A 36 A 46 B 56 A 66 B 76 B 86 A 96 D
7 C 17 B 27 C 37 A 47 C 57 C 67 A 77 A 87 B 97 B
8 A 18 C 28 A 38 D 48 A 58 A 68 B 78 A 88 D 98 A
9 C 19 A 29 C 39 C 49 C 59 D 69 B 79 D 89 D 99 B
10 A 20 A 30 B 40 C 50 D 60 B 70 A,B$C 80 A 90 D 100 B

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2 JUNE 2020 2nd shift

1. A company purchased a machinery on 01-01-2015 for a sum of Rs.60,000. The retail

price index on that date was 150. What is the value of machinery according to CPP
method on 31st December 2015, When the price index was 200.
(A) Rs. 1,00,000
(B) Rs. 90,000
(C) Rs. 80,000
(D) Rs. 70,000

2. Mr.X is entitled to transport allowance of Rs.1,800 p.m. for commuting from his

residence to office and back and he spends Rs.1 ,400 p.m. The exemption shall be
allowed of
(A) Rs.1,800 p.m.
(B) Rs.1,400 p.m.
(C) Rs.1,600 p.m.
(D) Nil

3. The defenders of the sustainability approach toward Corporate Social Responsibility

(CSR) point out that -------

(i) All economic activity exists within a biosphere that support all Life
(ii) The success of business must be judged only against profitability
(iii) People have a strong ethical duty to cause no harm and only a prime facie duty to
(iv) prevent harm
(v) Business sole responsibility is to fulfil the economic functions they were designed
to serve
(vi) Customer service is most important

Choose the most appropriate answer from the options given below:
(A) i and ii only
(B) ii, iii, iv only
(C) i and iii only
(D) i only.

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4. The shutdown refers to complete cessation or closing down of the business. It

involves which of the following?

(i) No buying or selling

(ii) No manufacturing
(iii) Shifting of business from one place to another place
(iv) Assets to be sold or disposed of.
(v) Returning capital to owners

(A) i, ii, iv and v

(B) i, ii, iii and iv
(C) i, ii, iii and
(D) i, iii, iv and v

5. Assertion A: Credit flows to agriculture and SME sector have increased in recent
years.

Reasoning R: Reserve Bank of India has gradually relaxed various controls in credit
Market.
Code:
(A) A and R both are correct and R is the right explanation of A
(B) A and R both are correct but R is NOT the right explanation of A
(C) A is correct but R is incorrect
(D) Both A and Rare incorrect

6. Which of the following are sufficient to determine shutdown point of multi

commodity firm in the short - run?

(i) Variable cost of operations

(ii) Marginal revenue received
(iii) Average variable cost of operations
(iv) Average marginal revenue received

Choose the most appropriate answer from the options given below:
(A) i and ii only
(B) iii and iv only
(C) i, ii and iii only

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(D) ii, iii and iv only

7. Match the cost concepts in List I and their description in List II

List I List II
(Cost concepts) (Description)
a. Sunk cost i. I. Change in total cost for a unit
change in output
b. Marginal cost ii. II. Value of inputs owned and
used in production
c. Investment iii. III. Costs that are unaffected by
cost firm decision
d. Implicit cost iv. IV. Total increase in costs
resulting from a decision

Choose the correct answer from the options given below:

(A) a-ii, b-i, c-iv, d -iii
(B) a - i, b-iii, c-iv, d- ii
(C) a -iv, b - ii, c-iii, d-i
(D) a-i, b-ii, c-iii, d-iv

8. In order to calculate capital adequacy ratio, the banks are required to into

Consideration, which of the following risks?

(i) Credit risk
(ii) Market risk
(iii) Operational risk

Choose the most appropriate answer from the options given below:
(A) i and iii only
(B) i and ii only
(C) ii and iii only
(D) i, ii and iii only

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9. Match List I with List II

List I List II
(Market Forms) (Distinctive featured)
i. Perfect a. Price rigidity
competition
ii. Monopoly b. Product
improvements
iii. Monopolistic c. Homogeneous
competition products
iv. Oligopoly d. Price
discrimination

Choose the correct answer from the options given below:

(A) i -b, ii –a, iii -d, iv - c
(B) i -d, ii -c, iii -a, iv - b
(C) i -c, ii -d, iii -b, iv - a
(D) i -a, ii - b, iii - c, iv – d

10. Identify on which of the three mutually reinforcing pillars Basel-Ill capital
regulations are based?

(i) Minimum capital standards

(ii) Supervisory review of capital adequacy
(iii) Credit risk management
(iv) Market discipline
(v) Management control

Choose the most appropriate answer from the options given below:
(A) i, ii and iii only
(B) i, ii and iv only
(C) iii iv and v only
(D) i, iii and iv only

11. Organizational socialization is one very important aspect of orientation, the

introduction of new employee to the enterprise(v) Which of the following is/ are not
designed for the socialization of new managers?

(i) Acquisition of work skills and ability

(ii) Adopt ion of appropriate role behaviour

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(iii) Adjustment to the norm and values of the work group

(iv) Filling a vacant position

Choose the most appropriate answer from the options given below:
(A) i and ii only
(B) ii and iii only
(C) iii and iv only
(D) iv only

12. Which of the following policy has lost its sheen consequent to implementation of
the

GST Laws in India?

(A) Monetary policy
(B) Fiscal policy
(C) Trade policy
(D) Exim policy

13. Swachh Bharat Abhiyan is an example of

(A) Sustainable marketing

(B) Social marketing
(C) Services marketing
(D) Relationship marketing

14. Which type of studies would be most appropriate to use in order to measure
changed opinions of consumers repeatedly?

(A) Focus group studies

(B) Shadowing studies
(C) Longitudinal studies
(D) Experimental studies

15. Which one of the following is a correct equation?

(A) Opening capital = Closing capital + Additional capital - Drawings - Profit

(B) Opening capital = Closing capital + Drawings - Additional capital - Losses
(C) Opening capital = Closing capital + Drawings - Additional capital - Profit

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(D) Opening capital = Closing capital - Drawings - Additional capital – Profit

16. Process Costing is appropriate for which of the following firms?

(i) Logistics and Transportation firms

(ii) Pharmaceutical and healthcare firms
(iii) Tourism and hospitality firms
(iv) Oil refining firms

Choose the correct answer from the options given below:

(A) i and iii
(B) ii and iii
(C) i, ii and iii
(D) iv only

17. Beliefs, attitudes, traditions and expectations which are shared by group members
is called----------

(A) Group norms

(B) Group communication
(C) Group cohesiveness
(D) Group structure

18. Which of the following are false?

(i) Partners are not bound to carry on the business of the firm to the greatest
common advantage
(ii) Where a partner is entitled to interest on capital subscribed by him, such interest
(iii) shall be payable whether or not there are profits
(iv) An outgoing partner has a right to claim a share in the profits of the firm till his
(v) account is finally settled
(vi) A partner may be expelled from the firm only with the consent of all other partners

Choose the correct answer from the options given below:

(A) i, ii, iv only
(B) i, iii, iv only
(C) ii, iv, iii only
(D) iii, iv only

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19. After concept testing, a firm would engage in which of the following stage in
developing and marketing a new product?

(A) Test marketing

(B) Marketing strategy development
(C) Business analysis
(D) Product development

20. Which of the following a related to vouching of sales?

(i) Dispatch of goods

(ii) Sales Book
(iii) Direct notes
(iv) Credit notes

Choose the correct answer from the options given below:

(A) ii and iv only
(B) i and iv only
(C) ii and i only
(D) ii and iii only

21. Goodness of fit of a distribution is tested by

(A) t - test
(B) F - test
(C) Chi - square test
(D) Z – test

22. The following information is available for Ravi Corporation

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EPS - Rs 4
ROI - 18%
Rate of return required by shareholders - 15%
What will the price per share as per Walter model if the pay-out ratio is 40%?
(A) Rs. 29.87
(B) Rs. 29.33
(C) Rs. 28.80
(D) Rs. 30.63

23. Assertion A: TRIMs and TRIPs provisions facilitate and promote FDI.

Reason R: TRIMs and TRIPs provisions remove restrictions and address capital flow
sensitivities.
Choose the correct response from following:

(A) Both A and Ra re correct and R is the right explanation of A

(B) Both A and Ra re correct and R is NOT the right explanation of A
(C) A is correct and R is not correct
(D) Both A and Ra re incorrect

24. In a monopolistically competitive market, which of the following hold true?

(i) firms are small relative to the total market

(ii) no firm has any market power
(iii) there is easy entry and exit in the market
(iv) few firms have market power
(v) there is no easy entry and exit in the market

Choose the most appropriate answer from the options given below:
(A) i, ii and iv only
(B) i and iii only
(C) i and ii only
(D) i and iii only

25. What is the correct sequence of distribution of amount realised under section 154
of

CGST rules?
(i) Appropriated against the administrative cost of the recovery process.
(ii) Appropriated against any other amount due from defaulter under the Act or IGST

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Act, 2017.
(iii) Appropriated against the amount due to be recovered from defaulter.
(iv) Balance amount, if any shall be refunded to the defaulter

(A) i, ii, iv, iii

(B) i, iii, ii, iv
(C) iii, I, ii, iv
(D) iii, ii, I, iv

26. Which of the following narratives describe Fisher (Irving) effect?

(i) Nominal, interest rate is equal to a real interest rate plus an expected interest rate
(ii) Real interest rate is equal to nominal interest rate minus expected rate of inflation
(iii) Exchange rate differential between two currencies is explained by interest –
inflation rate differential
(iv) Exchange rate differential between two currencies is explained by comparative cost
advantage and purchasing power parity

Choose the most appropriate answer from the options given below:
(A) i, ii and iii only
(B) i and ii only
(C) iii and iv only
(D) ii, iii and iv only

27. Meaning of unpaid seller is

(A) The person who has not paid the price

(B) The person who has sold the goods and received the price
(C) The person who has sold the goods and has not yet received the price
(D) The person who has not sold the goods

28. Which of the following retail analytic applications involve(s) the use of search
techniques to gain insights into customer's buying pattern?

(i) Factor analysis

(ii) Regression analysis
(iii) Data mining

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(iv) Data scrapping

(v) Data cloning

Choose the most appropriate answer from the options given below:

(A) i and ii only

(B) ii and iii only
(C) i, iii and iv only
(D) iii only

29. Sequence the following activities in the process of standard costing,

(i) Establishing standard costs

(ii) Measurement of actual costs
(iii) Identifying variances and causes of variance
(iv) Disposing the variances to cost and profit centres
(v) Comparison of actual and standard costs

Choose the correct answer from the options given below:

(A) i, ii, v, iii and iv

(B) i, ii, iii, iv and v
(C) i, ii, v, iv and iii
(D) i, ii, iv, iii and v

30. A Lt(iv) has a share capital of 5,000 equity shares of Rs.100 each having a market
value of Rs. 150 per shar(v) The company wants to raise additional funds of Rs.1,20,000
and offers to the existing shareholders the right to apply for a new share at Rs.120 for
every five share held(iv) What would be the value of right?

(A) Rs.5
(B) Rs.6
(C) Rs.6.5
(D) Rs.5.5

31. Reverse Repo Rate is a tool used by the Reserve Bank of India primarily to ______ _

(A) Inject liquidity

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(B) Absorb liquidity

(C) Protect bank credit
(D) Build reserve

32. Statement I: Contracts whose objects or consideration are unlawful are

void(iv)Statement II: Contracts in restraint of legal proceedings are void(iv)Code:

(A) Both Statements are correct

(B) Both Statements are incorrect
(C) Statement I is correct but II is incorrect
(D) Statement I is incorrect but II is correct

33. X and Y are partners in a business sharing profit and losses in the ratio of 3:(B) They
admit Z as a new partner with 1/5 share in the profits. Calculate the new profit-sharing
ratio of the partners.

(A) 12:8:5
(B) 12:8:6
(C) 12:7:6
(D) 12:3:7

34. Suppose a customer who purchases only two goods is making a utility - maximizing

choice and then the price of one of the goods decreases. What will happen?

(i) The consumer's purchasing power will increase

(ii) The consumer's total utility will increase
(iii) The consumer's money income will increase

Choose the most appropriate answer from the options given below:
(A) i and iii only
(B) i and ii only
(C) ii and iii only
(D) I, ii and iii only

35. Match the items in List I with economists propounded the same from List II

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List I List II
(Theoretical Foundations of (Economists)
Global Trade)
(i) Absolute cost advantage (a) Michael Porter
(ii) Factor endowment theory (b) David Ricardo
(iii) National competitive advantage (c) Heckscher and Ohlin
(iv) Comparative cost (d) . Adam smith
advantage

Identify correct match from the following:

(A) i-d, ii- c, iii-a, iv-c
(B) i-c, ii-b, iii-a, iv-d
(C) i-a, ii- d, iii-c, iv-b
(D) i- c, ii-d, iii-b, iv-a

36. A marketer needs to be aware of the criteria by which the effectiveness of their
segmentation procedures can be assess(iv) Which of the following is NOT a criterion
for evaluating the resulting market segments?

(A) Perishability
(B) Size of the resulting segment
(C) Measurability
(D) Accessibility

37. Assertion A: Equilibrium price of a commodity is the price at which the quantity

demanded of the commodity equals the quantity supply(iv)

Reason R: Equilibrium, is the condition, once determined tends to persists in time(v)

Choose the right options:

(A) Both A and R are correct and R is the right explanation of A
(B) Both A and R are correct and R is NOT the correct explanation of A
(C) A is correct and R is not correct
(D) Both A and R are incorrect

38. The consumer's price sensitivity is/ are influenced by

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(i) Who bears the cost

(ii) What percentage of total expenditure does the product represent
(iii) Who bears the cost and type of retailer from where customer purchases
(iv) Consumption of product by the customer
(v) Knowledge about the product

Choose the most appropriate answer from the options given below:
(A) i, ii, v only
(B) ii and iv only
(C) i, ii, iv only
(D) i, ii, iv, v only

39. Which of the following method of training is NOT a part of the off - the job training

method?
(A) Sensitivity training
(B) Transitional analysis
(C) Apprenticeship
(D) Conference method

40. Which type of retailers involve in comparatively low prices as a major selling point
combined with the reduced costs of doing business?

(A) Convenience stores

(B) Discount retailers
(C) Limited line retailers
(D) Category killer stores

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41. Arrange the following management functions in a logical sequence of getting

things done

(i) Planning
(ii) Staffing
(iii) Organizing
(iv) Coordinating
(v) Controlling
(vi) Directing
Choose the correct answer from the options given below:
(A) i, ii, iii, iv, vi and v
(B) i, iii, ii, vi, iv and v
(C) i, iii, ii, iv, vi and v
(D) i, iii, ii, iv, v and vi

42. Uppsala model for internationalisation of business operations is not valid for -----
--

(A) Manufacturing organisations

(B) Services organisations
(C) Agribusiness enterprises
(D) Trading enterprises
43. Grouping of countries committed to remove all barriers to the free flow of goods
and

services between themselves and also pursue independent external trade policies is
called
(A) Free trade area
(B) Custom union
(C) Common market
(D) Economic union

44. Suppose that a firm has 20% debts and 80% equity in its capital structure(v) The
cost of debts and cost of equity are assumed to be 10% and 15% respectively, What is
the overall cost of capital?

(A) 11%
(B) 12%
(C) 13%
(D) 14%

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45. When consumers seek to be different and exclusive by demanding less of a

commodity as more people consumes it. This phenomenon is known as

(A) Bandwagen effect

(B) Snob effect
(C) Substitution effect
(D) Price effect

46. Sequence the following CSR eligibility criteria and spending as per the provisions
of the Indian Companies Act 201(C)

(i) Positive net worth of Rs.500 Crores or more

(ii) Two percent of average profit spend on CSR
(iii) Net profit of Rs.5 crore or more in given financial year
(iv) Turnover of Rs.1,000 crore or more
(v) Penal action for non-compliance

Choose the correct answer from the options given below:

(A) ii, v, i, iii and iv
(B) i, iv, iii, ii and v
(C) III, ii, i, iv and v
(D) Iv, ii, I , iii and v

47. Sub - optimal allocation of resources under monopoly to cause social welfare loss
is often inferred as

(A) Deadweight loss

(B) Allocation drift
(C) Monopoly loss
(D) Opportunity loss

48. Channel conflicts can be

(i) Vertical
(ii) Horizontal
(iii) Diagonal
(iv) Circular

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(v) Triangular

Choose the most appropriate answer from the options given below:

(A) i and iii only

(B) ii and i only
(C) i and ii only
(D) i, ii and iii only

49. Assertion A: Workers participation in management is involvement of workers only

in

such areas of activities of the enterprises where they can make some positive
contribution.
Reasoning R: Workers may not be competent enough to understand and appreciate
the managerial aspects of the enterprise(v)
Code:

(A) Both A and Rare correct but R is not the right explanation of A
(B) Both A and Rare correct and R is the correct explanation of A
(C) A is correct but R is incorrect
(D) Both A and R are incorrect

50. Tax audit is compulsory in case of a person is earring on business whose gross
turnover exceeds

(A) Rs.60 Lakhs

(B) Rs.1 Crore
(C) Rs.40 Lakhs
(D) Rs.2 Crore

51. Which one of the following is the most pervasive and sustaining objectives of
financial decision making?

(A) Profit maximization

(B) Earnings maximization
(C) Value maximization
(D) Cost minimization

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52. Match the items of List I with the items of List II and choose the correct code of

Combination

List I List II
i. Indian Contract Act I. 2002
ii. Right to Information Act II. 1872
iii. Information Technology Act III. 2005
iv. Competition Act IV. 2000
(A) i- I, ii- II, iii-III, iv-IV
(B) i- II, ii-IV, iii-I, iv-III
(C) i- III, ii-IV, iii-II, iv-I
(D) i-II, ii-III, iii-IV, iv-I

53. When current ratio is 2:1 and if equal increase in current assets and current
liabilities

would result in

(A) No change in current ratio

(B) Increase in current ratio
(C) Decrease in current ratio
(D) Current ratio will double

54. Which two of the following are correct about TDS certificates?

(i) TDS on salary payment - Form 16

(ii) TDS on non-salary payment - Form 16A
(iii) TDS on rent - Form 16B
(iv) TDS on sale of property - Form 16C
Choose the correct opt ion:
(A) i and ii
(B) i and iii
(C) i and iv
(D) ii and iii

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55. For a decline in price(V) Total Revenue (TR) increases if demand is ------------

(A) Elastic
(B) Inelastic
(C) Unitary elastic
(D) Zero elastic

56. Intellectual Property Rights (IPRs) protect the use of information and ideas that are
of

(A) Social value

(B) Moral value
(C) Commercial value
(D) Ethical value

57. Which of the following could be problems with consumer interviews?

(i) A non-random sample

(ii) The identification problem
(iii) Response bias

Choose the most appropriate answer from the options given below:

(A) i and ii only

(B) ii and iii only
(C) i and iii only
(D) ii only

58. Match the items of List I with those of List II and choose the correct code of
combination:

List I List II
i. 80 GGC I. Deduction in respect of rent paid
ii. 80 GG II. Deduction in respect of contribution
given by company to political parties

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iii. 80 GGA Ill. Deduction in respect of contribution

given by any person to
political parties
iv. 80 GGB IV. Deduction in respect of certain
donations for scientific research

(A) i-III, ii-I, iii-II, iv-IV

(B) i-III, ii-II, iii-IV, iv-I
(C) i-III, ii-I, iii-IV, iv-II
(D) i- I, ii-II, iii-III, iv-IV

59. Which one of the following is/are hold(s) true to successfully practice price
discrimination?

(i) The firm must be a pure monopoly

(ii) The firm must possess market power
(iii) It must be difficult for consumers in one market to sell to consumers in the other
Market.

Choose the most appropriate answer from the opt ions given below:
(A) i and ii only
(B) ii and iii only
(C) i and iii only
(D) iii only

60. If Activity Ratio of a firm is 80% and capacity ratio is 120%, find out its efficiency
ratio.

(A) 150%
(B) 100%
(C)80%
(D) 66.67%

61. Objective of energy management and audit invariably includes which of the
following in

a business enterprise?

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(i) Minimising cost of energy consumption

(ii) Minimising waste in energy consumption
(iii) Scaling harmful impacts of pollution on health of the natives
(iv) Minimising environmental degradation

Choose the most appropriate answer from the options given below:
(A) i, ii and iii only
(B) ii, iii and iv only
(C) i, ii and iv only
(D) i, ii, iii and iv only

62. Arrange the following in correct sequence:

(i) Income under the different heads of Income

(ii) Deduction from gross total income
(iii) Adjustment of losses of the current year and earlier years.
(iv) Rounding off.

Choose the correct answer from the options given below

(A) i, iii, ii and iv
(B) i, ii, iii and iv
(C) i, ii, v and iii
(D) I, iv, ii and iii

63. Which of the following is the first order conditions to profit maximisation?

(A) TR - TC
(B) MR= MC
(C) MR cuts MC from below
(D) Slope of MC curve must be higher than that of MR curve

64. Which of the following are true of the Goods and Services Tax (GST) introduced in
India in recent times?

(i) It is a destination tax

(ii) It benefits producing states more
(iii) It benefits consuming states more
(iv) It is a progressive taxation
(v) It is an umbrella tax to improve ease of doing business

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Choose the most appropriate answer from the options given below:
(A) ii, iv and v only
(B) I, iii and iv only
(C) I, iv and v only
(D) I, iii and v only

65. A multinational firm is the one which ---------

(A) Source supplies from multiple countries

(B) Exports production to multiple countries
(C) Control and operates production facilities in multiple countries
(D) Has consular access in multiple countries

66. Which of the following industry verticals received boost amid covid-19 pandemic?
lockdowns?

(i) Online education, gaming and entertainment

(ii) E-commerce and E-Payment infrastructure
(iii) Retailing and pharmaceuticals
(iv) Hospitality and healthcare services
(v) Manufacturing and MSMEs

Choose the most appropriate answer from the options given below:
(A) i, ii and iv only
(B) i, iii and v only
(C) i, ii and iii only
(D) iii, iv and v only

67. Match the items of List I with those of List II and choose the correct code from the

following combination

List I List II
(a) Inability to pay interest i. Current Ratio
(b) Liquidity crisis ii. Debtor Turnover
iii. Ratio
(c) Inefficient collection of receivable iv. Interest

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v. coverage ratio
(d) Return of shareholder's fund vi. Debts - Equity ratio
being much higher than the
overall return on investment

(A) a -iii, b - i, c -ii, d -iv

(B) a -iii, b -ii, c -i, d -iv
(C) a -ii, b - iii, c -i, d -iv
(D) a -i, b-ii, c -iii, d-iv

68. Match the item of List I with the items of List II and suggest the correct code:

List I List II
(i) Relationship (a) Dealing in hundis and acceptance
(ii) Banking of deposits
(iii) Merchant Banking (b) Widening the entrepreneurial
base and assist in a rapid rate of
industrial growth
(iv) Indigenous Banking (c) Engaged in the business of capital
issue management
(v) Development (d) Creating, maintaining and
(vi) Banking enhancing strong relationship
with customers

(A) i-d, ii-b, iii-a, iv-c

(B) i-b, ii-c, iii-a, iv-d
(C) i-d, ii-c, iii-a, iv-b
(D) i-b, ii-a, iii-d, iv-c

69. In a survey people are choose from class friends or neighbours for the purpose of
knowing their preference for a certain b rand of soft drink, is an example of

(A) Convenience sampling

(B) Judgement sampling
(C) Cluster sampling
(D) Stratified sampling

70. Sequence the steps in CRM process?

(i) Developing CRM programmes

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(ii) Collection of customer data

(iii) Analysing customer data
(iv) Identify the target customers
(v) Implementing programs

Choose the correct answer from the options given below:

(A) i, ii, iii, v and iv
(B) ii, iii, iv, i and v
(C) ii, iii, i, v and iv
(D) iii, iv, v, i and ii

71. Sequence the following in the capital budgeting process

(i) Cash flow estimation

(ii) Identify discounting rate
(iii) Project selection decision
(iv) Determination of NPV

Choose the correct answer from the opt ions given below:
(A) i, ii, iv and iv
(B) i, ii, iv and iii
(C) iv, i, ii and iii
(D) ii, i, iv and iii

72. Belated return u/s 139(4) can be filled at any time

(A) Before the expiry of relevant assessment year

(B) Before the expiry of one year from relevant assessment year
(C)Before the expiry of relevant assessment year or before the assessment is
complete(V) whichever is earlier
(D)Before the expiry of one year from the end of the relevant assessment year or before
the assessment year, whichever is earlier

73. Survey instruments used to assess customer perception of service quality are called

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(i) CETSCALE
(ii) SERVQUAL
(iii) SERVPREF
(iv) DINESERV
(v) RSQS

Choose the most appropriate answer from the options given below:
(A) i and ii only
(B) ii and iii only
(C) i, ii, iii and iv only
(D) ii, iii, iv and v only

74. Match the items of List I with those of List II and choose the correct code of

Combination

List I List II
(a) Ad- hoc team formed to solve (i) Virtual organization
usual problem
(b) Suitable when there are large (ii) Task force
number of small projects
(c) (Status - free and hierarchy free (iii) Free form organization
organization
(d) (IV) Digital or dot com (iv) Matrix organization
organization

(A) a -iii, b -i, c-iv, d-ii

(B) a -i, b-ii, c-iv, d-iii
(C) a -ii, b-iv, c-iii, d-i
(D) a -iv, b-i, c-ii, d-iii

75. Which of the following aptly aims to alleviate financial stress of the borrowers at
bottom of the pyramid by reducing their cost of credit in new of COVID-19 - 19
pandemic?
(I) A generic loan moratorium to the borrowers
(II) Two percent interest subvention on Sishu loans under the Pradhan Mantri Mudra
Yojana
(III) Provisioning Rs.1,500 Crore for Animal Husbandry Infrastructure Fund (AHIDF) to
help investment in diaring, meat processing and animal feed plants.

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(IV) Financial! incentives to Farmer Producer Organisations (FPOs) and Micro, Small
and Medium Enterprises (MSMEs)

Choose the most appropriate answer from the options given below:
(A) I Band III only
(B) I, II and IV only
(C) II and III only
(D) IV only

76. Which of these are readily accepted distinguishing characteristics of the services
that? create unique strategic challenges?

(i) Inflexibility
(ii) Perishability
(iii) Inseparability
(iv) Intangibility
(v) Inscrutability

Choose the most appropriate answer from the options given below:
(A) ii, iii, iv only
(B) i, ii, iii, iv only
(C) iii, iv, v only
(D) ii and iv only

77. Tele - Marketing is a part of

(A) Viral marketing

(B) Social marketing
(C) Direct marketing
(D) Relationship marketing

78. If on an average(V) 2 customers arrive at shopping mall per minute(V) what is the
probability that in a given minute(V) exactly 3 customers will arrive? (e-2 = 0.1353)

(A) 0.1804
(B) 0.3532
(C) 0.2352
(D) 0.1404

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79. Span of management is determined by

(i) manager's training

(ii) manager's personal qualities
(iii) subordinates training
(iv) trade union

(A) ii, iii and iv

(B) i, ii and iii
(C) i, iii and iv
(D) i, ii and iv

80. In a moderately skewed distribution, which of following equation indicates the

relationship among mean, median and mode?

(A) Mean= 2 Mode - 3 Median

(B) Mode= 3 Median - 2 Mean
(C) Median = 3 Mean - 2 Mode
(D) Mode = 3 Mean - 2 Median

81. Which of the following include problems in forecasting?

(i) estimates becoming more reliable the further you forecast into the future
(ii) specification error
(iii) cyclical variation
(iv) stationarity in data series
(v) consistency in data series

Choose the most appropriate answer from the options: given below:
(A) i and ii only
(B) ii, iii and iv only
(C) ii and iii only
(D) i and iii only

82. Sequence the following activities in the process of accounting

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(i) Journalising the transaction in the ledger accounts

(ii) Recording the business transaction in the books of entry
(iii) Preparation of Annual Financial statements
(iv) Preparation of the Trial Balance
(v) Deriving meaningful inferences for business decisions

Choose the correct answer from the options given below:

(A) i, ii, iii, iv and v
(B) i, ii, iv, v and iii
(C) iv, iii, v, ii and i
(D) ii, i, iv, iii and v

83. "Skimming" in e-banking refers to

(A) Identifying fraudsters copying vital information from credit cards

(B) Multiple transactions by one credit card
(C) Conversion of a debit card into credit card
(D) Excessive charge for online services

84. Which of the following truly describe govt. intervention in the MSME space in view
of Covid-19 pandemic?

(i) Provisioning of collateral free automatic loans worth Rs. 3 lakh crores
(ii) Provision of 100% credit guarantee coverage to banks and NBFCs on principal and
interest for loans to NBFCs
(iii) Redefined MSMEs to include both investment and turnover criteria
(iv) Created a war chest of Rs.3,00,000 crores for the MSME loans and employment
protection
(v) Allocated Rs.3,00,000 crores for MSME loan moratorium and waiver

Choose the correct answer from the options given below:

(A) i, ii and iii
(B) ii, iii and iv
(C) iii, v and v
(D) i, iii and iv

85. Who coined the metaphor “invisible hand” in the Theory of Moral Sentiments?

(A) Milton Friedman

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(B) David Ricardo

(C) Michael Porter
(D) Adam Smith

86. Match the items of Units (I) with those of Units (II) and choose the correct code of

combination:

(A) a - i, b - iv, c - ii, d - iii

(B) a - iv, b - iii, c - ii, d - i
(C) a - iii, b - iv, c - ii, d - i
(D) a - iv, b - iii, c - i, d - ii

87. A price ceiling below the equilibrium price often leads to ----------

(A) Commodity glut

(B) Tax Burdon on consumer
(C) Shortage of the commodity and black marketing
(D) Export of commodity

88. Political risk management comes in the ambit of which of the following financial

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decisions?
(A) Non - conventional capital budgeting
(B) International currency arbitrage
(C) Foreign exchange market
(D) Multinational capital budgeting

89. In penetration pricing a business firm seeks to access deeper market penetration
by keeping prices ----------------

(A) Higher
(B) Competitive
(C) Low
(D) Flexible

90. Match List I with List II

List I List II
(International product lifecycle stage) International competition)
(i) Introduction (a) Companies from other high-
income countries
increase exports to the innovating
country
(ii) Growth (b) Competitors from other high-
income countries may begin
production in developing
countries
(iii) Maturity (c) A few competitors at home
(iv) Decline (d) Competitors in other high-income
countries
begin production for their
domestic markets

Choose the correct answer from the options given below:

(A) i –c, ii-d, iii –a, iv – b
(B) i –c, ii –a, iii –d, iv – b
(C) i –b, ii –d, iii –a, iv – c
(D) i -d, ii –b, iii –a, iv –c

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S=91-95);

[Link] fund is

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(A) Investment intermediary

(B) Venture capitalist
(C) NBFC
(D) Non-profit organization

92. Who among the following monitors the compliance of SEBI regulations by the
mutual fund?
(A) Sponsor
(B) Trustee
(C) AMC
(D) Custodian

93. Which among the following is not a part of mutual fund trust?

(A) Sponsor
(B) Custodian
(C) Depository
(D) Trustees

94. AMC manages funds by investing in

(A) Stock market securities only

(B) Credit instruments only
(C) Government bonds only
(D) Various types of securities

95. The sponsor of a mutual fund is similar to

(A) Sole proprietor of a firm

(B) Partner of a partnership firm
(C) Promoter of a company

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(D) Director of a company

96. Providing necessary support system for employees require which of the following?

(i) Friendly environment

(ii) Providing all the equipment and system needed by employees to deliver service
(iii) Internal controls
(iv) Service oriented process

Choose the correct option:

(A) Only i
(B) ii and iii
(C) i, ii and iii
(D) ii, iii and iv

97. Developing the employees to provide service quality does require which of the

following?
(i) Training of employees
(ii) Continuous instruction with employee

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(iii) Setting standard for employees

(iv) Recognize and reward the employees across all levels

Choose the correct option:

(A) i and ii
(B) iii and iv
(C) Only i
(D) i, ii, iii and iv

98. Which approach did not help Taj to restore its glory?

(A) Collective bargaining

(B) Customer retention
(C) Treating employee as customer
(D) Implementation of performance management system.

99. Retaining the best people by Taj did not include

(A) Making t hem as a part of vision

(B) Promoting them out of turn
(C) Rewarding the employees
(D) Treating employees as customers

100. Hiring the right people for organization like Taj hotel requires which of the
following?

(a) Compete to get best employees

(b) Hire for competency and inclination
(c) Be the most preferred employer
(d) Choose the most talented

Choose the correct option:

(A) i and ii
(B) ii and iii
(C) i, ii and iii
(D) ii, iii and iv
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1 C 11 D 21 C 31 A 41 B 51 C 61 C 71 B 81 C 91 A
2 C 12 B 22 A 32 A 42 B 52 D 62 A 72 C 82 D 92 B
3 D 13 B 23 A 33 A 43 A 53 C 63 B 73 D 83 A 93 C
4 A 14 C 24 D 34 B 44 D 54 A 64 D 74 C 84 A 94 D
5 A 15 C 25 B 35 A 45 B 55 A 65 C 75 Cancelled by 85 D 95 C
NTA
6 B 16 D 26 A 36 A 46 C 56 C 66 C 76 A 86 B 96 D
7 A 17 A 27 C 37 B 47 A 57 C 67 A 77 C 87 C 97 D
8 D 18 A 28 D 38 D 48 C 58 C 68 C 78 A 88 D 98 A
9 C 19 B 29 A 39 C 49 B 59 B 69 A 79 B 89 C 99 B
10 B 20 C 30 A 40 B 50 B 60 D 70 B 80 B 90 A 100 C

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2019 DECEMBER

1. A production function expressed as

−1
Q = A[α𝐾𝐾 −𝛽𝛽 + (1 — α)𝐿𝐿−𝛽𝛽 ]
β

Or
−1
Q = A[α𝐿𝐿−𝛽𝛽 + (1 — α)𝐾𝐾 −𝛽𝛽 ]
β

When A > 0, 0 <α< 1 and β > -1

Where L = labour, K = Capital and A, α and β are three parameters is called

1. Constant elasticity substitution function

2. Variable elasticity substitution function

3. Leontief - type function

4. Cobb - Douglas function

2. Which two of the following statements are correct?

a) In the short - run, ∆ TFC = 0, therefore ∆ TC = ∆ TVC

b) If decrease in AFC < increase in AVC, then AC decreases

c) If decrease in AFC = increase in AVC, AC remains constant

d) If decrease in AFC >- increase in AVC, then AC increases

Choose the correct answer from the options given below

1. a) and c)

2. b) and c)

3. b) and d)

4. a) and d)

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3. Michael Porter proposed generic strategies that provide good starting points for
strategic thinking. Identify them from the below mentioned strategies

a) Overall cost leadership

b) Innovation

c) Focus

d) Differentiation Choose the correct answer from the options given below

1. a) and b) only

2. a), c) and d) only

3. a), b) and d) only

4. All of these - a), b) ,c) and d)

4. Which two of the following statements are true?

a) The sum of the deviations from mean (ignoring algebraic signs) is greater than the
sum of the deviations from median (ignoring algebraic signs)

b) Standard deviation is independent of change of origin and change of scale

c) In a symmetrical distribution, mean deviation equals 4/5 of standard deviation

d) In a symmetrical and bellshaped distribution, quartile deviation is 1/3 of standard

deviation

Choose the correct answer from the options given below

1. b) and d)

2. a) and c)

3. c) and d)

4. a) and b)

5. Which of the following statements are true?

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a) Transaction exposure is inherent in all foreign currencies denominated contractual

transactions

b) Translation exposure relates to the change in accounting income and balance sheet
statements caused by change in exchange rate

c) Economic exposure has an impact on the valuation of a firm

d) Operating exposure does not have any impact on the firm's future operating
revenues or future operating costs

Choose the correct option from those below:

1. a) and b) only

2. b) and c) only

3. b) and d) only

4. a), b) and c) only

6. Which two of the following statements are true?

a) Skewness studies the flatness or peakedness of the distribution

b) A positively skewed distribution curve is stretched more to the right than to the left

c) On the basis of empirical relationship between mean, mode and median for
moderately asymmetrical distribution, Karl Pearson's coefficient of skewness can be
measured by 3 (Mean -Median) divided by Standard Deviation

d) If mean <mode, the distribution is positively skewed

Choose the correct option from those below:

1. a) and b)

2. b) and c)

3. c) and d)

4. b) and d)

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7. Which two of the following measures of central tendency are NOT capable of
algebraic treatment? a) Geometric Mean

b) Median

c) Arithmetic Mean

d) Mode

e) Harmonic Mean

Choose the correct answer from the options given below:

1. a) and b)

2. d) and e)

3. b) and d)

4. c) and e)

8. Which of the following is NOT part of the process of management audit?

1. Identification of responsibility center

2. Review of performance of each responsibility center

3. Review of organizational structure

4. Investigating the depreciation method and its application on fixed assets in the
company

9. Which of the following statements are true?

a) Pay - back period method considers all cash flows of a project

b) Pay - back period method concerns more with the recovery of cost than profitability

c) Net Present Value represents net addition to the wealth of shareholders

d) Accounting Rate of Return method incorporates risk as well as time value of money

Choose the correct option from those below:

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1. a) and b)

2. a) and d)

3. b) and c)

4. b) and d)

10. The indemnity holder is NOT entitled to

1. All damages which he may be compelled to pay in any suit in respect of any matter
to which the promise applies

2. All costs that he may be compelled to bear in defending any such suit

3. All sums that he may have paid under the terms of any compromise of such suit

4. Damages for liability incurred which is not absolute

[Link] circle is a type of

1. Problem- solving team

2. Cross-functional team

3. Self-directed team

4. Project team

[Link] below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R).

Assertion (A): Auto companies and other consumer goods companies offer cash
rebates to encourage purchase of the manufacturer's products within a specified
period

Reason (R): The same product is priced differently at different times

In the context of the two statements above related to pricing strategy, which one of
the following options is correct?

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1. Both (A) and (R) are correct

2. Both (A) and (R) are not correct

3. (A) is correct, but (R) is not correct

4. (A) is not correct, but (R) is correct

[Link] one of the following is a void contract?

1. Unilateral contract

2. A contract which ceases to be enforceable by law

3. Implied contract

4. Express contract

[Link] two of the following are correct in terms of rate of tax deduction at source
(TDS)?

a) Income by way of winning from horse race: @ 30%

b) Insurance Commission: @ 10%

c) Rent of Plant & Machinery: @ 5% d) Rent of furniture: @ 5%

Choose the correct option from the following:

1. a) and b)

2. a) and c)

3. a) and d)

4. b) and c)

[Link] among the following is NOT a correct statement?

1. The Reserve Bank of India worked as Central Bank of Burma till April 1947

2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948

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3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972
to December 1975

4. The Reserve Bank of India commenced its operations on April 1, 1935

[Link] incorrect statement from the following:

1. 28 Days T - bills were introduced in 1998

2. 364 Days T - bills were introduced in 1992

3. 182 Days T - bills were introduced in 1986

4. 273 Days T - bills were introduced in 2006

[Link] are the drivers of globalization?

a) Population mobility especially of labour

b) Financial flows

c) Exporting

d) Assembly operations

Choose The correct answer from the following

1. a) and d)

2. b) and d)

3. a) and b)

4. c) and d)

[Link] are the parties to a cheque?

a) Drawer

b) Payee

c) Acceptor

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d) Holder

Choose the correct answer from the following options:

1. a) and b) only

2. a), b) and d) only

3. a) and c) only

4. All of these - a), b), c) and d)

[Link] of the following is NOT true about web marketers?

1. Web marketers usually try to attract prospects to their site through email,
advertisements in newspapers

2. Use attractions like discounts, gifts and contests

3. Ask customers to give their personal data mandatorily

4. Give a lot of publicity to the discount schemes

20. Which one of the following is NOT correct according to the Consumer Protection
Act?

1. District Forum shall consist of a lady social worker

2. State Commission shall consist of person who is or has been a Judge of a High Court

3. District Forum shall consist of four members

4. National Consumer Disputes Redressal Commission shall consist of a person who is

or has been a Judge of the Supreme Court

[Link] the steps to e-filing of Income Tax Return in correct sequence:

a) Register yourself

b) Verify ITR V

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c) Select the requisite form

d) Fill form and upload

Choose the correct option from those below:

1. a) -> c) -> d) -> b)

2. a) -> b) -> c) -> d)

3. a) -> b) -> d) -> c)

4. c) -> a) -> d) -> b)

[Link] one of the following relates to warranty?

1. It is of vital importance for completion of contract

2. If there is breach, the aggrieved party can repudiate the contract

3. It is essential to the main purpose of the contract

4. In case of breach, the aggrieved party can claim only damages

[Link] is the typical sequence in which the following selection devices are used by
the company?

a) Reference checks

b) Physical examination

c) Application Blank

d) Hire

e) Conditional Offers

f) More interviews

g) Screening interviews

h) Tests

Choose the correct answer from the options given below

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1. c) -> g) -> h) -> f) -> a) -> e) -> b) -> d)

2. d) -> g) -> f) -> h) -> a) -> e) -> b) -> c)
3. c) -> h) -> g) -> a) -> f) -> e) -> b) -> d)
4. d) -> g) -> h) -> f) -> a) -> e) -> b) -> d)

[Link] following are the two statements regarding elasticity of demand and its
measurement

Statement I: On every point on the straight line demand curve, the point elasticities are
all equal

Statement II; On every point on the rectangular hyperbola shaped demand curve, the
point elasticities are not equal

Select the correct option for those below:

1. Both the statements are correct

2. Both the statements are not correct

3. Statement I is correct while Statement II is incorrect

4. Statement I is incorrect while Statement II is correct

[Link] the following financial institutions in ascending order of their year of

establishment:

a) National Housing Bank

b) Export - Import Bank of India

c) NABARD

d) Unit Trust of India

Choose the correct option from those below

1. b) —> d) —> c) —> a)

2. d) —> b) —> a) —> c)

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3. d) —> b) —> c) —> a)

4. d) —> c) —> b) —> a)

[Link] - Banking Financial Companies can be classified as:

a) Asset Finance Company (AFC)

b) Investment Company (IC)

c) Loan Company (LC)

d) Foreign Trade Company (FTC)

Choose the correct answer from the options given below:

1. a), b) and c) only

2. b), c) and d) only

3. a), c) and d) only

4. a), b) and d) only

[Link] the case consumers' equilibrium to be explained through an ordinal approach,

when there are two commodities with their prices given and with limited income of the
consumer, the following information is required:

a) Price line/budget line

b) Indifference map

c) Point of tangency between IC and budget line

d) Equality of the slopes of IC and budget line

Arrange the information required in the correct sequence and choose the right option
from those below

1. b)—> d) —> a) —> c)

2. b) —> a) —> d) —> c)

3. a) —> d) —> b) —> c)

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4. a) —> b) —> c) —> d)

[Link] of the following laws affect business organizations?

1. Incorporation and Bankruptcy laws

2. Environmental Protection Laws

3. Occupational Health and Safety Laws

4. Competition Laws

[Link] the following Banking Sector reform committees with their respective
purposes:

Committee Purpose
a) Y.V. Reddy Committee i) Revised method of lending in place of
cash credit system
b) Rashid Jilani Committee ii) Rationalization of interest rate on
small savings
c) S.M Kelkar Committee iii) Working capital lending norms
d) . T Vaz Committee iv) Regional Rural Banks

Choose the correct option from those given below

1. a) - i), b) - ii), c) - iii); d) - iv)

2. a) - ii); b) - i); c) - iv); d) - iii)

3. a) - iv); b) - iii); c) - ii); d) - i)

4. a) - ii); b) - iii); c) - iv); d) - i)

[Link] two of the following are the function of WTO

a) To facilitate the implementation, administration and operation of trade agreement

b) To carry out periodic reviews of the trade policies of its member countries

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c) To assist in the establishment of a multilateral system of payments

d) To promote international monetary cooperation

Choose the correct option from the following:

1. a) and d)

2. b) and c)

3. c) and d)

4. a) and b)

[Link] which of the following assumptions, the theory of consumer behaviour on

cardinal utility approach is NOT based?

1. Consumer is rational

2. Limited money income of the consumer

3. Maximization of total satisfaction

4. Diminishing marginal utility of money

[Link] the recent years - the major gain in logistical efficiency have come from which
one of the following?

1. Advances in Information Technology

2. Reduction in petroleum prices

3. Fast order processing

4. Increase in production of commercial vehicles

[Link] percentage of income from compensation on disaster is exempted from tax

liability?

1. 100%

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2. 75%

3. 50%

4. 25%

[Link] below are two statements. One is labelled as Assertion (A) and the other is
labelled as Reason (R).

Assertion (A): In the case of short run cost behaviour, MC curve intersects AC curve at
its minimum

Reason (R): While AC continues to decrease, MC begins to rise. Also, when AC is at its
minimum, it is neither increasing nor decreasing. It is constant when AC is constant, it
is equal to MC at the point of intersection

Choose the correct option from those below

1. Both A) and R) true and R) is the correct explanation of A)

2. Both A) and R) true but R) is NOT the correct explanation of A)

3. A) is true but R) is false

4. A) is false but R) is true

[Link] List I with List II

List I List II
a) Transfer of ownership i) Negotiable Instrument
b) Sale of goodwill after dissolution ii) Contract of sale of goods
c) Buy - back of securities iii) Dissolution of partnership firm
d) Promissory Note iv) Share capital of company

Choose the correct option from those given below

1. a) - ii); b) - iii); c) - iv); d) - i)

2. a) - iii); b) - iv); c) - ii); d) - i)

3. a) - iv); b) - ii); c) - i); d) - iii)

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4. a) - i); b) - ii); c) - iii); d) - iv)

[Link] of the following is the odd one out?

1. Specific goods

2. Un-ascertained goods

3. Future goods

4. Ascertained goods

[Link] of the following is an incomplete experimental research design?

1. Before and after with control group design

2. Factorial design

3. One group before-after design

4. Latin Square design

[Link] of the following statements are correct?

a) Dividend payout ratio refers to that portion of total earnings which is distributed
among equity shareholders of the company

b) 'Bird in hand' argument is given by Gordon's model

c) MM model suggest that dividend payment is very relevant for value of the firm

d) Walter's Model suggests that dividend payment does not affect the market price of
the share

1. a) and b)

2. a) and c)

3. b) and c)

4. c) and d)

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[Link] of the following sections of Companies Act 2013 facilitates amalgamation,

absorption and reconstruction of companies?

1.319

2.320

3.410

4.502

[Link] below are two statements. One is labelled as Assertion (A) and the other is
labelled as Reason (R).

Assertion (A): Globalization refers to the free cross-border movement of goods,

services, capital, information and people

Reason (R): Countries are consistently evolving innovative marketing barriers that are
WTO compatible

In the light of the above statements, choose the correct answer from the options given
below

1. Both A) and R) true and R) is the correct explanation of A)

2. Both A) and R) true but R) is NOT the correct explanation of A)

3. A) is true but R) is false

4. A) is false but R) is true

[Link] below are two statements. One is labelled as Assertion (A) and the other is
labelled as Reason (R).

Assertion (A): If the firm is prepared to incur increased cost on transportation, it may
be in a position to reduce its inventory cost

Reason (R): As in such a case, the firm can use the fastest mode of transport and rush
the goods/stocks to the desired warehouse, unmindful of the cost of transportation

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In the context of the above two statements related to logistics management, which of
the following options is correct

1. Both A) and R) true and R) is the correct explanation of A)

2. Both A) and R) true but R) is NOT the correct explanation of A)

3. A) is true but R) is false

4. A) is false but R) is true

[Link] of the following is NOT a factor contributing to MBO program failure?

1. Altering goals to meet changes in cicumstances

2. Easy goals

3. Lack of management support

4. Setting of unrealistically difficult goals

43. TheTheories that explain the formation of 'Informal Groups' are to include which of
the following?

a) Propinquity Theory

b) Similarity (or) Balance Theory

c) Displacement Theory

d) Need for achievement Theory Choose the correct option from those given below:

1. a) and d) only

2. a) and b) only

3. a), b) and c) only

4. a), b), c) and d)

44. Match the 'Category of Compensation' with 'Compensation Plan'

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Category of Compensation Compensation Plan

a) Pay for time not worked i) Savings Plan
b) Services and Perquisites ii) Stock Option
c) Protection Programme iii) Pension
d) ncentive Pay iv) Sick Leave
e) Deferred Pay v) Low Cost Meals

Choose the correct option from those given below

1. a) - iii); b) - iv); c) - ii); d) - i); e) - v)

2. a) - iv); b) - v); c) - iii), d) - ii); e) - i)

3. a) - iv); b) - v); c) - i); d) - ii); e) - iii)

4. a) - iii); b) - v); c) - i); d) - iv); e) - ii)

[Link] below are two statements. One is labelled as Assertion (A) and the other is
labelled as Reason (R).

Assertion (A): Indian Accounting Standards contain some 'carve outs' and for
convergence with IFRS with some changes applied in India

Reason (R): Financial statements prepared in India with Indian Accounting Standards
will not be IFRS compliant

In the light of the above two statements, choose the correct option

1. Both A) and R) are true and R) is the correct explanation of A)

2. Both A) and R) are true but R) is NOT the correct explanation of A)

3. A) is true but R) is false

4. A) is false but R) is true

[Link] two of the following are correct about the due date of issue of the TDS
certificate?

a) Form No 16 - Annual

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b) Form No 16 A - Quarterly

c) Form No 16 B - Half Yearly

d) Form No 16 C - Monthly

Choose the correct option from those below:

1. a) and d)

2. a) and c)

3. a) and b)

4. c) and d)

[Link] the following theories of profit with their propounders

Category of Compensation Compensation Plan

a) Profit as Rent of Ability i) F. B. Hawley
b) Dynamic Theory of Profit ii) Joseph A Schumpeter
c) Risk Theory of Profit iii) J. B. Clark
d) Innovation Theory of Profit iv) F. A. Walker

Choose the correct option from those given below:

1. a) - iv); b) - ii); c) - iii); d) - i)

2. a) - i); b) - ii); c) - iii); d) - iv)

3. a) - iv); b) - iii); c) - i); d) - ii)

4. a) - iii); b) - i); c) - ii); d) - iv)

48.'Maximization of firm's growth rate subject to managerial and financial constraints'

as one of the important alternative objectives of especially large business corporation
was pleaded by:

1. Milton Friedman

2. Robin Marris

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3. Cyert and March

4. N.A. Simon

[Link] three of the following types of cyber attacks may occur in the process of
mobile banking?

a) Backdoor attack

b) Front door attack

c) Denial of service attack

d) Direct access attack

Choose the correct option from those given below:

1. a), b) and c)

2. b), c) and d)

3. a), b) and d)

4. a), c) and d)

[Link] of the following statements is NOT correct regarding the duties of an

auditor?

1. Physical verification of fixed assets is primarily the responsibility of the auditor

2. Ownership of fixed assets should be verified by examining the title deed by the
auditor

3. Auditor should ascertain that the assets are in the possession of the client

4. The auditor should satisfy himself that the assets have been valued in the financial
statements according to the accounting principles

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[Link] of the following is NOT a presumption about a negotiable instrument?

1. Date

2. Consideration

3. Stamp

4. Absolute and good title to the transferee

[Link] of the following are the methods of determining cost behaviour?

a) High and low point method

b) Least square regression method

c) Accounting or analytical approach

d) Non - parametric method Choose the correct answer from the options given below

1. a), b) and d)

2. a), c) and d)

3. b), c) and d)

4. a), b) and c)

[Link] sum total of the values of two variables 'X' and 'V' is equal for all the
observations. The value of the coefficient of correlation between 'X' and nir is:

1. + 1 (perfectly positive)

2. - 1 (perfectly negative)

3. Zero (No correlation)

4. > 0 < 1 (Imperfect correlation)

[Link] of a first-level or front line supervisors are to include which of the

following?

[Link] 251
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a) To determine individual job assignment

b) To attend to grievances and resolve conflicts

c) To provide technical knowledge and guidance to workers

d) To supply strategic information relating to production to management

Choose the correct answer from the options given below

1. a) and b) only

2. a) and c) only

3. a), b) and c) only

4. All of them - a), b), c), and d)

[Link] one is odd?

1. Economic Policies

2. Economic Planning

3. Socio - cultural factors

4. Macro - economic scenario

[Link] of the following are part of Corporate Social Responsibility (CSR) to

consumers?

a) Reasonable chances and proper system for accomplishment and promotion

b) To supply goods at reasonable prices even when there is seller's market

c) Improving the efficiency of the business operation

d) To provide an opportunity for being heard and redress genuine grievances

Choose the correct answer from the options given below

1. a) and b)

2. b) and d)

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3. b) and c)

4. a) and c)

[Link] of the following are true about conditions according to the Sale of Goods
Act?

a) Title

b) Description

c) Quite possession

d) Encumbrances

Choose the correct answer from the following options

1. a) and d) only

2. b) and c) only

3. a), c) and d) only

4. a) and b) only

[Link] of the following statements is false?

1. When value of correlation coefficient is one, the two regression lines coincide

2. The regression coefficients are independent of the change of origin and of scale

3. The sign of the regression coefficients are always the same

4. The square of the coefficient of correlation is called coefficient of determination

59. If the risk - free return (Rf) is 6%, Beta value (𝛽𝛽) is 1.5 and market rate of return
(Km) is 10%, the expected rate of return would be

1.15%

2. 12%

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3. 17.5%

4. 16%

[Link] among the following is a correct statement about residential status of a

company?

1. A company can be classified as "not ordinarily resident"

2. A company can never be classified as "not ordinarily resident"

3. A company can be classified as "not ordinarily resident" with the permission from
Ministry of Finance

4. A company can be classified as "not ordinarily resident" with the permission from
Ministry of Commerce

[Link] which of the following categories, a partner of partnership firm will be

assessed?

1. An individual

2. HUF

3. Firm

4. Body of an Individual

62.14 Days intermediate T - bills were brought into effect from 1996 - 97 after the
abolition of which of the following?

1. 91 Days T – bills

2. 182 Days T - bills

3. 273 Days T - bills

4. 364 Days T – bills

[Link] 254
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[Link] that are becoming skilled in Customer Relationship Management (CRM)

focus on:

1. Understanding the perceived performance and buyer's expectations

2. Giving benefits to the customers by reducing cost

3. Developing programs to attract and retain the right customers and meeting the
individual needs of valued customers

4. Giving the quality in features and characteristics of a product or service that bear on
its ability to satisfy stated or implied needs

[Link] below are two statements. One is labelled as Assertion (A) and the other is
labelled as Reason (R).

Assertion (A): Tax should not be charged on dividend income from the shareholders

Reason (R): Some economists are of the opinion that when tax has already been paid
on the profit of the company and balance is distributed as dividend to the owners, tax
need not be levied on them

In the light of the above two statements, choose the correct answer from the options
given below

1. Both A) and R) true and R) is the correct explanation of A)

2. Both A) and R) true but R) is NOT the correct explanation of A)

3. A) is true but R) is false

4. A) is false but R) is true

[Link] Housing Bank was established in 1987 as wholly owned subsidiary of

which of the following?

1. State Bank of India

2. Life Insurance Corporation of India

3. Reserve Bank of India

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4. Industrial Finance Corporation of India

[Link] to Sale of Goods Act, which two of the following are defined as 'goods'?

a) Moveable property

b) Growing crops

c) Actionable claims

d) Book debt

Choose the correct answer from the following options:

1. a) and d)

2. b) and c)

3. a) and b)

4. d) and b)

[Link] the following countries with the types of Double Taxation Avoidance
Agreement signed by India with them:

Country Type of Agreement

a) Austria i) Limited Agreement
b) Bahamas ii) Comprehensive Agreements
c) Lebanon iii) Comprehensive Agreements/ Limited
Multilateral Agreement
d) Sri Lanka iv) Tax Information Exchange Agreement

Choose the correct option from those given below

1. a) - iv), b) - ii); c) - i); d) - iii)

2. a) - ii); b) - iv); c) - i); d) - iii)

3. a) - ii); b) - iv); c) - iii); d) - i)

[Link] 256
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4. a) - i); b) - ii); c) - iii); d) - iv)

[Link] the modes of communication in marketing and their communication

platforms

Mode of Communication) Communication Platform)

a) Advertising i) Blogs
b) Sales Promotion ii) Brochures & Booklets
c) Word of mouth marketing iii) Sales meetings
d) Personal selling iv) Contests

Choose the correct option

1. a) - ii); b) - iii); c) - iv); d) - i)

2. a) - ii); b) - iv); c) - i); d) - iii)

3. a) - iv); b) - iii); c) - ii); d) - i)

4. a) - iv); b) - iii); c) - i); d) - ii)

[Link] e-commerce, one of the key design elements of an effective website - community
refers to

1. Its layout and design

2. The way site enables user to user communication

3. Site's ability to tailor itself to different users or to allow users to personalize the site

4. Degree that the site is linked to the other sites

[Link] of the following types of authorities are found in most organizations?

a) Division Authority

b) Line Authority

c) Staff Authority

[Link] 257
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d) Functional Authority

Choose the correct option from those given below:

1. a) and b) only

2. b) and c) only

3. a), b) and c) only

4. b), c) and d) only

[Link] Rules, 1953 is related to which of the following?

1. Tax exemption

2. Residential status

3. Double taxation relief

4. Assessment of corporate entity

[Link] calculating posterior probabilities (conditional probabilities under statistical

dependence), the following information is available

a) conditional probabilities

b) original probability estimates (prior - probabilities) of mutually exclusive and

collectively exhaustive events

c) Arbitrary event with probability # 0 and for which conditional probabilities are also
known

d) Joint probabilities of prior probability and conditional probability

Given the information that the arbitrary event has occurred, arrange the above
information in a sequence of their requirement as per Baye's Theorem

Choose the correct option:

1. a) —> b) —> d) —> c)

2. c) —> b) —> a) —> d)

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3. b) —> c) —> d) —> a)

4. b) —> a) —> d) —> c)

[Link] informal group's communication system is called

1. Group Dynamics

2. Grapevine

3. Exchange

4. Interaction

[Link] to FEMA, foreign exchange does NOT include

1. Deposits payable in any foreign currency

2. Bills of exchange drawn in Indian currency but payable in any foreign currency

3. Travellers cheques drawn by institutions outside India but payable in Indian currency

4. Drafts drawn by banks outside India and payable in foreign currency

[Link] List I with List II

List I) List II)

a) Qualified Report i) Auditor Duty
b) Examine Valuation and Disclosure ii) Auditor Liabilities
c) Access to records of Company and its iii) Auditor Report
subsidiaries
d) Mis-statement in prospectus in iv) Auditor Right
company issue of capital
.

Choose the correct option from those given below

1. a) - ii); b) - i); c) - iv); d) - iii)

2. a) - iii); b) - i); c) - iv); d) - ii)

3. a) - iii); b) - i); c) - ii); d) - iv)

[Link] 259
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4. a) - iv); b) - ii); c) - iii); d) - i)

[Link] two of the following are correct about TDS Certificates?

a) TDS on non-salary payment - Form 16

b) TDS on salary payment - Form 16 A

c) TDS on sale of property - Form 16 B

d) TDS on rent - Form 16 C

Choose the correct option from those given below

1. a) and b)

2. c) and d)

3. a) and d)

4. b) and c)

[Link] the tests with suitable situations of their application for hypothesis-testing:

Test Situation Situation

a) z-test i) Comparing the differences in the mean
values of more than two sample
groups (Parametric data)
b) ANOVA ii) Testing the significance of the
difference between averages of two
arge sized sample groups (Parametric
data)
c) Chi-Square Test iii) Comparing the differences in the mean
values of more than two sample
groups (Non - parametric data)
d) Kruskal - Wallis Test iv) Testing the significance of the
association between two attributes

Choose the correct option from those given below

1. a) - i); b) - ii); c) - iii); d) - iv)

[Link] 260
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2. a) - ii); b) - i); c) - iv); d) - iii)

3. a) - ii); b) - iii); c) - i); d) - iv)

4. a) - i); b) - iv); c) - ii); d) - iii)

[Link] List I with List II

List I) List II)

a) Size of the market i) Globalization of business
b) Demographic environment ii) Foreign trade policy
c) Export - oriented units iii) Macro - environment
d) Multinational corporations iv) Non- economic environment

Choose the correct option from those given below

1. a) - iv); b) - ii); c) - iii); d) - i)

2. a) - ii); b) - iii); c) - i); d) - iv)

3. a) - iii); b) - ii); c) - i); d) - iv)

4. a) - iii); b) - iv); c) - ii); d) - i)

[Link] of the following is NOT a method for calculating or ascertaining the amount
of purchase consideration?

1. Net Payment Method

2. Net Assets Method

3. Gross Receipts Method

4. Share Exchange Method

[Link] of the following terms means the tendency of a supervisor to rate a

subordinate lower than his performance?

1. Horns Effect.

[Link] 261
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2. Halo Effect

3. Central Tendency

4. Pointing Tendency

[Link] which of the following years, the Bretton Woods Agreement was signed by the
delegates from 44 nations which led to the establishment of the IMF?

1.1940

2.1952

3.1944

4.1957

[Link] of the following is the non - random method of selecting samples from a
given population?

1. Stratified Sampling

2. Systematic Sampling

3. Quota Sampling

4. Multi - stage Sampling

[Link] two of the following statements are true?

a) A simple monopoly firm always earns super normal profit

b) Sweezy's kinked demand curve model is the best known model explaining relatively
more satisfactory behaviour of oligopoly firm for price rigidity

c) A perfectly competitive firm is price - taker

d) Firms under monopolistic competition earn only normal profits

Choose the correct option from those below

[Link] 262
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1. a) and d)

2. b) and d)

3. b) and c)

4. a) and c)

84.A company raises T 1,00,000 by issue of 1000, 10% debentures of T 100 each at a
discount of 2% redeemable after 10 years. If the corporate tax rate is 40%, what would
be the cost of capital?

1. 6.82%

2. 5.98%

3.6.18%

4. 5.5%

[Link] are the events which generally happen in the life of a public limited
company

a) Public issue of shares (IPO)

b) Firm Incorporation

c) Preliminary expenditures

d) Issue of equity shares to promoters of the company

Choose the correct sequence (chronological order) of the events from the options
given below:

1. a) —> b) —> c) —> d)

2. b) —> c) —> d) —> a)

3. c) —> b) —> a) —> d)

4. c) —>b) —>d) —> a)

[Link] 263
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[Link] the following methods of capital budgeting with their respective formula:

Method Formula
a) ARR method i) Present Value of Cash Inflows -Present
Value of Cash Outflows
b) Pay back Period Method ii) Present Value of Cash Inflows ÷
Present Value of Cash Outflows
c) NPV Method iii) Average Income ÷ Average Investment
d) Probability Index iv) nvestment ÷ Annual Cash Inflows

Choose the correct option from those given below:

1. a) - iii); b) - i); c) - iv); d) - ii)

2. a) - iii); b) - iv); c) - i); d) - ii)

3. a) - i); b) - ii); c) - iii); d) - iv)

4. a) - i); b) - iv); c) - ii); d) - iii)

[Link] logistic planning has the following four steps. Arrange the steps in correct
sequence

a) Develop operational excellence in sales forecasting, warehouse management,

transportation and material management

b) Select the best channel design and network strategy for reaching the customers

c) Implement the solution with the best information systems, equipment, policies and
procedures

d) Decide on company's value proposition to its customers

Select the correct option from those below

1. a) —> b) —> c) —> d)

2. d)—> b) —> a) —> c)

3. d) —> b) —> c)—> a)

4. d)—> c)—> b) —> a)

[Link] 264
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[Link] one of the following is the correct sequence of various stages of operating
cycle of a manufacturing company?

1. Raw material conversion period, work-in-progress conversion period, Finished

goods conversion period, Receivables conversion period

2. Raw material conversion period, work-in-progress conversion period, Creditors

payment period, Receivables conversion period

3. Creditor payment period, Raw material conversion period, Receivables conversion

period, work-in- progress conversion period

4. Raw material conversion period, Finished goods conversion period, work-in-

progress conversion period, Receivables conversion period

[Link] among the following are NOT qualified to be appointed as auditor of a

company?

a) An individual who is a Chartered Accountant and holds a Certificate of Practice as

per CA Act, 1949

b) A limited liability partnership firm, which has all partners as Chartered Accountants

c) Officer or employee of a company who is qualified Chartered Accountant degree

holder too

d) Any Chartered Accountant whose appointment will result in the person being the
auditor of more than 10 companies

Choose the most appropriate option:

1. a) and b)

2. b), c) and d)

3. c) and d)

4. a), b) and d)

[Link] 265
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[Link] which of the following approaches, the cost of equity is assumed to increase
linearly with leverage, i.e, the average cost of capital remains constant with increased
use of leverage?

1. Net Operating Income Approach

2. Net Income Approach

3. Traditional Approach

4. Walter Approach

Comprehension:

Read the passage carefully and answer the questions that follow

Life Insurance in its modern form came to India from England in the year 1818. The
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of the European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu muttylal Seal, foreign insurance
companies started insuring Indian lives too. But Indian lives were being treated as sub
standard lives and heavy extra premium were being charged upon them. The Bombay
Mutual Life Assurance Society heralded the birth of the first Indian life insurance
company in the year 1870 and covered Indian lives at normal rates. Starting as an
Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to
various sectors of society. In 1907, the Hindustan Cooperative Insurance Company
took birth in one of the rooms of 'The Jorsanko', house of the great poet Rabindranath
Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi life (later
Bombay Life) were some of the companies established during the same period. Prior to
1912, India had no legislation to regulate the insurance business. In the year 1912, Life
Insurance Companies Act and Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian Companies on many accounts, putting Indian Companies
at a disadvantage

[Link] 266
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[Link] the correct statement from the following

1. Initially, insurance companies used to discriminate Indian and European clients

2. There was no discrimination in Indian and European clients by the insurance

companies initially

3. Indian clients were charged lower premium by the insurance companies in the
beginning

4. Indian insurance companies charged higher premium to Europeans at a later stage

Comprehension:

Read the passage carefully and answer the questions that follow

Life Insurance in its modern form came to India from England in the year 1818. The
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of the European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu muttylal Seal, foreign insurance
companies started insuring Indian lives too. But Indian lives were being treated as sub
standard lives and heavy extra premium were being charged upon them. The Bombay
Mutual Life Assurance Society heralded the birth of the first Indian life insurance
company in the year 1870 and covered Indian lives at normal rates. Starting as an
Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to
various sectors of society. In 1907, the Hindustan Cooperative Insurance Company
took birth in one of the rooms of 'The Jorsanko', house of the great poet Rabindranath
Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi life (later
Bombay Life) were some of the companies established during the same period. Prior to
1912, India had no legislation to regulate the insurance business. In the year 1912, Life
Insurance Companies Act and Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated

[Link] 267
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between foreign and Indian Companies on many accounts, putting Indian Companies
at a disadvantage

[Link] one among the following grew along with insurance business in India?

1. Pension Fund

2. Provident Fund

3. Gratuity

4. Arbitrage

Comprehension:

Read the passage carefully and answer the questions that follow

Life Insurance in its modern form came to India from England in the year 1818. The
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of the European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu muttylal Seal, foreign insurance
companies started insuring Indian lives too. But Indian lives were being treated as sub
standard lives and heavy extra premium were being charged upon them. The Bombay
Mutual Life Assurance Society heralded the birth of the first Indian life insurance
company in the year 1870 and covered Indian lives at normal rates. Starting as an
Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to
various sectors of society. In 1907, the Hindustan Cooperative Insurance Company
took birth in one of the rooms of 'The Jorsanko', house of the great poet Rabindranath
Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi life (later
Bombay Life) were some of the companies established during the same period. Prior to
1912, India had no legislation to regulate the insurance business. In the year 1912, Life
Insurance Companies Act and Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated

[Link] 268
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between foreign and Indian Companies on many accounts, putting Indian Companies
at a disadvantage

[Link] paragraph is about which of the following?

1. Genesis of insurance in India

2. Struggle of insurance business

3. Conflict of insurance business

4. Complications of insurance business

Comprehension:

Read the passage carefully and answer the questions that follow

Life Insurance in its modern form came to India from England in the year 1818. The
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of the European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu muttylal Seal, foreign insurance
companies started insuring Indian lives too. But Indian lives were being treated as sub
standard lives and heavy extra premium were being charged upon them. The Bombay
Mutual Life Assurance Society heralded the birth of the first Indian life insurance
company in the year 1870 and covered Indian lives at normal rates. Starting as an
Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to
various sectors of society. In 1907, the Hindustan Cooperative Insurance Company
took birth in one of the rooms of 'The Jorsanko', house of the great poet Rabindranath
Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi life (later
Bombay Life) were some of the companies established during the same period. Prior to
1912, India had no legislation to regulate the insurance business. In the year 1912, Life
Insurance Companies Act and Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated

[Link] 269
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between foreign and Indian Companies on many accounts, putting Indian Companies
at a disadvantage

[Link] among the following was later renamed as Bombay Life?

1. The Indian Mercantile General Assurance

2. The Oriental Life Insurance Company

3. National Insurance

4. Swadeshi Life

Comprehension:

Read the passage carefully and answer the questions that follow

Life Insurance in its modern form came to India from England in the year 1818. The
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of the European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu muttylal Seal, foreign insurance
companies started insuring Indian lives too. But Indian lives were being treated as sub
standard lives and heavy extra premium were being charged upon them. The Bombay
Mutual Life Assurance Society heralded the birth of the first Indian life insurance
company in the year 1870 and covered Indian lives at normal rates. Starting as an
Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to
various sectors of society. In 1907, the Hindustan Cooperative Insurance Company
took birth in one of the rooms of 'The Jorsanko', house of the great poet Rabindranath
Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi life (later
Bombay Life) were some of the companies established during the same period. Prior to
1912, India had no legislation to regulate the insurance business. In the year 1912, Life
Insurance Companies Act and Provident Fund Act were passed. The Life Insurance
Companies Act 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian Companies on many accounts, putting Indian Companies
at a disadvantage

[Link] 270
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[Link] insurance business in India was started first by which one of the Following?

1. Americans

2. Indian merchants

3. Europeans

4. Afro-Indians

Comprehension:

Read the given passage carefully and answer the questions that follow

Companies often define themselves in terms of products: They are in the "auto
business" or the "clothing business". 'Market definitions of a business, however,
describe the business as a customer - satisfying process. Products are transient, basic
needs and customer groups endure forever. Transportation is a need: the horse and
carriage, automobile, railroad, airline, ship and truck are products that meet the need.
Viewing business in terms of customers can suggest additional growth opportunities.
There exists a difference between a target market definition and a strategic market
definition. To define its mission, a company should address Peter Drucker's classic
question: What is our business?

[Link] of the following is the correct combination Product Definition and Market
Definition of Xerox Company?

[Link] Definition- We sell photocopies

Market Definition -We help improve office efficiency

2. Product Definition- We make photo machines

Market Definition -We improve copy speeds.

3. Product Definition- We sell copying equipment

Market Definition -We make office more efficient

[Link] 271
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4. Product Definition - We make copying equipment

Market Definition - We help improve office productivity

Comprehension:

Read the given passage carefully and answer the questions that follow

Companies often define themselves in terms of products: They are in the "auto
business" or the "clothing business". 'Market definitions of a business, however,
describe the business as a customer - satisfying process. Products are transient, basic
needs and customer groups endure forever. Transportation is a need: the horse and
carriage, automobile, railroad, airline, ship and truck are products that meet the need.
Viewing business in terms of customers can suggest additional growth opportunities.
There exists a difference between a target market definition and a strategic market
definition. To define its mission, a company should address Peter Drucker's classic
question: What is our business?

[Link] could define its 'target market' as:

1. Everyone who drinks carbonated soft drinks and are competitors

2. Anyone who drinks liquid

3. Everyone who drinks non-milk drinks

4. Anyone who drinks competitor's drinks.

Comprehension:

Read the given passage carefully and answer the questions that follow

Companies often define themselves in terms of products: They are in the "auto
business" or the "clothing business". 'Market definitions of a business, however,
describe the business as a customer - satisfying process. Products are transient, basic
needs and customer groups endure forever. Transportation is a need: the horse and
carriage, automobile, railroad, airline, ship and truck are products that meet the need.
Viewing business in terms of customers can suggest additional growth opportunities.

[Link] 272
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There exists a difference between a target market definition and a strategic market
definition. To define its mission, a company should address Peter Drucker's classic
question: What is our business?

98. Which of the following is NOT a major characteristic of a good mission statement?

1. They have very limited words

2. They focus on a limited number of goals

3. They stress the company's major competitive spheres in which company will operate

4. They have a long term view

Comprehension:

Read the given passage carefully and answer the questions that follow

Companies often define themselves in terms of products: They are in the "auto
business" or the "clothing business". 'Market definitions of a business, however,
describe the business as a customer - satisfying process. Products are transient, basic
needs and customer groups endure forever. Transportation is a need: the horse and
carriage, automobile, railroad, airline, ship and truck are products that meet the need.
Viewing business in terms of customers can suggest additional growth opportunities.
There exists a difference between a target market definition and a strategic market
definition. To define its mission, a company should address Peter Drucker's classic
question: What is our business?

[Link] of the following is the correct product definition of 'Blue Star'?

1. We provide climate control in homes and offices

2. We supply air conditioners

3. We make air cooling systems

4. We make air conditioners

[Link] 273
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Comprehension:

Read the given passage carefully and answer the questions that follow

Companies often define themselves in terms of products: They are in the "auto
business" or the "clothing business". 'Market definitions of a business, however,
describe the business as a customer - satisfying process. Products are transient, basic
needs and customer groups endure forever. Transportation is a need: the horse and
carriage, automobile, railroad, airline, ship and truck are products that meet the need.
Viewing business in terms of customers can suggest additional growth opportunities.
There exists a difference between a target market definition and a strategic market
definition. To define its mission, a company should address Peter Drucker's classic
question: What is our business?

[Link] of the following is the correct market definition of 'BPCL'?

1. We distribute oil products

2. We are the largest oil supply in India
3. We supply energy
4. Bharat's own oil distribution company

[Link] 274
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DEC 2019

Q. NO ANS Q. NO ANS Q. NO ANS Q. NO ANS

1 A 26 A 51 D 76 B
2 A 27 B 52 D 77 B
3 B 28 A 53 B 78 D
4 B 29 B 54 D 79 C
5 D 30 D 55 C 80 A
6 B 31 D 56 B 81 C
7 C 32 A 57 D 82 C
8 D 33 A 58 B 83 C
9 C 34 A 59 B 84 C
10 D 35 A 60 B 85 D
11 A 36 C 61 C 86 B
12 C 37 C 62 A 87 B
13 B 38 A 63 C 88 A
14 C 39 A 64 A 89 B
15 C 40 B 65 C 90 A
16 D 41 A 66 C 91 A
17 C 42 A 67 B 92 B
18 B 43 B 68 B 93 D
19 C 44 B 69 B 94 D
20 C 45 B 70 D 95 C
21 A 46 C 71 C 96 D
22 D 47 C 72 D 97 A
23 A 48 B 73 B 98 A
24 B 49 D 74 D 99 D
25 C 50 A 75 B 100 C

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2019 JUNE

[Link]-O• model is used in the management of

1. inventory

2. leverage

3. receivables

4. Cash

Options

1. 1

2. 2

3. 3

4. 4

2. Deduction u/s 37(1) is allowed under tax laws for those expenditures which are

I. revenue

2. capital

3. both revenue and capital

4. deferred revenue expenses

Options

1. 1

2. 2

3. 3

4. 4

[Link] 276
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3. Which is the most appropriate mode of entry in international business to an

enterprise with little experience of international markets?

I Acquisition

2. Strategic Alliance

3. Joint Venture

4. Exporting

Options

1. 1

2. 2

3. 3

4. 4

4. Which of the following is an instance of non-conventional dumping?

1. Sporadic dumping

2. Predatory dumping

3. Reverse dumping

4. Persistent dumping

Options

1. 1

2. 2

3. 3

4. 4

5. In which of the following commodities. when a consumer spends so much that

negative income effect overwhelms the positive substitution effect so as the underlying
demand curve is positively sloped?

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I. Inferior goods

2. Superior goods

3. Giffen goods

4. Normal goods

Options

1. 1

2. 2

3. 3

4. 4

6. Which among the following is NOT a correct statement?

I. fledge finds are not mutual finds.

2. Hedge funds can be sold to public.

3. Investors in mutual funds must pay various fees and expenses.

4. Mutual funds provide economies of scale to investment decisions.

Options

1. 1

2. 2

3. 3

4. 4

7. Consumer behaviour does NOT consist which of the following activities?

1. Obtaining

2. Consuming

3. Disposition

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4. Producing

Options

1. 1

2. 2

3. 3

4. 4

8. Following are the events of an organizational culture :

(a) Customer orientation and employee policies

(b) Quality orientation, ditecting and motivating styles

(c) Decision making, products and services and responsibilities to society

(d) Reaction to competitors and gratitude towards nation

(e)Role ambiguities, trade union and policies

Select the correct sequence for the above events :

1.(a), (b), (d) and (e)

2. (a), (e), (d) and (e)

3. (b). (a). (d) and (e)

4. (a), (b), (o) and (d)

Options

1. 1

2. 2

3. 3

4. 4

9. Following are the information for a house property :

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Municipal value 4,50,000 Fair rental value 5,00,000 Standard rent 4,80,000 Actual rent 2
4,20,000

What is the gross annual value of the house properly?

1. 4,80,000

2. 5,00,000

3. 4,20,000

4. 4,50,000

Options

1. 1

2. 2

3. 3

4. 4

10. The channel alternative is NOT to be assessed on the basis of

1. economic criteria

2. control criteria

3. adaptive criteria

4. accumulation criteria

Options

1. 1

2. 2

3. 3

4. 4

11. The social environment of the job affects people and is also affected by them and no
by management alone, is the main proposition of

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I . contingency theory of organization

2. system theory of organization

3. classical theay of organization

4. Neoclassical theory of orgarization

Options

1. 1

2. 2

3. 3

4. 4

12. Excess capacity is NOT noticed in which of the following market conditions?

1. Monopoly

2. Monopolistic competition

3. Oligopoly

4. Perfect competition

Options

1. 1

2. 2

3. 3

4. 4

13. Currency swap is a method of

1. hedging against foreign exchange risk

2. speculating in foreign exchange

3. leverage instrument used by cooperative banks

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4. mode of payment in international trade

Options

1. 1

2. 2

3. 3

4. 4

14. Following are the steps in the activity-based cost allocation :

(a) Identification of the main activities

(b) Collection of cost pool

(c) Determination of the activity cost drivers

(d) Calculation of activity driver rate

(e) Charging the cost of activities to products

Select the correct sequence of the above steps :

1. (a), (b), (c), (e), (d)

2. (a), (b), (e), (d), (c)

3. (a), (b), (c), (d), (e)

4. (a), (d), (c), (b), (e)

Options

1. 1

2. 2

3. 3

4. 4

15. Assertion (A) : According to Net Income (NI) approach, capital structure decision is
relevant in the valuation of firm

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Reason (R) A firm can change its total value and its overall cost of capital by change In
the degree of leverage in its capital structure.

In the context of the above two statements, which one of the following options is
coned?

[Link] (A) and (R) are correct and (R) is the tight explanation of (A)

2. Both (A) and (R) are correct and (R) is not the right explanation of (A)

3. Both (A) and (R) are incorrect

4. (A) is correct and (R) is not correct

Options

1. 1

2. 2

3. 3

4. 4

16. The retail supply chain does NOT include

1. manufactures

2. retailers

3. wholesalers

4. regulators

Options

1. 1

2. 2

3. 3

4. 4

17. Capital structure and leverage decisions come in the ambit of

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1. investment decisions

2. distribution decisions

3. financing decisions

4. dividend decisions

Options

1. 1

2. 2

3. 3

4. 4

18. New reform in Indian banking system include

(a) Digitisation of bank operations

(b) Banking consolidation

(c) Borrowing from Government

(d) Agency work

Choose the correct option from the following:

1. (a) and (b)

2. (c) and (d)

3. (b), (d) and (c)

4. (a) (c) and (d)

Options

1. 1

2. 2

3. 3

4. 4

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19. Doctrine of Caveat Emptor' means 1. buyer should make payment well in time 2.
buyer should be beware of all aspects of buying 3. buyer will be responsible for the
whole payment 4. buyer will not be responsible at any cost

Options

1. 1

2. 2

3. 3

4. 4

20. Under which of the following situations, economies of scale exists to the potential
and persisb?

I. When fimt is too small and too specialized

2. When finis' decision to hire inputs do not result in an increase in the input costs

3. When fine is too large and overdiversified

4_ When long•run cost of producing a wit falls as the output increases

Options

1. 1

2. 2

3. 3

4. 4

21. Building long-term mutually satisfying relations with key customers, suppliers,
distributors in order to earn and retain their, long•term peference and business is known
as

I. relationship marketing

2. social marketing

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3. niche marketing

[Link] marketing

Options

1. 1

2. 2

3. 3

4. 4

22. The essence of the law of diminishing returns is

1. inelastic production

2. negative marginal production

3. declining total production

4. declining average production

Options

1. 1

2. 2

3. 3

4. 4

23. Under which of the following situations, the decision outcome on evaluation of
investment opportunities vary, under NPV and IRR methods per se?

(a) Time disparity

(b) Cost disparity

(c) Life dispanty

(d) Volume disparity

Choose the correct combination of situations :

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I. (a) and (d) only

2. (b) and (d) only

3. (a), (b) and (c) only

4. (b). (e) end (d) only

Options

1. 1

2. 2

3. 3

4. 4

24. Assertion (A): U-shaped long•run average cost curve is based on the assumption that
economies of scale prevails at small levels of production and diseconomies of scale
prevails at larger level of production

Reason (R):Decreasing returns to scale arises primarily because as the scale of operation
increases, it becomes even more difficult to manage the firm effectively.

In the context of the above two statements, which one of the following codes is correct?

I. Roth ( A) and (R) ore correct and (R) is the right explanation of (A)

2. Roth (A) and (R) are correct and (R) is not the right explaraition of(A)

3. (A) is correct and (R) is not incorrect

4. Roth (A) and (R) are incorrect

Options

1. 1

2. 2

3. 3

4. 4

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25. Which of the following are included in digital payment system?

(a) RTGS

(b) Demand draft

(c) NEFT

(d) Cheque

Choose the correct option from the following:

1. (a), (c) and (d)

2. (b) and (d) only

3. (a) and (c) only

4. (b), (c) and (d)

Options

1. 1

2. 2

3. 3

4. 4

26. Which one of the following analysts is suitable for risk-return analysis in financial
decisions?

I. CAPM analysis

2. SWOT analysis

3. Capital gaging

4. EVA analysis

Options

1. 1

2. 2

3. 3

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4. 4

27. Which one of the following is used for international money transfer?

I. RTGS

2. N EFT

3. SWIFT

4. DD

Options

1. 1

2. 2

3. 3

4. 4

28. Assertion (A):Resrve Bank of India is an important regulatory and administrative

authority to execute FEMA provisions

Reason(R) :Being monetary authority and custodian of foreign exchange, Reserve bank
of India enjoys requisite expertise of FEMA administration.

In the context of the above two statements, which one of the following option is
correct?

I Both (A) and (R) are correct and (R) is the right explanation of (A)

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

3. Both (A) and (R) are incorrect

4. (A) is correct and (R) is not correct

Options

1. 1

2. 2

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3. 3

4. 4

29. Match List-I with List-II :

List I List-II
(a) Net income approach (1) Inventory management
(b) Gordan model (ii) Capital budgeting
(c) Internal rate of return (iii) Capital structure theory
(d) Reorder level (iiv) Dividend theory

Choose the correct option from those given below : .

(a)-(ii); (b)-(Iii); (c)-(iv); (d)-(i)

2. (a)-(iii); (b)-(iv); (c)-(ii); (d)-(i)

3. (a)-(iii); (b)-(iv); (c)-(i); (d)-(ii)

4. (a)-(ii); (b)-(i); (c)-(iv); (d)-(iii)

Options

1. 1

2. 2

3. 3

4. 4

30. Which of the following types of goodwill is considered to be the best?

I . Dog goodwill

2. Cat goodwill

3. Rat goodwill

4. Cow goodwill

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Options

1. 1

2. 2

3. 3

4. 4

31. Which of the following characteristics are related to relationship marketing?

(a) Product feature orientation

(b) Product benefit orientation

(c) Frequent consumer contact

(d) High concern for quality

Choose the correct option from the following :

I . (b), (a) and (d)

2. (a). (b) and (c)

3. (a), (c) and (d)

4. (a), (b) and (d)

Options

1. 1

2. 2

3. 3

4. 4

32. Assertion (A) Brainstorming technique demands generaticsi of a number of

alternatives to a problem

Reason (R): Participants generate as many alternatives as possible without

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evaluating them in brainstorming Sessions

In the context of the above two statements which one of the following codes is correct?

I Statement (A) is correct and (R) is the correct explanation of (A)

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

3 Statement (A) is correct but (R) is incorrect

4 Both (A) and (R) are correct

Options

1. 1

2. 2

3. 3

4. 4

33. Match List-I with List-II:

List-I (Objectives of business firms) List-II: (Hypothesis)

(a) Maximization of firms' growth rate (i) Baumol's hypothesis
(b) Managerial utility function (ii) Marris hypothesis
(c) Satisfying behaviour (iii) Williamson hypothesis
(d) Sales Maximization (iv) Cyert•March hypothesis

Choose the correct option from those given below :

I. (a)-(iv); (b)-(iii); (c)-(i); (d) (ii)

2. (a)-(iv); (b)-(iii); (c)-(i);(d)-(ii)

3. (a)-(iii); (b)-(i); (c)-(iv); (d)-(ii)

4. (a)-(i); (b)-(ii); (c)-(iii);(d)-(iv)

Options

1. 1

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2. 2

3. 3

4. 4

34. Statement (I) : t-test and F-test are based cc the identical assumptions

Statement (II) :t-test is used for comparison between two groups whereas F-test is used
for compahson between more than two groups.

In the context of the above two statements. which one of the following codes is correct?

I. Both the Statements (I) and (II) are correct

2 Both the Statements (I) and (II) arc incorrect

3 Statement (I) is correct but (II) is incorrect

4. Statement (II) is correct but (0 is incorrect

Options

1. 1

2. 2

3. 3

4. 4

35. Which of the following are NOT sources of secondary data?

(a) Interview

(b) Questionnaire

(c) Observation

(d) Unpublished thesis

(e) Annual report

Choose the correct option from the following:

1. (a), (d) and (e)

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2. (b), (c) and (d)

3. (c), (d) and (e)

4. (a), (b) and (c)

Options

1. 1

2. 2

3. 3

4. 4

36. With of the following is NOT a main stage in a customer relationship life cycle'

I. Customer acquisition

2. Customer development

3. Customer satisfaction

4. Customer annoyance

Options

1. 1

2. 2

3. 3

4. 4

37. List out from the given statements important ethical princilpes that a business
should follow :

(a) To take the necessary action for the development of the concerned industry or
business

(b) Pay taxes and discharge other obligations promptly.

(c) To ensure the best utilisation of the human resources.

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(d) Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.

(e) Ensure payment of fan wages and fair treatment of employees.

Choose the correct answer from the options given below :

I. (c), (d) and (e)

2. (b), (d) and (e)

3. (a), (b) and (c)

4. (a), (c) and (e)

Options

1. 1

2. 2

3. 3

4. 4

38. SUGAM is also know as

1. ITR-1

2. 1TR-2

3. ITR-3

4. ITR-4

Options

1. 1

2. 2

3. 3

4. 4

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39. A firm commies 90000 units of a certain item of raw material in its production
process annually. It cosh: t 3 per wit, the cast per purchase order is t 300 and the
inventory carrying cost is 20% per year. What is the E0Q?

I. 9470 units

2. 9487 units

3. 9480 units

4. 9840 units

Options

1. 1

2. 2

3. 3

4. 4

40. Which of the following committees is related to the investor protection?

I. Bhagwati Committee

2. N. K. Mitra Committee

3. .I. R. Verna Committee

4. L. C. Gupta Committee

Options

1. 1

2. 2

3. 3

4. 4

41. Match List-I with List-II :

List-I List-II

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(a) Ind AS-I6 (i) Income tax

(b) Ind AS-38 (ii) Leasing
(c) Ind AS-I 7 (iii) Intangible assets
(d) Ind AS-I 2 (iv) Property, plant and equipments

Choose the correct option from those given below :

I. (a)-(iv); (b)-(iii); (c)-(i); (d) (ii)

2. (a)-(iv); (b)-(iii); (c)-(ii;(d)-(i)

3. (a)-(iii); (b)-(ii); (c)-(iv); (d)-(i)

4. (a)-(iv); (b)-(ii); (c)-(i);(d)-(iii)

Options

1. 1

2. 2

3. 3

4. 4

42. Arrange the following in order of their manifestations :

(a) Offer

(b) Acceptance

(c) Breach of contract

(d) Contract

Choose the correct option from the following :

1. (a), (b), (c) and (d)

2. (a), (b), (d) and (c)

3. (b), (c), (a) and (d)

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4. (a), (d), (c) and (b)

Options

1. 1

2. 2

3. 3

4. 4

43. Which among the following institutions is NOT a part of World Bank group?

I . International Development Association (IDA)

2. International Monetary Found (IMF)

3. International Finance Corporation (IFC)

4. Multilateral Investment Guarantee Agency (MIGA)

Options

1. 1

2. 2

3. 3

4. 4

44. Redressal niacin:ism for consumer disputes Willa Section 9 of the Consumer

Protection Act envisages a

I. single4ier system

2. two-tier system

3. three•tier system

4. open system independent of Inerarchy

Options

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1. 1

2. 2

3. 3

4. 4

45. Which of the fcilowing reflects the sun of perceived tangible and intangible benefits
and costs to a custaner?

I. Customer satisfaction

2. Customer delight

3. Customer value

4 Customer expectation

Options

1. 1

2. 2

3. 3

4. 4

46. Chalapathi Rao Committee was constituted for restructuring of

I . State Financial Corporation in India

2. Commercial Banks in India

3. Co-operative Banks in India

4. Regional Rural Banks in India

Options

1. 1

2. 2

3. 3

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4. 4

47. A company issues 10% irredeemable preference shares. The face value per share is
100, but the isms price is t 95. What is the cost of preference share

I. 10.63%

2. 10.73%

3. 10.83%

4. 10.53%

Options

1. 1

2. 2

3. 3

4. 4

48. Match List-I with List-II :

List-I (Theories of Profit) List-II (Economists)

(a) Risk theory of profit (i) Schumpeter

(b) Innovation theory of profit (ii) Walker

(c) Rent theory of profit (iii) Hawley

(d) Dynamic theory of profit (iv) Clark

Choose the correct option from those given below :

I . (a)-(iii); (b)-(iv); (c)-(ii); (d)-(i)

2. (a)-(iv); (b)-(ii); (c)-(iii), (d)-(i)

3. (a)-(iii); (b)-(i); (c)-(ii), (d)-(iv)

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4. (a)-(iv); (b)-(i); (c)-(ii), (d)-(iii)

Options

1. 1

2. 2

3. 3

4. 4

49. One belt, one road initiative (BRI) is NOT intended to

1. trade protectionism

2. strengthening logistic and supply chain

3. improve cost competitiveness

4. rebalance trade dominance

Options

1. 1

2. 2

3. 3

4. 4

50. Which among the following is NOT included in negotiable instrument?

1. Cheque

2. Demand Draft

3. Promisory Note

4. Mutual Fund

Options

1. 1

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2. 2

3. 3

4. 4

51. Which of the following does not come under the definition of information as per
the Right to Information Act (RTI Act) 2005?

1. Log books

2. Data material held in electronic from

3. File noting

4. Circular

Options 1. 1
2. 2
3. 3
4. 4

52. Which of the following are the rights of a statutory auditor?

(a) to receive renumeration

(b) to attend Board of Doctors meeting

(c) to attend General meeting

(d) to visit the branch office

Choose the correct answer from the following:

1. (a) and (b)

2. (a) (b) and (d)
3. (a) (c) and (d)
4. (a) (b) (c) and (d)

Options 1. 1
2. 2
3. 3
4. 4

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53. Quantitative import restrictions that limit the quantity of a product being
imported is called

1. Embargo

2. Quota

3. Trade restrain

4. Import tariff

Options 1. 1
2. 2
3. 3
4. 4

54. The current market price of a company's share is rupees 9 and the expected dividend
per next year is rupees if the dividend is expected to grow at a constant rate of 8%
age the shareholders required rate of return will be

1. 8 %
2. 25%
3. 20%
4. 13%

Options 1. 1
2. 2
3. 3
4. 4

55. Statement (I): Though closely related, job evaluation and performance appraisal are
not the same

Statement (II): The purpose of job evaluation is to fix the renumeration and other
relevant benefits

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In the context of the above two statements which one of the following codes is
correct?

1. Both statements (I) and (II) are correct

2. Both the statements (I) and (II) are incorrect
3. Statement (I) is correct while statement (II) is incorrect
4. Statement (I) is incorrect while statement (II) is correct

Options 1. 1
2. 2
3. 3
4. 4

56. The attitude based on beliefs ,opinion ,knowledge for information about the
particular event which the employees posses is

1. Behavioural attitude
2. positive attitude
3. cognitive attitude
4. affective attitude

Options 1. 1
2. 2
3. 3
4. 4

57. The arithmetic mean of 10 items is 50. If each item is increased by 5, the new
arithmetic mean would be

1. 50
2. 55
3. 60
4. 45

Options 1. 1
2. 2
3. 3
4. 4

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58. Which among the following is not true about BASEL?

1. Initially it was named as Committee of Banking Regulations and Supervisory

Practices
2. BASEL was established by the Central Bank Governors of 15 countries
3. It was established by the end of 1974
4. disturbances in international currency and banking markets were responsible
for its establishment

Options 1. 1
2. 2
3. 3
4. 4

59. Creditworthiness score in India ranges between

1. 300 to 600
2. 2.300 to 900
3. 3.500 to 1000
4. 900 to 1600

Options 1. 1
2. 2
3. 3
4. 4

60. A sale and lease back arrangement is more suitable for lessee having

1. Liquidity crisis
2. surplus fund
3. high profit
4. no profit no loss

Options 1. 1
2. 2
3. 3
4. 4

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61. X is an individual of 55 years of age having gross total income 350000 rupees. What
is the tax liability for assessment year 2018 to 19?

1. 5000 rupees
2. 2500 rupees
3. 2580 rupees
4. 3000 rupees

Options 1. 1
2. 2
3. 3
4. 4

62. Statement (I): the arithmetic mean is an all purpose average.

Statement (II): median and mode are called positional averages.

1. Both statements (I) and (II) are correct

2. Both the statements (I) and (II) are incorrect
3. Statement (I) is correct while statement (II) is incorrect
4. Statement (I) is incorrect while statement (II) is correct

Options 1. 1
2. 2
3. 3
4. 4

63. Match List - I with List - II :

List – I List - II

(a) Fiscal, monetary and industrial (i) Social responsibilities

policies

(b) Social obligations towards (ii) Stakeholders/interest group

several stakeholders

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(c) Consumers, shareholders, (iii) Business ethics

suppliers, creditors etc.

(d) Moral principles that defines the (iv) Economic policies

light or wrong

Choose the correct option from given below :

1. (a) – (iii); (b) – (iv); (c) – (ii); (d) – (i)

2. (a) – (i); (b) – (ii); (c) – (iv); (d) – (iii)
3. (a) – (ii); (b) – (iv); (c) – (iii); (d) – (i)
4. (a) – (iv); (b) – (i); (c) – (ii); (d) – (iii)

Options 1. 1
2. 2
3. 3
4. 4

64. Assertion (A):at times a business may face the situation where it has to shut down its
operations

Reason (R): if the revenue is less than its variable cost the operation should be closed
down.

In the context of the about two statements which one of the following courts is

1. (A) is correct but (R) is not correct

2. (A)and (R) both are correct and (R) is the right explanation of. (A)
3. (A)and (R) both are correct and (R) is the not right explanation of. (A)
4. Both (A) and (R) are incorrect

Options 1. 1
2. 2
3. 3
4. 4

65. Promoting team spirit, harmony and unity within the organisation who is the
principal of

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1. Order

2. scalar chain

3. Spirit de corps

4. Equity

Options 1. 1
2. 2
3. 3
4. 4

66. Match List - I with List - II :

List – I List - II

(a) Interbank call market (i) Money Market

(b)Commercial bills (ii) Promissory note

(c)Consumers, shareholders, (iii) Short-term maturity

suppliers, creditors etc.

(d) Moral principles that defines the (iv) Government papers

light or wrong

Choose the correct option from given below :

1. (a) – (i); (b) – (ii); (c) – (iii); (d) – (iv)

2. (a) – (iii); (b) – (i); (c) – (ii); (d) – (iv)
3. (a) – (i); (b) – (iii); (c) – (iv); (d) – (ii)
4. (a) – (iv); (b) – (iii); (c) – (ii); (d) – (i)

Options 1. 1
2. 2
3. 3
4. 4

67. Organization structure that shows a unique combination of strategy, structure and
management process is known as

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1. free- form organization

2. virtual organization
3. network organization
4. horizontal organization

Options 1. 1
2. 2
3. 3
4. 4

68. Which one is NOT true regarding the Market Stabilization Scheme (MSS)?

1. It absorbs surplus liquidity of enduring nature arising out of large capital flows
2. It absorbs surplus liquidity through sale of short-dated government securities
and treasury bills
3. Mobilised surplus liquidity is held in the MSS account with the Reserve Bank
of India
4. MSS account liquidity can be used for normal government expenditure of
capital nature

Options 1. 1
2. 2
3. 3
4. 4

69. Find the marginal revenue of a firm that sells a product at a price of ₹10 and the
price elasticity of demand for the product is (—) 2.

1. ₹5
2. ₹ 10
3. ₹ 30
4. ₹ 15

Options 1. 1
2. 2
3. 3
4. 4

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70. A statement of change in financial position typically would NOT disclose the effect of

1. share capital issued to acquire productive facilities

2. dividends on share declared
3. cash dividend declared but not yet paid
4. purchase and retirement of treasury stock

Options 1. 1
2. 2
3. 3
4. 4

71. Match List - I with List - II :

Choose the correct option from given below :

5. (a) – (iii); (b) – (ii); (c) – (i)

6. (a) – (iii); (b) – (i); (c) – (ii)
7. (a) – (i); (b) – (ii); (c) – (iii)
8. (a) – (ii); (b) – (i); (c) – (iii)

Options 1. 1

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2. 2
3. 3
4. 4

72. Match List - I with List - II :

List – I List – II
(Trade and Finance Institution) (Headquarters)
(a) WTO (i) Brussels

(b) IMF (ii) Geneva

(c) FAO (iii) Washington

(d) EU (iv) Rome

Choose the correct option from the given below :

1. (a) – (ii); (b) – (iii); (c) – (iv); (d) – (i)

2. (a) – (i); (b) – (ii); (c) – (iii); (d) – (iv)
3. (a) – (iii); (b) – (ii); (c) – (i); (d) – (iv)
4. (a) – (i); (b) – (iii); (c) – (ii); (d) – (iv)

Options 1. 1
2. 2
3. 3
4. 4

73. What is the probability that sum of outcomes on pair of dice is equal to 8?

1. 6/36

2. 5/36

3. 4/36

4. 3/36

Options 1. 1
2. 2

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3. 3
4. 4

74. Statement (I): If the tax liability has been reduced within the legal framework, it is tax
planning.
Statement (II): If tax liability has been reduced to get benefit of deduction available
under the income tax, it is called tax evasion.

In the context of the above two statements, which one of the following codes is
correct?

1. Both the Statements (I) and (II) are correct

2. Statement (I) is correct but (II) is incorrect
3. Both Statements (I) and (II) are incorrect
4. Statement (II) is correct but (I) is incorrect

Options 1. 1
2. 2
3. 3
4. 4

75. Peter F. Drucker noted the relationship between selling and marketing in which of
the following terms?

1. Marketing is a subsidiary component of selling

2. The aim of marketing is to make selling superfluous
3. The aim of selling is to make marketing superfluous
4. Selling and marketing are essentially the same thing

Options 1. 1
2. 2
3. 3
4. 4

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76. Which of the following does NOT fall in the ambit of the objectives of Competition
Act, 2002?

1. Encourage Competition
2. Prevent abuse of dominant position
3. Prevent monopolistic rights arising out of intellectual property
4. Regulate mergers and acquisitions

Options 1. 1
2. 2
3. 3
4. 4

77. SIDBI was set up as a subsidiary of IDBI to

1. takeover the functions of small business financing of IDBI

2. takeover the venture capital operation of IDBI
3. reconstruct and rehabilitate the sick and closed industrial units financed by
IDBI
4. facilitate, finance and promote India 's foreign trade

Options 1. 1
2. 2
3. 3
4. 4

78. After US dollar, which of the following currencies has largest weightage in
determining the value of SDR?

1. Japanese Yen
2. Chinese Yuan (Renminbi)
3. Euro
4. British Pound

Options 1. 1
2. 2
3. 3
4. 4

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79. Which of the following is true about India Trade Policy (Export-Import), 2015—2019?

(a) Doubling the exports (both merchandise and services)

(b) Achieve 3 • 5% share in global exports
(c) Introduced two new schemes (MEIS and SEIS)
(d) Introduced simplified Aayat-Niryat Form

Choose the correct answer from the following :

1. (a) and (b) only

2. (a) and (c) only
3. (a), (b) and (c) only
4. All are correct

Options 1. 1
2. 2
3. 3
4. 4

80. Redeemable preference shares of 2,00,000 are to be redeemed at par for which fresh
equity shares of 80,000 are issued at a discount of 10%. What amount should be
transferred to Capital Redemption Reserve Account?

1. ₹ 2,00,000
2. ₹ 1,20,000
3. ₹ 1,28,000
4. ₹ 72,000

Options 1. 1
2. 2
3. 3
4. 4

81. Match List - I with List - II :

List – I List - II

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(a) Cyber Crime (i) Intellectual Property Right Act

(b) Doctrine of Caveat Emptor (ii)Negotiable Instrument Act

(c) Dishonour of Bill (iii) Sale of Goods Act

(d) Patent and Copyrights (iv) The Information Technology Act

Choose the correct option from given below :

9. (a) – (iii); (b) – (iv); (c) – (i); (d) – (ii)

10. (a) – (iii); (b) – (ii); (c) – (iv); (d) – (i)
11. (a) – (iv); (b) – (iii); (c) – (ii); (d) – (i)
12. (a) – (ii); (b) – (iv); (c) – (iii); (d) – (i)

Options 1. 1
2. 2
3. 3
4. 4

82. Which of the following commodities is kept outside the purview of GST?

1. Tobacco products
2. Petroleum products
3. Edible oils
4. Insurance products
Options 1. 1
2. 2
3. 3
4. 4

83. When a company distributes its products through a channel structure that includes
one or more resellers, it is known as

1. direct marketing
2. indirect marketing
3. integrated marketing

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4. multi-level

Options 1. 1
2. 2
3. 3
4. 4

84. Statement (I): Agreement without consideration is always valid.

Statement (II): All contracts are agreements but all agreements are not contracts.

In the context of the above two statements, which one of the following codes is
correct?

1. Statements (I) and (II) both are correct

2. Both Statements (I) and (II) are incorrect
3. Statement (I) is incorrect and Statement (II) is correct
4. Statement (I) is correct but Statement (II) is incorrect

Options 1. 1
2. 2
3. 3
4. 4

85. 'Motivation-force or level of efforts is not equal to satisfaction and performance' is

propounded by

1. Porter-Lawler model
2. Vroom 's expectancy theory
3. X and Y theory
4. Adam' s equity theory

Options 1. 1
2. 2
3. 3
4. 4

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86. Product A requires 10 kg of material at the rate of 5 per kg. The actual consumption
of material for the manufacturing of product A comes to 12 kg of material at the rate
of 6 per kg. Direct material cost variance is

1. ₹ 22 (favourable)
2. ₹ 22 (unfavourable)
3. ₹ 12 (favourable)
4. ₹ 12 (unfavourable)

Options 1. 1
2. 2
3. 3
4. 4

87. In tax laws, donation to approved and notified association for scientific research is
allowed as

1. 125% of the donation

2. 100% Of the donation
3. 175% of the donation
4. 150% of the donation

Options 1. 1
2. 2
3. 3
4. 4

88. In which of the following pricing policies, a firm charges higher initial price for the
product and reduces it over time as the demand at higher price is satisfied?

1. Peak load Pricing

2. Incremental pricing
3. Skimming
4. penetration pricing

Options 1. 1
2. 2
3. 3

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4. 4

89. Study the following information :

Covariance between X and Y series = -17.8

Standard deviation of X series = 6.6
Standard deviation of Y series = 4.2
No. of pairs of observation = 20

The coefficient of correlation is

1. – 0.642

2. 0.642

3. 0.253

4. – 0.253

Options 1. 1
2. 2
3. 3
4. 4

90. Return of income is submitted under which Section of Income-tax Act?

1. Section 138 (1)

2. Section 142 (1)
3. Section 139 (1)
4. Section 129 (1)

Options 1. 1
2. 2
3. 3
4. 4

91. Amount unutilised in capital gain account scheme for which exemption claimed u/s
54 shall be treated as long-term capital gain, if

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1. 2 years have expired from the date of transfer

2. 2 years have expired from the date of deposit
3. 3 years have expired from the date of transfer
4. 3 years have expired from the date of deposit

Options 1. 1
2. 2
3. 3
4. 4

92. Match List - I with List - II :

List – I List - II

(a) Sec 6 (i) (i) Agriculture Income

(b) Sec 10AA (ii) Leave Travel Concession

(c) Sec 10 (i) (iii) Resident

(d) Sec 10 (5) (iv) Leave Salary

Choose the correct option from given below :

1. (a) – (i); (b) – (iv); (c) – (iii); (d) – (ii)

2. (a) – (iii); (b) – (iv); (c) – (ii); (d) – (i)
3. (a) – (iii); (b) – (ii); (c) – (iv); (d) – (i)
4. (a) – (iii); (b) – (iv); (c) – (i); (d) – (ii)

Options 1. 1
2. 2
3. 3
4. 4

93. For a very large population the ratio between SEX� and σ is 8 : 40. The Sample size n
will be

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1. 5
2. 25
3. 32
4. 48

Options 1. 1
2. 2
3. 3
4. 4

94. As per Section 52 of the companies Act, 2013, the balance in the Security Premium
Account cannot be utilized for

1. payment of dividend
2. writing off discount on issue of shares
3. issue of fully paid-up bonus share
4. capital losses

Options 1. 1
2. 2
3. 3
4. 4

95. Which one of the following is NOT the pre-requisite of price discrimination?

1. Firm must have monopoly power

2. Product have multiple close substitutes and different uses
3. Markets are separated and segmented
4. Price elasticity of product must differ in different markets

Options 1. 1
2. 2
3. 3
4. 4

96. Which of the following is the predecessor of the IRDA Act, 1999?

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1. The Insurance Act, 1938

2. The Life Insurance Corporation Act, 1956
3. The Marine Insurance Act, 1963
4. The Public Liability Insurance Act, 1991

Options 1. 1
2. 2
3. 3
4. 4

97. Match List - I with List - II :

List – I List - II

(a) 80 TTA (i) Deduction in respect of payment of

interest on loan taken for higher
education
(b) 80 CCD (ii) Deduction in respect of interest on
loan taken for residential house
property
(c) 80 E (iii) Deduction in respect of interest on
deposits in savings account
(d) 80 EE (iv) Deduction in respect of contribution
to national pension system

1. (a) – (iii); (b) – (iv); (c) – (i); (d) – (ii)

2. (a) – (iii); (b) – (iv); (c) – (ii); (d) – (i)
3. (a) – (iii); (b) – (i); (c) – (ii); (d) – (iv)
4. (a) – (i); (b) – (ii); (c) – (iii); (d) – (iv)

Options 1. 1
2. 2
3. 3
4. 4

98. Which of the following are considered non-parametric tests?

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(a) Mann-Whitney U test

(b) KruskaI-Wallis test

(c) (c) F-test

(d) (d) T-test

(e) (e) Chi-square test

Choose the correct option from the following :

1. (a), (b) and (e)

2. (a), (b) and (c)

3. (a), (b), (c) and (d)

4. (a), (b), (c), (d) and (e)

Options 1. 1
2. 2
3. 3
4. 4

99. Shopping goods have which of the following features?

(a) These products are generally durable in nature

(b) Consumers generally compare the goods of various sellers and then buy
such goods
(c) Per unit price of these goods is generally high
(d) These goods are regularly and continuously in demand
(e) These goods are sold as a result of aggressive promotional efforts

Choose the right answer from the option given below :

1. (c), (d) and (e)

2. (a), (b) and (c)

3. (b), (c) and (d)

4. (a), (c) and (e)

Options 1. 1

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2. 2
3. 3
4. 4

100. If two regression coefficients are – 0.8 and – 0.2, then the value of coefficient of
correlation is

1. – 0.16

2. – 0.50

3. + 0.40

4. – 0.40
Options 1. 1
2. 2
3. 3
4. 4

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JUNE 2019

Q. NO ANS Q. NO ANS Q. NO ANS Q. NO ANS

1 D 26 A 51 C 76 C
2 A 27 D 52 C 77 A
3 C 28 D 53 B 78 C
4 C 29 B 54 D 79 D
5 C 30 B 55 A 80 C
6 B 31 A 56 C 81 C
7 D 32 A 57 B 82 B
8 D 33 A 58 B 83 B
9 A 34 A 59 B 84 C
10 D 35 D 60 A 85 A
11 D 36 C 61 C 86 B
12 D 37 B 62 A 87 B
13 A 38 D 63 D 88 C
14 C 39 B 64 B 89 A
15 A 40 B 65 C 90 C
16 D 41 B 66 B 91 C
17 C 42 B 67 C 92 D
18 A 43 B 68 D 93 B
19 B 44 C 69 A 94 A
20 D 45 C 70 B 95 B
21 A 46 D 71 A 96 A
22 D 47 D 72 A 97 A
23 C 48 C 73 B 98 A
24 B 49 A 74 B 99 B
25 C 50 D 75 B 100 C

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2018 DECEMBER

List – I List - II

(a) AS – 1 (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

1. Match the item of list I with the items of List II and choose the correct answer from
the code given below.

options
1. (a) – (iii); (b) – (i); (c) – (iv); (d) – (ii)
2. (a) – (iii); (b) – (iv); (c) – (ii); (d) – (i)
3. (a) – (iii); (b) – (ii); (c) – (i); (d) – (iv)
4. (a) – (i); (b) – (ii); (c) – (iii); (d) – (iv)

2. 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
1. Only (i) and (ii)

2. Only (iii) and (iv)

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3. Only (ii), (iii) and (iv)

4. Only (i), (ii) and (iii)

3. Choose the correct code for the following statements being correct or incorrect.

Statement I : Punctuality and team spirit among employees of an organization 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
1. Both the statements I and II are incorrect.

2. Statement I is correct, but II is incorrect.

3. Statement I is incorrect, but II is correct.

4. Both the statements I and II are correct.

4. "Everyone benefits when the focus is on common interest and promotion of

harmony" is the underlying assumption of which one of the following approaches to
industrial relations?

Options
1. Unitary approach

2. Human Relations approach

3. Marxist approach

4. Pluralistic approach

5. Which one of the following statements is not true?

Options

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1. Long-term liabilities due for payment within a year should be treated as

current liabilities.
2. Cost of sales is a better numerator than sales while calculating stock turnover.
3. Higher operating ratio indicates higher profits.
4. Conversion of debentures into preference shares will decrease debt – equity
ratio

6. Given is the information related to a house :

Municipal Value (M. V.) ₹ 1,50,000

Fair Rent ₹ 1,80,000
Standard Rent ₹ 1,60,000
Actual Rent ₹ 20,000 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
1. ₹ 2,10,000
2. ₹ 1,60,000
3. ₹ 1,70,000
4. ₹ 1,50,000

7. Which Of the following are included in the international liquidity? Indicate the
correct code.

(i) Foreign exchange

(ii) Borrowing capacity of the various countries
(iii) Gold reserves
Choose the correct answer from the code given below :
Code:

Options
1. (ii) and (iii)
2. (i) and (ii)
3. (i) and (iii)

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4. (i), (ii) and (iii)

8. Which one of the following statements is not true?

Options
1. Profits earned from non-operating activities is added to net profit while

calculating profits from operations.

2. Any transaction that increases working capital is a source of funds.

3. Major source of working capital in the long run, is profits from operations.

4. Depreciation is a source of funds.

9. Match the item of list I with the items of List II and choose the correct answer from
the code given below.

List – I List – II
(Type of Interview) (Usual Application)

(a) Structured (i) A realistic approach that yields comparable

answers plus indepth insights

(b) Unstructured (ii) Useful to understand applicant's 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 why they are
not fit for the job

Options

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1. (a) – (i); (b) – (iv); (c) – (ii); (d) – (iii)

2. (a) – (iii); (b) – (iv); (c) – (i); (d) – (ii)
3. (a) – (iv); (b) – (ii); (c) – (i); (d) – (iii)
4. (a) – (iii); (b) – (i); (c) – (ii); (d) – (iv)

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

Options
1. Attempting to stall entry of other firms in the market.
2. Earning net profit in all possible situations.
3. Charging different prices from different categories of buyers of the same product.
4. Lower output at a higher cost in a normal profit situation.

11. Which one of the following demands states are adequately buying all the products
put into the marketplace?

Options
1. Irregular demand

2. Overfull demand

3. Latent demand

4. Full demand

12. Which one of the following is not true for introducing multiple brand in a category?
Options
1. Yielding economics of scale in advertising, sales merchandising and physical

distribution

2. Attracting consumers seeking variety who may otherwise have switched to

another brand

3. Increasing shelf presence and retailer dependence in the store

4. Decreasing interval competition within the firm

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13. Match the item 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 memberships,
paid
(b) Fringe benefits (ii) Telephone/mobile allowance,
internet allowance medical allowance
(c) Perquisites (iii) Canteen, uniform, accident relief

Code:
Options
1. (a) – (i), (b) – (ii), (c) – (iii)

2. (a) – (ii), (b) – (i), (c) – (iii)

3. (a) – (iii), (b) – (ii), (c) – (i)

4. (a) – (ii), (b) – (iii), (c) – (ii)

14. “Skimming in e- Banking method of

Options
1. Stealing credit card information

2. Intimating the customer about his heavy withdrawals

3. Converting Debit Card into Credit Card

4. Transferring cash from one account to another account

15. Which one of the following item is not a part of job specification ?
Options
1. Location

2. Judgement

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3. Emotional Characteristics

4. Initiative

16. Match the item of list I with the items of List II and choose the correct answer from
the code given below.
List I List II
(a) The economy was characterised by (i). Mass marketing
small region suppliers who sold
goods on local basis
(b) Standardised, branded goods were (ii) Hyper-segmentation
sold art national level
(c) Era of market differentiation based (iii) Segmentation
on demographic, socio-economic
and life style factors
(d) Technological advancements, (iv) Fragmentation
especially in the area of digital
communication, allow marketers to
communicate with individual
consumers or very small groups

Code:

Options
1. (a) – (i); (b) – (iv); (c) – (ii); (d) – (iii)
2. (a) – (iv); (b) – (i); (c) – (ii); (d) – (iii)
3. (a) – (i); (b) – (ii); (c) – (iii); (d) – (iv)
4. (a) – (iv); (b) – (i); (c) – (iii); (d) – (ii)

17. Which one of the following statement is correct?

Options
1. One of the objectives of setting up SEBI is to protect the interests of investors
2. SEBI is constituted from amongst the directors of various stock exchanges

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3. The purpose of issuing different type of rules and regulations by SEBI is to

bring monetary gains to investors
4. SEBI has been constituted under the Securities (Contract and Regulation)
Act,1956.

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

Options
1. Canada
2. USA
3. Iran
4. China

19. 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:
1. Both (A) and (R) are correct and (R) is the right explanation of (A).
2. Both (A) and (R) are correct and (R) is not the right explanation of (A).
3. Both (A) and (R) are incorrect.
4. (A) is correct but (R) is not correct.

20. 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.

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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:
1. Statement II is correct, but I is incorrect.
2. Both the Statement I and Statement II are correct.
3. Both the Statement I and Statement II are incorrect.
4. Statement I is correct, but II is incorrect.

21. A company purpose to introduce a now 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:
1. ₹100
2. ₹400
3. ₹300
4. ₹200

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

Options:
1. Amount of cash outflows
2. Discount rate
3. Amount of cash inflows
4. Life of the project

23. 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:

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1. ₹ 4 per share
2. ₹ 10 per share
3. ₹ 2 per share
4. ₹ 8 per share

24. 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 deprecation on fixed assets,

diminishing balance method is the best method
Reason (R) : Diminishing balance method of charging deprecation has been
permitted under the Income Tax Act,1961 for claiming deduction for depreciation.
Code:
Options:
1. Both (A) and (R) are correct and (R) is not the right explanation of (A).
2. Both (A) and (R) are correct.
3. Both (A) and (R) are correct and (R) is the right explanation of (A).
4. (A) is correct but (R) is not correct.

25. 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?

Options:
1. Decisive Participation
2. Administrative Participation
3. Associative Participation
4. Consultative Participation

26. The probable error of the coefficient of correlation (r) is calculated by which one of
the following formula ?

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Options:

27. Which of the following statements is / are false?

(i) capital profits can never be distributed as dividend to the shareholders

(ii) dividends are paid out of profit and therefore do not affect the liquidity position of
the firm

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

(iv)walters model suggest that dividend payment does not affect the market price of the
share

Option

1.(ii) (iii) and (iv)

2.(i) (ii) (iii) and(iv)

3.(i) (ii)and (iii)

4.(iii) and (iv)

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[Link] inverse relationship between the variation in the price and the variation in the
quantity demanded is not due to

Option

[Link]’s laws of consumption

2. Law of substitution

3. Price effect

4. entry and exit of buyers

[Link] one of the following is not the function of the reserve Bank of India?

Option

1. Issue of banknotes

2. controller of credit

3. custodian of cash reserves of commercial banks

4. Accepting deposits and advancing loans to public

[Link] the most popular route of privatisation adopted by the government of India
in recent decades

Option

1. cross holdings

2. Strategic sale

3. Spontaneous privatization

4. Management employee buyout

31. A firm has inventory turnover of 3 e and cost of goods sold is rupees [Link]
better inventory management the inventory turnover is increased to would result in

Option

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1. Increase in inventory by rupees 54000

2. Decrease in inventory by rupees 36000

3. decrease in inventory by rupees 90000

4. Increase in cost of goods sold by rupees 20000

32. 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) 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

Option

1. (a)-(ii), (b)-(iv), (c)-(i), (d)-(iii)

2. (a)-(i), (b)-(iv), (c)-(ii), (d)-(iii)

3. (a)-(iv), (b)-(iii), (c)-(i),(d)-(ii)

4. (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

[Link] 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?

Option

1. Annual plan control

2. strategic control

3. profitability control

4. Efficiency control

[Link] 337
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[Link] a perpendicular on x axis from the point of intersection of both “less than” and
“more than” frequency curve is drawn, it gives the value of

Option

1. Median

2. Mode

3. Arithmetic mean

4. third quartile

35. Which one of the following is agricultural income under Income tax Act?

Option

1. Income from the land used for storing agricultural products

2. Dividend from a company engaged in agriculture

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

4. Income from dairy farm, poultry farm etc

[Link] theory suggesting that the patterns of international trade are determined by
factor endowment rather than productivity was propounded by which one of the
following?

Option

[Link] Porter

2. David Ricardo

[Link] and Bertil Ohlin

[Link] Smith

[Link] one of the following is not the correct property of normal distribution?

[Link] 338
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Option

1. Continuous distribution

2. equality of Central values (mean , median and mode)

3. Standard deviation is the sole parameter of the distribution

4. Uni model distribution

[Link] the following stages of staffing in correct sequence and indicate the code of
correct sequence

Option

(i) performance appraisal

(ii) Recruitment
(iii) Transfers
(iv) Selection
(v) Induction and orientation

Choose the correct answer from the code given below:

Code:

Options

1. (iv) (ii) (v) (iii) (i)

2.(i) (ii) (iv) (v) (iii)

3.(ii) (i) (iv) (v) (iii)

4.(ii) (iv) (v) (i) (iii)

[Link] leverage can be used to measure the relationship between

Option

1. EBIT andEPS

[Link] and EBIT

[Link] 339
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[Link] and EPS

[Link] and EPS

[Link] among the following is not included in seven Ps of marketing mix given by
Booms and Bitner?

Option

1. Politics

2. Physical evidence

3. People

4. process

41. 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) 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

Option

1. (a)-(iii ), (b)-(i), (c)-(ii), (d)-(iii)

2. (a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)

3. (a)-(iv), (b)-(i), (c)-(ii),(d)-(iii)

4. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)

[Link] fulfilling certain conditions for an undertaking setup in special economic zones,
deduction under section 10 AA of the Income tax Act is allowed for

[Link] 340
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Option

1. 10 years

2. Unlimited period

3. 5 years

4. 15 years

43. choose the correct code for the following statements being correct or incorrect.

Statement 1: thousands of employees died everyday in factories due to accidents

Statement 2: to make an accident free plant to cost and decrease productivity

Code:

Option

1. Statement 1 is correct but 2 is incorrect

2. Both the statements 1 and 2 are incorrect

3. Statement 2 is correct but 1 is incorrect

4. Both statements 1 and 2 are correct

44. Given below are two statements one labelled as assertion (A) and 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 un acceptable quality and an upper price threshold were the the product
appears not worth the money

Option

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

2. Both (A) and (R) are incorrect

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3. Both (A) and (R) are correct and (R) is write explanation of (A)

4.(A) is incorrect but (R) is correct

45. Cardinal utility analysis of consumers 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

Option

[Link] (iii) and (iv)

2. Only (ii) (iii) and (iv)

3. Only (i) (ii) and (iv)

4. Only (i) and (ii)

46. Match the items of List I with the items of Lin II and choose the correct answer from
the code given below.

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

Option

1. (a)-(iv ), (b)-(i), (c)-(ii), (d)-(iii)

2. (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

3. (a)-(i), (b)-(ii), (c)-(iii),(d)-(iv)

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4. (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)

[Link] among the following is not an internal factor of pricing decision?

Option

[Link] expectation from company by past pricing

2. Consumer behaviour for given product

3. position of product in product cycle

4. Price elasticity as per sales of product

48. Banking Ombudsman scheme was introduced by RBI with effect from

Option

1. 2005

2. 1998

3. 1995

4. 2001

49. which one of the following is not the basic function of WTO?

Option

1. to facilitate the implementation, administration and operation of trade agreements

[Link] facilitate the expansion and balanced growth of international trade

3. to carry out periodic reviews of the trade policies of its member countries

4. To settle differences and disputes among its member countries

50. Given below are two statements one labelled as assertion (A) and other labelled as
reason(R).Read the statements and choose the correct answer using the code given
below.

[Link] 343
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Assertion (A):technological change and skill requirements have been made a subject of
investigation in an organisation

Reason (R): the neoclassical economic theory stated that technological changes required
a border variety of skills and higher average skills from the code given below.

Options

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

3. Both (A) and (R) are correct and (R) is write explanation of (A)

4.(A) is incorrect but (R) is correct

4. Both (A) and (R) are incorrect

[Link] 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

(i)Balance of trade (A) Imports and exports of goods and services

and unilateral transfer of goods and services

(ii) Current account (B) Transactions leading to changes in the

financial assets and liabilities of a country

(iii) Balance of payments (C) All economic transactions between a

country's residents and residents of other
countries

(iv) Capital account (D) Value of exports and imports of a county

Code :

(1) (i)-(D), (ii)-(C),(iii)-(B) (iv)-(A)

(2) (i)-(D), (ii)-(A),(iii)-(C) (iv)-(B)

(3) (i)-(C),(ii)-(B),(iii)-(D), (iv)-(A)

(4) (i)-(A), (ii)-(B), (iii)-(C),(iv)-(D)

[Link] of tho following statements is/are true ?

[Link] 344
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(i)Tax-shield on depreciation and interest is an important variable both for the lessor
and the lessee.

(ii) Lease transactions in India are governed by the lease Act.

(iii) A lessee should evaluate the lease options against the buying option.

(iv) 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:

(1) (i), (iii) and (iv)

(2) Only (ii)

(3) (ii), (iii) and (iv)

(4) (i) and (iv)

[Link] are required to classify Non-Performing Assets into

(1) Doubtful assets, bad debts and loss assets

(2) Standard assets, and sub-standard assets
(3) Doubtful assets, and bad debts
(4) Sub-standard assets, doubtful assets, and loss assets

54. Tho companies having business in a large number of countries around the world at
present are called

(1) Global Corporations (GCs)

(2) Multinational Corporations (MNCs)
(3) Multinational Enterprises (MNEs)
(4) Transnational Corporations (TNCs)

[Link] Woods Conference resulted into the establishment of which of the

following ?

(1) IDA and ADB

(2) IMF and IDA
(3) IMF and IBRD

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(4) IBRD and IFC

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 :

(1) Both the statements I and II are incorrect.

(2) Both the statements I and II are correct.
(3) Statement I is correct, but II is incorrect.
(4) Statement II is correct, but I is incorrect.

[Link] the correct code for the following statements being correct or incorrect.
Statement 1: 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 11: The date of maturity of a forward contract is more than two business days
in future.

Code :

(1) Both the statements I and II are correct.

(2) Both the statements I and II are incorrect
(3) Statement I is correct, but H is incorrect.
(4) Statement II is correct, but I is incorrect.

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): 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 :

[Link] 346
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(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are incorrect.
(3) (A) is correct but (R) is not correct
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).

59. Match the items of list I with the items of List II and choose the correct answer from
the code given below.

List I (Propounder of Theory) List II (Theory of Motivation)

(i) Dr. Willian Ouchi (A) X Theory

(ii) Douglas McGregor (B) Need Hierarchy Theory

(iii) Frederick Herzberg (C) z Theory

(iv) A.H. Maslow (D) Hygiene Theory

Code :

(1) (i)-(B), (ii)-(A), (iii)-(C), (iv)-(D)

(2) (i)-(C), (ii)-(A), (iii)-(D), (iv)-(B)

(3) (i)-(D), (ii)-(A),(iii)-(C),(iv)-(B)

(4) (i)-(B), (ii)-(C), (iii)-(D), (iv)-(A)

60. Choose the correct code for the following statements being correct or incorrect.
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 bo 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 :

(1) Both the statements I and II are incorrect.

(2) Both the statements I and II are correct.

(3) Statement II is correct, but I is incorrect.

[Link] 347
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(4) Statement I is correct, but II is incorrect.

61. 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 (PM)

(iv) Foreign Venture Capital Investors (FVCI)

Choose the correct answer from the code given below :

Code :

(1) (i),(ii), (iii) and (iv)

(2) (i), (iii) and (iv)

(3) (i), (ii) and (iv)

(4) (i) and (iv)

62. Which one among the following is the oldest form of organization ?

(1) Line Organization

(2) Committee Organization
(3) Functional Organization
(4) Project Organization

63. Which one of the following is not the advantage of database management system?

(1) Shared data

(2) Improved data integrity
(3) Centralized control
(4) High acquisition costs

64. 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

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(i) Mobile defense (A)ccupying the most desirable position in

consumers' minds, making the brand almost
impregnable.

(ii) Contraction defense (B) The leader stretches its domain over new
territories through market broadening and
market diversification.

(iii) Position defense (C) Large companies give up weaker markets

and reassign resources to stronger ones.

(1) (i)-(A),(ii)-(B),(iii)-(C)

(2) (i)-(A),(ii)-(C),(iii)-(B)

(3) (i)-(B),(ii)-(C),(iii)-(A)

(4) (i)-(B),(ii)-(A),(iii)-(C)

65. 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

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

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

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

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

Code :

(1) (i)-(A),(ii)-(B)-(iii)-(C), (iv)-(D)

(2) (i)-(C), (ii)-(A), (iii)-(D), (iv)-(B)

(3) (i)-(D),(ii)-(C) (iii)-(A), (iv)-(B)

(4) (i)-(D), (ii)-(A), (iii)-(B), (iv)-(C)

66. Choose the correct code for the following statements being correct or incorrect.

Statement I : If the value of i.e, , of a distribution gives the value more than 3,
its curve is platykurtic.

[Link] 349
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Statement II : In a moderately asymmetrical distribution, the standard deviation is 1.25

times of mean deviation.

Code :

(1) Statement II is correct, but I is incorrect.

(2) Both the statements I and II are correct.
(3) Both the statements I and II are incorrect.
(4) Statement I is correct, but II is incorrect.

67. Under Sec. 194 IB 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

(1) Rs 15,000 per month

(2) Rs 25,000 per month
(3) Rs 50,000 per month
(4) Rs 40,000 per month

68. Sales of a firm are 40 lacs; variable costs 10 lacs; fixed costs 15 lacs; interest 5 lacs.
Combined leverage of the firm will be

(1) 2
(2) 3
(3) 8
(4) 2.5

69. 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 :

[Link] 350
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(1) Only (ii) and (iv)

(2) Only (i), (ii) and (iv)
(3) Only (ii), (iii) and (iv)
(4) Only (i) and (ii)

[Link] the items of List I with the items of List II and code given below.

List I List II

(i) Compensation received by an (A) Exemption upto specified limit

employee from his employer on

termination of job

(ii) Pension received by the widow (B) Profits in lieu of salary

of an employee

(iii) Foreign allowance for rendering (C) Income from other sources

services abroad

(iv) Children hostel allowance (D) Fully exempt from tax

Code :

(1) (i)-(B),(ii)-(C) (iii)-(D), (iv)-(A)

(2) (i)-(B), (ii)-(D), (iii)-(C), (iv)-(A)

(3) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)

(4) (i)-(D),(ii)-(C), (iii)-(A), (iv)-(B)

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

(1) Offer incentives to postpone retirement

(2) Hire temporary employees
(3) Attempt to reduce turnover
(4) Employee training

[Link] 351
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[Link] 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:

(1) Only (ii), (iii) and (iv)

(2) Only (i), (ii) and (iv)
(3) Only (i) and (ii)
(4) Only (iii) and (iv)

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

(1) Federation of Indian Export Organisations

(2) Department of Commerce
(3) Export Promotion Council
(4) Indian Institute of Foreign Trade

74. Which one of the following is not an advantage of external recruitment ?

(1) Compliance with reservation policy becomes easy

(2) Benefits of new skills, new talents and new experiences to organisations are available
(3) Good performance is rewarded
(4) Scope for resentment, jealousies and heartburn are avoided

75 .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.

Code :

[Link] 352
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(1) Both the statements I and II are correct.

(2) Both the statements I and II are incorrect.
(3) Statement II is correct, but I is incorrect.
(4) Statement I is correct, but II is incorrect.

76. Critical path indicates which one of the following ?

(1) Recorded time of completing a task

(2) Average time of completing a task
(3) Shortest route of completing a task
(4) Longest route of completing a task

[Link] which one of the following modes of entry into foreign market are risk and profit
potential the highest ?

(1) Direct exporting

(2) Direct investment
(3) Indirect exporting
(4) Joint ventures

78. Which of the following is not a method of preparation of cash budget ?

(1) Proforma Balance Sheet method

(2) Receipts and Payments method
(3) Cash Cycle method
(4) Adjusted Net Income method

79. 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 H : 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.

Code :

(1) Both I and II are correct.

[Link] 353
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(2) I is correct, but II is incorrect.

(3) I is incorrect, but II is correct.
(4) Both I and II are incorrect.

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

(1) Catalogues
(2) Social media marketing
(3) Telemarketing
(4) Mailings

81 .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 :

(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are incorrect.
(3) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(4) (A) is correct but (R) is incorrect.

82. 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

(i) NPA (A) The percentage of deposits to be kept with RBI in the form of
cash.

(ii) SLR (B) The rate at which RBI lends money to commercial banks.

(iii) Repo Rate (C) Loans and advances not paid for more than 90 days.

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(iv) CRR (D) The percentage of net demand and time liabilities to be kept in
the form of liquid assets.

Code :

(1) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)

(2) (i)-(C),(ii)-(B), (iii)-(D), (iv)-(A)

(3) (i)-(B), (ii)-(C), (iii)-(D), (iv)-(A)

(4) (i)-(C), (ii)-(D), (iii)-(A), (iv)-(B)

83. 'Finance for exporting companies' as part of major programmes of the Exim Bank of
India does not include

(1) Post-shipment credit

(2) Term loans
(3) Overseas investment finance
(4) Working capital

84. 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 :

(1) Both (A) and (R) are correct and (R) is the right explanation of (A).

(2) (A) is correct but (R) is incorrect.

(3) Both (A) and (10 are correct but (R) is not the right explanation of (A).

(4) (A) is incorrect but (R) is correct.

85 .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.

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(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 numbers' are the main
bases of the sample to become representative of the population. Choose the correct
answer from the code given below :

Code :

(1) (i), (ii) and (iii)

(2) (i) and (iv)

(3) (ii), (iii) and (iv)

(4) (ii) and (iii)

86. For performance assessment of employees, "helping to meet legal requirements" is

the application of which one of the following ?

(1) Administrative purpose

(2) Documentation purpose
(3) Developmental purpose
(4) Organisational maintenance purpose

87. Corporations are controlled and directed by which one of the following ?

(1) Corporate ethics

(2) Corporate codes
(3) Corporate governance
(4) Corporate mechanism

[Link] 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

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Choose the correct answer from the code given below :

Code :

(1) (iv), (iii),(ii) ,(i)

(2) (ii), (iii), (iv), (i)

(3) (i),(ii),(iii), (iv)

(4) (iii), (iv), (i), (ii)

[Link] 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 economist's dream and consumer sovereignty is a
myth.

Code :

(1) (A) is incorrect but (R) is correct.

(2) (A) is correct but (R) is incorrect.

(3) Both (A) and (R) are correct and (R) is the right explanation of (A).

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

90. Which of the following sources of finance has an implicit cost of capital ?

(1) Debentures
(2) Equity share capital
(3) Retained earnings
(4) Preference share capital

91. 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.

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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 :

(1) Both (A) and (R) are correct but (R) is not the correct explanation of (A).

(2) Both (A) and (R) are correct and (R) is the correct explanation of (A).

(3) (A) is correct but (R) is not correct.

(4) (A) is not correct but (R) is correct.

92. When RBI reduces CRR, it results into

(1) Increase in deposits

(2) Decrease in lendable resources
(3) Decrease in deposits
(4) Increase in lendable resources

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

(1) Clean environment

(2) Population control measures
(3) Growing Indian transnational corporations
(4) Exploiting the knowledge based global economy

94. 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 :

(1) Statement H is correct, but I is incorrect.

(2) Statement I is correct, but II is incorrect.
(3) Both the statements I and II are incorrect.

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(4) Both the statements I and II are correct.

95. Advertising method in which a commercial is broadcast simultaneously on several

radio stations and/or television channels is known as

(1) Exclusive drive

(2) Intensified campaign
(3) Road side
(4) Road block

96. 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

(1) 3:2:1

(2) 3:2:3

(3) 6:4:5

(4) 3:2:2

[Link] 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

(i) Direct investment overseas aimed (A) Inward FDI

at manufacturing products not
manufactured by the firm in the
home country
(ii) Direct investment in a foreign (B) Backward Vertical FDI
country aimed to sell the output
of the firm's domestic production.
(iii) Direct investment overseas aimed (C) Conglomerate F'DI
at providing inputs for the firms
production process in the home country.
(iv) Foreign firms investing overseas (D) Forward Vertical FDI

and taking control over foreign assets.

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Code :

(1) (i)-(D), (ii)-(C),(iii)-(B) (iv)-(A)

(2) (i)-(A), (ii)-(D), (iii)-(B), (iv)-(C)

(3) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)

(4) (i)-(C), (ii)-(B), (iii)-(A), (iv)-(D)

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

(1) Arranged merger

(2) Negotiated merger
(3) Offer for sale
(4) Reverse merger

99. Which one of the following is not the fund based business of commercial banks ?

(1) RTGS/NEFT transactions

(2) Overdraft facility
(3) Issuance of Letters of Credit
(4) Acceptance of deposits

100. 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 :

(1) Statement I is correct, but II is incorrect.

(2) Both the statements I and II are incorrect.
(3) Both the statements I and II are correct.
(4) Statement II is correct, but I is incorrect.

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DEC 2018

Q. NO ANS Q. NO ANS Q. NO ANS Q. NO ANS

1 B 26 A 51 B 76 D
2 D 27 B 52 A 77 B
3 D 28 B 53 D 78 A
4 A 29 D 54 A 79 C
5 C 30 B 55 C 80 B
6 C 31 B 56 B 81 A
7 D 32 A 57 A 82 A
8 D 33 B 58 A 83 A
9 B 34 A 59 B 84 A
10 D 35 C 60 B 85 B
11 D 36 C 61 A 86 B
12 D 37 C 62 A 87 C
13 D 38 D 63 D 88 B
14 A 39 C 64 C 89 D
15 A 40 A 65 B 90 C
16 D 41 C 66 A 91 B
17 A 42 D 67 C 92 D
18 A 43 A 68 B 93 B
19 B 44 D 69 B 94 D
20 C 45 C 70 A 95 D
21 B 46 B 71 D 96 C
22 B 47 B 72 B 97 C
23 A 48 C 73 B 98 A
24 B 49 B 74 C 99 C
25 C 50 B 75 D 100 C

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JULY 2018
PAPER - II

Note : This paper contains hundred (100) objective type questions of two (2) marks each. All
questions are compulsory.

1. The central bank can significantly influence the savings, investments and consumer spending
in the economy through which of the following policy ?
(1) Fiscal Policy (2) Monetary Policy
(3) Industrial Policy (4) Foreign Exchange Policy

2. Which one of the following is not the characteristic of capitalism ?

(1) Individuals and associations behave with economic motive of maximising their profit
with least sacrifice or cost.
(2) The country’s major means of production are either owned by the Government or their
use is controlled by the Government.
(3) Producers, consumers and employees compete among themselves, as the resources and
opportunities are limited.
(4) Price, the invisible hand, plays a predominant role in the flow of the factors of production
and consumption.

3. Which of the following is not the salient feature of the industrial policy developments since
1991 ?
(1) The scope of the private sector has been enormously expanded.
(2) Public sector has been withdrawing partially or fully from several of the enterprises by
divestment.
(3) The Indian industry is increasingly exposed to foreign competition.
(4) Monopoly or dominant position for the public sector in most of the industries and
control of the commanding heights of the economy by the public sector.

4. Which of the following does not form the part of the important information to be incorporated
in the Memorandum of Association as specified in the Companies Act, 2013 ?
(1) The name of the company and the state in which it is situated.
(2) The objects for which the company is proposed to be incorporated.
(3) The rules, regulations and bye-laws for the internal management of the company.
(4) The liability of the members of the company, whether limited or unlimited.

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5. Assertion (A) : The volume of imports tends to be very high when there is a conjecture of
high rate of economic growth and a sharp fall in the relative price of imports
and vice versa.
Reason (R) : High rate of growth, ceteris paribus, is associated with rise in imports and
increase in the imports, ceteris paribus, is associated with a fall in the relative
price of imports.
Code :
(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is not correct.
(4) (R) is correct but (A) is not correct.

6. Which of the following statements is not correct relating to consumerism ?

(1) Consumerism is a manifestation of the failure of the business to guarantee and ensure
consumer legitimate rights.
(2) The government does not have any role in consumer protection as it is the part of
business organisations alone.
(3) The consumers should accept consumerism as a means of asserting and enjoying their
rights.
(4) Consumerism evolution is not a set-back for marketing but rather points to the next
stage in the evolution of enlightened marketing.

7. Which one of the following is not covered in the approach adopted by “Niti Aayog” ?
(1) Five year planning approach (2) Three year action agenda
(3) Seven year strategy (4) Fifteen year vision

8. Assertion (A) : Personal transactions of the owners of the business are not recorded in the
books.
Reasoning (R) : According to the business entity concept, each business enterprise is
considered as an accounting unit separate from owners.
Code :
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(3) (A) is correct but (R) is not correct.
(4) (A) is wrong but (R) is correct.

9. Which one of the following is not an example of ‘financing activities’ with reference to cash
flow statement ?
(1) Repayment of bank loan
(2) Interest on debentures/Dividend paid
(3) Cash proceeds from public deposits
(4) Sale of fixed assets

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10. Which one of the following statements is true about estimated costs and standard costs ?
(1) Standard costs are based on scientific analysis and engineering studies while estimated
costs are based on historical basis.
(2) Standard cost emphasis is on “what cost will be” while estimated cost emphasis is on
“what cost should be”.

(3) Standard costs are more frequently revised compared to estimated cost.
(4) Estimated costs are more stable than standard costs.

11. Which one of the following statements is not true ?

(1) An expenditure intended to benefit current year is revenue expenditure.
(2) Amount paid for acquiring goodwill is capital expenditure.

(3) Wages paid for installation of a new machine is usually debited to wages account.
(4) Revenue expenditure is not intended to benefit future period.

12. X Ltd. forfeited 20 shares of ` 10 each, ` 8 called up, on which John had paid application and
allotment money of ` 5 per share, of these, 15 shares were reissued to Parker as fully paid up
for ` 6 per share. What is the balance in the share Forfeiture Account after the relevant
amount has been transferred to Capital Reserve Account ?
(1) NIL (2) `5 (3) ` 25 (4) ` 100

13. X and Y sharing profits in the ratio of 7 : 3, admit Z for 3/7 share in the new firm in which he
takes 2/7 from X and 1/7 from Y. The new ratio of X, Y and Z will be :
(1) 7:3:3 (2) 4:2:3 (3) 14 : 6 : 15 (4) 29 : 11 : 30

14. Assertion (A) : A high operating ratio indicates a favourable position.

Reasoning (R) : A high operating ratio leaves a high margin to meet non operating expenses.
Code :

(1) (A) and (R) both are correct and (R) correctly explains (A).
(2) Both (A) and (R) are correct but (R) does not explain (A).
(3) Both (A) and (R) are incorrect.

(4) (A) is correct but (R) is incorrect.

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15. The following are the two statements regarding concept of profit. Indicate the correct code
of the statements being correct or incorrect.
Statement (I) : Accounting profit is a surplus of total revenue over and above all paid-out
costs, including both manufacturing and overhead expenses.
Statement (II) : Economic or pure profit is a residual left after all contractual costs have
been met, including the transfer costs of management, insurable risks,
depreciation and payments to shareholders sufficient to maintain investment
at its current level.
Code :
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement (I) is correct while Statement (II) is incorrect.
(4) Statement (I) is incorrect while Statement (II) is correct.

16. Which one of the following sets is incorrect to show the inter-relationships among price
elasticity coefficient, change in price and change in total revenue ?
Price elasticity Change Change in Total
coefficient in price Revenue
(1) Zero Increase Increase
Decrease Decrease
(2) Less than 1 Increase Decrease
Decrease Increase
(3) Equal to 1 Increase No change
Decrease No change
(4) More than 1 Increase Decrease
Decrease Increase

17. Which one of the following is not the basic property of indifference curves ?
(1) Indifference curves have a negative slope.
(2) Indifference curves of imperfect substitutes are concave to the origin.
(3) Indifference curves do not intersect nor are they tangent to one another.
(4) Upper indifference curves indicate higher level of satisfaction.

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18. When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared,
then which of the following statements is/are false ?
(a) Marginal rate of technical substitution of labour for capital is equal to the slope of the
iso-quant.
(b) Marginal rate of technical substitution of labour for capital is equal to change in the
units of capital divided by the change in the units of labour.
(c) Marginal rate of technical substitution of labour for capital is the ratio of marginal
productivity of capital to marginal productivity of labour.
Code :
(1) (a) and (b) statements (2) Only (c) statement
(3) Only (a) statement (4) Only (b) statement

19. Match the items of List - II with the items of List - I and indicate the code of correct matching.
The items relate to economies of scale/scope.
List - I List - II
(a) Economies of scale (i) arise with lower average costs of manufacturing a product
when two complementary products are produced by a
single firm
(b) Internal economies (ii) Mean lowering of costs of production by producing in bulk
(c) External economies (iii) Arise when cost per unit depends on size of the firm
(d) Economies of scope (iv) Arise when cost per unit depends on the size of the
industry, not the firm
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (i) (ii) (iii) (iv)
(3) (ii) (iii) (iv) (i)
(4) (iv) (iii) (ii) (i)

20. A firm that produces highly substitute goods can adopt which one of the following pricing
strategies ?
(1) Transfer pricing (2) Going Rate pricing
(3) Product bundling (4) Full cost pricing

21. In a perfectly competitive market, a firm in the long run operates at the level of output
where :
(1) AC = MC when MC is lowest (2) MC = AR = MR when MC is lowest
(3) MR = MC (4) AR = MR =AC = MC

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22. Assignment of numerals to the objects to represent their attributes is known as :

(1) Nominal data (2) Ordinal data (3) Interval data (4) Ratio data

23. A graph of a cumulative frequency distribution is called :

(1) Frequency polygon (2) Frequency curve
(3) Ogive (4) Pie diagram

24. In the case of classification of data, the class having its upper limit is treated as the lower
limit of its next class is called :
(1) Open ended class (2) Close ended class
(3) Exclusive class (4) Inclusive class

25. For a standard normal probability distribution, the mean (µ) and the standard deviation (σ)
are :
(1) µ=0, σ= 1 (2) µ=16, σ=4
(3) µ=25, σ=5 (4) µ=100, σ=10

26. Match the items of List - II with the items of List - I and select the code of correct matching.
List - I List - II
(a) Standard error of mean (i) Ha : µ1 ≠ µ2
(b) Base of point estimate of (ii) Values based on all the observations of
the mean of the population the population
(c) Non-specific hypothesis (iii) Mean of the sampling distribution of
mean
(d) Parameter value of descriptive statistics (iv) Standard deviation of the sampling
distribution of mean
Code :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (i) (ii) (iii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iii) (iv) (i) (ii)

27. There is a very high inverse relationship between measures of ‘Overweight’ and ‘life
expectancy’. Which one of the following value of the coefficient of correlation is consistent
with the statement ?
(1) 0.80 (2) 0.20 (3) −0.20 (4) −0.80

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28. Match the items of List - II with the items of List - I and select the code of correct matching.
List - I List - II
(a) Chi-square Test (i) Testing the significance of the differences of the mean
values among more than two sample groups.
(b) ANOVA (F-test) (ii) Testing the goodness of fit of a distribution
(c) Z - test (iii) Testing the significance of the difference of the mean
values between two large sized samples
(d) t - test (iv) Testing the significance of the difference of the mean
values between two small sized samples when population
standard deviation is not available
Code :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iv) (iii) (ii) (i)
(3) (i) (ii) (iv) (iii)
(4) (ii) (i) (iii) (iv)

29. Match the items of List - II with List - I and choose the correct code :
List - I List - II
(a) Sales Executive (i) Top- middle Management
(b) Branch Manager (ii) Middle Management
(c) Foreman (iii) Lower Management
(d) Production Manager (iv) Operating Force
Code :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (ii) (iii) (iv) (i)
(3) (iii) (iv) (ii) (i)
(4) (i) (ii) (iii) (iv)

30. Select the correct code of the statements being correct or incorrect.
Statement (I) : It is a significant feature of human that he plans.
Statement (II) : A plan is a trap to capture the future.
Code :
(1) Statement (I) is correct but (II) is incorrect.
(2) Statement (II) is correct but (I) is incorrect.
(3) Both the statements (I) and (II) are correct.
(4) Both the statements (I) and (II) are incorrect.

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31. Assertion (A) : Management is a set of principles relating to its functions.

Reasoning (R) : Management is essential to run all types of organizations.
Code :
(1) (A) and (R) both are correct ; and (R) is the right explanation of (A).
(2) (A) and (R) both are correct ; but (R) is not the right explanation (A).
(3) Both (A) and (R) are incorrect.
(4) (A) is correct ; but (R) is incorrect.

32. Match the items of List - II with List - I ; and choose the correct code :
List - I List - II
(Critical Control Standards) (Critical Points)
(a) Physical standards (i) Material cost per unit
(b) Cost standards (ii) Labour hours per unit of output
(c) Revenue standards (iii) Timing of production
(d) Program standards (iv) Average sales per customer
Code :
(a) (b) (c) (d)
(1) (ii) (i) (iv) (iii)
(2) (ii) (i) (iii) (iv)
(3) (i) (ii) (iv) (iii)
(4) (iv) (i) (iii) (ii)

33. Which among the following is not a correct statement with regard to Corporate Governance
in India ?
(1) Every company must appoint an individual or firm as auditor.
(2) The independent directors must attend at least three meetings a year.
(3) One or more women directors are recommended for certain classes of companies.
(4) The maximum number of permissible directors cannot exceed 15 in a public limited
company.

34. The popular statement, - “if all you have is a hammer, everything looks like a nail”, is given
by :
(1) A.H. Maslow (Hierarchy of Needs)
(2) Henry Fayol (Industrial and General Administration)
(3) F.W. Taylor (Scientific Management)
(4) Fredrick Herzberg (Hygiene Theory)

35. Functional Leadership Theory is associated with :

(1) Hackman and Walton and McGrath
(2) Bernard and Ordway Tead
(3) Koontz and O’Donnell
(4) Alford and Beatty

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36. When two separate companies or two divisions within the same company agree to place
both of their respective brands on a particular product or enterprise, this arrangement is
termed as :
(1) Differential Branding (2) Cobranding
(3) Dual Branding (4) Both Cobranding and Dual Branding

37. The tangible goods for which a consumer wants to compare quality, price and perhaps style
in several stores before making a purchase are called :
(1) Convenience Goods (2) Shopping Goods
(3) Speciality Goods (4) Unsought Goods

38. When a company treats each single customer as a separate segment, this is called :
(1) Niche Marketing (2) Nano Marketing
(3) Single Marketing (4) Micro Marketing

39. Under which of the following conditions, the level of consumer’s involvement will not be
high ?
(1) The consumer considers the amount of money involved to be large.
(2) The product is seen as having low potential for providing significant benefits.
(3) The consumer lacks information about alternatives for satisfying the need.
(4) The product has considerable social importance.

40. Statement (I) : The mindset which is commonly associated with a long - ago era when the
demand for goods generally exceeded the supply, and the primary focus in
business was to effectively produce medium quantities of products ; finding
the customers was viewed as a relatively major function.
Statement (II) : The firms with product orientation typically focus on the quality and quantity
of offerings while assuming that customers will seek out and buy reasonably
priced, well made products.
From the above statements indicate the correct code of being statements correct or incorrect
The statements relate to concepts of marketing.
(1) Both the statements (I) and (II) are not correct.
(2) Both the statements (I) and (II) are correct.
(3) Statement (I) is correct but statement (II) is not correct.
(4) Statement (I) is not correct but statement (II) is correct.

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41. Match the items of List - II with List - I to identify the correct code which are related to legal
forces affecting international marketers.
List - I List - II
(a) Tariff (i) A regulation specifying the proportion of a finished
product’s components and labour that must be provided
by importing country.
(b) Import Quota (ii) Tax imposed on product entering a country and used to
protect domestic producers and/or raise revenue.
(c) Local-content Law (iii) A requirement that a product contain or exclude certain
ingredients or that it be tested and certified as meeting
certain restrictive standards.
(d) Local-operating Law (iv) Limiting amount of a particular product that can be
brought into a country, to protect domestic industry or
broadening access to its markets.
(e) Standards and (v) A refusal to buy products from a particular company or
Certification country.
(f) Boycott (vi) A constraint on how, when or where retailing can be
conducted.

Code :
(a) (b) (c) (d) (e) (f)
(1) (iii) (iv) (ii) (i) (vi) (v)
(2) (vi) (ii) (i) (iv) (iii) (v)
(3) (ii) (iv) (i) (vi) (iii) (v)
(4) (iv) (vi) (i) (ii) (iii) (v)

42. Match the items of List - II with List - I which are related to personal selling process and
identify the correct code :
List - I List - II
(a) Prospecting (i) Attention, Interest, Desire, Action
(b) Preapproach (ii) Identifying Profiles, leads, Records and Qualifying
capability and willingness
(c) Presentation (iii) Reduce Dissonance, Build goodwill
(d) Post sales services (iv) Information, habits, preferences
Code :
(a) (b) (c) (d)
(1) (i) (iii) (iv) (ii)
(2) (iii) (iv) (ii) (i)
(3) (ii) (iv) (i) (iii)

(4) (iv) (iii) (ii) (i)

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43. Which of the following is not an approach to the Capital Structure ?

(1) Gross Profit Approach (2) Net Operating Income Approach
(3) Net Income Approach (4) Modigliani and Miller Approach

44. Which one of the following methods of Capital Budgeting assumes that cash-inflows are
reinvested at the project’s rate of return ?
(1) Net Present Value (2) Accounting Rate of Return
(3) Internal Rate of Return (4) Discounted Pay Back Period

45. Cost of Equity Share Capital is more than cost of Debt because :
(1) Equity shares are not easily saleable.
(2) Equity shares do not provide the fixed dividend rate.
(3) Generally the face value of equity shares is less than the face value of debentures.
(4) Equity shares have high risk than debts.

46. Negative Net Working Capital implies that :

(1) Long-term funds have been used for fixed assets.
(2) Short-term funds have been used for fixed assets.
(3) Long-term funds have been used for current assets.
(4) Short-term funds have been used for current assets.

47. Which of the following is an implicit cost of increasing proportion of debt of a company ?
(1) P.E. Ratio of the company would increase.
(2) Rate of return of the company would decrease.
(3) Tax-shield would not be available on new debts.
(4) Equity shareholders would demand higher return.

48. Profitability Index of a Project is the ratio of present value of cash inflows to :
(1) Total cash inflows (2) Total cash outflows
(3) Present value of cash outflows (4) Initial cost minus Depreciation

49. Which one of the following statements is false ?

(1) Effective dividend policy is an important tool to achieve the goal of wealth maximisation.
(2) According to Walter, the optimal payout ratio for a growth firm is 100%.
(3) MM model asserts that the value of the firm is not affected whether the firm pays
dividend or not.
(4) ‘Bird-in-the-hand theory’ in reference to dividend decision has been developed by Myron
Gordon.

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50. Which one of the following statements defines the correct meaning of the term “boundary
spanning” ?

(1) It refers to an obligation of an individual, firm or institution to account for its activities
and accept responsibility for them.

(2) It refers to the process that helps the organization and its employees to link with their
external environment through specific activities/functions.

(3) It refers to the science of morals, principles and rules of conduct.

(4) It refers to multiculturism management.

51. The VRIO framework, used in HR function in today’s era, refers to four criteria. Identify the
correct code which stands as correct explanation to VRIO as proposed by Barney.

(1) Valence - Recruiting - Industrial relations - Opportunities

(2) Vision - Rewards - Improvements - Options

(3) Value - Rarity - Imitability - Organization

(4) Versatile - Resource - Information - Outsourcing

52. Assertion (A) : Induction is an informal information sharing session on miscellaneous issues
in an organization.

Reasoning (R) : The rationale of induction is to ensure effective integration of staff into or
across the organization for their mutual benefit.

Code :

(1) Assertion (A) and Reasoning (R) both are correct and (R) is correct explanation of (A).

(2) Assertion (A) and Reasoning (R) both are correct but (R) is not the correct explanation
of (A).

(3) Assertion (A) is correct statement but Reasoning (R) is an incorrect statement.

(4) Assertion (A) is an incorrect statement but Reasoning (R) is a correct statement.

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53. Match the items of List - II with the items of List - I pertaining to the ranking methods used
in performance management systems ; and select the code of correct matching.
List - I List - II
(Ranking methods) (Methodology)
(a) Simple ranking (i) Based on overall performance.
(b) Alternation ranking (ii) Ends up with predetermined number of people in
each group.
(c) Paired comparison (iii) Based on particular trait only for quantity/quality
of work.
(d) Forced distribution (iv) Based on a trait or a set of trait and avoids central
tendency.
Code :
(a) (b) (c) (d)
(1) (ii) (iii) (iv) (i)
(2) (i) (iv) (iii) (ii)
(3) (iv) (ii) (i) (iii)
(4) (iii) (i) (ii) (iv)

54. Assertion (A) : Compensation has two vital domains economic concept and psychological
concept.
Reasoning (R) : Compensation basically represents an employment contract.
Code :
(1) (A) is correct and (R) is right explanation of (A).
(2) (A) is correct but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) (A) is incorrect but (R) is correct.

55. Which of the following is not the primary objective of industrial relations and labour laws ?
(1) Maintaining social equity (2) Providing credit facilities to industries
(3) International uniformity (4) Promoting economic growth

56. Assertion (A) : In real terms, workers’ participation in management has failed in India.
Reasoning (R) : There is lack of attitudinal change, multiplicity of unions and absence of a
procedure to determine a sole bargaining agent in an organization.
Code :
(1) (A) is correct and (R) is correct explanation of (A).
(2) (A) is correct but (R) is not the correct explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) (A) is incorrect but (R) is correct.

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57. Which one of the following is not the function of NABARD ?

(1) To provide refinance assistance by way of short term credit to state cooperative banks
and sectoral rural banks, etc., approved by the RBI for some specific purposes.
(2) To undertake inspection of cooperative societies other than primary cooperative societies
and RRBs.
(3) To promote research in various aspects of the problems of urban development.
(4) To subscribe to share capital or invest in securities of any institution concerned with
agricultural and rural development.

58. Which one of the following financial institutions co-ordinates the functions and operations
of all the financial institutions into a single integrated financial structure so that each may
contribute to the growth of the economy ?
(1) IFCI (2) UTI (3) IDBI (4) SIDBI

59. Assertion (A) : The Reserve Bank of India is entrusted with the management of the public
debt and issue of new loans and treasury bills on behalf of the central and
state Governments.
Reasoning (R) : The Governor and the Deputy Governors of Reserve Bank of India are
appointed by the Central Government.
Code :
(1) (A) is correct but (R) is not correct.
(2) (A) and (R) both are correct but (R) is not the right explanation of (A).
(3) (A) and (R) both are correct and (R) is the right explanation of (A).
(4) (A) and (R) both are not correct.

60. __________ refers to the process of removing or stripping the legal status of a currency.
(1) Digitisation (2) Financial Inclusion
(3) Demonetisation (4) Micro finance

61. Which one of the following is not the objective of UTI ?

(1) To mobilise savings of the community by offering savers the triple benefits of safety,
liquidity and profitability of Investments.
(2) To channelise the pooled savings into productive outlets.
(3) To provide finance under hire purchase finance and housing finance to its members.
(4) To give every one a chance to indirectly own shares and securities in a large number of
select companies.

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62. Which one of the following is the main objective of IFCI ?

(1) To offer both small and large investors the means of acquiring shares in the widening
prosperity resulting from the steady industrial growth of the country.

(2) To upgrade technology, modernization and to promote marketing of products of small

scale sector.

(3) To serve as the apex institution for term finance for industry with coordination,
regulation and supervision of the working of other financial institution.

(4) To provide medium and long term financial assistance to industrial undertakings,
particularly in those circumstances in which banking accommodation is in appropriate
or resource to capital market is impracticable.

63. Match the items of List - II with the items of List - I and indicate the correct code :

List - I List - II

(a) Term finance (i) Providing finance to new or existing industrial units for
encouraging commercial application of technology/
expansion.

(b) Refinance (ii) Delivering of banking services at affordable cost to the vast
sections of disadvantaged and low income groups.

(c) Financial inclusion (iii) Providing replenishment finance to eligible institutions for
their loans to industrial concerns.

(d) Venture capital (iv) Providing finance to the borrowers for expansion and
modernization of plant and equipment.

Code :

(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv)

(2) (i) (ii) (iv) (iii)

(3) (iv) (iii) (ii) (i)

(4) (iv) (iii) (i) (ii)

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64. Assertion (A) : An export processing zone is different from free trade zone as it promotes
units primarily devoted to exports.

Reasoning (R) : Goods imported to a free trade zone may be re-exported without any
processing, in the same form. But, goods exported by units in an EPZ are
expected to have undergone some value addition by manufacturing/
processing.

Code :

(1) (A) is correct and (R) is correct explanation of (A).

(2) (A) is correct but (R) is not the correct explanation of (A).

(3) (A) is correct but (R) is incorrect.

(4) (A) is incorrect but (R) is correct.

65. Match the items of List - II with the items of List - I relating to liberalisation of agricultural
trade.

List - I List - II

(a) Tariffication (i) They have demonstrably adverse effects on other

member countries.

(b) Prohibited subsidies (ii) They act on goods which are contingent upon export
performance.

(c) Actionable subsidies (iii) Replacement of existing non-tariff restrictions.

(d) Non-actionable subsidies (iv) For industrial research in disadvantaged regions.

Code :

(a) (b) (c) (d)

(1) (ii) (iii) (i) (iv)

(2) (iv) (i) (ii) (iii)

(3) (iii) (ii) (i) (iv)

(4) (ii) (iv) (iii) (i)

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66. Match the items of List - II and with the items of List - I relating to WTO impact :

List - I List - II

(a) NAMA (i) Liberalisation of international investments.

(b) GATTS (ii) Includes industrial goods, textile, jewellery, fish and fisheries
product manufacturing industries.

(c) TRIMs (iii) Liberalisation of trade in goods and services.

(d) TRIPs (iv) Provides monopoly power to owners of intellectual property.

Code :

(a) (b) (c) (d)

(1) (ii) (i) (iv) (iii)

(2) (iv) (ii) (iii) (i)

(3) (ii) (iii) (i) (iv)

(4) (iii) (ii) (iv) (i)

67. Indicate the correct code of the following statements being correct or incorrect. The statements
relate to the type of transactions recorded in the current/capital accounts of the Balance of
Payments.

Statement (I) : The capital account consists of long-term capital transactions only.

Statement (II) : The current account includes all transactions which give rise to or use up
national income.

Code :

(1) Both the statements are correct.

(2) Both the statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

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68. Select the correct code of the following statements being correct or incorrect.

Statement (I) : International liquidity encompasses the international reserves only.

Statement (II) : International liquidity covers only official holdings of gold, foreign exchange,
SDRs and reserve position in the IMF available for the settlement of the
international transactions.

Code :

(1) Both the statements are correct.

(2) Both the statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

69. Match the items of List - II with the items of List - I and select the code of correct matching.
The items relate to International Trade Theories.

List - I List - II

(a) Comparative Cost Theory (i) Adam Smith

(b) Opportunity Cost Theory (ii) Gottfried Haberler

(c) Factor Endowment Theory (iii) David Ricardo

(d) Absolute Cost Theory (iv) Eli Heckscher and Bertil Ohlin

Code :

(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv)

(2) (iii) (ii) (iv) (i)

(3) (iv) (iii) (ii) (i)

(4) (i) (iv) (iii) (ii)

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70. Which one of the following is not the guiding principle of the World Bank regarding it’s
lending operations ?

(1) Proper assessment of the repayment prospects of loans.

(2) Lending should be only for specific projects which are economically and technically
sound and of a high priority nature.

(3) The lending should be to enable a country to meet foreign exchange content of the
project cost.

(4) The bank does expect the borrowing country to spend the loan in a particular country.

71. Total return on a security is equal to the following :

Periodic cash receipts + Capital gains

(1) Purchase Price of the security

Periodic cash receipts + Capital gains

(2) Current Market Price of the security

Periodic cash receipts

(3) Current Market price of the security

Periodic cash receipts − Capital gains

(4) Purchase Price of the security

72. Risk of a portfolio can be minimised by which one of the following ?

(1) Combining two securities having perfect positive correlation in their expected returns.

(2) Combining two securities having perfect negative correlation in their expected returns.

(3) Combining two securities having partially positive correlation in their expected returns.

(4) Combining two securities having partially negative correlation in their expected returns.

73. The certificate which evidences an unsecured corporate debt of short-term maturity, is known
as :

(1) Certificate of Deposit (2) Short-term loan certificate

(3) Treasury Bill (4) Commercial paper

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74. Which of the following statements are false ? Indicate the correct code.
(a) Grey market is a market for dealing in listed securities.
(b) OTCEI is mainly intended for big investors.
(c) Insider Trading is legally permitted in the capital market.
(d) The device adopted to make profit out of the differences in prices of a security in two
different markets is called ‘arbitrage’.
Code :
(1) (a), (b), (c) (2) (a), (b), (d)
(3) (a), (b), (c), (d) (4) (b), (c), (d)

75. Which of the following statements are false ? Indicate the correct code.
(a) Share capital issued by a company for the first time is known as venture capital.
(b) All Venture Capital Funds in India are promoted by the Government.
(c) In addition to capital, venture capitalists provide managerial and technical support
also to the assisted firms.
(d) Benefits from venture capital financing can be realised in long run only.
Code :
(1) (a), (b) and (d) (2) (a) and (b)
(3) (b), (c) and (d) (4) (c) and (d)

76. Match the items of List - II with the items of List - I and select the correct code :
List - I List - II
(a) Liquidity Risk (i) Risk related to purchasing power of Income.
(b) Business Risk (ii) Risk related to Firm’s capital structure.
(c) Financial Risk (iii) Risk related to inability to pay its dues on time.
(d) Inflation Risk (iv) Risk related to fluctuation in profits.
Code :
(a) (b) (c) (d)
(1) (ii) (iii) (iv) (i)
(2) (i) (iv) (iii) (ii)
(2) (iii) (ii) (iv) (i)
(3) (iii) (iv) (ii) (i)

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77. Statement (I) : Designing a distribution system for a service (for-profit or non-business
context) involves to select the parties only through which ownership will
pass.

Statement (II) : The ownership channel for most of the services is long and quite complex
because of inseparability characteristic.

Statement (III) : Short channels usually mean more control on the part of the seller.

Identify the correct code of being the statements correct or incorrect. These statements relate
to channel strategies of products/services.

(1) Statements (I) and (II) are correct but (III) is not correct.

(2) Statements (I) and (III) are correct but (II) is not correct.

(3) Statements (I) and (II) are not correct but (III) is correct.

(4) Statements (I), (II) and (III) all are not correct.

78. An enormous collection of data on various topics from a variety of internal and external
sources, compiled by a firm for its own use or for use by its clients, is called :

(1) Data-base (2) Data warehouse

(3) Data mining (4) M.I.S.

79. Statement (I) : A form of non-store retailing that uses advertising to contact consumers
who, in turn, purchase products without visiting a retail store is called Direct
selling.

Statement (II) : A form of non-store retailing in which personal contact between a sales
person and a consumer occurs away from a retail store is called Direct
Marketing.

In the light of above statements, identify the correct code of statements being correct or
incorrect.

(1) Statement (I) is correct but Statement (II) is not correct.

(2) Statement (I) is not correct but Statement (II) is correct.

(3) Both the statements are correct.

(4) Both the statements are not correct.

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80. 34% of the customers who fall in one of the categories of diffusion process who are deliberate
customers to accept an innovation just before the average adopter in a social system. Such
customers who are above average in social and economic measures, rely quite a bit on
advertisements and salesmen are known as :
(1) Early Adopters (2) Early Majority (3) Late Majority (4) Late Adopters

81. The G. E. Business Model is explained on which one of the following parameters ?
(1) Market Attractiveness and Business Position.
(2) Business Attractiveness and Market Position.

(3) Industry Growth rate and Company’s Market share.

(4) Company’s Growth rate and Industry’s Position.

82. A reduction from the list price that is offered by a seller to buyers in payment for marketing
functions the buyers will perform is known as :
(1) Trade Discount (2) Functional Discount
(3) Cash Discount (4) Both Trade and Functional Discount

83. Match the items of List - II with the items of List - I relating to Personnel Management (PM)
and Human Resource Management (HRM) ; and select the code of correct matching.
List - I List - II

(a) Focus of PM (i) Development attitude by making people contribute their

best.
(b) Focus of HRM (ii) Exercising it as a functional area of management.
(c) Philosophy of PM (iii) Exercising it as humane management.

(d) Philosophy of HRM (iv) Profit maximization by controlling people.

Code :
(a) (b) (c) (d)

(1) (ii) (iii) (iv) (i)

(2) (iii) (ii) (i) (iv)

(3) (iv) (i) (ii) (iii)

(4) (i) (iii) (iv) (ii)

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84. Select the correct code of the following statements being correct or incorrect.
I Strategic HRM focuses on specific organizational intentions about what needs to be
done while HR strategies focus on long-term issues only.
II Strategic HRM focuses on macro concerns such as structure and culture while HR
strategy focuses on specific issues assigned.
III Human Resource strategy decisions are derived from strategic HRM.
Code :
(1) Statements I and II are correct while III is incorrect.
(2) Statements II and III are correct while I is incorrect.
(3) Statements I and III are correct while II is incorrect.
(4) All the statements are correct.

85. Which of the following code represents the full form of the term “BARS” in performance
management systems ?
(1) Business Appraisal and Rating Systems.
(2) Balanced Assessment Reviewing Scorecard.
(3) Behaviourally Anchored Rating Scale.
(4) Benchmarking Appraisal Reviewing Strategy.

86. Match the items of List - II with the items of List - I relating to training, and select the code
of correct matching.
List - I List - II
(a) Andragogy (i) Strategies or styles of instructions
(b) Pedagogy (ii) Ultimate knowledge level with which trainee leaves the
training sessions
(c) Terminal behaviour (iii) Lack of commitment of management and scarcity of
resources in training
(d) Training impediments (iv) Art and Science of training the adults
Code :
(a) (b) (c) (d)
(1) (i) (iv) (iii) (ii)
(2) (ii) (iii) (i) (iv)
(3) (iv) (i) (ii) (iii)
(4) (iii) (ii) (iv) (i)

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87. Which of the following statements does not stand as a principle of compensation
administration ?

(1) An enterprise should have a clear -cut plan to determine differential pay level in terms
of divergent job requirements.

(2) People and jobs should never be mingled.

(3) The compensation system should be designed with subjectivity with respect to individual
skill sets exercised from time to time.

(4) There should be established wage grievance handling procedures.

88. Match the items of List - II with the items of List - I relating to industrial relations and select
the code of correct matching.

List - I List - II

(a) Healthy labour–management relations (i) Industrial Disputes Act

(b) Industrial Peace Law (ii) Guiding principles for a grievance

procedure

(c) Industrial Democracy (iii) Workers’ participation in management

(d) National Commission on Labour, 1969 (iv) Voluntary arbitration and responsible
trade union

Code :

(a) (b) (c) (d)

(1) (iv) (i) (iii) (ii)

(2) (ii) (iii) (iv) (i)

(3) (iii) (i) (iv) (ii)

(4) (ii) (iv) (i) (iii)

89. In recent years which among the following countries has been the largest source of foreign
investment in India ?

(1) Australia (2) Japan (3) China (4) Mauritius

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90. Assertion (A) : The Government of India has been opening up domestic market to foreign
players in baby steps.

Reasoning (R) : Allowing foreign firms free play in India’s retail sector has always been a
political hot potato.

Code :

(1) (A) and (R) both are correct ; and (R) is the right explanation of (A).

(2) (A) and (R) both are correct ; but (R) is not the right explanation of (A).

(3) (A) and (R) both are incorrect.

(4) (A) is correct ; but (R) is incorrect.

91. Select the correct code of the following statements being correct or incorrect.

Statement (I) : A Global Depositary Receipt (GDR) is a bank certificate issued in more than
one country for shares in a foreign company.

Statement (II) : A GDR is very similar to American Depositary Receipt (ADR)

Statement (III) : GDRs are called EDRs when private markets are attempting to obtain Euros.

Code :

(1) Statements (I), (II) and (III) are correct.

(2) Statements (I) and (II) are correct but (III) is incorrect.

(3) Statements (I) and (III) are correct but (II) is incorrect.

(4) Statements (II) and (III) are correct but (I) is incorrect.

92. In December 1999, European commission members signed a treaty that committed them to
adopting a common currency known as Euro. This is better known as :

(1) Treaty of Rome (2) Treaty of Maastricht

(3) Treaty of Lisbon (4) Treaty of London

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93. Select the correct code of the following statements being correct or incorrect.

Statement (I) : The ‘law of one price’ states that in competitive markets free of transportation
costs and barriers to trade, identical products sold in different countries
must sell for the same price when their price is expressed in terms of the
same currency.

Statement (II) : An ‘Efficient market’ has no impediments to the free flow of goods and
services, such as trade barriers.

Code :

(1) Statement (I) is correct but (II) is incorrect.

(2) Statement (II) is correct but (I) is incorrect.

(3) Both statements (I) and (II) are correct.

(4) Both statements (I) and (II) are incorrect.

94. Which among the following is not a correct statement regarding patent ?

(1) A patent is a legal protection granted for an invention that is new, non-obvious and
useful.

(2) The patent grants the patent holder the exclusive right to make use or sell the patented
products or process.

(3) The exclusive purpose of the patent system is to benefit the patent holder.

(4) The Indian Patent Act, 1970, was amended and made effective from January 1, 2005.

95. Which one of the following is agricultural income under the Income Tax Act, 1961 ?

(1) Interest on arrears of rent in respect of agricultural land.

(2) Interest received by a money-lender in the form of agricultural produce.

(3) Income from sale of trees of forest which are of spontaneous growth and in relation to
which forestry operations alone are performed.

(4) Interest on capital received by a partner from the firm engaged in agricultural operations.

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96. Under the Income Tax Act, 1961 “block of assets” for the purpose of charging depreciation
means :
(1) Value of all the assets after depreciation
(2) Value of all tangible assets after charging depreciation
(3) Value of all those assets to which one rate of depreciation is applicable
(4) Gross value of machinery and plant less accumulated depreciation

97. The maximum amount of exemption of compensation received at the time of voluntary
retirement U/S 10(10C) of the Income Tax Act, 1961, is :
(1) ` 1,00,000 (2) ` 2,50,000 (3) ` 5,00,000 (4) ` 10,00,000

98. Which one of the following statements is not correct with reference to the assessment of
firms ?
(1) All partnership firms formed under the Indian Partnership Act, 1932, are assessed as
firms under the Income Tax Act, 1961.
(2) Income of a firm is taxable at a flat rate of 30% without any exemption.
(3) Partners’ share in the income of a firm is not chargeable to tax in the hands of partners.
(4) Remuneration paid to partners of a firm (assessed as such) is allowed as deduction
subject to statutory limit.

99. The due date of first instalment of advance tax by assessees other than companies is :
(1) 15th April (2) 15th June (3) 15th September (4) 15th December

100. Which one of the following items is not allowed as deduction while computing income from
business and profession ?
(1) Fees paid to the lawyer for drafting partnership deed
(2) Loss due to embezzlement by an employee
(3) Legal expenses paid to protect the building of the business
(4) Cost of installing a new telephone

-oOo-

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JULY 2018

Q. NO ANS Q. NO ANS Q. NO ANS Q. NO ANS

1 B 26 A 51 C 76 D
2 B 27 A 52 D 77 C
3 D 28 D 53 B 78 B
4 C 29 A 54 B 79 D
5 A 30 C 55 B 80 B
6 B 31 B 56 A 81 A
7 A 32 A 57 C 82 D
8 A 33 B 58 C 83 C
9 D 34 A 59 B 84 B
10 A 35 A 60 C 85 C
11 C 36 D 61 C 86 C
12 C 37 B 62 D 87 C
13 D 38 D 63 C 88 A
14 C 39 D 64 A 89 D
15 A 40 D 65 C 90 A
16 B 41 C 66 D 91 A
17 B 42 C 67 D 92 B
18 B 43 A 68 D 93 C
19 C 44 C 69 B 94 C
20 B 45 D 70 D 95 D
21 D 46 B 71 A 96 C
22 A 47 D 72 B 97 C
23 C 48 C 73 D 98 A
24 C 49 B 74 A 99 B
25 A 50 B 75 B 100 A

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NOVEMBER
PAPER - II

Note : This paper contains fifty (50) objective type questions of two (2) marks each. All questions
are compulsory.

1. From the following statements of Assertion (A) and Reasoning (R), indicate the correct
code :
Assertion (A) : Industrial liberalisation became an imperative condition for the growth of
forces of competition leading to high efficiency and productivity in Indian
industries.
Reasoning (R) : Industrial development and curbing of poverty is only possible through
government intervention.
Code :
(1) (A) and (R) both are not correct.
(2) (A) is correct but (R) is not the correct explanation of (A).
(3) (A) is correct and (R) is correct explanation of (A).
(4) (A) is not correct but (R) is correct.

2. Which of the following statements are not correct ?

Statement (I) : Sustainable development means an attempt to achieve the balance
between economic growth and conservation / protection of
environment.
Statement (II) : Sustainable development means meeting the needs of industries
without compromising the needs of import - export balancing.
Statement (III) : Sustainable development means creation of sufficient surplus budgets
through stock of capital assets including land.
Code :
(1) Statements (I) and (III) (2) Statements (II) and (III)
(3) Statements (I) and (II) (4) Statements (I), (II) and (III)

3. Match items of List - I with List - II relating to macro environment of business and indicate
the code of correct matching :
List - I List - II
(a) Economic environment (i) Ethical issues
(b) Political and government (ii) Trade and transport policies
environment
(c) Socio - cultural environment (iii) Economic stratification of population
(d) Demographic environment (iv) Judiciary powers
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (i) (iii) (ii) (iv)
(3) (iv) (ii) (iii) (i)
(4) (iii) (i) (iv) (ii)

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4. For which one of the basic reasons, the “Structural Adjustment Programme” was undertaken
in India in 1991 ?
(1) Curbing competition among private sector
(2) Establishing predominant role of public sector
(3) Establishing a free market economy
(4) Regional balancing through planning and licensing

5. Match the items of List - I with List - II and indicate the correct code of matching :
List - I List - II
(a) Micro external environment (i) Economic and political factors
(b) Macro external environment (ii) Competition among diverse products
targetting disposable income of consumers
(c) Non - price competition (iii) Input suppliers
(d) Desire competition (iv) Sponsoring of events like sports
Code :
(a) (b) (c) (d)
(1) (iii) (i) (iv) (ii)
(2) (ii) (iii) (iv) (i)
(3) (iv) (ii) (iii) (i)
(4) (iv) (i) (ii) (iii)

6. Assertion (A) : Debt - equity ratio indicates the long term solvency of a company.
Reasoning (R) : It measures the ability of the company to pay off its long term liabilities.
Select the correct answer from the code given below :
(1) Both (A) and (R) are correct and (R) is the correct reason for (A).
(2) Both (A) and (R) are correct but (R) does not explain (A) correctly.
(3) (A) is correct but (R) is wrong.
(4) (A) is wrong but (R) is correct.

7. The balance of property at cost has been ` 20,000 and ` 17,000 in 2015 and 2016, respectively.
The profit on the sale of property of ` 2,000 is credited to Capital Reserve Account. New
property costing ` 5,000 was bought in 2016. Determine the sale proceeds from property.
(1) ` 3,000 (2) ` 7,000 (3) ` 10,000 (4) ` 15,000

8. Goodwill of a firm of X and Y is valued at ` 30,000. It is appearing in the books at ` 12,000.

Z is admitted for 1/4 share. What amount he is supposed to bring for goodwill ?
(1) ` 3,000 (2) ` 4,500 (3) ` 7,500 (4) ` 10,500

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9. A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received
for 3,000 shares and pro-rata allotment was made on the applications of 2,400 shares. If A
has been allotted 40 shares, how many shares he must have applied for ?
(1) 40 (2) 44 (3) 48 (4) 52

10. Which one of the following receipts is of revenue nature ?

(1) Amount realised from the sale of investments
(2) Dividend received on investment
(3) Amount borrowed from a bank
(4) Compensation received from municipal corporation for the acquisition of land for the
construction of road.

11. Statement (I) : Business decision makers deal with the complex, rather chaotic, business
conditions of the real world and have to find the way to their destination,
i.e, achieving the goal that they set for themselves.
Statement (II) : Even without application of economic logic and tools of analysis, business
decisions are always rational and real and are not counter productive.
Code :
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement (I) is correct while statement (II) is incorrect.
(4) Statement (I) is incorrect while statement (II) is correct.

12. Which one of the following statements is true ?

(1) Pure profit is the return in excess of the opportunity cost
(2) Accounting profit is the excess of total revenue over and above the explicit and implicit
costs
(3) Profit maximization is the sole objective of the modern firms
(4) Profit is maximum when the difference between marginal revenue and marginal cost
is maximum

13. Which one of the following is not the assumption on which the theory of consumer behaviour
is based on the cardinal utility approach ?
(1) Rationality
(2) Constant marginal utility from successive units
(3) Constant marginal utility of money
(4) Utility is measurable

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14. Statement (I) : Point price elasticity of demand in terms of marginal and average revenues
can be measured with the following formula :
AR
AR−MR
Statement (II) : The point price elasticity of demand is the product of the slope of the demand
function and the ratio between corresponding price and quantity.
Code :
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement (I) is correct while statement (II) is incorrect.
(4) Statement (I) is incorrect while statement (II) is correct.

15. Which one of the following is not the basic property of indifference curves ?
(1) Negative slope
(2) Indifference curves of two imperfect substitutes are concave to the point of origin
(3) The indifference curves do not intersect nor are they tangent to one another
(4) Upper indifference curves indicate a higher levels of satisfaction

16. The scale of measurement which has no order, distance and unique origin is known as which
one of the following ?
(1) Nominal scale (2) Ordinal scale (3) Interval scale (4) Ratio scale

17. The formula to determine the number of classes given by Sturge’s Rule is which one of the
following ?
(1) K=1+3.322(log N)
(2) K=(log N)1.322
1 + 3.322
(3) K=
(log N)

3.322
(4) K=
(log N) + 1
Where : K = Number of classes
N = Total number of observations
(log N) = Logarithm of the total number of observations

18. Which one of the following is not the characteristics of normal distribution ?
(1) Bell - shaped and symmetric
(2) Mean, Median and Mode of the distribution are equal
(3) The total area under the curve for the normal probability distribution is one
(4) The two tails of the distribution in both the directions touches the horizontal axis

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19. Assertion (A) : A reasonably sized sample drawn randomly from large sized population
contains almost all the characteristics which exist in the population.
Reasoning (R) : The theory of sampling is based on the two important laws of statistics,
viz., Law of statistical Regularity and law of inertia of large numbers.
Code :
(1) Both (A) and (R) are correct and (R) is the complete explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the complete explanation of (A).
(3) (A) is not correct while (R) is correct.
(4) Both (A) and (R) are not correct.

20. Statement (I) : If the alternative hypothesis is as Ha : µ ≠ µ0 ; a researcher requires two -

tailed test in hypothesis - testing.
Statement (II) : The mean of the sampling distribution of mean is not equal to the parametric
value of mean.
Code :
(1) Both the statements are true.
(2) Both the statements are false.
(3) Statement (I) is true, while statement (II) is false.
(4) Statement (I) is false, while statement (II) is true.

21. Match the items of List - I with List - II ; and choose the correct code of combination :
List - I List - II
(a) The Fundamentals of Top Management (i) Peter F. Drucker
(b) Middle Management (ii) R.C. Davis
(c) The Essence of Management (iii) E.L.F. Brech
(d) Principles and Practice of Management (iv) Mary Caushing Nile
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (ii) (iv) (i) (iii)
(3) (ii) (iii) (i) (iv)
(4) (iii) (iv) (i) (ii)

22. Statement (I) : Management is not just a creature of the economy; it is a creator as well.
Statement (II) : He who can manage, can manage anything.
Code :
(1) Statement (I) is correct but (II) is incorrect.
(2) Statement (II) is correct but (I) is incorrect.
(3) Both the statements (I) and (II) are incorrect.
(4) Both the statements (I) and (II) are correct.

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23. Assertion (A) : Due to these experiments (Time, Motion and Fatigue Studies ) a factory
does not remain a factory, it is converted into a laboratory.
Reasoning (R) : Management succeeds or fails as human relations in business are intelligently
or unintelligently handled.
Code :
(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is not correct.
(4) (R) is correct but (A) is not correct.

24. Who among the following is not associated with theories of motivation ?
(1) A.H. Maslow (2) Cris Argyris
(3) Frederick Herzberg (4) Peter F. Drucker

25. As per the Herzberg’s Hygiene Theory of motivation, which among the following is not a
motivational factor ?
(1) Recognition (2) Working Conditions
(3) Responsibility (4) Achievements

26. When Walt Disney World’s Magic kingdom lets customers visit a fairy kingdom, a pirate
ship, or a haunted house, then what is marketed in this example ?
(1) Services (2) Events (3) Experiences (4) Ideas

27. Which one of the following statements is true according to VALS framework of psychographic
segmentation ?
(1) The consumers who are primarily motivated by ideals are guided by knowledge and
principles.
(2) The consumers who are motivated by achievement look for knowledge and principles.
(3) The consumers who are motivated by self expression don’t desire social or physical
activity, variety, and risk.
(4) The consumers who are motivated by achievement desire social or physical activity,
variety, and risk.

28. From the following two statements of Assertion (A) and Reason (R), indicate the correct
code :
Assertion (A) : A transformational appeal of communication elaborates on a non-product
related benefit or image.
Reasoning (R) : Transformational appeals often do not attempt to stir up emotions that will
motivate purchase.
Code :
(1) (A) and (R) both are correct. (2) (A) is correct (R) is not correct.
(3) (A) is not correct (R) is correct. (4) (A) and (R) both are incorrect.

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29. Select the correct sequence for Hierarchy-of-effects model related to marketing
communication :
(1) Awareness → Knowledge → Liking → Preference→ Conviction → Purchase
(2) Knowledge → Awareness → Liking → Conviction → Preference → Purchase
(3) Awareness → Liking → Knowledge → Conviction → Preference → Purchase
(4) Liking → Awareness → Knowledge → Preference → Conviction → Purchase

30. Match the items of List - I with the items of List - II and denote the code of correct
matching :
List - I List - II
(a) Basic Product (i) Set of attributes and conditions buyers normally expect
(b) Expected Product (ii) Possible augmentation and transformation the product
might undergo in future
(c) Augmented Product (iii) Exceed customer expectations
(d) Potential Product (iv) Converting core benefits into product
Code :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (i) (iii) (iv) (ii)
(3) (i) (iv) (iii) (ii)
(4) (iv) (i) (iii) (ii)

31. Which of the following statements is false ?

(1) The opportunity cost of an input is considered in capital budgeting
(2) Capital budgeting decisions are reversible in nature
(3) Cash flows and accounting profits are different
(4) An expansion decision is a capital budgeting decision

32. Match the items of List - I with those of List - II and indicate the correct code :
List - I List - II
(a) ABC Analysis (i) Dividend Decision
(b) Walter Model (ii) Capital Budgeting Decision
(c) Capital Rationing (iii) Capital Structure Decision
(d) Net Operating Income (iv) Working Capital Management Decision
Approach
Code :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (iii) (i) (ii) (iv)

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33. Main objective of employing Financial Leverage is to :

(1) Reduce the risk associated with profits
(2) Maintain the stability in profits
(3) Decrease the cost of debt capital
(4) Magnify the return on equity share capital

34. Which one of the following is not a method of calculating cost of equity capital ?
(1) Dividend yield method
(2) Dividend yield plus growth method
(3) Yield to maturity method
(4) Earnings yield method

35. Which one of the following equates the present value of cash out flows and the present value
of expected cash inflows from a project ?
(1) Net Present Value (2) Internal Rate of Return
(3) Pay back Period (4) Accounting Rate of Return

36. Which one of the following is not true ?

(1) Material resources are subject to laws of mechanics and they cannot have an output
greater than the input.
(2) Human resources are capable of exponential growth and development.
(3) Human resources cannot yield an output that may be far greater than what the value
of their input warrants.
(4) In current scenario, gradually, the emphasis has shifted from muscle power to use of
mind power.

37. The pluralistic approach of industrial conflict is based on which one of the following basic
assumption / premise ?
(1) That conflict occurs when the tendency of industrial society is to treat worker as an
isolated individual and deprive him of all control over his environment
(2) That an enterprise contain people with coalition of different interests
(3) That industrial conflict is a part of the broader social conflict between classes
(4) That no consensus is possible, in case of conflicts, because people are with different
socio - cultural backgrounds.

38. The Job Description Index (JDI) Technique is used for measuring which one of the
following ?
(1) Job attitudes (2) Job descriptions/definitions
(3) Job analysis records (4) Job skill requirements

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39. From the following two statements of Assertion (A) and Reasoning (R) indicate the correct
code :
Assertion (A) : Development in HRM is a short-term educational process with temporary
intervention.
Reasoning (R) : It is a educational process utilizing a systematic and organized procedure
for development of operative employees performance in current jobs.
Code :
(1) (A) is correct and (R) is correct explanation of (A).
(2) (A) is correct, but (R) is not correct explanation of (A).
(3) (A) is not correct, but (R) is correct.
(4) (A) and (R) both are not correct.

40. Match items of List - I with List - II relating to methods of performance appraisal and
indicate the correct code of matching.
List - I List - II
(a) Paired comparison method (i) Reviewing employee records and holding
interview on definite test questions.
(b) Forced choice description method (ii) Set of pair phrases or descriptive statements
(c) Critical Incidents method (iii) Differentiating between effective and non -
effective performance on basis of achievements
(d) Field review method (iv) Relative ranking method
Code :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (ii) (iii) (iv) (i)
(3) (iii) (i) (iv) (ii)
(4) (ii) (iv) (i) (iii)

41. Match the following items of List - I with the items of List - II and indicate the code of
correct matching :
List - I List - II
(Name of organisation) (Year of establishment)
(a) IDBI (i) 1956
(b) ICICI (ii) 1955
(c) LIC of India (iii) 1990
(d) SIDBI (iv) 1964
Code :
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (i) (iv) (ii)
(3) (iv) (ii) (i) (iii)
(4) (i) (ii) (iii) (iv)

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42. Statement (I) : Capital adequacy norms help banks in strengthening their capital base.
Statement (II) : Capital adequacy norms help banks in sanctioning more loans.
Code :
(1) Both the Statements (I) and (II) are correct.
(2) Both the Statements (I) and (II) are incorrect.
(3) Statement (I) is correct but (II) is incorrect.
(4) Statement (I) is incorrect but (II) is correct.

43. What is Hawala ?

(1) Tax evasion (2) Illegal trading in stock exchanges
(3) Bank robbery (4) Illegal transactions of foreign exchange

44. Read the following events :

(i) Capital adequacy norms for commercial banks
(ii) Establishment of IDBI
(iii) Allowing convertibility of rupee at the market rate in the current account.
(iv) Nationalisation of general insurance business
Arrange the events in the ascending order of their occurrance :
(1) (i), (ii), (iii), (iv) (2) (iv), (iii), (ii), (i)
(3) (iv), (ii), (i), (iii) (4) (i), (ii), (iv), (iii)

45. Assertion (A) : The future will see mostly the electronic money clearance through satellite
networking.
Reasoning (R) : RBI is encouraging e-banking.
Code :
(1) (A) is true but (R) is false.
(2) (A) is false but (R) is true.
(3) Both (A) and (R) are true and (R) is the correct explanation of (A).
(4) Both (A) and (R) are true but (R) does not support (A).

46. Statement (I) : Developing countries can borrow more than their quota under Extended
Fund Facility (EFF) of IMF.
Statement (II) : The Extended Fund Facility (EFF) was created in 1984 to help the developing
countries over longer period upto 3 years.
Code :
(1) Statement (I) is correct but (II) is not correct.
(2) Statement (II) is correct but (I) is not correct.
(3) Both the statements (I) and (II) are correct.
(4) Both the statements (I) and (II) are not correct.

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47. Match the items of List - I with those of List - II; and choose the correct code of
combination :
List - I List - II
(a) Poverty Reduction (i) 1997
and Growth Facility(PRGF)
(b) Supplemental Reserve Facility (SRF) (ii) 1974
(c) Extended Fund Facility(EFF) (iii) 1999
Code :
(a) (b) (c)
(1) (iii) (i) (ii)
(2) (iii) (ii) (i)
(3) (ii) (i) (iii)
(4) (i) (iii) (ii)

48. Who among the following has given Absolute Advantage Model of international trade ?
(1) Adam Smith (2) David Recardo
(3) Hackscher Ohlin (4) William Petty

49. Which among the following is not an international economic institution ?

(1) IMF (2) IBRD (3) ADB (4) IFRS

50. Assertion (A) : The fall in aggregate expenditure or aggregate demand in the economy
works to reduce imports and help in solving the balance of payment
problems.
Reasoning (R) : The important way to reduce imports and thereby reduce deficit in
balance of payments is to adopt monetary and fiscal policies that aims
at reducing aggregate expenditure in the economy.
Code :
(1) (A) and (R) both are correct and (R) supports (A).
(2) (A) and (R) both are correct but (R) does not support (A).
(3) (A) is correct but (R) is incorrect.
(4) (R) is correct but (A) is incorrect.

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

NOVEMBER 2017 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 2 11 3 21 * 31 2 41 3

2 2 12 1 22 4 32 3 42 3

3 1 13 2 23 2 33 4 43 4

4 3 14 1 24 4 34 3 44 *

5 1 15 2 25 2 35 2 45 3

6 1 16 1 26 3 36 3 46 1

7 3 17 1 27 1 37 2 47 1

8 3 18 4 28 2 38 1 48 1

9 3 19 1 29 1 39 4 49 4

10 2 20 3 30 4 40 1 50 1

Note: * Marks Given to all Candidates

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NOVEMBER 2017
PAPER - III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. Assertion (A) : Buyers, for several industries, are potential competitors-they may integrate
backwards.
Reasoning (R) : They have different degrees of bargaining power.
Code :
(1) (A) and (R) are correct and (R) is the correct reasoning of (A).
(2) (A) and (R) are correct but (R) is not the correct reasoning of (A).
(3) (A) is incorrect while (R) is a correct statement.
(4) Both (A) and (R) are incorrect.

2. Which one of the following is the governing factor in deciding the type of redressal agency
which will deal with the dispute of a consumer ?
(1) Area of sale of goods and services
(2) Type of goods and services sold
(3) The choice of the consumer
(4) The value of goods and services sold

3. Match List - I with List - II relating to the roles played by government in an economy and
indicate the correct code of their matching.
List - I List - II
(Roles) (Examples)
(a) Regulatory role (i) Deciding timing and usage of resources
(b) Promotional role (ii) Capital intensive projects of public sector
(c) Enterpreneurial role (iii) Imposing of high import duty
(d) Planning role (iv) Measures to control and cover risk in priority sectors
Code :
(a) (b) (c) (d)
(1) (iv) (ii) (i) (iii)
(2) (iii) (i) (iv) (ii)
(3) (iii) (iv) (ii) (i)
(4) (i) (iii) (iv) (ii)

4. Which one of the following statement is not correct relating to Competition Policy and
Law ?
(1) Collusion and dominance have potential for unfair competition.
(2) The appeal against decisions of Competition Commission of India can be made to the
Competition Appellate Tribunal.
(3) State monopolies, government’s business policies and functioning of Regulatory
Authorities cannot be scrutinized under this law.
(4) Abuse of dominance rather than dominance should be the key for Competition Policy/
Law.

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5. Which one of the following is not correct with reference to standard costing ?

(1) Standard costing is a system where pre determined costs are used for control of entire
organisation

(2) Standard may be expressed in quantitative and monetary measures

(3) Only adverse variances are investigated intensively

(4) Standard is determined for each element of cost

6. Which one of the following is not correct ?

Profit
(1) Margin of Safety =
P/V ratio

Change in Contribution
(2) P/V Ratio = × 100
Change in sales

Fixed cost
(3) Break-even point in units =
Contribution per unit

Desired profit
(4) Required sales to earn desired profits =
P/V ratio

7. Schedule III Part II of the Companies Act, 2013 deals with which one of the following ?

(1) Format of Balance Sheet (2) Format of Profit and Loss Account

(3) Format of Trading Account (4) Format of Cash Flow

8. Which one of the following statements is not true ?

(1) When there is one liquidation and one formation it is known as external construction

(2) Goodwill or Capital reserve arises only when the amalgamation is in the nature of
merger

(3) Under the pooling of interest method, the transferee company incorporates the assets
and liabilities of the transferor company at book value

(4) The vendor company transfers preliminary expenses (at the time of absorption) to equity
shareholders’ account

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9. Statement - I : The least - cost or optimal input combination of labour and capital requires
that the marginal revenue productivity ratio of the two inputs should be
equal to their price ratio.
Statement - II : In a hypothetical production function of the following form
Q=−L3+15 L2+10 L
Where, Q=Quantity of the product and L=No. of variable input (labour), the marginal
physical productivity of labour is −L2+15 L+10.
Code :
(1) Both the statements are true.
(2) Both the statements are false.
(3) Statement - I is true while statement - II is false.
(4) Statement - I is false while statement - II is true.

10. Match the items of List - I with the items of List - II and indicate the code of correct matching.
List - I List - II
(a) Technological advantages (i) Managerial economies
(b) Large scale purchase of material (ii) Economies in transport and storage
inputs
(c) Specialized departments under (iii) Economies in marketing
Specialized personnel
(d) Oil companies having their own (iv) Economies in production
fleet of tankers
Code :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iii) (iv) (ii) (i)
(3) (iii) (i) (ii) (iv)
(4) (iv) (ii) (iii) (i)

11. Manufacturing of T.V. sets and refrigerators and their pricing in India belong to which one
of the following market structures ?
(1) Monopolistic competition (2) Perfect competition
(3) Monopoly (4) Oligopoly

12. Statement - I : Pricing at par with the market price of the existing brands is considered to
be the most reasonable pricing strategy for a product which is being sold in
a strongly competitive market.
Statement - II : Pricing below the market price has been found to be more successful when
a seller intends to achieve a prestigious position among the sellers in the
locality for selling prestigious goods of much superior quality.
Code :
(1) Both the statements are correct
(2) Both the statements are incorrect
(3) Statement - I is correct while Statement - II is incorrect
(4) Statement - I is incorrect while Statement - II is correct

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13. Which of the following statements are true ? Select the correct code.
(a) The coefficient of rank correlation has the same limits as the Karl Pearson’s coefficient
of correlation.
(b) The coefficient of correlation is independent of the change of origin but not of scale.

Σxy
(c) The covariance between X and Y is defined as where x = (X − X) , y = (Y − Y)
n
and n = no. of paired observations.
(d) bxy is called regression coefficient of X variable on Y variable.

(e) If bxy is 0.4 and byx is 1.6, coefficient of determination would be 0.8.
Code :
(1) (a), (b) and (c) (2) (a), (c) and (d)

(3) (c), (d) and (e) (4) (b), (c) and (e)

14. The application of x 2 -test as parametric test will be in which one of the following
situations ?

(1) Test of independence of attributes

(2) Test of goodness of fit of a specific type of distribution
(3) Test for population variance on the basis of small sized sample variance

(4) Test of homogeneity of several populations with respect to some characteristic of interest

15. In which one of the following situations is the application of t-test is most appropriate ?

(1) Testing the significance of coefficient of correlation between paired observations of

small sized sample
(2) Testing the significance of coefficient of correlation between paired observations of
large sized sample
(3) Comparing variances of two small sized samples

(4) Testing the significance of the difference among mean values of more than two samples
groups

16. Which of the following is not a logical data structure ?

(1) Chain (2) Stack (3) List (4) Tree

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17. Match the items of List - I with those of List - II; and choose the correct code of combination :
List - I List - II
(a) A committee consist of a group of people (i) C.I. Barnard
specifically designated to perform some
administrative work
(b) Staff service in organisation means the service (ii) W.H. Newman
or advice or council, as distinguished from
the function of authority or command
(c) Organisation is informal when the aggregate (iii) McFarland
interpersonal relationships are without
conscious joint purpose
(d) An identifiable group of people contributing their (iv) James D. Mooney
efforts towards the attainment of goals is called
organisation
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (iv) (ii) (iii) (i)
(3) (iv) (iii) (i) (ii)
(4) (i) (ii) (iv) (iii)

18. Which among the following is not a physical barrier of communication ?

(1) Poor vocabulary (2) Noise
(3) Improper time (4) Overload information

19. Statement - I : Management control seeks to compel events to conform to plans.

Statement - II : Controlling is determining what is motivational to the employees of the
organization.
Code :
(1) Statement - I is correct but II is incorrect
(2) Statement - II is correct but I is incorrect
(3) Both the statements I and II are correct
(4) Both the statements I and II are incorrect

20. Assertion (A) : Sound planning is one of the essential elements for the success of corporate
entities.
Reasoning (R) : Planning is deciding in advance what is to be done. It involves the selection
of objectives, policies, procedures and programmes from among alternatives.
Code :
(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) Both the statements (A) and (R) are incorrect.
(4) (A) is correct but (R) is incorrect.

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21. Match the items of List - I with List - II and denote the code of correct matching :
List - I List - II
(a) Acceptability (i) Convenience Aspect
(b) Affordability (ii) Functional and Psychological Aspects
(c) Accessibility (iii) Information and knowledge Aspects
(d) Awareness (iv) Economic and Psychological Aspects
Code :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iii) (ii) (i) (iv)
(3) (ii) (iv) (i) (iii)
(4) (iv) (ii) (i) (iii)

22. Match the items of List - I with the items of List - II which are related to dimensions of brand
personality. Denote the code of correct matching.
List - I List - II
(a) Sincerity (i) Upper class, Charming
(b) Excitement (ii) Reliable, Intelligent, Successful
(c) Competence (iii) Down to earth, Cheerful, Wholesome
(d) Sophistication (iv) Outdoors, Tough
(e) Ruggedness (v) Spirited, Imaginative, Up-to-date
Code :
(a) (b) (c) (d) (e)
(1) (v) (ii) (i) (iii) (iv)
(2) (i) (iv) (iii) (ii) (v)
(3) (iii) (v) (ii) (i) (iv)
(4) (ii) (i) (iii) (v) (iv)

23. One of the techniques of stimulating creativity for developing new product where you start
with an idea then thinking of the next idea and link, then think of the next association and
do this with all association that come up with each new idea, is known as :
(1) Attribute Listing (2) Forced Relationship
(4) Mind Mapping
(3) New Contexts

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24. Statement - I : We are motivated to re-evaluate our beliefs, attitudes, opinions or values
occurred at two different time.
Statement - II : The difference due to some intervention occurred at either point of time
motivates us to search a newer option and thus satisfies our mind/ anxiety.
Code :
(1) Statement - I is correct, Statement - II is not correct.
(2) Statement - II is correct, Statement - I is not correct.
(3) Both statements are correct.
(4) Both statements are incorrect.

25. Operating Leverage and Financial Leverage of a firm are 3 and 2, respectively. If sales increase
by 6%, then earnings before tax will rise by :
(1) 18% (2) 12% (3) 36% (4) 30%

26. Match the items of List - I with those of List - II and indicate the correct code :
List - I List - II
(a) Net Income Approach (i) Working Capital Management
(b) Profitability Index (ii) Over- capitalisation
(c) Concentration Banking (iii) Capital Structure Planning
(d) Lower Rate of Return (iv) Capital Budgeting Decision
Code :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (iv) (ii) (i)
(3) (iv) (ii) (iii) (i)
(4) (ii) (iii) (i) (iv)

27. Statement - I : In payback period method, the risk of the project is adjusted by lessening
the target payback period.
Statement - II : Sensitivity Analysis helps in calculation of net present value of the proposal.
Code :
(1) Statement - I is correct, but statement - II is wrong
(2) Statement - I is wrong, but statement - II is correct
(3) Statement - I and statement - II, both are correct
(4) Statement - I and statement - II, both are wrong

28. Dividend irrelevance argument of MM Model is based on :

(1) Hedging (2) Issue of Debentures
(3) Liquidity (4) Arbitrage

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29. Match the items of List - I with List - II and indicate the correct code of their matching
relating to human resource management philosophy :
List - I List - II
(a) Rational System Approach (i) F.W. Taylor
(b) The Ahmedabad Experiments (ii) Max Weber’s theory of bureaucracy
to improve productivity
(c) Social System Approach (iii) A.K. Rice
(d) Functional organisation concept (iv) Hawthorne studies
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (iii) (ii) (iv) (i)
(3) (iv) (iii) (i) (ii)
(4) (iii) (i) (ii) (iv)

30. Which one of the following is not a method of deciding acceptable level of reliability or
consistency of measurement in selection methods ?
(1) Regiocentric approach (2) Split half method
(3) Test related method (4) Expectancy diagrams

31. Put the following steps of discrete selection process in correct sequence and select the correct
code :
(a) Preliminary interview
(b) Completion of application blank
(c) Background investigation
(d) Physical examination
(e) Employment tests
(f) Comprehensive interview
(g) Final employment decision
Code :
(1) (b), (a), (c), (d), (e), (f), (g) (2) (b), (a), (e), (f), (c), (d), (g)
(3) (a), (b), (e), (f), (c), (d), (g) (4) (a), (b), (d), (c), (e), (f), (g)

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32. Match List - I with List - II relating to wage theories and its propounders and indicate the
code representing correct matching :
List - I List - II
(Theory) (Propounder)
(a) Subsistence Theory (i) Karl Marx
(b) Surplus Value Theory (ii) Francis Walker
(c) Wage Fund Theory (iii) David Richardo
(d) Residual Claimant Theory (iv) Adam Smith
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (iv) (i) (ii) (iii)
(3) (iii) (i) (iv) (ii)
(4) (iv) (ii) (iii) (i)

33. When was paper currency first started in India ?

(1) 1542 (2) 1611 (3) 1705 (4) 1801

34. ‘RWA’ with regard to capital adequacy stands for which one of the following ?
(1) Risk Withdrawal Adjustments (2) Risk Withdrawal Arrangements
(3) Risk Weighted Assets (4) Risk-free Weighted Assets

35. Match the items of List - I with List - II and denote the code of correct matching :
List - I List - II
(a) Future (i) Consists of purchase or sale of commodities in two different
markets with the expectations that a future change in price in
one market will be off set by an opposite change in the other
market
(b) Swap (ii) A contract in which a seller agrees to deliver an asset to a buyer
at a predetermined price at some future date as privately
negotiated
(c) Hedging (iii) A contractual agreement for exchanging a steam of payments
with opposite and matching needs, to reap the benefit arising
due to market discrepancies
(d) Forward (iv) A contract covering the purchase and sale of physical
commodities or financial instruments for future delivery on a
future exchange floor
Code :
(a) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (i) (ii) (iii) (iv)
(3) (ii) (i) (iii) (iv)
(4) (iv) (iii) (i) (ii)

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36. Which of the following are the forms of e - banking ? Select the correct code.
(a) Internet Banking
(b) Telephone Banking
(c) Electronic Cheque Conversion
(d) Electronic Bill Payment
(e) Direct Fund Transfer Through RTGS
Code :
(1) (a), (c) and (d) (2) (a), (b), (c) and (d)
(3) (b), (c) and (d) (4) (a), (b), (c), (d) and (e)

37. Which one among the following has the largest share of exports from India ?
(1) Agriculture and Allied Commodity
(2) Gems and Jewellery
(3) Handicrafts
(4) Electronic Goods

38. Which one among the following is not a part of TRIPS agreement ?
(1) Industrial Design (2) Geographical Indications
(3) Interior Design (4) Layout Designs of Integrated Circuits

39. Which one among the following is not correct ?

(1) IMF’s headquarters is in Washington, D.C.
(2) IMF has 198 countries as its members.
(3) IMF is an outcome of the Bretton Woods Conference.
(4) IMF was found on July 7, 1944.

40. Statement - I : Served From India Scheme (SFIS) has been replaced with Service Exports
from India Scheme (SEIS).
Statement - II : The rate of reward under SEIS would be based on net foreign exchange
earned.
Code :
(1) Statement - I is correct but statement - II is incorrect.
(2) Statement - II is correct but statement - I is incorrect.
(3) Both the statements - I and II are incorrect.
(4) Both the statements - I and II are correct.

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41. Match the items of List - I with those of List - II and indicate the correct code :
List - I List - II
(Accounting standard) (Relationship)
(a) AS - 6 (i) Accounting for Consolidated Financial Statements
(b) AS - 3 (ii) Accounting For Fixed Assets
(c) AS - 10 (iii) Depreciation Accounting
(d) AS - 21 (iv) Accounting For Cash Flow Statement
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (iii) (iv) (ii) (i)
(3) (iv) (iii) (i) (ii)
(4) (i) (ii) (iii) (iv)

42. Which of the following statements are False ? Indicate the correct code.
(a) RBI has prescribed guidelines for the operations of credit rating agencies in India.
(b) All venture capital funds in India have been promoted by Government.
(c) A mutual fund can operate as venture capital fund.
(d) Credit rating is an authoritative guarantee regarding the credit position of a person.
Code :
(1) (a), (b), (c) and (d) (2) (a), (b) and (d)
(3) (a), (b) and (c) (4) (a) and (c)

43. Which of the following are the examples of systematic risk ? Indicate the correct code.
(a) Elimination of Government Subsidy
(b) Increase in Bank Rate
(c) Labour Problem
(d) High Levered Fund
Code :
(1) (a), (b) and (c) (2) (a), (b) and (d)
(3) (a) and (b) (4) (a) and (d)

44. Which of the following are the benefits of responsibility accounting ?

(a) It facilitates the centralisation of decision taking.
(b) It provides a system of closer control.
(c) It measures the performance of individuals in an objective manner.
(d) It develops a sense of cost consciousness among managers and their subordinates.
Code :
(1) (a), (b) and (c) (2) (b), (c) and (d)
(3) (a), (b) and (d) (4) (a), (c) and (d)

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45. Which of the following statements are True ? Indicate the correct code.
(a) Tax-shield on depreciation and interest is an important variable both for lessor and
lessee.
(b) A lessee may evaluate the lease options as against the buying option.
(c) Sale and Lease-back, and leveraged lease are types of financial lease.
(d) Lease financing is a type of capital budgeting decision from the point of view of the
lessee.
Code :
(1) (a), (b) and (d) (2) (b), (c) and (d)
(3) (a), (c) and (d) (4) (a), (b) and (c)

46. Which one of the following methods of Inflation Accounting has been proposed by Sandilands
Committee of U.K ?
(1) General Price Level Method
(2) Specific Price Level Method
(3) Current Cost Accounting Method
(4) Generally Accepted Accounting Principles

47. Which of the following are the motives of mergers ? Indicate the correct code.
(a) To gain the economies of scale.
(b) To utilise under - utilised resources.
(c) To break the monopoly.
(d) To reduce the tax liability.
Code :
(1) (a), (c) and (d) (2) (a), (b) and (d)
(3) (b), (c) and (d) (4) (a), (b) and (c)

48. A research technique used particularly in retailing (online and offline), in which consumers
are recruited by researchers to act as anonymous buyers in order to evaluate customer
satisfaction, service quality and customer’s own evaluation of their experiences, is known
as :
(1) Consumer Jury (2) Projective Technique
(3) Mystery Shopping (4) Semiotic Research

49. Match the items of List - I with items of List - II and select the correct code of
matching :
List - I List - II
(a) Market Leader (i) Avoid hostile attacks on rivals
(b) Market Challenger (ii) Attack the market leader
(c) Market Follower (iii) Provide high level of specialisation
(d) Market Nicher (iv) Attack the market
Code :
(a) (b) (c) (d)
(1) (iv) (ii) (i) (iii)
(2) (ii) (iv) (iii) (i)
(3) (iii) (i) (iv) (ii)
(4) (i) (iii) (iv) (ii)

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50. Which of the statements are correct ? Select correct code.

Statement (I) : Opinions can be described as the slow responses we might give to opinion
poll questions about any issue.
Statement (II) : Attitudes are held with a greater degree of conviction, over longer duration
and more likely to influence behaviour.
Statement (III) : Values are held more strongly than attitudes and underpin our attitudinal
behaviour.
Code :
(1) (I) and (II) (2) (II) and (III) (3) (I) and (III) (4) (I), (II) and (III)

51. Which of the following is not a major aspect of digital marketing ?

(1) Jurisdiction (2) Ownership (3) Security (4) Entertainment

52. Which of the following statements are correct ? Select the correct code.
Statement (I) : Horizontal conflict between channel members is caused due to channel
members impinge on the market territory of other intermediaries at different
level.
Statement (II) : Vertical conflict is caused due to intense price competition, disagreement
about promotional activities, attempts to bypass intermediary and distribute
direct, differing expectations as to channel or intermediary performance.
Statement (III) : Hybrid channel conflict arises due to grey marketing.
Code :
(1) (I) and (III) (2) (I) and (II)
(3) (II) and (III) (4) (I), (II) and (III)

53. Which of the following statements are incorrect ? Indicate the correct code.
Statement (I) : As consumer’s income increases, the percentage of income spent for food
items decreases, for rent, fuel and light remains the same, for clothing remains
the same and for sundries increases.
Statement (II) : Societal marketing period was from 1960 onwards.
Statement (III) : Our debt to social anthropology decreases more and more as we use
qualitative market research approaches.
Statement (IV) : The economic concepts of perfect competition and matching of supply and
demand underlie the marketing concept, particularly in relation to the
concepts of the price at which goods are sold and quantity distributed.
Code :
(1) (I) and (II) (2) (II) and (III)
(3) (II) and (IV) (4) (I) and (IV)

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54. Which of the following statements are correct ? Indicate the correct code.
Statement (I) : Virtue ethics is a form of ethical approach associated with Aristotle which
stresses the importance of developing virtuous principles, ‘right’ character
and the pursuit of a virtuous life.
Statement (II) : Utilitarianism is an ethical approach where an action is right if, and only if,
it conforms to the principle of utility, whereby utility is minimised and pain
and unhappiness minimised more than any alternative.
Statement (III) : ‘Deontological Ethics’ is an ethical approach where rightness or wrongness
of an action or decision is not judged to be based exclusively on the
consequences of that action or decision.
Code :
(1) (I), (II) and (III) (2) (I) and (II) (3) (I) and (III) (4) (II) and (III)

55. Assertion (A) : The matter of succession planning is often deferred.

Reasoning (R) : The succession charts need utmost confidentiality.
Code :
(1) (A) is correct and (R) is right reasoning of it.
(2) (A) is correct but (R) is not the correct reasoning of it.
(3) (A) is correct but (R) is not correct statement.
(4) (A) is not correct while (R) is a correct statement.

56. Bethel Maine of USA was the pioneer of which one of the following Laboratory training
methods of employee training ?
(1) Transactional Analysis (2) Business Games
(3) Critical Incident Technique (4) T-group

57. Which of the following statements relating to appraisal methods are not correct ? Indicate
the correct code.
Statement (I) : The MBO program is built on the assumption that individuals always need
not be responsible and self - directed and thus need to be motivated to work
towards objectives.
Statement (II) : Forced distribution method was developed by Karl Marx.
Statement (III) : Peer evaluation and self - appraisal need to be done on well - defined
parameters in check-list method.
Statement (IV) : Forced choice method consists of seven main factors on three point rating
scale.
Code :
(1) Statements (I) and (II) (2) Statements (III) and (IV)
(3) Statements (I), (II) and (III) (4) Statements (I), (II), (III) and (IV)

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58. Match the main concerns of HRD sub-systems given in List - I with List - II and choose the
correct code of matching :
List - I List - II
(HRD sub - systems) (Main concerns)
(a) Individual’s career (i) Competence
(b) Development of teams (ii) Power
(c) Socialisation of organisation (iii) Commitment and integration
(d) Management of organization (iv) Values
Code :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (iv) (ii) (iii) (i)
(3) (iii) (i) (iv) (ii)
(4) (ii) (iii) (i) (iv)

59. Match the items of List - I with List - II and indicate the correct code of matching :
List - I List - II
(Wage Theory) (Basis of determining wage)
(a) Subsistence theory (i) Capitalists first set aside predetermined surplus
income and then decide the wages
(b) Surplus value theory of wages (ii) Growth of the population brings down to level
of subsistence
(c) Wage Fund theory (iii) Balance claimed upon the output of industry
(d) Residual Claimant theory (iv) Natural price for labour
Code :
(a) (b) (c) (d)
(1) (iv) (ii) (i) (iii)
(2) (ii) (iv) (i) (iii)
(3) (iii) (i) (ii) (iv)
(4) (i) (iii) (iv) (ii)

60. Statement (I) : Selection of wrong criteria during performance appraisal can result in serious
dysfunctional consequences.
Statement (II) : Generally the evaluator becomes more critical about performance evaluation
technique rather than which criteria need to be evaluated.
Code :
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement - I is correct while statement - II is incorrect.
(4) Statement - I is incorrect while statement - II is correct.

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61. Which of the statements are not correct ? Indicate the correct code.
Statement (I) : Social assistance is financed by tripartite or bipartite contributions.
Statement (II) : Social insurance ignores the income and means of liable relation.
Statement (III) : Social assistance makes the beneficiary a first charge on the liable relations.
Statement (IV) : Social assistance aims at to provide maximum subsistence to those who can
not make it on their own.
Code :
(1) (I) and (II) (2) (II) and (III)
(3) (I) and (IV) (4) (III) and (IV)

62. According to which one of the following theories, differences in nominal interest rates will
be eliminated in the exchange rate ?
(1) Leontief Paradox Trade Theory (2) Fisher Effect Economic Theory
(3) Purchasing Power Parity Theory (4) Combined Equilibrium Theory

63. According to the Purchasing Power Parity Theory, the level of foreign exchange rate is
determined by which of the following ?
(1) Domestic Price level (P) divided by foreign price level (P*)
(2) P*−P
(3) P−P*
(4) P*/P

64. Match the items of List - I with List - II and choose the correct code of combination :
List - I List - II
(a) It abolishes all restrictions on trade (i) Common Market
among the members
(b) It not only eliminates all restrictions (ii) Economic Union
on trade among members but also
adopts a uniform commercial policy
against the non-members
(c) It allows free movement of labour and (iii) Free Trade Area
capital within the common market
(d) It achieves some degree of harmonization (iv) Customs Union
of national economic policies, through
a common central bank, unified monetary
and fiscal policy, etc.
Code :
(a) (b) (c) (d)
(1) (iv) (ii) (i) (iii)
(2) (iv) (iii) (i) (ii)
(3) (iii) (iv) (i) (ii)
(4) (ii) (i) (iv) (iii)

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65. Assertion (A) : Indian companies have established subsidiaries and joint ventures in a
number of countries in different manufacturing industries and service
sectors.
Reasoning (R) : By restricting the areas of operations and growth, the government policy
seriously constrained the potential of Indian companies to make a foray
into the foreign countries.
Code :
(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) Both (A) and (R) are incorrect.
(4) (A) is correct but (R) is incorrect.

66. Statement (I) : Automatic variations in the exchange rates, in accordance with the
variations in the balance of payments position, tend to automatically restore
the balance of payments equilibrium.
Statement (II) : A deficiency in the balance of payments increases the exchange rate.
Code :
(1) Statement (I) is correct but (II) is incorrect.
(2) Statement (II) is correct but (I) is incorrect.
(3) Both the statements (I) and (II) are incorrect.
(4) Both the statements (I) and (II) are correct.

67. Which among the following is not a correct statement ?

(1) Designated bank refers to any bank in India, which has been authorised by the RBI to
act as banker to FII.
(2) Domestic custodian includes any person carrying on the activities of providing custodial
services in respect of securities.
(3) Sub-account includes those institutions, established or incorporated in India, whether
incorporated or not, on whose behalf investments are proposed to be made in India by
FIIs.
(4) A domestic portfolio manager or domestic asset management company shall also be
eligible to be registered as FII to manage the funds of sub-accounts.

68. Identify the incorrect statement from the following :

(1) Broken-date contract is a full - month forward contract.
(2) Currency arbitrage refers to making profit by buying a currency cheap in one market
and selling it dear in the other market at a particular point of time.
(3) Currency Futures Market refers to organised foreign exchange market where a fixed
amount of a currency is exchanged on a fixed maturity date in the pit.
(4) Currency Options Market refers to market for the exchange of currency where the
option buyer enjoys the privilege of not exercising the option if the rate is not favourable.

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69. Dividends declared by Unit Trust of India or by mutual fund is :

(1) Fully exempt in the hands of unit holders
(2) Fully taxable in the hands of unit holders
(3) Fully exempt in the hands of individual unit holders and fully taxable in the hands of
institutional unit holders
(4) Included in the gross total income but a deduction is allowed under section 80 L

70. 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
(Types of Income) (Heads of Income)
(a) Salary, bonus, commission, etc. received by (i) Income from other Sources
a working partner from the firm
(b) Pension received by the widow of a (ii) Income from (short term) Capital
government employee Gains
(c) profits on the sale of machinery used in (iii) Income from Capital Gains
business
(d) Compensation received from the (iv) Income from Business and
government on compulsory acquisition Profession
of land and profit earned
(v) Income from Salaries
Code :
(a) (b) (c) (d)
(1) (v) (ii) (i) (iii)
(2) (iv) (ii) (iii) (v)
(3) (v) (iv) (iii) (ii)
(4) (iv) (i) (ii) (iii)

71. Which of the following will be considered as tax planning effort ?

(a) Mr. A purchased a house for self residence of ` 80 lacs by taking a loan of ` 60 lacs
from SBI at 10% interest, instead of using his own funds.
(b) Mr. A made investment in purchasing 12% redeemable debentures of TISCO worth
` 1.50 lac
(c) Mr. A purchased 100 gram gold biscuits of ` 2.5 Lac from SBI on the occasion of Diwali.
(d) Mr. A invested ` 1 crore in purchasing 5 acres of agricultural land in his native village
in Gaya.
Code :
(1) (a) and (b) (2) (b) and (c) (3) (a) and (d) (4) (c) and (d)

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72. Assertion (A) : If the interest is payable outside India, tax must be deducted at source.
Reason (R) : If tax has not been deducted at source, the amount paid as interest will not
be allowed as a deduction in computing business income.
Select the correct answer from the code given below :
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct but (R) is wrong.
(4) (A) is wrong but (R) is correct.

73. Under the Income Tax Act, 1961 the education cess of (2% + 1%) is calculated on the amount
of :
(1) Income Tax (2) Income Tax Plus surcharge (if any )
(3) Gross total Income (4) Taxable Income

74. Exemption, under Sec.54 F of the Income Tax Act, 1961, shall not be allowed if the assessee,
on the date of transfer owns :
(1) Any residential house
(2) A residential house which is let out
(3) A house which is self occupied
(4) More than one residential house

75. The income from the sale of a machinery used in business is treated as :
(1) Income from business and profession
(2) Short-term capital gain
(3) Long-term capital gain
(4) Income from other sources

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

NOVEMBER 2017 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 1 11 1 21 3 31 3 41 2 51 4 61 3 71 3

2 4 12 3 22 3 32 3 42 2 52 3 62 2 72 1

3 3 13 2 23 4 33 * 43 3 53 2 63 1 73 2

4 3 14 3 24 1 34 3 44 2 54 3 64 3 74 4

5 3 15 1 25 3 35 4 45 4 55 2 65 2 75 2

6 4 16 1 26 1 36 4 46 3 56 4 66 1

7 2 17 1 27 1 37 2 47 2 57 4 67 3

8 2 18 1 28 4 38 3 48 3 58 3 68 1

9 3 19 1 29 1 39 2 49 1 59 1 69 1

10 1 20 1 30 1 40 4 50 2 60 1 70 4

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JANUARY 2017
Paper – II

Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.
1. Assertion (A) : Corporate culture is generally considered as either closed and threatening
or as open and participatory.
Reason (R) : Corporate culture and style of functioning of top managers is important
factor for determining the internal environment of a company.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(3) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(4) (R) is correct, but (A) is incorrect.

2. Statement I : If the workers develop an attitude of non-cooperation with Management, a

repressive economic system may be needed to set right this industrial disorder.
Statement II : By fulfilling social responsibility towards shareholders, employees,
consumers, government and community, a business achieves economic growth and
increases public image.
Codes :
(1) Statement I is correct, but II is incorrect.
(2) Both the statements I and II are correct.
(3) Statement II is correct but I is incorrect.
(4) Both the statements are incorrect.

3. Match the items of List-I with List-II.

List – I List – II
a. Planning Commission i. 1993
b. Competition Act ii. 2002
c. Adrian Cadbury Committee iii. 1951
d. Rangrajan Committee on Disinvestment in iv. 1991
PSEs
Codes :
a b c d
(1) i ii iii iv
(2) iii i iv ii
(3) iii ii iv i
(4) iii ii i iv

4. From which Five Year Plan “Growth with Social Justice” has received emphasis ?
(1) 5th (2) 6th
(3) 7th (4) 10th

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5. Which of the following is not the objective of the Competition Act, 2002 ?
(1) Prohibition of Restrictive Trade Practices.
(2) Prohibition of Dominant Position
(3) Prohibition of Anti-competitive Agreements
(4) Regulation of Combinations

6. Consolidated financial statements are prepared on the principle

(1) In form the companies are one entity, in substance they are separate.
(2) In form companies are separate, in substance they are one.
(3) In form and substance the companies are one entity.
(4) In form and substance the companies are separate.

7. Match the items of List-I with those of List-II and indicate the correct code :
List – I List – II
a. Acid Test Ratio i. Profitability analysis
b. Debt Service Coverage Ratio ii. Activity analysis
c. Debt Equity Ratio iii. Liquidity analysis
d. Stock Turnover Ratio iv. Long-term solvency analysis
Codes :
a b c d
(1) ii i iii iv
(2) ii iii iv i
(3) iii iv i ii
(4) iii i iv ii

8. From the following two statements of Assertion (A) and Reason (R), indicate the correct
code :
Assertion (A) : From the marginal costing approach point of view, the marginal cost is
compared with the purchase price.
Reason (R) : If the marginal cost is less than the purchase price it should be purchased
rather than manufactured.
Codes :
(1) (A) and (R) both are correct.
(2) (A) is correct, but (R) is not correct.
(3) (A) is not correct, but (R) is correct.
(4) (A) and (R) both are incorrect.

9. Which one of the following statements is true about standard labour time ?
(1) Standard labour time indicates the time in hours needed for a specific process.
(2) It is standardized on the basis of past experience.
(3) In fixing standard time due allowance should not be given to fatigue and tool setting.
(4) The Production Manager does not provide any input in setting the labour time
standards.

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10. Under the yield method of valuation of equity share capital, if for an equity share of ` 50,
the normal rate of return is 10% and expected rate of return is 5%, then the value of an
equity share will be
(1) ` 25 (2) ` 40
(3) ` 50 (4) ` 100
11. Match the items of List-I with the items of List-II and denote the code of correct matching.
List – I List – II
a. Hypothesis of Sales Revenue i. W.J. Baumol
Maximization
b. Hypothesis of Maximization of ii. Robin Marris
Firm’s Growth Rate
c. Hypothesis of Maximization of iii. O.E. Williamson
Managerial Utility Function
d. Hypothesis of Satisfying Behaviour iv. Cyert and March
Codes :
a b c d
(1) ii i iii iv
(2) ii iii i iv
(3) i ii iii iv
(4) i iv ii iii
12. Which of the following is not a correct matching with regard to price elasticity, change in
price and change in total revenue ?

Price elasticity coefficient Change in price Change in total revenue

(1) Zero Increase Increase
Decrease Decrease
(2) Less than one Increase Decease
Decrease Increase
(3) Equal to one Increase No change
Decrease No change
(4) More than one Increase Decrease
Decrease Increase
13. The short-run production function for a firm is as follows :
Q = – L3 + 15L2 + 10L
Where Q denotes total output in physical units and L denotes units of labour which are
homogeneous, but are not perfectly divisible and change in labour does not tend to
become zero.
Statement I : In this production function, the marginal product of 5th unit of labour is 85.
Statement II : Similarly, in this production function, the average product of the 5th unit of
labour is 60.
Codes :
(1) Both the Statements are true.
(2) Both the Statements are false.
(3) Statement I is true, while Statement II is false.
(4) Statement I is false, but Statement II is true.

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14. The Kinked demand curve model of oligopoly was developed by

(1) Augustin Cournot (2) Stackelberg
(3) Edgeworth (4) Sweezy

15. For the success of the penetration price policy, which one of the following is not
desirable ?
(1) Short-run demand for the product to have elasticity greater than unity.
(2) Availability of economies of large scale production.
(3) Product to have very low cross-elasticity of demand.
(4) Easy acceptance and adoption of the product by the consumers.

16. Statement I : The absolute value of the difference between an unbiased estimate and the
corresponding population parameter is called sampling error.
Statement II : Multi-stage sampling is a restricted non-probability based sampling
technique.
Indicate the correct code :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement I is correct, while Statement II is incorrect.
(4) Statement I is incorrect, while Statement II is correct.

17. Match the following items of List-I and List-II with regard to hypothesis-testing and
indicate the code of correct matching.
List – I List – II
a. The ability of test to reject the null hypothesis when i. Level of significance
it is false.
b. The probability of accepting a false null hypothesis. ii. Type I error
c. The probability of rejecting a true null hypothesis iii. Type II error
due to sampling error.
d. The probability of rejecting a true null hypothesis. iv. Power of a test
Codes :
a b c d
(1) iv ii i iii
(2) iv iii i ii
(3) i ii iii iv
(4) ii iii i iv

18. Which one of the following is a false statement ?

(1) The signs of the regression coefficients are always the same.
(2) Correlation coefficient is the geometric mean of the two regression coefficients.
(3) The co-variance between two variables divided by the product of their standard
deviations produces the value of coefficient of correlation.
(4) Coefficient of correlation is independent of origin but not of scale.

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19. If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of
correlation is
(1) – 0.16 (2) + 0.50
(3) + 0.40 (4) – 0.40

20. Process of arranging data into a new order is called

(1) Manipulation of data (2) Standardization of data
(3) Sequencing of data (4) Standardized input

21. Developed by the Special Projects Office of the U.S. Navy; this technique was first
formally applied to the planning and control of the Polaris Weapon System in 1958 and
worked well in expediting the completion of that programme. The technique is known as
(1) Gantt Chart (2) PERT
(3) CRM (4) Milestone budgeting

22. Consider the following statements relating to planning and find out which of the following
are correct :
Statement I : The operating personnel should not be associated with the preparation of
the budget.
Statement II : A programme indicates the principal operations to be carried out to
accomplish a work.
Statement III : Under MBO technique, the Managers should be provided with a freehand
to laydown the objectives.
Codes :
(1) Only Statement I is correct. (2) Only Statement II is correct.
(3) Only Statement III is correct. (4) Only Statements I and III are correct.

23. Assertion (A) : Sympathetic listening in upward communications often leads to

resentment in communicator.
Reason (R) : Sympathetic listening and encouraging remarks often lead the
communicator to believe that his proposal will receive action not contemplated by
superior (communicatee).
Codes :
(1) (A) is correct and (R) is the right explanation to it.
(2) (A) is correct, but (R) is not the right explanation to it.
(3) (A) is not correct while (R) is a correct statement.
(4) Both (A) and (R) are incorrect.

24. Assertion (A) : Herzberg believes that today’s motivators are tomorrow’s hygiene factors.
Reason (R) : Some job conditions operate primarily to dissatisfy employees when they
are absent, but their presence does not motivate them in strong way.
Codes :
(1) (A) and (R) both are correct and (R) is the right explanation of (A).
(2) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(3) (A) is not correct while (R) is a correct.
(4) Both (A) and (R) are incorrect.

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25. Which of the following statements relating to Henry Fayol are correct ?
Statement I : Authority and responsibility are related and former arises from latter.
Statement II : Espirit de Corps is an extension of the principle of unity of command.
Statement III : Unity of command means only one command at a time.
Statement IV : There are fourteen basic principles identified by Henry Fayol.
Codes :
(1) Statements I, II and IV (2) Statements II and III
(3) Statements I and IV (4) Statements II and IV

26. Match the following items of List-I (sources of competition) with List-II (examples for
these sources of competition) and indicate the code of correct matching.
List – I List – II
a. Directly similar products i. OLA Taxi and Metro Rail
b. Available substitutes ii. Mercedes and BMW
c. Unrelated products iii. PVR and Amusement park
Codes :
a b c
(1) iii ii i
(2) i iii ii
(3) i ii iii
(4) ii i iii

27. The marketing task which finds ways to alter the time pattern of demand through flexible
pricing, promotion and other incentives is called
(1) Demarketing (2) Synchromarketing
(3) Fleximarketing (4) Gorilla Marketing

28. Which of the following is not a reason for a firm to lose its market share to competitors ?
(1) A product/model is perceived by the target customer group as satisfying needs.
(2) Customers not being covered by the company’s sales force and distribution outlets.
(3) Customers may have been lost to competitors due to poor service by the firm or its
sales personnel or product becoming obsolete or more expensive.
(4) All the above are correct reasons for given condition.

29. Match the items of List-I with List-II and denote the code of correct matching.
List – I List – II
a. Invest Strategy i. No receiving of new resources.
b. Protect Strategy ii. Well financed marketing efforts.
c. Harvest Strategy iii. Selective resource allocation
d. Divest Strategy iv. Not warranting substantial new resources.
Codes :
a b c d
(1) ii iii iv i
(2) i iii ii iv
(3) ii i iv iii
(4) iv iii ii i

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30. An elaborated version of the idea expressed in meaningful consumer term is called
(1) Product image (2) Product idea
(3) Product concept (4) Prototype

31. Which one of the following combination of rules stands true while preparing schedule of
changes in working capital ?
A. An increase in current assets increases working capital.
B. An increase in current assets decreases working capital.
C. An increase in current liabilities decreases working capital.
D. An increase in current liabilities increases working capital.
Codes :
(1) A and D (2) A and C
(3) B and C (4) C and D

32. Assertion (A) : The primary motive of a company in using financial leverage is to
magnify shareholders’ return under favourable economic conditions.
Reason (R) : To magnify shareholders’ return fixed charges funds can be obtained at a
cost higher than the firm’s rate of return on net assets.
Codes :
(1) (A) is correct and (R) is the correct explanation of (A).
(2) (A) is correct, but (R) is wrong.
(3) (R) is correct, but (A) is wrong.
(4) Both (A) and (R) are wrong.

33. Debt financing is a cheaper source of finance because of

(1) Time value of money (2) Rate of interest
(3) Tax deductibility of interest (4) Dividends are not payable to lenders

34. Which of the following is not true with reference to capital budgeting?
(1) Capital budgeting is related to asset replacement decisions.
(2) Cost of capital is equal to minimum required rate of return.
(3) Timing of cash flows is relevant.
(4) Existing investment in a project is not treated as sunk cost.

35. Which of the following statements is not correct ?

(1) The cost of capital is required rate of return to ascertain the value of the firm.
(2) Different sources of funds have a specific cost of capital related to that source only.
(3) Cost of capital does not comprise any risk premium.
(4) Cost of capital is basic data for NPV technique.

36. Which of the following is not the quality of human resources in any organization ?
(1) Their behaviour to stimuli is often inconsistent and unpredictable.
(2) They depreciate with passage of time in terms of skills.
(3) They are heterogeneous.
(4) Retaining qualified human resources is a challenge for managers.

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37. Human Resource Planning benefits to an organization are reflected in which of the
combination of the following ?
a. Balance between demand and supply of human resources.
b. Non-compulsion on management to assess critically and continuously the employees
and personnel policies.
c. Duplication of efforts and conflicts are avoided.
d. Minimizing the future returns on investment in human resources.
Codes :
(1) a and b (2) a and c
(3) a, b and c (4) a, c and d

38. A statement containing items such as job title, location, summary, duties, materials used,
working conditions etc., is called
(1) Job specification (2) Job evaluation
(3) Job description (4) Job analysis

39. Match List-I with List-II relating to theory of wages.

List – I List – II
(Wage Theory) (Propounder)
a. Wage Fund Theory i. John Davidson
b. Subsistence Theory ii. David Recardo
c. Residual Claimant Theory iii. Adam Smith
d. Bargaining Theory of Wages iv. Francis Walker
Codes :
a b c d
(1) ii iv i iii
(2) iii ii iv i
(3) iv i iii ii
(4) ii iii iv i

40. Which organizational analysis method is used, among the following, to develop various
efficiency indices relating to contribution of human capital in meeting the organizational
goals ?
(1) Objectives analysis
(2) Resource utilization analysis
(3) Task analysis
(4) Organizational climate analysis

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41. Match the items of List-I with the items of List-II regarding evaluation of project
application and suggest the correct code.
List – I List – II
a. Managerial Appraisal i. Analysis of working results.
b. Economic Appraisal ii. Disposal of factory effluents.
c. Financial Appraisal iii. Analysis about traits of an entrepreneur
d. Technical Appraisal iv. Analysis on employment potential
Codes :
a b c d
(1) i ii iv iii
(2) ii i iii iv
(3) iii iv i ii
(4) iv iii ii i

42. Match the items of Column-I with the items of Column-II and suggest the correct code.
Column – I Column – II
a. Relationship Banking i. Dealing in hundis and acceptance of deposits.
b. Merchant Banking ii. Widening the entrepreneurial base and assist in
a rapid rate of industrial growth.
c. Indigenous Banking iii. Engaged in the business of Issue Management.
d. Development Banking iv. Creating, maintaining and enhancing strong
relationship with customers.
Codes :
a b c d
(1) iv ii i iii
(2) ii iv iii i
(3) iv iii i ii
(4) ii i iv iii

43. In which year, IFCI Act was amended in order to make it possible to provide assistance,
inter alia, for medical, health or other allied services ?
(1) 1960 (2) 1970
(3) 1973 (4) 1986

44. SIDBI was set up as a subsidiary of IDBI to

(1) Take over the functions of small business financing of IDBI.
(2) Take over the venture capital operations of ICICI.
(3) Reconstruct and rehabilitate the sick and closed industrial units financed by IDBI.
(4) Facilitate, finance and promote India’s Foreign trade.

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45. Letters of credit, Guarantees, Forward Contracts etc., come under which one of the
following ?
(1) Liabilities of a bank
(2) Assets of a bank
(3) Foreign exchange items of a bank
(4) Off-balance sheet items of a bank

46. Consider the following statements with regard for the “Theory of Absolute Cost
Advantage” :
(i) Productive efficiency differed among different countries because of diversity in
natural and acquired resources possessed by them.
(ii) The difference in natural advantage manifests in varying climate, quality of land,
availability of minerals, water and other resources.
(iii) The difference in acquired resources manifests in different levels of technology and
skills available.
Identify the correct code from the following :
(1) Statement (i) is correct, but (ii) and (iii) are incorrect.
(2) Statements (i) and (ii) are correct, but (iii) is incorrect.
(3) All the statements (i), (ii) and (iii) are correct.
(4) None of the statements is correct.

47. Match the items of List-I with List-II and indicate the correct code.
List – I List – II
a. Absolute Cost i. The empirical evidence based on US export of
Advantage Theory labour intensive goods challenging the factor
endowment theory.
b. Comparative Cost ii. A country having a direct cost advantage in the
Advantage Theory production of a product on account of greater
efficiency.
c. Factor Endowment iii. A country should produce and export a
Theory commodity that primarily involves a factor of
production abundantly available within the
country.
d. Leontief Paradox iv. A country should specialize in the production
and export of a commodity in which it possesses
greatest relative advantage.
Codes :
a b c d
(1) ii iv iii i
(2) ii iv i iii
(3) ii i iii iv
(4) i iv iii ii

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48. Match the items of List-I with List-II and indicate the code of correct matching :
List – I List – II
a. Accommodating i. Creation of international reserve assets by
capital flow the IMF and their allocation among
member countries in order to improve
international liquidity.
b. Autonomous capital ii. Estimate of foreign exchange flow on
flow account of either variations in the
collection of related figures or unrecorded
illegal transactions of foreign exchange.
c. SDR Allocation iii. Inflow of foreign exchange to meet the
balance of payments deficit, normally
from the IMF.
d. Statistical discrepancy iv. Flow of loans/investments in normal
course of business.
Codes :
a b c d
(1) i ii iv iii
(2) iii iv i ii
(3) iii iv ii i
(4) iii i ii iv

49. Statement I : TRIMS agreement refers to conditions or restrictions imposed on foreign

investors.
Statement II : TRIMS agreement specifically forbids imposing restrictions on operations
of an enterprise which result in protecting domestic products and making imports
disadvantageous.
Codes :
(1) Statement I is correct, but II is incorrect.
(2) Statement II is correct, but I is incorrect.
(3) Both the statements I and II are correct.
(4) Both the statements I and II are incorrect.

50. Assertion (A) : Revenue from indirect taxes was the major source of tax revenue till tax
reforms were taken during nineties.
Reason (R) : Traditionally India’s tax regime relied heavily on indirect taxes including
customs and excise.
Codes :
(1) (A) and (R) both are correct, but (R) is not the correct explanation of (A).
(2) (A) is correct, but (R) is not correct.
(3) (A) and (R) both are correct and (R) is the correct explanation of (A).
(4) (A) and (R) both are incorrect.

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JANUARY 2017 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 2 11 3 21 2 31 2 41 3

2 2 12 2 22 2 32 2 42 3

3 3 13 4 23 1 33 3 43 4

4 1 14 4 24 2 34 4 44 1

5 1 15 3 25 4 35 3 45 4

6 3 16 3 26 4 36 2 46 3

7 4 17 2 27 2 37 2 47 1

8 2 18 4 28 1 38 3 48 2

9 1 19 3 29 1 39 2 49 3

10 1 20 1 30 3 40 2 50 3

Note: * Marks Given to all Candidates

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JANUARY 2017
PAPER – III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. Put the following steps of strategic Management Process in correct sequence :

a. Scanning and Evaluation of Business Environment
b. Formulating strategies
c. Implementation of Corporate Strategy
d. Deciding about the Mission of the organisation
e. Setting Corporate Level Objective
Codes :
(1) a, b, c, d and e (2) d, a, b, c and e
(3) d, a, e, c and b (4) d, a, e, b and c

2. Match the items of List-I with those of List-II and indicate the code of correct matching.
List – I List – II
a. Indian Railways i. Government Company
b. Unit Trust of India ii. Department Undertaking
c. Bharat Heavy Electricals Limited iii. Statutory Corporation
Codes :
a b c
(1) i ii iii
(2) ii iii i
(3) ii i iii
(4) iii ii i

3. Identify the correct statement from the following :

(1) The liability of the Karta is limited.
(2) A joint Hindu family business continues to exist on the death of a co-partner.
(3) A joint Hindu family business ceases to exist on the death of the Karta.
(4) A joint Hindu family business comes into existence by Hindu law.

4. Statement I : “Working in harmony with the community and environment around us and
not cheating our customers and workers we might not gain anything in the short run
but in the long term it means greater profits and shareholders value”.
Statement II : According to Mahatma Gandhi, capitalist class owns wealth or capital as
trustees of the society.
Codes :
(1) Statement I is correct, but II is incorrect.
(2) Statement II is correct, but I is incorrect.
(3) Both the statements I and II are incorrect.
(4) Both the statements I and II are correct.

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5. Match the items of List-I with items of List-II and indicate the code of correct matching.
List – I List – II
a. Principle of Separate i. Valuing Plant and Machinery at cost less
Entity depreciation.
b. Principle of ii. Recording punctuality and honesty of
Conservatism employees of an organization.
c. Principle of Money iii. Capital contributed by proprietor is shown
Measurement as liability in Balance Sheet.
d. Historical cost concept iv. Valuing inventories at cost or market price
whichever is less.
Codes :
a b c d
(1) iii ii i iv
(2) iii iv ii i
(3) iv iii i ii
(4) iii i ii iv
6. Which of the following is not true ?
(1) When all the forfeited shares are not reissued, the forfeited shares account will also
show as credit balance equal to gain on forfeiture of shares not yet reissued.
(2) Loss on reissue of shares cannot be more than gain on forfeiture of those shares.
(3) At the time of forfeiture of shares, securities premium is debited along with share
capital when premium has not been received.
(4) When forfeited shares are issued at premium, the premium amount is credited to
Capital Reserve Account.
7. Preparation of consolidated Balance Sheet of Holding Company and its subsidiary
company is done as per
(1) AS 11 (2) AS 21
(3) AS 22 (4) AS 23
8. Amount due to outgoing partner is shown in the balance sheet as his
(1) Liability (2) Asset
(3) Capital (4) Loan
9. Match the items of List-I with items of List-II and indicate the code of their correct
matching.
List – I List – II
a. Non-price quantity relationships i. Extension and contraction of demand.
of demand.
b. Income effect of a price rise ii. Ordinal utility approach.
greater than its substitution effect.
c. Transitivity and consistency of iii. Increase and decrease in demand.
choices.
d. Price-quantity relationships of iv. Giffen goods
demand.
Codes :
a b c d
(1) iv ii iii i
(2) ii i iv iii
(3) iii iv ii i
(4) i ii iii iv

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10. The short-run cost function of a firm is as follows :

TC = 200 + 5Q + 2Q2
Where TC = Total Cost
Q = Physical units of the product of the firm
What would be the level of optimum output ?
(1) 05 (2) 10
(3) 12 (4) 15
11. Short-run demand and total cost functions for a monopoly firm are as under :
Demand function : Q = 100 – 0.2 P
Price function : P = 500 – 5 Q
Cost function : TC = 50 + 20 Q + Q2
Where Q = Total quantity of the product in physical units.
P = Price of the product per unit
TC = Total cost
What is the profit maximizing output of the pure monopoly firm ?
(1) 20 (2) 35
(3) 40 (4) 50
12. In which one of the following market situations, the pricing above the prevailing market
price is used as a more common practice ?
(1) Markets where the selling firms face perfect competitive situations.
(2) Markets where the selling firms want to gain popularity of the products having high
cross elasticity of their demand.
(3) Markets where sellers rely on their customers’ high propensity to consume a
prestigious commodity.
(4) Markets where the selling firms have entered into the stages of maturity and
saturation.
13. Which one of the following statements is false regarding normal distribution ?
(1) Mean, Median and Mode always coincide.
(2) Within ± 1.96 σ limits from Mean value, the area under the distribution is 99 percent
of the total area.
(3) The area under the normal curve represents probabilities for the normal random
variable and the total area for the normal probability distribution is one.
(4) For every pair of values of Mean and Standard deviation, the curve of the
distribution is bell-shaped and symmetric.
14. If unexplained variation between variables X and Y is 36%, what is the coefficient of
correlation between the variables ?
(1) 0.36 (2) 0.64
(3) 0.60 (4) 0.80
15. Which one of the following is the formula to calculate standard error of mean differences
of two sample groups ?
σp σ21 σ22
(1) (2) n1 + n2
n
σ21 p1q1 p2q2
(3) when σ21 < σ22 (4) + n
σ22 n1 2

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16. A researcher wants to test the significance of the difference between the average
performance of the two small sized samples when the information of the population
standard deviation is not available, which one of the following hypothesis-testing is
suitably used ?
(1) Z-test (2) Chi-square test
(3) F-test (4) t-test

17. Which of the following statements are not correct ? Indicate the correct code.
Statement I : Organizational culture means the general pattern of behaviour, belief and
values that organization members have in individuality.
Statement II : As per contingency theory of Leadership, people become leader only
because of the demand of group members.
Statement III : The group judgement can only be obtained through the formal
committees.
Statement IV : Ombudsperson in communication function is a person assigned to
investigate employee concerns and providing valuable upward communication link.
Codes :
(1) Statements I, II and IV (2) Statements I, III and IV
(3) Statements I, II and III (4) Statements II, III and IV

18. Assertion (A) : The organization is a closed system that operates within and interacts with
the external environment.
Reasoning (R) : The system approach to management includes the outputs from the external
environment on the basis of interactions between management and employees.
Codes :
(1) (A) and (R) are correct and (R) is the correct reasoning of (A).
(2) (A) and (R) are correct, but (R) is not the correct explanation of (A).
(3) (A) is incorrect while (R) is a correct statement.
(4) Both (A) and (R) are incorrect.

19. Match List-I with List-II relating to corporate ethics and indicate the code of their correct
matching.
List – I List – II
a. Utilitarian theory i. Behaviour guiding statements.
b. Code ii. Making public known about unethical
company practices.
c. Whistle blowing iii. Society with varied interest groups.
d. Pluralistic society iv. Evaluation of plans with its consequences
Codes :
a b c d
(1) i iii iv ii
(2) ii iii iv i
(3) iii i ii iv
(4) iv i ii iii

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20. Find out the correct sequence of planning function of the following elements :
a. Diagnosis of opportunity
b. Establishing objectives
c. Indentifying and comparing alternatives
d. Formulating derivative plans
e. Choosing an alternative
Codes :
(1) a, c, b, e, d (2) b, e, a, c, d
(3) a, b, c, e, d (4) a, b, c, d, e

21. Creating the capability of making purchases directly from a firm’s website is known as
(1) Electronic Networking (2) Electronic Transactions
(3) Electronic Data Interchange (4) Electronic Information Transfer

22. For the following two statements of Assertion (A) and Reasoning (R) indicate the correct
code :
Assertion (A) : The self image could be an individual’s own perceived image and actual
image based on how others perceive the individual.
Reasoning (R) : Large number of products like credit cards, automobiles, readymade
garments, designer ware, cosmetics and perfumes are bought due to self image and
demographic variables like income may not be important in purchase decisions for
these products.
Codes :
(1) (A) and (R) both are not correct.
(2) (A) is correct, but (R) is not correct.
(3) (A) is correct and (R) is correct explanation for (A).
(4) (A) is not correct, but (R) is correct.

23. Match the media factors given in List-I with examples given in List-II and indicate the
code of current matching.
List – I List – II
a. Media class i. Prime time at 9:00 PM, full page ad of Honda City
b. Media vehicles ii. Magazine, T.V., Radio
c. Media option iii. Flighting, Pulsing
d. Scheduling & timing iv. Times of India, T.V. serial Bhabhi Ji Ghar Pe Hain
Codes :
a b c d
(1) ii iv i iii
(2) iii i iv ii
(3) i ii iv iii
(4) iv ii iii i

24. In integrating specialist functions of product management with the line function of sales as
major challenge to top management can be achieved by which type of marketing
organization ?
(1) Functional organization (2) Territorial organization
(3) Matrix organization (4) None of the above

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25. Assertion (A) : The important aspect of dividend policy is to determine the amount of
earnings to be distributed to shareholders and the amount to be retained in the firm.
Reasoning (R) : Dividend policy of the firm has its effect on both the long term financing
and the wealth of shareholders.
Codes :
(1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct, but (R) is not the correct explanation of (A).
(3) (A) is correct, but (R) is wrong.
(4) (R) is correct, but (A) is wrong.

26. Match the items in List-I with items in List-II and indicate the code of correct matching :
List – I List – II
a. ABC Inventory Control i. Developing ancillary units around the
System manufacturing sites and supplying parts to
manufacturing units.
b. Just-in-time (JIT) System ii. Enables a company to easily track large
items of inventory.
c. Out sourcing System iii. It eliminates the necessity of carrying large
inventories and saves carrying cost.
d. Computerized Inventory iv. Tends to measure the significance of each
Control System item of inventories in terms of its value.
Codes :
a b c d
(1) ii iii i iv
(2) iv ii iii i
(3) iv iii i ii
(4) iii i ii iv
27. In certainty-equivalent approach, risk adjusted cash flows are discounted at
(1) Accounting Rate of Return (2) Internal Rate of Return
(3) Hurdle Rate (4) Risk-free Rate
28. ‘That personal leverage can replace corporate leverage’ is assumed by
(1) Traditional Approach (2) M M Model
(3) Net Income Approach (4) Net Operating Income Approach
29. Match the List-I with List-II relating to Human Resource Planning activities and indicate
the code of correct matching.
List – I List – II
a. Forecasting i. Optimal employment
b. Inventorying ii. Development activities
c. Anticipating manpower problems iii. Mathematical projections of industrial trends
d. Planning programs iv. Projecting present resources into future
Codes :
a b c d
(1) ii i iv iii
(2) i iv iii ii
(3) iv ii i iii
(4) iii i iv ii

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30. Which council was established in India by Government of India in the year 1966 to
promote safety consciousness among workers in industries ?
(1) Factory Advise Council (2) National Safety Council
(3) National Industrial Council (4) Safety Regulations Council

31. Assertion (A) : Recruitment is positive while selection is negative in its application.
Reasoning (R) : Recruitment aims at increasing the job seekers while selection rejects a
large number of unqualified applicants.
Codes :
(1) (A) is correct, but (R) is not correct.
(2) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(3) (A) and (R) both are correct and (R) is the right explanation of (A).
(4) (A) and (R) both are incorrect.

32. Match the List-I with List-II relating to Social Security measures in India and indicate the
code of correct matching.
List – I List – II
a. Social Assistance i. Payable to workers in accidents & injuries
during employment.
b. Social Insurance ii. Covers individual risks primarily.
c. Commercial Insurance iii. Maternity benefits.
d. Workmen’s Compensation iv. Provident Funds
Codes :
a b c d
(1) iii iv ii i
(2) iv iii ii i
(3) iv iii i ii
(4) ii i iii iv

33. Match the following items of List-I with the items of List-II and indicate the code of
correct matching.
List – I List – II
(Name of Bank) (Year of establishment)
a. IFCI i. 1981
b. SIDBI ii. 1982
c. NABARD iii. 1948
d. EXIM Bank iv. 1990
Codes :
a b c d
(1) iii i ii iv
(2) iv ii iii i
(3) iv iii ii i
(4) iii iv ii i

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34. With a view to encourage newer classes of entrepreneurs and bringing about wider
dispersal of ownership and control of industrial undertakings, IDBI operates a special
scheme for supplementing the equity contribution to projects made by small and new
entrepreneurs. This scheme is known as
(1) Bridge Loan Scheme
(2) Soft Loan Scheme for Modernisation
(3) Technical Development Fund Scheme
(4) Seed Capital Assistance Scheme
35. Which one of the following is not the objective of UTI ?
(1) To give everyone a chance to indirectly own shares and securities in a large number
of select companies.
(2) To maximise mobilisation of people’s savings by making insurance linked savings
adequately attractive.
(3) To channelize the pooled savings into productive outlets.
(4) To mobilise savings of the community by offering savers the triple benefits of
safety, liquidity and profitability of investments.
36. Under which of the following schemes, the IFCI procures equipment for an actual-user
industrial concern by making payment to the machinery/equipment supplier, and then
resells/transfers the equipment to the actual-user-industrial concern at the same cost,
subject, however, to any liability arising out of taxes and other levies, being put to the
account of the actual user industrial concern ?
(1) Equipment Credit Scheme (2) Equipment Procurement Scheme
(3) Equipment Finance Scheme (4) Scheme of Equipment Leasing

37. Match the items of List-I with List-II and denote the code of correct matching.
List – I List – II
a. International Bank for Reconstruction and Development i. 1945
b. International Finance Corporation ii. 1956
c. Asian Development Bank iii. 1966
d. Export-Import Bank of India iv. 1981
Codes :
a b c d
(1) i ii iii iv
(2) iv iii ii i
(3) i iii ii iv
(4) ii i iv iii
38. Assertion (A) : International Finance Corporation (IFC) contributes to increase
sustainable agriculture opportunities, improve health and education and increase
access to financing for micro finance and business client.
Reasoning (R) : The IFC has focused on a set of development goals to ensure that its
projects are expected to achieve the target.
Codes :
(1) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(2) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) Both (A) and (R) are incorrect.

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39. Under TRIPS Agreement, patent is granted subject to which of the following ?
a. The product or the process is new one.
b. It contains an inventive step.
c. It is capable of industrial application for 15 years from the grant of the patent.
d. It is capable of industrial application for 20 years from the grant of the patent.
Codes :
(1) Only a and b (2) Only a, b and c
(3) Only a, b and d (4) Only a and d

40. Statement I : During the period of prosperity, prices of goods fall and income of people
go down. These changes in incomes of the people and prices of goods affect exports
and imports of goods and thereby influence the balance of payments.
Statement II : Secular disequilibrium in balance of payments occur because of short-run
changes in an economy.
Codes :
(1) Statement I is correct, but II is incorrect.
(2) Statement II is correct, but I is incorrect.
(3) Both the statements I and II are correct.
(4) Both the statements I and II are incorrect.

41. Which of the following correctly depicts differences between a merger and an acquisition
of stock ?
(1) An acquisition of stock results in the total absorption of a firm whereas a merger
does not.
(2) In case of a merger, the firm can deal directly with the shareholders of the acquired
firm but not in the case of acquisition of stock.
(3) Shareholders of the acquired or target firm vote by their response to a tender offer in
an acquisition of stock but cast a formal vote in a merger situation.
(4) A formal vote by the acquired firm’s shareholders is required for an acquisition of
stock but not for a merger.

42. Match the items of List-I with the items of List-II and indicate the correct code :
List – I List – II
a. Value added Model i. It is based on the process audit thereby evaluating the
corporate social performance.
b. Bauer-Fenn Model ii. It takes into account the social benefits and costs.
c. ABT Model iii. It reflects the impact of a business enterprise on its
employees, the local community and the public at large.
d. ESTs Model iv. It shows the value added by the value of production of
socially desirable outputs minus the value of socially
undesirable effects.
Codes :
a b c d
(1) i ii iii iv
(2) iv i iii ii
(3) iv iii ii i
(4) iv i ii iii

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43. You are given the following information :

X-Security Market-Security
Expected Return (%) 15 12
Standard Deviation of the return (%) 6 4
Coefficient of Correlation between the returns 0.4
What is the Beta-coefficient of security X to measure its systematic risk ?
Codes :
(1) 1 (2) 1.5
(3) 0.6 (4) 0.4

44. Lease which includes a third party (a lender) is known as

(1) Direct lease (2) Sales and lease-back
(3) Leveraged lease (4) Inverse lease

45. Which of the following activities should be shown separately in the cash flow statement
prepared as per Accounting Standard-3 ?
a. Cash flow from borrowing activities.
b. Cash flow from operating activities.
c. Cash flow from financing activities.
d. Cash flow from investing activities.
e. Cash flow from miscellaneous activities.
Codes :
(1) a, b, c (2) a, c, e
(3) b, c, d (4) a, b, e
46. Which of the following statements is correct ?
(1) The oldest stock exchange of India is OTCEI.
(2) Sensex is an index number of 30 scrips.
(3) In book-building process, the price of the security is announced by the company.
(4) Futures and options in shares are traded at all stock exchanges of India.
47. Match the items of List-I (Developers) with the items of List-II (Methods of measuring
human assets) and indicate the correct code :
List – I List – II
a. Hekimian and Zones i. Stochastic Rewards Valuation Model
b. Hermanson ii. Competence Bidding Method
c. R. Likert iii. Adjusted Discounted Future Wages Model
d. Flamholtz iv. Behavioural Variables Model
Codes :
a b c d
(1) i ii iii iv
(2) ii iii iv i
(3) iv iii i ii
(4) iii iv ii i
48. The concept of achieving maximum profits through increased consumer satisfaction for
raised market share focuses on
(1) Product (2) Selling
(3) Customer (4) Production

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49. Which of the following is not a measure for quality of service for consumer ?
(1) Responsiveness (2) Competition
(3) Empathy (4) Tangibility

50. Which of the following is not a targeting strategy ?

(1) Standardization (2) Differentiation
(3) Focus (4) All of the above

51. Match the items of List-I with items of List-II and indicate the code of correct matching.
List – I List – II
a. Real Needs i. Expecting good service from car dealer.
b. Unstated Needs ii. Customer expects to be seen by his friends as value-oriented
savvy consumer.
c. Delight Needs iii. Customer wants car at low operational cost and not initial cost.
d. Secret Needs iv. Customer receives free insurance on purchase of car.
Codes :
a b c d
(1) iii i iv ii
(2) i iii ii iv
(3) ii iv i iii
(4) iv ii i iii
52. Statement I : The firm should “stick to its niching” but not necessarily to its niche.
Statement II : Multiple niching is not preferable to single niching.
Codes :
(1) Both the Statements are true.
(2) Both the Statements are false.
(3) Statement I is true, but Statement II is false.
(4) Statement II is true, but Statement I is false.
53. A descriptive thought that a person holds about something is called
(1) Belief (2) Learning
(3) Attitude (4) Perception
54. Deferment, Autonomy of object, use of the common place, involvement/detachment and
use of metaphor are description of which of the following technique ?
(1) Brainstorming (2) Synectics
(3) Forced Relationship (4) Attribute listing
55. Which of the following statements are correct ? Indicate the correct combination :
a. A well motivated individual tends to experience a low degree of morale.
b. A group characterized by a high state of morale may or may not have a high degree
of motivation to perform.
c. Morale can always be built up by a combination of rewards and penalties.
d. Organizations, in general, devote more direct attention towards motivational aspects
of people’s behaviour than the aspects of morale.
Codes :
(1) a, b and d (2) c and d only
(3) a, c and d (4) b and d only

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56. Assertion (A) : Organizations are increasingly getting de-jobbed.

Reasoning (R) : Jobs are becoming more amorphous and more difficult to define.
Codes :
(1) (A) and (R) both are correct but (R) is not the right explanation of (A).
(2) (A) and (R) both are not correct.
(3) (A) is correct, but (R) is incorrect.
(4) (A) is correct and (R) is right explanation of (A).

57. Which of the following statements relating to incentive payments is correct ?

(1) In Halsey incentive plan, bonus paid to a worker is equal to 50 percent of time saved
divided by rate per hour.
(2) In Rowan incentive plan, bonus paid to employee is equal to the proportion of the
time saved to the standard time.
(3) In Taylor’s differential piece rate system, a worker whose output exceeds standard
output is paid 100 per cent of piece rate and a worker whose output falls short of
standard is paid only 50 percent of piece rate.
(4) The Rowan incentive plan is the base of all other incentive, payment plans.

58. Match the most common rating errors made during performance appraisal with their right
explanations. Indicate the code of correct matching.
List – I List – II
(Common Rating Errors) (Description)
a. Leniency i. Subjective assessment
b. Halo error ii. One aspect of individual’s performance
influence his entire performance
c. Spillover effect iii. Past performance appraisal ratings
unjustifiably influencing current ratings.
d. Rater effect iv. Favoritism and stereotyping
Codes :
a b c d
(1) i ii iii iv
(2) ii iii iv i
(3) iii iv ii i
(4) iv iii ii i

59. Which one of the following industrial relations approach believes in state intervention via
legislation and the creation of industrial tribunals as supporting management’s interest
rather than ensuring a balance between the competing groups ?
(1) Unitary approach (2) Pluralistic approach
(3) Marxist approach (4) Judiciary approach

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60. What is the term coined for the system of communication and consultation, either formal
or informal, by which workers of an organization are kept informed, as and when
required, about the affairs of the undertaking and through which they express their opinion
and contribute to decision-making process of management ?
(1) Collective Bargaining
(2) Empowerment
(3) Workers’ participation in management
(4) Welfare state

61. Match the items of List-I with those of List-II with regard to operative functions of HRM
and indicate the code of correct matching.
List – I List – II
a. Procurement i. Performance appraisal
b. Development ii. Discipline
c. Integration iii. Induction
d. Maintenance iv. Personnel research
Codes :
a b c d
(1) ii i iv iii
(2) i iv iii ii
(3) iii i ii iv
(4) ii iii i iv

62. What is the popular term used for that type of option in Foreign Exchange Market which
provides the holder the right to purchase or sell foreign currency at the most favorable
exchange rate realized over the life of the option ?
(1) Forward reversing option (2) Preference option
(3) Look back option (4) Basket option

63. What is the term used popularly for the situation when a speculator, being dominant in the
market, expects a drop in the value of a particular currency and he begins selling it
forward ?
(1) International Fisher Effect (2) Bandwagon Effect
(3) Interest Rate Parity Effect (4) Relative Version Effect

64. Identify the correct statement.

(1) The Maastricht Treaty signed in February 1992 renamed European Community (EC)
as European Economic Community (EEC).
(2) The main objective of the formation of ASEAN Free Trade Area in 1993 was to
soften the restrictions on the movement of professionals in the region and helping
poorer countries.
(3) The SAARC is a regional grouping scheme among Six South Asian Countries.
(4) The European Union, including European Monetary Union, was the biggest and
most important regional integrative scheme.

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65. Match List-I with List-II relating to benefits and cost of economic integration and identify
the code representing correct matching.
List – I List – II
a. Trade creation i. Movement of production and resources in opposite
directions.
b. Trade diversion ii. Become active when a member country does not
augment export but simply shifts its imports from low
cost source to high cost source.
c. Trade deflection iii. Shifting the locus of production from high cost to low
cost centre within the union.
d. Polarisation forces iv. Goods produced in a third country entering a free trade
area through a member country having lower tariff.
Codes :
a b c d
(1) ii iii iv i
(2) ii iv i iii
(3) iii i iv ii
(4) iii ii i iv

66. What is the situation referred to as, amongst the following, when intra-region trade is duty
free but there is variation in tariff structure for import from a third country ?
(1) Customs Union (2) Common Market
(3) Free Trade Area (4) Economic Union

67. Which of the following statements is not correct relating to comparison of FDI with trade ?
(1) Only one market can better be served with differentiated products.
(2) FDI overcomes tariff and transport cost involved in trade.
(3) It reduces financial risk through greater diversification.
(4) It creates harmonious political relations.

68. Match List-I with List-II regarding the grouping of Multi-national Corporations and
identify the code representing correct matching.
List – I List – II
(Type of MNC) (Basic feature)
a. Ethnocentric firms i. Maintain a balance in home and host
market oriented policy.
b. Polycentric firms ii. Seldom distinguish between domestic
& global operation policies.
c. Geo-centric firms iii. Follow a host market policy.
Codes :
a b c
(1) iii i ii
(2) iii ii i
(3) ii iii i
(4) ii i iii

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69. An equipment was acquired at a cost of ` 10 lacs and was put to use in Scientific
Research. After one year of research the equipment was brought into another business of
the assessee. For charging depreciation, Block of Assets shall be increased by
(1) ` 10 lacs.
(2) Market value of the equipment on the date it was brought into another business.
(3) Cost or market value of the equipment, whichever is less.
(4) NIL.

70. If an assessee is engaged in the business of growing and manufacturing tea in India, the
portion of agricultural income in that case shall be
(1) 100% (2) 60%
(3) 50% (4) 40%

71. Which of the following statements is not correct ?

(1) X is an individual assessee. He pays a monthly rent of ` 10,000 pm. He cannot
deduct tax at source.
(2) On salaries, tax is deducted at source according to provisions of Sec. 192.
(3) No tax is deducted at source in respect of interest on securities issued by a domestic
company.
(4) Bank will deduct tax at source @ 10% if bank fixed deposit’s interest credit is more
than ` 10,000 in a year.

72. X donated ` 20,000 to a charitable institution, which is eligible for deduction u/s 80 G,
during the financial year 2015-16. His total income during the period was ` 1,50,000.
How much deduction he can claims u/s 80 G ?
(1) ` 7,500 (2) ` 10,000
(3) ` 15,000 (4) ` 20,000

73. X is employed in a private company at a salary of ` 70,000 per month and ` 10,000 per
month as dearness pay. He received ` 2,000 per month as house rent allowance. He paid
` 2,500 per month as house rent. What is the exempted portion of house rent allowance ?
(1) ` 2,500 (2) ` 2,000
(3) ` 1,000 (4) NIL

74. Surcharge is payable by an individual where the total income exceeds

(1) ` 10 lacs (2) ` 25 lacs
(3) ` 50 lacs (4) ` 1 crore

75. Which one of the following statements is not correct ?

(1) A person may not have assessable income but still be an assessee.
(2) In some cases, the assessment year and the previous year can be same.
(3) An Indian company is always resident assessee.
(4) Surcharge is additional tax calculated on total income.
_________

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JANUARY 2017 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 4 11 3 21 2 31 3 41 3 51 1 61 3 71 3

2 2 12 3 22 3 32 1 42 2 52 3 62 3 72 1

3 * 13 2 23 1 33 4 43 3 53 1 63 2 73 4

4 4 14 4 24 3 34 4 44 3 54 2 64 4 74 4

5 2 15 2 25 1 35 2 45 3 55 4 65 3 75 4

6 4 16 4 26 3 36 2 46 2 56 4 66 3

7 2 17 3 27 4 37 1 47 2 57 2 67 1

8 4 18 4 28 2 38 2 48 3 58 1 68 3

9 3 19 4 29 4 39 3 49 2 59 3 69 4

10 2 20 3 30 2 40 * 50 * 60 3 70 2

Note: * Marks Given to all Candidates

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JULY 2016
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.

1. For the following statements of Assertion (A) and Reasoning (R) indicate the correct code
from the alternatives given :
Assertion (A) : Liberalization means corporatisation of departmental undertakings
and public undertakings.
Reasoning (R) : Freedom to public sector undertakings to access capital market.
Codes :
(1) Both (A) and (R) are true and (R) is correct explanation of (A).
(2) Both (A) and (R) are true but (R) is not a correct explanation of (A).
(3) (A) is true but (R) is false.
(4) (A) is false but (R) is true.

2. Match the items of List – I with List – II and indicate the correct code :
List – I List – II
a. Fiscal Policy i. Mitigation of National hazards
b. Technology Policy ii. Balance of Payment
c. Macro-Economic Policy iii. Fiscal Federalism
d. Monetary Policy iv. Inflation
Codes :
a b c d
(1) i ii iii iv
(2) iii i ii iv
(3) iv iii i ii
(4) ii i iv iii

3. Which of the following factor is not directly responsible for slowing down the growth of
infrastructure ?
(1) High level of perceived political risk.
(2) High level of sunk cost.
(3) High probability of time and cost over-run.
(4) Introduction of competition in all sectors.

4. Out of the following which is not a major component of Gross Domestic Product (GDP) ?
(1) Personal Consumption Expenditure
(2) Gross Private Domestic Investment
(3) Net Personal Income
(4) Net Exports

5. Which of the following is not a forum of Consumer Dispute Redressal System ?

(1) Local forum (2) District forum
(3) State Forum (State Commission) (4) National Commission

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6. X Ltd. purchased 70 percent of the shares of Y Ltd. at a price of ` 1,00,000. Share capital
of Y Ltd. was of ` 70,000 and its accumulated profits amounted to ` 90,000. What would
be the amount of Minority Interest in the consolidated Balance Sheet ?
(1) ` 25,000 (2) ` 70,000
(3) ` 1,00,000 (4) ` 40,000

7. Match the items in Column – I with the items in Column – II and indicate the correct code :
Column – I Column – II
a. Debt-Equity Ratio Net Profit before interest and tax
i. Interest on long term loans
b. Proprietary Ratio Equity share capital + Reserves
ii. Preference share capital + Interest bearing finance

c. Interest coverage ratio Long term debts

iii. Shareholder's Funds

d. Capital gearing ratio Shareholder's Funds

iv. Total Assets
Codes :
a b c d
(1) i ii iii iv
(2) iii iv i ii
(3) iii iv ii i
(4) ii iii iv i

8. Ram and Shyam are partners in a firm with capital of ` 4,80,000 and ` 3,10,000,
1
respectively. They admitted Ganesh as a partner with 4th share of profit. Ganesh brings
` 3,00,000 as his capital. Ganesh’s share of goodwill will be
(1) ` 1,10,000 (2) ` 27,500
(3) ` 17,500 (4) ` 70,000

9. Which of the following is a deferred revenue expenditure ?

(1) Legal expenses incurred on the purchase of land.
(2) Expenses on a mega advertisement campaign while launching a new product.
(3) Expenses incurred on installation of a new machine.
(4) Wages paid for construction of an additional room in the building.

10. The amount of depreciation charged to Profit and Loss Account varies every year under :
(1) Fixed instalment method (2) Annuity method
(3) Diminishing balance method (4) Insurance policy method

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11. Ordinal utility analysis of the consumer’s behaviour is considered superior to the cardinal
utility analysis mainly due to
(1) assumption of the rationality of the consumer’s behaviour.
(2) possibility of the derivation of the consumer’s demand.
(3) bifurcation of price effects into income and substitution effects.
(4) consideration of the available limited resources for satisfying consumer’s demand.

12. For the following statements of Assertion (A) and Reasoning (R) indicate the correct code :
Assertion (A) : Price reduction normally leads to an increase in the demand for a
commodity.
Reason (R) : Price reduction leads to the entry of new buyers of the commodity in
the market.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) is not correct but (R) is correct.
(3) Both (A) and (R) are correct and (R) offers full explanation of (A).
(4) Both (A) and (R) are correct but (R) does not offer full explanation of (A).

13. The minimum Long Run Average Cost (LAC) can be determined on a
I. LAC curve for a normal production function
II. LAC curve for a linear production function
III. Planning curve
IV. Envelope curve
Codes :
(1) I II III
(2) II III IV
(3) I III IV
(4) I II IV

14. Monopoly is not considered desirable from the point of view of the society mainly
because the monopolist endeavours to
(1) earn net revenue on sale of all goods including those involving no cost of
production.
(2) earn net revenue on sale of goods in short run as well as long run.
(3) charge different prices for the same product from the different categories of buyers.
(4) produce below economic capacity level when he exhibits satisfaction with normal
profit only.

15. Product-line pricing strategy includes which combination of the following ?

I. Public utility pricing
II. Complementary goods pricing
III. Spare parts pricing
IV. Load factor pricing
Codes :
(1) I II III
(2) II III IV
(3) I II IV
(4) I III IV

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16. When the data are classified only on the basis of descriptive characteristics which cannot
be quantified is known as
(1) Geographical classification (2) Chronological classification
(3) Qualitative classification (4) Quantitative classification

17. Which one of the following is a false description ?

(1) In a moderately asymmetrical distribution, the empirical relationship between Mean,
Mode and Median suggested by Karl Pearson is
Mean – Mode = 3 (Mean – Median)
(2) Coefficient of variation is an absolute measure of dispersion.
(3) Measure of skewness indicates the direction and extent of skewness in the
distribution of numerical values in the data set.
(4) Kurtosis refers to the degree of flatness or peakedness in the region around the mode
of a frequency curve.

18. Match the items of List – I with the items of List – II and indicate the code of correct
matching :
List – I List – II
a. Coefficient of determination σx
i. γxy
σy
b. Spearman’s Rank correlation 6 Σd2
coefficient ii. 1–
n(n2 – 1)
c. Regression coefficient of x on y Σxy
iii.
variable nσxσy
d. Karl Pearson’s formula of iv. γ2
calculating γ
Codes :
a b c d
(1) i ii iii iv
(2) i iv ii iii
(3) iv iii ii i
(4) iii ii iv i

19. Statement – I : When the null hypothesis is true but as per the hypothesis-testing, it is
rejected, it is known as beta type error in hypothesis testing.
Statement – II : Chi-square test is exclusively a non-parametric test.
Codes :
(1) Both the statements are true.
(2) Both the statements are false.
(3) Statement – I is true while Statement – II is false.
(4) Statement – I is false while Statement – II is true.

20. Computers that recognize data as discrete signals are called ?

(1) Analog computers (2) Digital computers
(3) Hybrid computers (4) Super computers

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21. Herbert Simon’s concept of administrative man assumes that

(a) He has satisfying approach in decision making rather than the maximising approach.
(b) He can make decisions without determining all possible alternatives.
(c) He is completely rational in decision making.
(1) (a) only (2) (b) only
(3) Both (a) and (b) (4) (a), (b) and (c)

22. Which of the following statement(s) is/are correct about scalar chain principle as given by
Fayol ?
(a) Each communication, going up or down, must flow through each position in the line
authority.
(b) Chain of communication cannot be broken under any circumstances.
(1) Only (a) is correct. (2) Only (b) is correct.
(3) Neither (a) nor (b) is correct. (4) Both (a) and (b) are correct.

23. A mission statement should be

(a) Self-explanatory
(b) Elaborate
(c) Distinctive
(d) Feasible
Codes :
(1) (a) only (2) (a) and (b)
(3) (a), (b) and (c) (4) (a), (c) and (d)

24. Match List – I and List – II and indicate the correct code :
List – I List – II
a. Equity theory i. Motivation depends on ratios of inputs
and outcomes of self and others.
b. Vroom’s theory ii. People are motivated to achieve a goal
to the extent that they expect that
certain action will help them to reach
the goal.
c. Porter and Lawler model iii. There exists a complex relationship
among motivation, performance and
satisfaction.
d. Herzberg’s theory iv. A challenging job that has
opportunities for achievement,
recognition, responsibility and growth
will motivate employees.
Codes :
a b c d
(1) i ii iii iv
(2) ii i iii iv
(3) iii ii i iv
(4) i iii ii iv

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25. Assertion (A) : ‘Grapevine’ tends to be more active during periods of change,
excitement, anxiety and sagging economic conditions.
Reason (R) : Employees use this communication to fill in important information
gaps and clarify management decisions.
Codes :
(1) (A) is right and (R) is wrong.
(2) (A) is wrong and (R) is right.
(3) Both (A) and (R) are right and (R) explains (A).
(4) Both (A) and (R) are right but (R) does not explain (A).

26. Which type of differentiation is used to gain competitive advantage through the way a
firm designs its distribution coverage, expertise and performance ?
(1) Channel differentiation (2) Services differentiation
(3) People differentiation (4) Product differentiation

27. Which one of the following is the most likely result of a marketing strategy that attempts
to serve all potential customers ?
(1) All customers will be delighted.
(2) Customer-perceived value will be increased.
(3) The company will need to follow up with a demarketing campaign.
(4) Not all customers will be satisfied.

28. Which of the following is not a primary activity in Michael Porter’s value chain ?
(1) Inbound logistics (2) Operations
(3) Outbound logistics (4) Procurement

29. Which of the following represents consistency of results when the test instrument is used
repeatedly ?
(1) Validity (2) Reliability
(3) Relativity (4) Sensitivity

30. Assertion (A) : Too many stimuli make a person accommodated to those sensations.
Sensory adaptation is a problem that concerns many advertisers,
which is why they try to change their advertising campaigns
regularly.
Reason (R) : To cut through advertising clutter and to ensure that consumers
perceive advertisement, marketers try to increase sensory input.
Codes :
(1) (A) is right and (R) is wrong.
(2) (A) is wrong and (R) is right.
(3) Both (A) and (R) are right but (R) does not explain (A).
(4) Both (A) and (R) are right and (R) explains (A).

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31. Which of the following is not a feature of payback period method ?

(1) It is simply a method of cost recovery and not of profitability.
(2) It does not consider the time value of money.
(3) It does not consider the risk associated with the projects.
(4) It is very difficult to calculate.

32. Which of the following is not a source of credit information of prospective customers ?
(1) Letter of credit (2) Bank Reference
(3) Trade Enquiry (4) Credit Bureau

33. The portion of earnings which is distributed among shareholders in the form of dividend is
called
(1) Proprietary Ratio (2) Earnings-yield Ratio
(3) Payout Ratio (4) Retention Ratio

34. Select the correct code regarding motives for holding inventories by firms :
(a) Transaction motive
(b) Environmental motive
(c) Precautionary motive
(d) Speculative motive
(e) Competitive motive
Codes :
(1) (a), (b), (c), (d)
(2) (a), (b), (d), (e)
(3) (a), (d), (e)
(4) (a), (c), (d)

35. Which of the following formulae is related to operating leverage ?

Contribution Sales – Variable Cost
(1) Operating Profit (2) Earnings before Interest and tax

Percentage change in EBIT

(3) Percentage change in sales (4) All of the above

36. Which of the following is not true in case of HRM ?

(1) Employees are seen as an investment to be nurtured as well as a cost to be controlled.
(2) Conflicts are dealt with by team members within their teams.
(3) Preference is for collective bargaining of pay and working conditions.
(4) Emphasis is on competitive pay and conditions to stay ahead of competitors.

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37. Which one of the following is an advantage of Magazines as a source of recruitment ?

(1) Less expensive
(2) Long lead time for advertisement placement
(3) Reach a diverse audience
(4) Many unmotivated applicants

38. Examine the following statements and choose the correct code :
Assertion (A) : Human Resource planning must always be seen within the strategy
making context.
Reason (R) : Human Resource planning process removed from the realities of the
business will be a waste of time.
Codes :
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are wrong.
(3) (A) is correct, but (R) is wrong.
(4) (A) is not correct, but (R) is correct.

39. Match the items of List – I with the items of List – II and select the correct code :
List – I List – II
a. Golden parachutes i. The right to purchase a stated
number of shares of a company
stock at today’s price at some time
in the future.
b. Gain sharing ii. An incentive plan that engages
employees in a common effort to
achieve productivity objectives and
share the gains.
c. Stock-option iii. Payments companies make in
connection with a change in
ownership or control of a company
d. Annual bonus iv. Plans designed to motivate short
term performance of managers and
are tried to company profitability.
Codes :
a b c d
(1) iii i ii iv
(2) i ii iii iv
(3) ii iii i iv
(4) iii ii i iv

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40. Which one of the following is not a function of plant council ?

(1) Recommend and improve safety, health and welfare measures.
(2) Determination of productivity schemes taking into consideration the local
conditions.
(3) Planning, implementation and review of monthly targets and schedules.
(4) Review of working of shop level bodies.

41. Assertion (A) : “Banks globally are facing more challenges now, and Macro
sustainability is a necessity but not sufficient for sustainable
economic growth.”
Reason (R) : “Putting regulations in place is only one part and their implementation
is equally important for achieving growth and sustainability.”
Codes :
(1) (A) and (R) both are true and (R) is correct explanation of (A).
(2) (A) and (R) both are true but (R) is not the correct explanation of (A).
(3) (A) is true and (R) is false.
(4) (A) is false and (R) is true.

42. Banking on telephone service includes :

(i) Automatic balance voice out
(ii) Inquiry all term deposit account
(iii) Direct cash withdrawl
(iv) Utility bill payment
(v) Voice out last five transactions
Codes :
(1) (i), (ii), (iii) and (v)
(2) (i), (ii), (iv) and (v)
(3) (ii), (iii), (iv) and (v)
(4) All (i), (ii), (iii), (iv) and (v)

43. Which one of the following banks currently ranks number one in India in terms of market
capitalization ?
(1) State Bank of India
(2) I.C.I.C.I. Bank
(3) U.T.I. Bank
(4) I.D.B.I. Bank

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44. Match the items of Column – I with the items in Column – II and suggest the correct code :
Column – I Column – II
a. Interbank call market i. Money market
b. Commercial Bills ii. Promissory note
c. Commercial paper market iii. Short-term maturity
d. Treasury bills iv. Government papers
Codes :
a b c d
(1) i ii iv iii
(2) iii i ii iv
(3) i iii iv ii
(4) iv iii ii i

45. Match the items of List – I with List – II with regard to the BASEL III norms and select the
correct code :
List – I List – II
a. Pillar 1 i. Supervisory review process
b. Pillar 2 ii. Market discipline
c. Pillar 3 iii. Minimum regulatory capital
requirements based on Risk
Weighted Assets (RWAs)
Codes :
a b c
(1) i ii iii
(2) i iii ii
(3) iii ii i
(4) iii i ii

46. Assertion (A) : Comparative cost theory is static in character.

Reason (R) : Comparative cost theory is based on fixed supplies of factors of
production.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (R) is correct, but (A) is incorrect.
(3) (A) and (R) both are correct, but (R) is not the correct explanation of (A).
(4) (A) and (R) both are correct and (R) is the correct explanation of (A).

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47. Match the items of List – I with List – II with regard to Balance of Payments equilibrium :
List – I List – II
a. Exchange control i. Exporters surrender foreign exchange to the central
bank.
b. Trade Policy ii. Bank rate raised by the central bank
Measure
c. Expenditure iii. Reduction in foreign exchange rate
reducing policy
d. Expenditure iv. Enhancing exports by granting subsidies
switching policy
Codes :
a b c d
(1) i iv ii iii
(2) i ii iii iv
(3) iii ii iv i
(4) iv iii ii i

48. Which among the following is closely associated with intellectual property rights ?
(1) GATS (2) TRIMS
(3) TRIPS (4) MFN

49. What is not correct about International Development Association (IDA) ?

(a) Following earthquake in 2015, IDA has helped Nepal rebuild and recover.
(b) IDA ranks as the highest performing multilateral development bank in 2016.
(c) IDA is a subsidiary bank of IBRD.
(d) India has procured highest amount of international loan from IDA.
Codes :
(1) (a) and (b) (2) (c)
(3) (d) (4) (a) and (c)

50. As per the Foreign Trade Policy 2015-2020, a three star export house should have :
(1) Export performance (FOB/FOR) of US $ 100 million during current and previous
two years.
(2) Export performance (FOB/FOR) of US $ 500 million during current and previous
two years.
(3) Export performance (FOB/FOR) of US $ 1000 million during current and previous
two years.
(4) Export performance (FOB/FOR) of US $ 2000 million during current and previous
two years.

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JULY 2016 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 1 11 3 21 3 31 4 41 1

2 2 12 4 22 1 32 1 42 2

3 4 13 3 23 4 33 3 43 1

4 3 14 4 24 1 34 4 44 2

5 1 15 2 25 3 35 4 45 4

6 * 16 3 26 1 36 3 46 4

7 2 17 2 27 4 37 3 47 1

8 2 18 * 28 4 38 1 48 3

9 2 19 2 29 2 39 4 49 3

10 3 20 2 30 4 40 1 50 1

Note: * Marks Given to all Candidates

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JULY 2016
Paper – III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. Read the following and select the right code :

Statement – I : A custom to be valid should be proved to be immemorial but may not
be ancient.
Statement – II : The principle of judicial decision which is only authoritative is known
as ‘ratio decidendi’.
(1) Both the statements are true.
(2) Both the statements are false.
(3) Statement – I is true but Statement – II is false.
(4) Statement – II is true but Statement – I is false.
2. To become a director in a company the person must obtain
(1) Business Licence (2) Director’s Licence
(3) TIN (4) DIN
3. Which of following is not a “Maharatna” industry in India ?
(1) CIL (2) SAIL
(3) OIL (4) GAIL
4. Match the items of Column – I with those of Column – II :
Column – I Column – II
a. Exchange control i. Adverse BOP
b. Price control ii. Domestic firms
c. Import control iii. Mass consumption product
d. Legislative control iv. Industrial location
Codes :
a b c d
(1) ii i iii iv
(2) iv ii iii i
(3) iii ii i iv
(4) ii iii i iv
5. Match the items of List – I with those of List – II and choose the correct code :
List – I List – II
a. Provision for taxation i. Current Assets
b. Live-stock ii. Unsecured loans
c. Sundry Debtors iii. Fixed Assets
d. Interest accrued on unsecured loans iv. Provisions
Codes :
a b c d
(1) iv iii i ii
(2) iv iii ii i
(3) iii iv ii i
(4) ii i iii iv

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6. A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They
1
agreed to take D into partnership and gave him 8 share. What will be their new profit
sharing ratio ?
(1) 4 : 3 : 2 : 1 (2) 28 : 21 : 14 : 9
(3) 28 : 21 : 14 : 8 (4) 4 : 1 : 2 : 1

7. From the following information, find out the number of units that must be sold by the firm
to earn profit of ` 80,000 per year.
Sales price : ` 25 per unit
Variable manufacturing costs – ` 12 per unit
Variable selling costs – ` 3 per unit
Fixed factory overheads – ` 5,00,000
Fixed selling costs – ` 3,00,000
(1) 60,000 units (2) 88,000 units
(3) 98,000 units (4) 1,00,000 units

8. Which of the following is not a cash inflow ?

(1) Decrease in creditors (2) Decrease in debtors
(3) Issue of shares (4) Sale of a fixed asset

9. Match the items of List – I with those of List – II and indicate the correct code from the
following :
List – I List – II
a. Postage stamp pricing i. Equality of marginal and average cost
b. Loss leader ii. Constant average and marginal cost
c. Economic capacity iii. Product line pricing
d. Reserve capacity iv. Differential pricing
Codes :
a b c d
(1) iii iv ii i
(2) iv iii i ii
(3) ii i iii iv
(4) i ii iv iii
10. For the following two statements of Assertion (A) and Reasoning (R) indicate the correct
code :
Assertion (A) : Low initial pricing for new products is regarded as the principal
instrument for entering into mass markets.
Reasoning (R) : Firms generally go for production of new products with excess
capacity initially.
Codes :
(1) Assertion (A) and Reasoning (R) both are correct but (R) does not offer full
explanation for (A).
(2) Assertion (A) and Reasoning (R) both are wrong.
(3) Assertion (A) is correct but Reasoning (R) is wrong.
(4) Assertion (A) and Reasoning (R) both are correct and (R) offers full explanation for
(A).

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11. For the following two statements of Assertion (A) and Reasoning (R) indicate the correct
code :
Assertion (A) : Gossen’s first law of consumption is invariably applicable in case of
individuals’ consumption behaviour.
Reasoning (R) : It serves as an important determinant of demand for the goods and
services in the market.
Codes :
(1) Assertion (A) and Reasoning (R) both are correct.
(2) Assertion (A) and Reasoning (R) both are incorrect.
(3) Assertion (A) is correct but Reasoning (R) is incorrect.
(4) Assertion (A) is incorrect but Reasoning (R) is correct.

12. Production function for a product is based on certain assumptions. Indicate the correct
code from the following :
(a) Complementarity
(b) Substitutability
(c) Product elasticity
(d) Specificity
Codes :
(1) (a) (b) (c)
(2) (b) (c) (d)
(3) (a) (c) (d)
(4) (a) (b) (d)

13. Which one of the following is not the characteristic of normal distribution ?
(1) Mean, median and mode for the normal distribution are equal.
(2) The two tails of the normal curve extend to infinity in both directions but never
touch the horizontal axis.
(3) For different values of standard deviation, the height of the mean ordinate remains
the same.
–
(4) The number of independent constraints of normal distribution are N, X and σ.

14. Which one of the following formulae is used to calculate the standard error of coefficient
of correlation between 25 paired observations of a sample ?
(1 – r2) (1 – r2)
(1) (2) (n – 2)
n
⎛ 1 – r 2⎞ (n – 2)
(3) (0.6745) ⎜ ⎟ (4)
⎝ n ⎠ (1 – r2)

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15. Read the following statements and choose the correct code :
Statement – I : Non-parametric tests are based on some assumptions about the parent
population from which the sample has been drawn.
Statement – II : The standard deviation of the sampling distribution of mean is called
standard error of mean.
Codes :
(1) Both statements are true.
(2) Both statements are false.
(3) Statement – I is true while Statement – II is false.
(4) Statement – I is false while Statement – II is true.

16. Match the items of List – I with the items of List – II and indicate the code of correct
matching :
List – I List – II
i. Contingency coefficient for N–n
any size of contingency table a. N–1
ii. Statistical approach to decide σp
size of a sample b.
n
iii. Finite population multiplier x2
c.
x2 + n
iv. Standard error of mean 2
z2 . σp
d.
e2
Codes :
a b c d
(1) i ii iii iv
(2) iii iv i ii
(3) i iii ii iv
(4) iii ii iv i

17. Which of the following is a deterioration of mental efficiency, reality testing and moral
judgement that results from in-group pressure ?
(1) Harassment (2) Group think
(3) Group burnout (4) Group control

18. According to Fiedler’s contingency model of leadership, favourableness of situation

depends on which combination of the following ?
(a) Leader-member relationship
(b) Member-member relationship
(c) Leader’s position power
(d) Degree of task structure
(e) Degree of training
Codes :
(1) (a), (b) and (c) (2) (a), (c) and (d)
(3) (c), (d) and (e) (4) (a), (b) and (e)

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19. The apex body at the highest level of the unit/division, which oversees the functioning of
quality circles, is called
(1) Facilitator (2) Coordinator
(3) Steering committee (4) Supervisory committee

20. Which of the following is related to the practical means of determining a moral course of
action ?
(1) Meta ethics (2) Virtue ethics
(3) Normative ethics (4) Applied ethics

21. Match List – I and List – II and indicate the correct code :
List – I List – II
a. Convenience goods i. Consumer purchases them frequently,
immediately and with minimal effort.
b. Shopping goods ii. Consumer compares them on the basis
of suitability, quality, price and style.
c. Speciality goods iii. These are goods with unique
characteristics or brand identification.
d. Unsought goods iv. Consumers are not aware of them and
normally do not think of buying them.
Codes :
a b c d
(1) i iv ii iii
(2) i ii iii iv
(3) iv iii ii i
(4) ii i iii iv

22. Which of the following marketing strategies is/are not used in ‘growth stage’ of the
product life cycle ?
(1) Improving quality and adding new features.
(2) Adding new models of product.
(3) Entering new market segments.
(4) Using awareness and trial communications.

23. Who among the following take(s) both title to and possession of goods from the preceding
member(s) and channelize them to the subsequent members ?
(a) Agent intermediaries
(b) Merchant intermediaries
(1) (a) only (2) (b) only
(3) Both (a) and (b) (4) Neither (a) nor (b)

24. Which of the following is not a determinant of service quality ?

(1) Reliability (2) Responsiveness
(3) Sensitivity (4) Assurance

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25. Sales of a firm are ` 74 lakh, variable costs ` 40 lakh, fixed costs ` 8 lakh. Operating
leverage of the firm will be
(1) 1.48 (2) 1.78
(3) 1.31 (4) 2.42

26. From the following techniques of capital budgeting decision, indicate the correct
combination of discounting techniques :
I. Profitability index
II. Net present value
III. Accounting rate of return
IV. Internal rate of return
Codes :
(1) I II III
(2) II III IV
(3) I II IV
(4) I III IV

27. Insufficient working capital may result into which combination of the following ?
I. Failures to adapt to changes.
II. Enhancement in credit-worthiness of the firm.
III. Reduced availability of trade and cash discounts.
IV. Reduced volume of sales.
Codes :
(1) I, II, III, IV
(2) I, III, IV
(3) I, II, IV
(4) I, II, III

28. Which combination of the following represents the assumptions of the Walter’s dividend
model ?
I. The company has a very long or perpetual life.
II. All earnings are either reinvested internally or distributed as dividend.
III. There is no floatation cost for the company.
IV. Cost of capital of the company is constant.
Codes :
(1) I II III
(2) II III IV
(3) I II IV
(4) I III IV

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29. Match the items of List – I with the items of List – II and indicate the correct code :
List – I List – II
a. Job specifications i. The procedure for determining the
duties and skill requirements of a job
and the kind of person who should be
hired for it.
b. Job description ii. A list of human requirements
c. Job analysis iii. A list of job’s duties, responsibilities,
reporting relationships, working
conditions and supervisory
responsibilities.
Codes :
a b c
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) ii i iii

30. A training technique in which trainees are first shown good management techniques in a
film, are asked to play roles in a simulated situation, and are then given feedback and
praise by their supervisor is known as.
(1) Behaviour modelling (2) Role playing
(3) In-house development center (4) Management game

31. Which combination of the following statements is correct about the code of discipline in
industry ?
(a) It aims at preventing disputes by providing for outside agency or adjudication.
(b) It is a government imposed involuntary principle of discipline.
(c) It restrains the parties from unilateral action.
Codes :
(1) (a), (b) and (c) (2) (b) and (c)
(3) (a) only (4) (c) only

32. A conciliation proceeding is deemed to be pending until any combination of the following
conditions is fulfilled :
(a) a settlement is arrived at a memorandum of settlement is signed by parties to the
dispute.
(b) no settlement is arrived at, the report of conciliation officer is received by the
appropriate government.
(c) a reference is made to the court of Inquiry, Labour Court, Tribunal or National
Tribunal during the pendency of conciliation proceedings.
Codes :
(1) only (a) is correct. (2) only (b) is correct.
(3) (a) and (c) are correct. (4) (a), (b) and (c) are correct.

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33. Identify the correct combination of statements with regard to banking in India.
(a) For many years the presidency banks had acted as quasi-central banks.
(b) The Bank of Hindustan was liquidated during 1829-32.
(c) General Bank of India was an unsuccessful bank and was dissolved in 1791.
(d) Bank of Calcutta was renamed as Bank of Bengal in 1921.
Codes :
(1) (a), (b) and (c) (2) (b), (c) and (d)
(3) (a), (b) and (d) (4) (a), (b), (c) and (d)

34. Which combination of the following methods indicates quantitative methods of control of
credit creation practiced by the Reserve Bank of India ?
(a) Bank Rate
(b) Open Market Operations
(c) Variable Reserve Ratios
(d) Credit Rationing
Codes :
(1) (a), (b) and (c) (2) (a), (b) and (d)
(3) (b), (c) and (d) (4) (a), (c) and (d)

35. Which one of the following development financial institutions in India has started the
special refinance scheme for the resettlement and rehabilitation of voluntary retired
workers of the National Textile Corporation of India ?
(1) IDBI (2) SIDBI
(3) ICICI (4) None of the above

36. Read the following statements and choose the correct code :
Statement – I : Small Industry Development Bank of India (SIDBI) was set up as a
wholly owned subsidiary of RBI.
Statement – II : SIDBI has taken over the responsibility of administering small
industry development fund managed by IDBI.
Codes :
(1) only (I) is correct. (2) Only (II) is correct.
(3) Both (I) and (II) are correct. (4) Both (I) and (II) are wrong.

37. Under the Foreign Trade Policy 2015-2020, following additional ports are allowed for
export and import :
(a) Calicut Airport, Kerala
(b) Rajkot Airport, Gujarat
(c) Arakonam ICD, Tamil Nadu
(d) Ludhiana Airport, Punjab
Codes :
(1) (a) and (c) (2) (a) and (d)
(3) (b) and (d) (4) (c) and (d)

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38. Assertion (A) : Under FEMA, the receiver of laundered money is to be made culpable,
instead of sender/distributor.
Reasoning (R) : FEMA differs from the earlier exchange regulation Act FERA with
regard to penalties and punishment in case of violation of the Act.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) and (R) both are correct but (R) is not the right explanation of (A).
(3) (A) and (R) both are correct and (R) is the right explanation of (A).
(4) (A) and (R) both are incorrect.

39. Match the items of List – I with those of List – II with regard to international monetary
fund’s various schemes :
List – I List – II
a. Extended Fund Facility (EFF) i. Repayment period 4 to 10 years
b. Stan Arrangements ii. Repayment period 3 to 5 years
c. Supplemented Reserve Fund (SRF) iii. Repayment period 2 to 5 years
d. Poverty Reduction and Growth iv. Repayment period 10 years
Facility (PRGF)
Codes :
a b c d
(1) i ii iii iv
(2) iv iii ii i
(3) iv ii iii i
(4) i iv ii iii

40. Which combination of the following is correct with regard to World Trade Organization
(WTO) :
(a) WTO initiates peace process among the member countries to enhance international
trade.
(b) WTO avoids the task of “Settlement of Disputes” among the member countries.
(c) WTO administers the “Trade Review Mechanism”.
(d) WTO cooperates in an appropriate manner with the IMF and the World Bank.
Codes :
(1) (b), (c) and (d) (2) (a) and (c)
(3) (c) and (d) (4) (a), (b) and (d)

41. Choose the code representing the correct sequence of steps in a merging transaction :
(I) Screening and investigation of merger proposal.
(II) Approval of Central Government
(III) Approval of respective High Courts
(IV) Negotiation Stage
(V) Approval of proposal by Board of Directors, Shareholders and Creditors
Codes :
(1) (I) → (V) → (IV) → (III) → (II)
(2) (I) → (IV) → (V) → (III) → (II)
(3) (I) → (IV) → (III) → (V) → (II)
(4) (I) → (III) → (V) → (II) → (IV)

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42. Which of the following are the important features of option contracts ?
(I) Buyers of option have limited liability.
(II) Options have high degree of risk to option-writers.
(III) Options are exercisable only by buyers of option.
(IV) Buyers of option have all rights which are available to equity shareholders of the
concerned companies.
Codes :
(1) (I), (II), (III) (2) (I), (II), (III), (IV)
(3) (I), (II), (IV) (4) (I), (III), (IV)

43. Which of the following approaches is adopted for the valuation of human resource
according to economic concept ?
(1) Replacement cost approach (2) Opportunity cost approach
(3) Historical cost approach (4) None of the above

44. Match the items of List – I with those of List – II and select the correct code :
List – I List – II
a. High levered fund i. Market risk
b. Increase in bank rate ii. Purchasing power risk
c. Inflation iii. Financial risk
d. Political instability iv. Interest rate risk
Codes :
a b c d
(1) iii i ii iv
(2) i iii iv ii
(3) iii iv ii i
(4) ii iii i iv

45. Which of the following are the instruments of money market ?

(i) Call money market
(ii) Commercial bill market
(iii) Industrial securities market
(iv) Short-term loans market
(v) Treasury bill market
Codes :
(1) (i), (ii), (iv), (v) (2) (i), (ii), (v)
(3) (i), (ii), (iii), (iv), (v) (4) (i), (ii), (iii), (iv)

46. Accounting Standard-6 is meant for

(1) Accounting for Fixed Assets (2) Accounting treatment for goodwill
(3) Depreciation Accounting (4) Disclosure of Accounting policies

47. Which of the following is not a feature of OTCEI ?

(1) Quick transfer and disposal system
(2) Nationalised computerised networking
(3) Ringless trading system
(4) Fragmentation of regional stock exchanges

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48. Which of the following requires consumers to interpret ambiguous stimuli ?

(1) Focus group method (2) Projective techniques
(3) Rejective techniques (4) Semantic differential scales

49. Which of the following passes through the four stages of distinctiveness, emulation, mass
fashion and decline ?
(1) Style (2) Fashion
(3) Fad (4) Style and Fashion

50. Which of the following positioning strategies is adopted by marketers to position their
product in two categories simultaneously ?
(1) Point of Difference (2) Point of Parity
(3) Straddle Positioning (4) Emotional Positioning

51. Statement (I) : Marketing is the process by which a firm profitably translates
customer needs into revenue.
Statement (II) : Marketing is the messages and/or actions that causes messages and/or
actions.
Codes :
(1) (I) is correct but (II) is not correct.
(2) (II) is correct but (I) is not correct.
(3) (I) and (II) both are correct.
(4) (I) and (II) both are incorrect.

52. Assertion (A) : Odd pricing aims at maximising profit by making micro-adjustments in
pricing structure.
Reasoning (R) : Odd pricing refers to a price ending in 1, 3, 5, 7, or 9. When examining
a price, the first digits carry more weight than the last ones.
Codes :
(1) (A) is right and (R) is wrong.
(2) (A) is wrong and (R) is right.
(3) Both (A) and (R) are right.
(4) Both (A) and (R) are wrong.

53. Name the process in which a buyer posts its interest in buying a certain quantity of item
and sellers compete for the business by submitting lower bid until there is only one seller
left.
(1) Internet (2) Reverse auction
(3) B2B market place (4) B2C market place

54. Advertising method in which an advertisement is broadcasted simultaneously on several

radio stations and / or television channels is known as
(1) Black-out (2) Consolidation
(3) Road-block (4) Cornering

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55. Which of the following is the mental condition or attitude of individuals and groups which
determines their willingness to cooperate ?
(1) Motivation (2) Morale
(3) Excitement (4) Delight

56. Which of the following is not provided under the Factories Act, 1948 ?
(1) The certificate of fitness is granted by a certifying surgeon on the application of any
young person or a parent or a guardian.
(2) An adolescent who has not been granted a certificate of fitness shall be deemed to be
a child for the purpose of the act.
(3) The certificate of fitness granted or renewed remains valid for a period of six
months from the date of issue.
(4) Any fee payable for the certificate of fitness shall be paid by occupier and not by the
young person or his parent or guardian.

57. Arrange the following steps of developing Behaviourally Anchored Rating Scales (BARS)
in the right sequence :
(a) Developing performance dimensions
(b) Generate critical incidents
(c) Scale the incidents
(d) Reallocate the incidents
(e) Develop the final instrument
Codes :
(1) (a), (b), (c), (d), (e) (2) (b), (a), (d), (c), (e)
(3) (a), (b), (d), (c), (e) (4) (a), (c), (b), (d), (e)

58. Within how much period from the close of accounting year, bonus must be paid, if there is
no dispute about the payment of bonus ?
(1) Two months (2) Six months
(3) Eight months (4) Ten months

59. Which of the following statements is correct about Wage Boards in India ?
(a) A Wage Board is a tripartite body.
(b) Labour and management representatives on a Wage Board can be selected from
industries other than the one which is investigated.
(c) Wage Boards are always statutory in nature.
(d) Wage Boards work on the principle of living wage.
Codes :
(1) (a) only (2) (b) and (c)
(3) (c) and (d) (4) (a), (b), (c) and (d)

60. Who gave the surplus value theory of wage ?

(1) David Ricardo (2) Karl Marx
(3) Adam Smith (4) F.A. Walker

61. Who gave the systems approach to industrial relations ?

(1) Beatrice Webb (2) John Dunlop
(3) Eric Trist (4) Henry Fayol

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62. Which among the following are multinational corporations ?

(a) A multinational, decentralized corporation with strong home country presence.
(b) A global, centralized corporation that acquires cost advantage through centralized
production when cheaper resources are available.
(c) An international company that builds on the parent corporations technology and R & D.
(d) A transnational enterprise that combines the (a), (b) and (c).
Codes :
(1) (a) and (b) (2) (b) and (c)
(3) (a), (b) and (c) (4) (a), (b), (c) and (d)

63. Which among the following are full member countries of ASEAN ?
(a) Brunei Darussalam (b) Cambodia
(c) Vietnam (d) Myanmar
(e) Sri Lanka
Codes :
(1) (a), (b) and (e) (2) (a), (b), (c) and (e)
(3) (b), (c), (d) and (e) (4) (a), (b), (c) and (d)

64. Assertion (A) : Capital Account convertibility is introduced only sometime after the
introduction of convertibility on current account when exchange rate of
currency of a country is relatively stable.
Reasoning (R) : Capital Account convertibility is necessary for faster growth and
development of economy and it makes foreign exchange rate more stable.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) and (R) both are correct and (R) is the right explanation of (A).
(3) (A) and (R) both are correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are incorrect.

65. Statement (I) : WTO is only international organization which deals with the rules of
trade between organizations.
Statement (II) : The limit of holding by individual foreign institutional investors in a
company has been raised from 5 to 10% of company’s share while the
aggregate limit has been increased from 24 to 34%.
Codes :
(1) Statement (I) is correct but Statement (II) is false.
(2) Statement (II) is correct but Statement (I) is false.
(3) Statements (I) and (II) both are correct.
(4) Statements (I) and (II) both are false.

66. In case a farmer in India buys a wheat option on future :

(a) The farmer must accept a wheat futures contract and not take physical possession of
wheat.
(b) The farmer must accept delivery of the wheat at a higher price.
(c) The farmer has the right to deliver the wheat and will do so only if the price is
favourable.
(d) The farmer must deliver the wheat at market price.
Codes :
(1) (a) and (d) (2) (d) only
(3) (c) only (4) (b) and (c)

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67. Sector specific policy of government of India in case of B2B is when

(1) FDI is upto 100%
(2) FDI is upto 49%
(3) FDI is upto 100% subject to condition that the investment in favour of Indian public
to the tune of 20% within 5 years to be done.
(4) FDI is upto 100% subject to condition that the investment in favour of Indian public
to the tune of 26% within 10 years to be done.

68. Statement I : In India a “copyright” of an unpublished book can be registered under

copyright Act of India.
Statement II : Once granted by the European Patent Office, the proprietor has a patent
which is effective in all contracting states of the patent cooperation
treaty and the agreement on the trade related aspects of IPR.
Codes :
(1) Statement (I) is correct and (II) is false.
(2) Statement (II) is correct and (I) is false.
(3) Statements (I) and (II) both are correct.
(4) Statements (I) and (II) both are false.

69. As per the Income Tax Act, 1961 for the assessment year 2015-16, a deduction u/s 80
QQB for authors of books of literacy, artistic or scientific nature is allowed upto
(1) ` 1,00,000 (2) ` 2,00,000
(3) ` 2,40,000 (4) ` 3,00,000

70. Gratuity received by a government employee is

(1) exempted upto ` 3,50,000 (2) exempted upto ` 10,00,000
(3) fully exempted (4) fully taxable

71. Match the items of the List – I with those of the List – II and indicate the correct code :
List – I List – II
a. Residential status of i. Section 10 (13A)
an individual
b. Agricultural income ii. Section 10 (10)
c. House rent allowance iii. Section 6
d. Gratuity iv. Section 10 (1)
Codes :
a b c d
(1) i iii ii iv
(2) iii iv i ii
(3) ii i iii iv
(4) iv ii i iii

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72. Match the items of the List – I with List – II and indicate the correct code :
List – I List – II
a. House rent allowance i. A deduction from income
b. Casual income ii. A step taken by tax authorities
c. Collection charges of iii. Taxable income
interest on securities
d. Best judgement assessment iv. Partly taxable allowance
Codes :
a b c d
(1) iv iii ii i
(2) iv iii i ii
(3) iii iv i ii
(4) ii iv i iii

73. The statutory limit for deduction u/s 80 GG of Income tax Act, 1961, for the assessment
year 2015-16 is
(1) ` 2,000 per month (2) ` 3,000 per month
(3) ` 2,500 per month (4) ` 5,000 per month

74. For the purpose of assessment under Income Tax Act, 1961, which combination of the
following represent income ?
(I) Tax-free salary from the private sector employer.
(II) Pin money received by a family member.
(III) Awards received by the sports persons.
(IV) Loss incurred by the assessee.
(V) Perquisites received by employees.
Codes :
(1) (I), (II), (III), (IV) (2) (II), (III), (IV), (V)
(3) (I), (III), (IV), (V) (4) (I), (II), (IV), (V)

75. Indicate the correct code for forms for filing income tax return from the following Income
Tax Return Forms :
(a) ITR-4S
(b) ITR-2
(c) ITR-2B
(d) ITR-3
Codes :
(1) (a), (b) and (c) (2) (b), (c) and (d)
(3) (a), (b) and (d) (4) (a), (c) and (d)
___________

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JULY 2016 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 4 11 4 21 2 31 4 41 2 51 3 61 2 71 2

2 4 12 4 22 4 32 4 42 1 52 3 62 4 72 2

3 3 13 3 23 2 33 1 43 2 53 2 63 4 73 1

4 4 14 2 24 3 34 1 44 3 54 3 64 1 74 3

5 1 15 4 25 3 35 2 45 1 55 2 65 3 75 3

6 2 16 2 26 3 36 2 46 3 56 3 66 3

7 2 17 2 27 2 37 1 47 4 57 2 67 3

8 1 18 2 28 3 38 3 48 2 58 3 68 3

9 2 19 3 29 2 39 1 49 3 59 1 69 4

10 1 20 3 30 1 40 3 50 3 60 2 70 3

Note: * Marks Given to all Candidates

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DECEMBER 2015
PAPER II

Note : Thio paper containo fifty (50) objective type queotiono oo two (2) marko each. All queotiono
are compulsory.

1. Environmental degeneration does not consist of :

(1) Land degeneration and soil erosion
(2) Problem of over grazing and ecological degeneration
(3) Floods
(4) None of the above

2. Which of the following is not the main objective of “Fiscal Policy of India” ?
(1) To increase liquidity in economy
(2) To promote price stability
(3) To minimize the in-equality in income and wealth
(4) To promote employment opportunities

3. Liberalization means :
(1) Reducing number of reserved industries from 17 to 8
(2) Liberating the industry, trade and economy from unwanted restriction
(3) Opening up economy to the world by attaining international competitiveness
(4) Free determination of interest rate

4. Assertion (A) : Industrialization of an economy is considered synonymous with growth.

Reasoning (R) : The transfer of resources from agrarian to industrial may be capital or labour
or both.
Codes :
(1) Both (A) and (R) are true and (R) is correct explanation of (A).
(2) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(3) (A) is true but (R) is false.
(4) (A) is false but (R) is true.

5. Globalization is the term used to describe process of removal of restriction on which one of
the following ?
(1) Foreign trade (2) Investment
(3) Both (1) and (2) (4) None of the above

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6. Interest on loan taken for the purchase of fixed assets is a :

(1) Revenue Expenditure (2) Capital Expenditure
(3) Deferred Revenue Expenditure (4) Capital Loss

7. Dual Aspect Concept results in the following accounting equation :

(1) Revenue5Expenses (2) Capital1Profits5Assets1Expenses
(3) Capital1Liabilities5Assets (4) Capital1Drawings5Owner’s Equity

8. Match the items in Column - 1 with the items in Column - 2 :

Column - 1 Column - 2
(a) Materiality Concept (i) The same accounting method used by a firm from
one period to another
(b) Going Concern Concept (ii) An inappropriate assumption of a firm being
bankrupt
(c) Historical Cost Concept (iii) A normal basis used for accounting assets
(d) Consistency Concept (iv) Relates to the importance of an item or event
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (i) (ii) (iii) (iv)
(3) (ii) (iii) (iv) (i)
(4) (iv) (ii) (i) (iii)

9. ‘X’ Ltd. has a liquid ratio of 2 : 1. If its stock is ` 40,000 and its current liabilities are of
` 1 Lac, its current ratio will be :
(1) 1.4 times (2) 2.4 times (3) 1.2 times (4) 3.4 times

10. ‘Comparison of the financial statements of the current year with the performance of previous
years of the same firm’, is known as :
(1) Trend Analysis (2) Horizontal Analysis
(3) Intra - firm comparison (4) All of the above

11. The Marshallian utility analysis is based on a less valid assumption of :

(1) cardinal measurability of the utility
(2) given marginal utility of money
(3) diminishing marginal utility of the goods
(4) additivity of the utility

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12. Match the items of the List - I with those of the List - II and indicate the correct code :
List - I List - II
(a) Convexity of the indifferences curve to origin (i) Indifference curve analysis
(b) Quantity of certain goods sacrificed for a (ii) Consumer’s equilibrium
large quantity of other goods
(c) Equality of the ratio of the marginal (iii) Substitutability/complementarity
utilities with that of the prices of the of the two goods
two goods
(d) Separation of substitution and income (iv) Marginal rate substitution
effects from the total price effect
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (i) (iii)
(2) (iii) (iv) (ii) (i)
(3) (iii) (i) (iv) (ii)
(4) (i) (iii) (ii) (iv)

13. Firms producing and selling a large variety of goods will generally follow :
(1) Cost plus pricing (2) Marginal pricing
(3) Skimming pricing (4) Product line pricing

14. For the following two statements of Assertion (A) and Reasoning (R) indicate the correct
code :
Assertion (A) : All firms under perfect competition in long run earn only normal profit.
Reasoning (R) : All firms under perfect competition in long run operate at the minimum
average cost level.
Codes :
(1) (A) and (R) both are correct. (2) (A) is correct but (R) is not correct.
(3) (A) is not correct but (R) is correct. (4) (A) and (R) both are incorrect.

15. Match the items of List - I with those of List - II and indicate the correct code :
List - I List - II
(a) Substitute Goods (i) Negative Cross Elasticity
(b) Complementary Goods (ii) Low Price Elasticity
(c) Giffen Goods (iii) Positive Cross Elasticity
(d) High Income Group Consumption Goods (iv) Positive Price Elasticity
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (iii) (i) (iv) (ii)
(3) (ii) (iii) (i) (iv)
(4) (i) (ii) (iii) (iv)

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16. Which one of the following is not a method of studying association of attributes ?
(1) Concurrent Deviation Method (2) Proportion Method
(3) Yule’s Metho (4) Coefficient of Contingency

17. Identify which of the following steps would be included in hypothesis testing :
(a) State the null and alternative hypothesis.
(b) Set the significance level before the research study.
(c) Eliminate all outliers.
(d) Obtain the probability value using a computer program such as SPSS.
(e) Compare the probability value to the significance level and make the statistical decision.
Codes :
(1) (a), (c) and (d) (2) (c), (d), and (e)
(3) (a), (b), (d) and (e) (4) (b), (c), (d) and (e)

18. Select the methods of finding out correlation from the following :
(a) Karl Pearson’s Method
(b) Spearman’s Rank Method
(c) Yule’s Method
(d) Coefficient of Contingency
(e) Concurrent Deviation Method
Codes :
(1) (a), (b), (c) (2) (a), (b), (c), (d)
(3) (a), (b), (e) (4) (c), (d), (e)

19. A set of data can be distinguished from other set of data by means of :
(1) Central value and dispersion
(2) Central value, dispersion and skewness
(3) Central value, dispersion, skewness and Kurtosis
(4) None of the above

20. The advent of computers in research has led to :

(1) Limitations of options in analysis
(2) Tremendous amount of flexibility with marginal increase in cost
(3) Myopic exposure of statistics to the researcher
(4) None of the above

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21. Who among the following is not related to the planning function given by Taylor ?
(1) Route clerk (2) Time and cost clerk
(3) Inspector (4) Disciplinarian

22. Match the following :

(Book) (Author)
(a) Functions of the Executive (i) Charles Babbage
(b) On the Economy of Machinery and Manufactures (ii) Henri Fayol
(c) The Effective Executive (iii) Chester Barnard
(d) General and Industrial Administration (iv) Peter Drucker
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iii) (i) (iv) (ii)
(3) (iv) (iii) (i) (ii)
(4) (iii) (iv) (i) (ii)

23. The classical organisation theory treats organisation as a/an :

(1) Open system (2) Closed system
(3) Technical system (4) Macro system

24. Which of the following is a systematic interactive forecasting method that relies on a panel of
experts ?
(1) Pay-off matrix (2) Game theory
(3) Queing theory (4) Delphi technique

25. According to Hersey and Blanchard’s situational approach to leadership, the ‘participating
style’ of leadership has :
(1) High task and low relationship orientation
(2) High task and high relationship orientation
(3) Low task and high relationship orientation
(4) Low task and low relationship orientation

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26. Which of the following is not a reason for the failure of new products ?
(1) Good idea but overestimated market size.
(2) Correctly positioned new product, not promoted effectively or overpriced.
(3) Development costs are lower than or equal to estimated or expected.
(4) Competitors fight back harder than expected.

27. Which one of the following is true for the calculation of overall market share ?
(1) (Customer penetration)3(Customer loyalty)3(Price selectivity)
(2) (Customer loyalty)3(Customer selectivity)3(Price selectivity)
(3) (Customer selectivity)3(Price selectivity)3(Customer penetration)
(4) (Customer penetration)3(Customer loyalty)3(Customer selectivity)3(Price selectivity)

28. __________ is wielded by a manufacturer that threatens to withdraw a resource or terminate

a relationship if intermediaries fail to cooperate.
(1) Coercive Power (2) Legitimate Power
(3) Expert Power (4) Reference Power

29. When the consumers favour those products which offer the most quality, performance or
innovative features, then it is called as :
(1) Production concept (2) Product concept
(3) Sales concept (4) Marketing concept

30. Match the items of List - I with List - II where the PLC curve patterns are given for different
categories :
List - I List - II
(a) Product category (i) One of several variant shapes
(b) Product forms (ii) Longest PLC
(c) Products (iii) Standard PLC
(d) Branded Products (iv) Short or long PLC
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (i) (ii) (iv) (iii)
(3) (iv) (ii) (i) (iii)
(4) (ii) (iii) (i) (iv)

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31. The term ‘capital structure’ implies :

(1) Share Capital1Reserves1Long-Term Debts
(2) Share Capital1Long and Short-Term Debts
(3) Share Capital1Long-Term Debts
(4) Equity and Preference Share Capital

32. A company has issued 10 percent perpetual debt of ` 1 lac at 5 percent premium. If tax rate
is 30 percent, then the cost of debt will be :
(1) 10 percent (2) 15 percent
(3) 6.66 percent (4) 8.21 percent

33. “Dividend is not relevant in determining the value of the company”. Who among the
following held this opinion ?
(1) J.E. Walter (2) Ezra Soloman
(3) Modigliani-Miller (4) M.J. Gordon

Q
34. The formula is used to compute the :
2
(1) Total ordering cost (2) Total carrying cost
(3) Opportunity cost (4) Re-order point

35. Financial Leverage is measured by :

EBIT EBIT EAIT C

(1) (2) (3) (4)
EAT EBT EBT EBIT

36. Which of the following is a key role of HR Manager as defined by Ulrich et al (2009) ?
(1) Personnel Administrator (2) Business Ally
(3) Payroll Advisor (4) Organizational Geographer

37. Which of the following is the most serious problem that might arise due to excessive reliance
on internal recruitment ?
(1) reduced job performance (2) high labour turnover
(3) lack of motivation (4) internal resistance

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38. Match the methods of performance appraisal given in List - I with the explanations given in
the List - II :

List - I List - II

(a) Behaviourally Anchored Rating Scale (BARS) (i) Evaluator keeps a log of
critical incidents to evaluate
performance

(b) Management By Objectives (MBO) (ii) Evaluator indicates on a scale

how often the appraise was
actually observed engaging in
the specific behaviours
already identified

(c) Critical incident method (iii) Evaluator rates on the scale

described in the form of
critical incidents

(d) Behaviour observation scale (iv) Systematic and organized

approach that allows
management to focus on
achievable goals

Codes :

(a) (b) (c) (d)

(1) (ii) (iv) (i) (iii)

(2) (i) (iv) (ii) (iii)

(3) (iii) (iv) (i) (ii)

(4) (ii) (i) (iv) (iii)

39. The internal factors affecting the wage mix include :

(a) Relative worth of the job (b) Area wage rates

(c) Employer’s ability to pay (d) Manpower market conditions

Codes :

(1) (a), (b) and (c) (2) (a) and (c)

(3) (b), (c) and (d) (4) All of the above

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40. Match the items of List - I with the items of List - II :

List - I List - II
(a) Giri Approach (i) The utility of non-violence as the means of
conflict resolution.
(b) Industrial Sociology Approach (ii) Organizations are made up of people and the
success of management lies in its dealing with
these people.
(c) Gandhian Approach (iii) Voluntary negotiations between employers
and employees are a means of settling disputes.
(d) Human Relations Approach (iv) Investigating the underlying trends and
patterns in the cause and effect of industrial
disputes.
Codes :
(a) (b) (c) (d)
(1) (ii) (iii) (i) (iv)
(2) (iii) (iv) (i) (ii)
(3) (i) (iii) (ii) (iv)
(4) (i) (ii) (iv) (iii)

41. Assertion (A) : Taking of deposits and granting of loans single out banks.
Reasoning (R) : Banks act as intermediaries when they mobilize savings from surplus units
to shortage units in order to finance productive activities.
Codes :
(1) Assertion (A) is correct and Reasoning (R) is the correct explanation of (A).
(2) Both Assertion (A) and Reasoning (R) are correct but (R) is not the correct explanation
of (A).
(3) Assertion (A) is correct but Reasoning (R) is incorrect.
(4) Reasoning (R) is correct but Assertion (A) is incorrect.

42. “Skimming” in e-banking refers to :

(1) Identifying fraudsters copying vital information from credit cards
(2) Multiple transactions by one credit card
(3) Conversion of a debit card into credit card
(4) None of the above

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43. Match the items of List - I with List - II in terms of functions of a bank :
List - I List - II
(Activities) (Functions)
(a) Underwriting (i) Primary Functions
(b) Transfer of funds (ii) Granting Advances
(c) Overdraft (iii) Utility Functions
(d) Recurring Deposits (iv) Agency Functions
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iv) (iii)
(2) (iv) (iii) (ii) (i)
(3) (iii) (iv) (ii) (i)
(4) (ii) (iv) (iii) (i)

44. Which among the following is not a subsidiary of Reserve Bank of India ?
(a) Deposit Insurance and Credit Gaurantee Corporation of India.
(b) Bharatiya Reserve Bank Note Mudran Private Limited.
Codes :
(1) Only (a) (2) Only (b)
(3) Both (a) and (b) (4) Neither (a) nor (b)

45. Which among the following is not associated with NABARD ?

(a) NIEAF (b) BIRD (c) RIDF (d) SHPI
Codes :
(1) (a) only (2) (b) only
(3) (b) and (c) only (4) None of the above

46. Examine the following statements and choose the correct code :
Statement - (I) : Companies with Low cash reserves normally prefer Licensing mode rather
than Foreign Direct Investment.
Statement - (II) : Cash rich firms normally prefer Foreign Direct Investment.
Codes :
(1) Both (I) and (II) are correct (2) Both (I) and (II) are wrong
(3) (I) is correct but (II) is wrong (4) (I) is not correct but (II) is correct

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47. Which one of the following is not a feature of Business Process Outsourcing (BPO) ?
(1) It enables executives to concentrate on strategy
(2) It improves process and saves money
(3) It decreases organizational capabilities
(4) None of the above

48. The major outcome of the Bretton Woods Conference was :

(1) Establishment of IMF and IFC (2) Establishment of IBRD and IFC
(3) Establishment of IBRD and ADB (4) Establishment of IMF and IBRD

49. Which one of the following is an important activity of the World Bank borrowings ?
(1) It borrows in the international capital market
(2) It borrows on currency on swap agreements
(3) It borrows under the discount net programme
(4) All of the above

50. Which one of the following statements is false ?

(1) IFC was established in July 1956
(2) IFC encourages the growth and development of Public Sector Enterprises in member
countries
(3) IFC is an affiliate of the World Bank
(4) IFC encourages the growth of productive private enterprises in member countries

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

December 2015 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 4 11 2 21 3 31 1 41 1

2 1 12 2 22 2 32 3 42 1

3 3 13 4 23 2 33 3 43 3

4 2 14 1 24 4 34 2 44 4

5 3 15 2 25 3 35 2 45 4

6 2 16 1 26 3 36 2 46 1

7 3 17 3 27 4 37 4 47 3

8 1 18 3 28 1 38 3 48 4

9 2 19 3 29 2 39 2 49 4

10 4 20 2 30 4 40 2 50 2

Note: * Marks Given to all Candidates

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DECEMBER 2015
PAPER III

Note : This paper csntains o eventy five (75) s bjective type questisns s s two (2) marks each.
All questions are compulsory.

1. The method being used for Transferring Complex Technology is known as :

(1) Licensing Agreement (2) Transfer of Technology
(3) Turnkey Contract (4) None of the above

2. Which of the following is not a ‘force’ in the “Porter Five Forces Model” ?
(1) Buyers (2) Suppliers
(3) Complementary produce (4) Industry rivalry

3. LIBOR term is used for :

(1) Deposit rate in European market
(2) Interest rate in Euro currency market
(3) Deposit rate applicable to interbank loans in London
(4) Interest rate in Euro bond market

4. Which of the following characterises the early stage financial crises ?

(1) Falling the price of residential properties
(2) Excessive euphoria about the future price of certain assets
(3) Excessive pessimism about future assets price
(4) Stragnating share price

5. Assertion (A) : In 1991 Government decided to allow all foreign investments to any industry
without any restrictions.
Reason (R) : Government has enhanced the investment limit of small scale industrial
units.
Codes :
(1) Both (A) and (R) are true and (R) is the correct explanation of (A).
(2) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(3) (A) is true but (R) is false.
(4) (A) is false but (R) is true.

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6. When a business is purchased, any amount paid in excess of the total of assets, minus the
liabilities taken, is called :
(1) Share Premium (2) Goodwill
(3) Capital Employed (4) Working Capital

7. Indicate the correct code as regards the sources of funds for a Funds Flow Statement from
the following :
(a) Increase in working capital
(b) Decrease in working capital
(c) Writing off the intangible/fictitious assets
(d) Issuing equity shares for acquisition of a building for office
(e) Charging depreciation on fixed assets
Codes :
(1) (a), (c), (d) (2) (b), (c), (e) (3) (a), (d), (e) (4) (b), (c), (d)

8. Which of the following statements are correct ?

(a) Analysis and interpretation of financial statements, is a function of accounting.
(b) Profit and Loss account is prepared for ascertaining financial position of a firm.
(c) Goodwill is a wasting asset.
(d) Balance Sheet is prepared for ascertaining financial position of a firm.
Select the correct answer using the codes given below :
Codes :
(1) (a) and (b) (2) (a) and (c) (3) (a) and (d) (4) (b) and (c)

9. Match the items of List - I with those of the List - II and indicate the correct code for the
following :
List - I List - II
(a) Debtors Turnover Ratio (i) Solvency Ratio
(b) Proprietary Ratio (ii) Liquidity Ratio
(c) Operating Ratio (iii) Activity Ratio
(d) Acid Test Ratio (iv) Profitability Ratio
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (iii) (ii) (i) (iv)
(3) (iii) (i) (iv) (ii)
(4) (iv) (iii) (ii) (i)

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10. For the following two statements of Assertion (A) and Reasoning (R), indicate the correct
code :

Assertion (A) : Cash Flow Statement as per the financial statements as well is incapable in
revealing the overall financial position of a firm.

Reasoning (R) : Cash is an important constituent of the working capital based on the
recorded facts only.

Codes :

(1) (A) and (R) both are correct and (R) is an explanation of (A).

(2) (A) is correct but (R) is not correct.

(3) (A) is not correct but (R) is correct

(4) (A) and (R) both are incorrect

11. For the following two statements of Assertion (A) and Reasoning (R), indicate the correct
code :

Assertion (A) : The quantity of a commodity demanded invariably changes inversely to

changes in its price.

Reasoning (R) : The price effect is the net result of the positive substitution effect and negative
income effect.

Codes :

(1) (A) and (R) both are correct. (2) (A) is correct but (R) is incorrect.

(3) (A) is incorrect but (R) is correct. (4) (A) and (R) both are incorrect.

12. Economic capacity of a plant represents its :

(1) maximum physical output level

(2) average output level over a period

(3) break-even output and sales level

(4) output level that equates the average and the marginal costs

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13. Match the items of List - I with those of the List - II and indicate the correct code :
List - I List - II
(a) Excess capacity of the plant (i) Cost reduction with output expansion
(b) Resorting to New Technology (ii) Constant cost with output expansion
(c) Setting up of the Training Institutions (iii) Internal economies
(d) Reserve capacity of the plant (iv) External economies
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (iv) (ii)
(2) (iii) (i) (iv) (ii)
(3) (ii) (iii) (i) (iv)
(4) (iv) (ii) (iii) (i)

14. In case the elasticity of demand on an average revenue curve is equal to unity, the marginal
revenue will be :
(1) more than unity (2) equal to unity
(3) equal to a fraction of unity (4) equal to zero

15. Match the items of the List - I with those of the List - II and indicate the correct code :
List - I List - II
(a) Trade Channel Discount (i) Oligopoly Pricing
(b) Loss Leadership (ii) Locational Price Differentials
(c) Pricing being non - responsive to changes in (iii) Differential Pricing
the demand and the cost
(d) Basing Point Pricing (iv) Product - Line Pricing
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (iii) (iv) (i) (ii)
(3) (ii) (iii) (iv) (i)
(4) (i) (ii) (iii) (iv)

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16. Statement - I : When a null hypothesis gets rejected in statistical hypothesis testing, it is
known as II type - error in hypothesis testing.
Statement - II : When a sample is small sized and parametric value of the standard deviation
is not known, z - test is the most appropriate test for hypothesis testing.
Codes :
(1) Both statements are correct
(2) Both statements are incorrect
(3) Statement - I is correct while statement - II is incorrect
(4) Statement - I is incorrect while statement - II is correct

17. The following are the estimated regression equations for x and y variables :
x50.85y
y50.89x
With this information, the value of the coefficient of correlation would be :
(1) 0.87 (2) 0.86 (3) 0.89 (4) 0.75

18. The power of the statistical hypothesis testing is denoted by :

(1) a (alpha) (2) b (beta) (3) 1 - a (4) 1-b

19. Match the items of List - I and List - II and indicate the code of correct matching of the
items :
List - I List - II

z 2 . s p2
(a) (i) Measurement for Kurtosis
e2

X1 2 X 2

(b)  1 1  (ii) Calculated value of F ratio

s p2  1 
 n1 n2 

m4
(c) (iii) Statistical approach to find out the size of sample
m22

s s21
(d) (iv) Calculated z value of mean differences
s s22

Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (ii) (iv) (iii) (i)
(3) (iii) (iv) (ii) (i)
(4) (iii) (iv) (i) (ii)

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20. Assertion (A) : A reasonably large sized sample drawn randomly from a given population
contains almost all the characteristics of the population.
Reason (R) : As per the sampling theory, the assertion is based only on the ‘Law of Inertia
of Large Numbers’.
Codes :
(1) Assertion (A) is correct and Reason (R) as per the sampling theory is also fully correct.
(2) Assertion (A) is correct but the Reason (R) as per the sampling theory is not fully
correct.
(3) Both Assertion (A) and Reason (R) are incorrect.
(4) Assertion (A) is incorrect but the Reason (R) is sufficient as per the sampling theory.

21. Which of the following approaches of team building is based on the belief that each person
possesses positive and negative characteristics that must be owned up to a permitted
expression ?
(1) Process approach (2) Gestalt approach
(3) Role analysis approach (4) Parallel learning structure approach

22. Which of the following factors lead to group cohesiveness ?

(a) agreement on group goals (b) high intra-group competition
(c) frequent interaction of members (d) personal attractiveness
Codes :
(1) (a) and (b) (2) (a), (b) and (c) (3) (a), (c) and (d) (4) (a), (b) and (d)

23. Assertion (A) : ‘Uncertainty Avoidance’ is one of the dimensions of cultural differences, as
identified by Geert Hofstede.
Reasoning (R) : ‘Uncertainty Avoidance’ is the extent to which people feel threatened by
ambiguous situations. To avoid such situations, organisations provide
greater career stability, make more formal rules and reject deviant
behaviours.
Codes :
(1) (A) is wrong (R) is right
(2) Both (A) and (R) are wrong

(3) Both (A) and (R) are right and (R) is the correct explanation of (A)

(4) Both (A) and (R) are right but (R) is not the correct explanation of (A)

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24. Which of the following is the internal conflict or anxiety that occurs when people receive
information incompatible with their value systems, prior decisions and knowledge ?
(a) Polarisation (b) Cognitive dissonance
(c) Premature evaluation (d) Projection
Codes :
(1) (a) and (b) (2) Only (b)
(3) Only (d) (4) (a), (b), (c) and (d)

25. Matrix organisation structure is essentially a violation of the principle of :

(1) Unity of Command (2) Scalar Chain
(3) Unity of Direction (4) Division of Labour

26. Which of the following statements is not true ?

(1) One sided messages work best with audiences those are initially predisposed to
communicator’s position.
(2) Two sided arguments work best with audiences who are similar and not opposed.
(3) Two sided messages tend to be more effective with better educated audiences.
(4) Two sided messages tend to be more effective with audiences those are likely to be
exposed to counter propaganda.

27. In the course of converting to a marketing-oriented company, a company may face which of
the following hurdles ?
(1) Organised resistance (2) Slow learning
(3) Fast forgetting (4) All of the above

28. A person’s distinguishing psychological characteristics that lead to relatively consistent and
enduring responses to his or her environment is called :
(1) Life style (2) Self-concept (3) Personality (4) Attitude

29. When electronic markets permit prices to change faster even daily as a function of demand
and supply then this practice is called :
(1) competitive pricing (2) e-marketing pricing
(3) yield management pricing (4) none of the above

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30. Match the strategies given in List - I with the examples given in List - II :
List - I List - II
(Strategies) (Examples)
(a) Differential Pricing (i) Customer lounges to sit in while waiting for a
table at service centres, etc.
(b) Complimentary Service (ii) Breakfast service by McDonald’s and mini
vacation and weekends by hotels
(c) Reservation System (iii) Low prices for early and evening movies,
weekend discounts for car parking rentals
(d) Non-peak Demand Cultivation (iv) Airlines, Hotels and Physicians employ
extensively
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iv) (ii) (i) (iii)
(3) (ii) (i) (iv) (iii)
(4) (iii) (i) (iv) (ii)

31. From investor’s point of view, the cost of capital is :

(1) Interest Rate (2) Market Value
(3) Yield of Capital Sacrifice (4) Stock Exchange Value

32. Formula for net cash inflow of a project is :

(1) Sales2Operating Expenses2Interest2Tax
(2) Sales2Operating Expenses
(3) Net Profit after tax1Depreciation
(4) Gross Profit1Depreciation

33. Concentration Banking is a method of :

(1) Decentralised collection (2) Centralised collection
(3) Direct collection (4) Payment only through cheques

34. In case, cost of capital is 10%, EPS ` 10, IRR 8% and Retention Ratio is 60%, then the value
of equity share as per Gordon’s Model will be :
(1) ` 100 (2) ` 87 (3) ` 90 (4) ` 77

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35. A firm with high operating leverage has :

(1) Low fixed cost in its production process

(2) High variable cost in its production process

(3) High fixed cost in its production process

(4) Low variable cost in its production process

36. Match the items of List - I with List - II according to ‘The Harvard Framework’ developed
for HRM :

List - I List - II

(a) Stakeholder’s interest (i) Work systems

(b) Situational factor (ii) Cost - effectiveness

(c) HRM policy choice (iii) Individual well-being

(d) HR outcome (iv) Government

(e) Long - term consequence (v) Business strategy

Codes :

(a) (b) (c) (d) (e)

(1) (iv) (i) (ii) (iii) (v)

(2) (v) (iv) (ii) (i) (iii)

(3) (iv) (v) (i) (ii) (iii)

(4) (i) (v) (ii) (iii) (iv)

37. The committees which promote worker’s participation in management are usually established
only at the :

(1) Corporate level (2) Plant level

(3) Shop-floor level (4) All of the above

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38. Choose the correct code for the statements given below :

Statement (I) : T-group and sensitivity training are not the same.

Statement (II) : T-group participants belong to a diverse groups and may not be familiar
with each other.

Statement (III) : T-group training sessions are well structured.

Codes :

(1) Statements (I) and (II) only are correct

(2) Only (II) and (III) statements are correct

(3) All the three statements are correct

(4) Only statement (II) is correct

39. A review is heavily influenced only by any one characteristic of the employee whose
performance is being reviewed is known as :

(1) Recency of Events Error (2) Central Tendency

(3) Logical Error (4) Halo Effect

40. Which one of the following tests is not recommended for the top level positions ?

(1) Presentations (2) Role plays

(3) Interviews (4) Leaderless group discussions

41. Select the major principles which banks strive to incorporate in their working from the
following :

(a) Profitability (b) Labour welfare

(c) Social welfare (d) Safety

(e) HRD (f) Liquidity

Codes :

(1) (a), (b), (d), (e) (2) (a), (c), (d), (f) (3) (c), (d), (e), (f) (4) (a), (b), (c), (d)

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42. Identify the years in which different phases of Bank Nationalisation took place in India :

(a) 1950 (b) 1955 (c) 1969 (d) 1949 (e) 1980

Codes :

(1) (a), (b), (c), (d) (2) (b), (c), (e) (3) (b), (d), (e) (4) (c), (d), (e)

43. ‘SWIFT’ stands for :

(1) Society for Worldwide Inter-bank Fund Transfer

(2) Society for Worldwide Inter-bank Fast Transmission

(3) Society for Worldwide Inter-bank Financial Telecommunications

(4) None of the above

44. Select the techniques of monetary control adopted by RBI from the following :

(a) Cash Reserve Ratio (b) Statutory Liquidity Ratio

(c) Bank Rate (d) Currency Rate

Codes :

(1) (a), (b), (c), (d) (2) (b), (c), (d) (3) (a), (c), (d) (4) (a), (b), (c)

45. Which of the following is not a development banking institution ?

(1) IDBI (2) IFCI

(3) EXIM Bank (4) ICICI

46. Which of the following is not a characteristic of bartering internationally ?

(1) Bartering can be time - consuming.

(2) Bartering can be expensive.

(3) Bartering is a type of service export and import.

(4) Bartering can be risky.

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47. Assertion (A) : International business has grown in more recent years at a faster pace than
global production.

Reason (R) : Growth through trade has increased, but growth through foreign direct
investment has not.

Codes :

(1) Both (A) and (R) are correct (2) (A) is correct but (R) is incorrect

(3) (A) is incorrect but (R) is correct (4) Both (A) and (R) are incorrect

48. Identify the multinational corporations (MNCs) from the following :

(a) IOCL (b) GAIL (c) SBI

(d) SAIL (e) Tata Steel (f) Bharat Petroleum

Codes :

(1) (a), (b), (c), (d) (2) (b), (c), (d), (e) (3) (c), (d), (e), (f) (4) (a), (c), (e), (f)

49. Statement-I : Legal agreements between two countries govern how both the countries
tax earnings.

Statement-II : International Law may determine how and whether companies can operate
in a certain locale.

Codes :

(1) Both the statements are true

(2) Both the statements are false

(3) Statement-I is true but Statement-II is false

(4) Statement-I is false but Statement-II is true

50. Which of the following is an example of an issue for which an agreement has not been made
between two or more countries ?

(1) Restricting harmful emissions

(2) Deep-sea mining in non-coastal areas of the oceans

(3) Preserving endangered species

(4) Banning the use of certain pesticides

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51. Match the items of List - I with List - II :

List - I List - II
(a) Intangible Assets (i) Ind AS 31
(b) Impairment of Assets (ii) Ind AS 34
(c) Interim Financial Reporting (iii) Ind AS 36
(d) Interests in Joint Ventures (iv) Ind AS 38
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iv) (iii) (ii) (i)
(3) (iv) (i) (ii) (iii)
(4) (iv) (ii) (i) (iii)

52. Assertion (A) : Human Resource Accounting is the measurement of the cost and value of
people to the organization.
Reasoning (R) : Human Resource Accounting involves measuring costs incurred by the
organizations to recruit, select, hire, train and develop employees and judge
their economic value to the organization.
Codes :
(1) Assertion (A) and Reasoning (R) are correct and (R) is the right explanation of (A)
(2) Assertion (A) and Reasoning (R) are correct and (R) is not the right explanation
of (A)
(3) Assertion (A) is correct but Reasoning (R) is incorrect
(4) Both Assertion (A) and Reasoning (R) are incorrect

53. For the discharge of its functions efficiently, SEBI has been vested with the following
powers :
(a) to approve by-laws of stock exchanges
(b) to direct the stock exchanges to amend their by-laws
(c) inspect the books of accounts and call for periodical returns from recognized stock
exchanges
(d) inspect the books of accounts of financial intermediaries
(e) compel certain companies to list their shares in one or more stock exchanges
(f) registration of brokers
Codes :
(1) (a), (b), (c) and (f) (2) (a), (c), (d) and (f)
(3) (b), (c), (d), (e) and (f) (4) (a), (b), (c), (d), (e) and (f)

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54. Consider the following characteristics :

(a) High risk high return opportunity

(b) Small and medium size enterprise

(c) Private equity stakes in start-ups

(d) Investment fund

The above attributes are found in :

(1) Mutual Funds (2) Venture Capital Funds

(3) Qualified Institutional Buyers (4) Domestic Institutional Investors

55. Identify the incorrect statement(s), regarding money market, among the following :

(a) The call money market deals in short term finance repayable on demand, with a maturity
period varying from one day to 14 days.

(b) Treasury bills are instruments of short-term borrowing by the Government of India,
issued as promissory notes under discount.

(c) A reduction in the repo rate helps banks to get money at a cheaper rate.

(d) Money market mutual funds invest money in specifically, high-quality and very short
maturity-based money market instruments.

Codes :

(1) (a) and (c) (2) (b)

(3) (d) (4) None of the above

56. “Buyers are less price sensitive when they cannot easily compare the quality substitutes”.
Which of the following factors of price sensitivity is reflected from this statement ?

(1) Substitute - awareness effect (2) Unique value effect

(3) Price quality effect (4) None of the above

57. The model of decision support where there is recommendation of the type of advertisement
with humourous and ‘slice of life’ kinds of appeals to use for given marketing goals and
characteristics of products, target markets and competitive situations is known as :

(1) MEDIAC (2) PROMOTOR (3) ADCAD (4) COVERSTORY

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58. Which of the following statements is not true ?

(1) Marketing profitability analysis measures the profitability of different marketing
activities.
(2) Marketing efficiency studies try to determine how various marketing activities could
be carried out more efficiently.
(3) Each company needs to reassess periodically its marketing effectiveness through a
control instrument called marketing audit.
(4) All the above are true

59. Industry boundaries are blurring at an incredible rate as companies are recognizing that the
new opportunities lie at the intersection of two or more industries, it is called :
(1) Globalization (2) Customization
(3) Industry convergence (4) Acquisition

60. A picture of two characters is presented, with one making a statement. Respondents are
asked to identify with the other and fill in the empty balloon.
This description belongs to which one of the following projective techniques ?
(1) Thematic Apperception Test (2) Picture Completion Test
(3) Sentence Completion Test (4) Story Completion Test

61. Match the items of List - I with the items of List - II :

List - I List - II
(Job Analysis) (Examples)
(a) Task (i) Payroll processing
(b) Element (ii) Compensation policy administrator
(c) Duty (iii) Compensation design manager
(d) Position (iv) Compensation specialist
(e) Job (v) Preparing forms
(f) Occupation (vi) Signing pay- cheques
Codes :
(a) (b) (c) (d) (e) (f)
(1) (i) (ii) (iii) (iv) (v) (vi)
(2) (v) (vi) (i) (ii) (iii) (iv)
(3) (vi) (v) (iv) (ii) (iii) (i)
(4) (vi) (i) (ii) (iii) (iv) (v)

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62. In which of the following types of collective bargaining, one party gains at the expense of the
other ?

(1) Distributive bargaining (2) Integrative bargaining

(3) Centralized bargaining (4) None of the above

63. Which one of the following dispute settlers cannot make a binding decision ?

(1) Arbitrator (2) Adjudicator

(3) Conciliator (4) Industrial tribunal member

64. Ensuring the safety, health and welfare of the employee is the primary purpose of which one
of the following Acts ?

(1) The Factories Act, 1948

(2) The Payment of Wages Act, 1936

(3) The Equal Remuneration Act, 1976

(4) The Industrial Disputes Act, 1947

65. Match the items of List - I with the items of List - II and select the correct code :

List - I List - II

(a) Pension scheme (i) Health Care for family

(b) Personal security (ii) Severance Pay

(c) Financial assistance (iii) Provident Fund

(d) Allowance (iv) Transport Allowance

Codes :

(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv)

(2) (iii) (i) (ii) (iv)

(3) (iii) (ii) (i) (iv)

(4) (i) (iv) (ii) (iii)

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66. Examine the following statements and choose the correct answer :

Statement - I : FIIs do not invest in unlisted securities. They participate only through Stock
Exchanges.

Statement - II : FIIs cannot invest at the time of initial allotment.

Codes :

(1) Both the statements are wrong

(2) Both the statements are correct

(3) Statement-I is correct but the statement-II is wrong

(4) Statement-I is wrong but the statement-II is correct

67. Which one of the following is not a member country in the Association of South-East Asian
Nations (ASEAN) ?

(1) Singapore (2) Malaysia (3) Thailand (4) Vietnam

68. Match the items of List - I with the items of List - II and select the correct answer with the
codes given below :

List - I List - II

(a) SAAR (i) Philippines

(b) ASEAN (ii) Canada

(c) EU (iii) Afghanistan

(d) NAFTA (iv) Hungary

Codes :

(a) (b) (c) (d)

(1) (ii) (iv) (i) (iii)

(2) (iv) (ii) (i) (iii)

(3) (iii) (i) (iv) (ii)

(4) (iii) (iv) (ii) (i)

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69. Which among the following are criticisms given against World Trade Organization (WTO) ?

(a) It is not a democratic and transparent institution.

(b) It has domination of international trade by rich countries for the benefit of their
individual interests.

(c) It encourages a ‘race to the bottom’ in wages by pitting workers against each other
rather than promoting internationally recognized labor standards.

(d) It is seeking to privatize essential public services.

Codes :

(1) (b), (c) and (d) (2) (a), (b) and (c)

(3) (a), (b) and (d) (4) (a), (b), (c) and (d)

70. Domestic Currency tends to depreciate owing to :

(1) Constant inflation rate (2) Lowering of inflation rate

(3) High inflation rate (4) All of the above

71. Consider the following conditions :

(a) An individual is in India for a period of 182 days in the financial year in which he is
getting his salary income.

(b) An individual is in India for a period of 60 days or more during financial year in which
he gets his salary and 365 days or more during 4 years immediately preceding to that
financial year.

If one of the above conditions is satisfied, as per the provisions of Income Tax Act, 1961, he
is :

(1) Resident but not ordinarily resident of India

(2) Non-resident citizen of India

(3) Resident and categorised citizen of India U/S 29

(4) Ordinary resident of India

72. Agriculture income is exempted from income tax under the following section of Income Tax
Act, 1961 :

(1) 2 (1A) (2) 10 (1) (3) 10 (2) (4) 10 (4)

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73. Match the items of List - I with List - II :

List - I List - II
(a) When the assessee is in default or is deemed to be (i) Section 271 (1) (c)
in default in making payment of tax, including
the tax deducted at source
(b) Failure to pay the advance tax as directed by the (ii) Section 273 (1)
Assessing Officer
(c) Concealment of particulars of income or (iii) Section 201 (1)
furnishing of inaccurate particulars of
income
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (iii) (ii) (i)
(3) (iii) (i) (ii)
(4) (ii) (i) (iii)

74. Assertion (A) : Tax evasion is undertaken by employing unfair means.

Reasoning (R) : Payment of tax is avoided through illegal means or fraud for tax evasion.
Codes :
(1) Assertion (A) is correct and Reasoning (R) is the right explanation of (A).
(2) Assertion (A) is correct but Reasoning (R) is not the right explanation of (A).
(3) Both Assertion (A) and Reasoning (R) are correct independently and (R) may be
considered as an explanation of (A).
(4) Both Assertion (A) and Reasoning (R) are incorrect.

75. Which among the following are necessary documents to file Income Tax Return for an
employed person in India ?
(a) Adhar Card
(b) PAN Card
(c) Form No. 16 issued by employer
Codes :
(1) (a) only (2) (a) and (b) (3) (a), (b) and (c) (4) (b) and (c)

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

December 2015 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 3 11 3 21 2 31 3 41 2 51 2 61 2 71 4

2 3 12 4 22 3 32 3 42 2 52 1 62 1 72 2

3 3 13 1 23 3 33 1 43 3 53 4 63 3 73 2

4 2 14 4 24 2 34 4 44 4 54 2 64 1 74 1

5 4 15 2 25 1 35 3 45 3 55 4 65 3 75 4

6 2 16 2 26 2 36 3 46 3 56 4 66 1

7 2 17 2 27 4 37 4 47 2 57 3 67 *

8 3 18 4 28 3 38 1 48 4 58 4 68 3

9 3 19 4 29 3 39 4 49 1 59 3 69 4

10 1 20 2 30 5 40 2 50 2 60 2 70 3

Note: * Marks Given to all Candidates

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JUNE 2015
PAPER II

Note : Thio paper containo fifty (50) objective type queotiono oo two (2) marko each. All queotiono
are compulsory.

1. The world’s first electronic stock market is :

(1) KOSPI (2) Nikkie (3) NASDAQ (4) Dow Jones

2. The Human Development Index (HDI) is introduced by :

(1) UNDP (2) UNICEF (3) IMF (4) World Bank

3. Examine the following statements and choose the correct code :

Assertion (A) : American style option, compared to European style, provides more freedom
to option holders in exercising the option.
Reason (R) : American style option can be exercised only at a specified date which is
generally the expiration date.
Codes :
(1) Both (A) and (R) are correct. (2) Both (A) and (R) are wrong.
(3) (A) is correct, but (R) is wrong. (4) (A) is not correct, but (R) is correct.

4. From the statements given below, identify the correct code :

Statement (I) : The key strategy behind acquiring a company is to create share holder’s
value.
Statement (II) : Conglomeration is a merger between two companies that have common
business areas.
Statement (III) : MRTP Act got replaced by the Competition Act, 2002 in India.
Codes :
(1) All the three statements are correct.
(2) Statements (I) and (II) only are correct.
(3) Statements (I) and (III) only are correct.
(4) Statement (II) only is correct.

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5. From the following, identify the tools of fiscal policy :

(i) Public expenditure
(ii) Open market operations
(iii) Deficit financing
(iv) Taxation
(v) Reserve requirements
Codes :
(1) (i), (iii), (iv) and (v) (2) (i), (ii), (iv) and (v)
(3) (ii) and (v) (4) (i), (iii) and (iv)

6. The basic difference between a static budget and flexible budget is that :
(1) A flexible budget considers only variable costs but a static budget considers all costs.
(2) Flexible budgets allow management latitude in meeting goals, whereas static budget is
based on fixed standards.
(3) A flexible budget is applicable for a single department only but a static budget for
entire production facility.
(4) A flexible budget can be prepared for any production level within a relevant range but
a static budget is based on one specific level of production.

7. A retiring partner continues to be liable for obligations incurred after his retirement :
(1) If unpaid amount is transferred to his loan account.
(2) If he does not give public notice.
(3) If he starts a similar business elsewhere.
(4) In all the situations till he survives.

8. In what order, the following assets are shown in the balance sheet of a company ?
(i) Trade receivables
(ii) Cash
(iii) Furniture and fittings
(iv) Investment in shares and debentures
Codes :
(1) (ii), (i), (iv), (iii) (2) (i), (ii), (iii), (iv) (3) (iii), (iv), (i), (ii) (4) (iv), (iii), (ii), (i)

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9. When opening stock is ` 50,000, closing stock is ` 60,000 and the cost of goods sold is
` 2,20,000, the stock turnover ratio is :

(1) 2 times (2) 3 times (3) 4 times (4) 5 times

10. If : Stock turnover ratio is56 times

Average stock 5` 8,000

Selling price 525% above cost

What is the amount of gross profit ?

(1) ` 2,000 (2) ` 4,000 (3) ` 10,000 (4) ` 12,000

11. A rectangular hyperbola shaped demand curve on all its points has :

(1) Equal slopes of the price demand curve

(2) Price elasticity equal to unity

(3) Varying price elasticity

(4) Both slope and price elasticity equal

12. In case of short-run equilibrium, a perfectly competitive firm while earning abnormal profits
operates at an output level where :

(1) Marginal cost is the minimum

(2) Average cost is the minimum

(3) Both marginal cost and average cost are equal

(4) Marginal cost is higher than average cost

13. Which one of the following statements is false ?

(1) Normally, a price demand curve slopes downward from left to right.

(2) Economies of scale and economies of scope are the same.

(3) For optimization, equality between marginal cost and marginal revenue is a necessary
condition but it is not a sufficient one.

(4) Law of variable proportions denotes input-output relationship during short-run.

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14. Match the items of List-I with the items of List-II :

List-I List-II
(a) Law of diminishing marginal (i) Cross demand
utility
(b) Relationship between price of (ii) Oligopoly
one commodity and demand for
other commodity
(c) Skimming the cream policy (iii) Cardinal approach
(d) Price rigidity (iv) Pioneer pricing
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iii) (i) (ii) (iv)
(3) (ii) (iv) (i) (iii)
(4) (iv) (iii) (ii) (i)

15. The following are the demand and supply equations in a perfectly competitive market :
P51210.3 Qs
P54020.4 Qd
The equilibrium market price would be :
(1) 24 (2) 10 (3) 40 (4) 20

16. Which of the following is not an accounting software package ?

(1) Quick Books (2) Sage one (3) Sage M (4) Sage 50

17. Which one of the following formula is used to calculate probable error of correlation-coefficient
between two variables of ‘n’ pairs of observations ?

 1 2 r2   1 2 r2 
(1) 0.6745   (2) 0.5758  
 n   n 

 1 2 r2   1 2 r2 
(3) 0.675   (4) 0.5758  
 n   n 

18. If the population is heterogeneous, which one of the following probability sampling methods
is more appropriate ?
(1) Sequential sampling (2) Quota sampling
(3) Double sampling (4) Stratified sampling

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19. Which of the following relating to normal distribution are not correct ?
(i) Co-efficient of skewness is three.
(ii) It is mesokurtic.
2
(iii) Mean deviation for it is s.
3
(iv) m62s covers 95.45% area.
(v) Mean, median and mode are equal.
(vi) The standard normal variate z has mean one and SD zero.
Codes :
(1) (i), (iii) and (vi) (2) (iii), (iv) and (v) (3) (i), (iii) and (v) (4) (i), (iii) and (iv)

20. Which one of the following statements is false ?

(1) Both correlation and regression co-efficients have same sign.
(2) Arithmetic mean of the regression co-efficients is always more than the correlation
co-efficient.
(3) Regression co-efficients are independent of both the origin and scale.
(4) Correlation co-efficient is the square root of two regression co-efficients.

21. Match the items of List-I with List-II :

List-I List-II
(a) “He who can manage, can manage (i) Henry Fayol
anything”.
(b) “Due to these experiments, a factory (ii) William B. Cornell
does not remain a factory, it is converted
into a laboratory”.
(c) “Management succeeds or fails as (iii) F.W. Taylor
human relations in business are
intelligently or unintelligently handled”.
(d) “A place for everything, and (iv) Lawrance A. Appley
everything in its place”.
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (ii) (iv) (iii)
(3) (iv) (iii) (ii) (i)
(4) (iii) (ii) (i) (iv)

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22. Assertion (A) : Management is mainly associated with economic affairs.

Reasoning (R) : Big business houses are the result of effective financial management.
Codes :
(1) (A) is correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) (A) is incorrect but (R) is correct in isolation.
(4) Both (A) and (R) are incorrect.

23. Areas of establishing objectives under MBO are :

(i) Market Standing
(ii) Innovation
(iii) Industrial Relations
(iv) Public Accountability
(v) Productivity
(vi) Industrial Policy
Codes :
(1) (iii), (iv), (v) and (vi) (2) (i), (ii), (iv) and (v)
(3) (i), (ii), (v) and (vi) (4) (ii), (iii), (iv) and (v)

24. Match the items of List-I with List-II :

List-I List-II
(a) Management of Tomorrow (i) Chris Argyris
(b) Motivation and Personality (ii) Fredrick Hergberg
(c) The Motivation of Work (iii) L.F. Urwick
(d) Personality and Organisation (iv) A.H. Maslow
Codes :
(a) (b) (c) (d)
(1) (i) (iv) (ii) (iii)
(2) (iii) (iv) (i) (ii)
(3) (iv) (iii) (ii) (i)
(4) (iii) (iv) (ii) (i)

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25. Narayan Murthy Committee revised its recommendations on Corporate Governance as on

29th October 2004 which diluted the following areas :
(i) Independence of Directors
(ii) Whistle Blower Policy
(iii) Performance evaluation of Non-Executive Directors
(iv) Mandatory training of Non-Executive Directors
Codes :
(1) (i), (ii) and (iii) only (2) (i) and (iii) only
(3) (i), (ii) and (iv) only (4) All (i), (ii), (iii) and (iv)

26. The service marketing mix is an extended marketing mix and includes :
(i) People
(ii) Process
(iii) Service
(iv) Physical evidence
Codes :
(1) (ii), (iii) and (iv) (2) (i), (ii) and (iii) (3) (i), (ii) and (iv) (4) (i), (iii) and (iv)

27. Black box model in marketing relates to :

(1) Marketing planning (2) Marketing mix
(3) Marketing control (4) Consumer behaviour

28. Items, considered part of the augmented product, do not include :

(1) Guarantee (2) Warranty
(3) Complementary products (4) Channels of distribution

29. Which of the following is not a type of direct marketing ?

(1) Direct mail marketing (2) Retail marketing
(3) Telemarketing (4) Email direct marketing

30. ‘Press release’ is a part of :

(1) Public relations (2) Advertising
(3) Sales promotion (4) None of the above

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31. In capital budgeting, the term capital rationing implies :

(1) that no retained earnings are available.
(2) that limited funds are available for investment.
(3) that no external funds can be raised.
(4) that no fresh investment is required in current year.

32. In certainty equivalent approach, adjusted cash flows are discounted at :

(1) Accounting Rate of Return (2) Internal Rate of Return
(3) Hurdle Rate (4) Risk Free Rate

33. Combined leverage is calculated as :

(1) Operating Leverage1Financial Leverage
(2) Operating Leverage2Financial Leverage
(3) Operating Leverage3Financial Leverage
(4) Operating Leverage4Financial Leverage

34. Which of the following is not true with reference to capital budgeting ?
(1) Capital budgeting is related to asset replacement decisions.
(2) Cost of capital is equal to minimum required return.
(3) Existing investment in a project is not treated as sunk cost.
(4) Timing of cash flows is relevant.

35. What is Economic Order Quantity ?

(1) Cost of an order (2) Cost of stock
(3) Reorder level (4) Optimum order size

36. Which of the following is not a basic objective of HRM ?

(1) To attract HR into the organisation
(2) To develop and motivate HR for better performance
(3) To have the reward and punishment system for HR
(4) To integrate and maintain HR in the organisation

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37. What is ‘gate hiring’ ?

(1) To select people who approach on their own for employment in the organisation.

(2) To select people who are recommended by the employees.

(3) To select people from public employment exchanges.

(4) To select people supplied by labour contractors.

38. Matching essential managers and essential positions is a step in the process of :

(1) Career Cycle (2) Succession Planning

(3) Career Planning (4) Career Stages

39. The barriers to effective performance appraisal are :

(i) Psychological blocks of managers

(ii) Faulty assumptions of the parties concerned

(iii) Technical pitfalls

(iv) Faulty written communications

Codes :

(1) All are correct. (2) Only (ii) and (iii) are correct.

(3) Only (i) and (ii) are correct. (4) Only (i), (ii) and (iii) are correct.

40. Who has developed the ‘Systems Approach’ of industrial relations ?

(1) John Dunlop (2) Garry S. Becker

(3) Michael J. Jucius (4) Edwin B. Flippo

41. In 1992, the banking sector reforms were introduced as per :

(1) C. Rangarajan Committee Report

(2) M. Narasimham Committee Report

(3) Suresh Tandulkar Committee Report

(4) Sukhamoy Chakrabarty Committee Report

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42. For the purpose of extending rural banking and agro finance, the NABARD :

(1) Directly lends and monitors the rural borrowers

(2) Refinances the banks extending rural finance

(3) Refinances the rural borrowers obtaining credit from banks

(4) Directly finances the rural borrowers and gets refinance from government

43. When RBI grants loan to commercial banks and charges interest on it, it is called :

(1) Rapo rate (2) Reverse Rapo rate

(3) Sweep stack rate, basic rate (4) Bank rate

44. E-banking business is essentially regulated by the Information Technology Act, 2000, under
which personal signature is replaced by :

(1) Encrypted signature (2) Image signature

(3) Digital signature (4) Online signature

45. In order to control inflation and ensure stability in money market :

(1) The RBI works under the direction of ministry of finance, government of India.

(2) The RBI acts independently and can refuse the government directive.

(3) The RBI acts under the board of directors.

(4) The RBI’s board of governors shall abide by the government directive.

46. In respect of international business, a project is called a turnkey project because :

(1) The licensee agrees to construct an entire plant in his home county and hands over the
key.

(2) The licensor starts the operation and hands over the key of the operating plant to the
licensee.

(3) The licensor starts the operation and then invites the licensee and hands over the key to
complete the remaining work.

(4) The licensor and the licensee jointly carry out the project and agree to share profit
equally.

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47. Match the items in List-I with the items in List-II :

List-I List-II
(a) Bretton woods conference (i) WTO
(b) Soft loan window (ii) World Bank
(c) Geneva (iii) IFC
(d) Loan to private sector (iv) IDA
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iv) (iii) (ii) (i)
(3) (ii) (iv) (i) (iii)
(4) (iv) (ii) (iii) (i)

48. Assertion (A) : The member nations, consistently finding balance of payments crisis, may
approach the World Bank seeking financial accommodation to mitigate the
cirsis.
Reasoning (R) : The member nations facing balance of payments crisis can approach the
IMF seeking redressal of the BOP crisis.
Codes :
(1) (A) is correct and (R) is correct explanation of (A).
(2) (A) is correct but (R) is wrong.
(3) (R) is correct and (A) is wrong.
(4) Both (A) and (R) are wrong.

49. In computation of balance of payments, overall balance of payments5

(1) Balance of current account1Balance of capital account1Statistical discrepancy
(2) Export of goods and invisibles2Import of goods
(3) Foreign exchange inflow2Foreign exchange outflow
(4) Export of goods and invisibles1Import of goods and invisibles

50. The instrument chosen for enhancement of international liquidity is :

(1) Society for World wide Inter bank Financial Telecommunications (SWIFT)
(2) Special Drawing Rights (SDRs)
(3) Multilateral Netting
(4) Netting of Payments

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JUNE 2015 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 3 11 2 21 3 31 2 41 2

2 1 12 4 22 3 32 4 42 2

3 3 13 2 23 2 33 3 43 4

4 3 14 3 24 4 34 3 44 3

5 4 15 1 25 4 35 4 45 2

6 4 16 3 26 3 36 3 46 2

7 2 17 1 27 4 37 1 47 3

8 3 18 4 28 4 38 2 48 3

9 3 19 1 29 2 39 4 49 1

10 4 20 3 30 1 40 1 50 2

Note: * Marks Given to all Candidates

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JUNE 2015
PAPER III

Note : This paper csntains o eventy five (75) s bjective type questisns s s two (2) marks each.
All questions are compulsory.

1. GNP at market prices2Indirect taxes1subsidies is referred to as :

(1) GNP at factor cost (2) GDP at factor cost
(3) NNP at factor cost (4) NDP at factor cost

2. EDI system got legal recognition under which one of the following Acts ?
(1) Electronics Act, 1996 (2) Right to Data Act, 1998
(3) DGFT Act, 1999 (4) Information Technology Act, 2000

3. Following statements are related to futures contracts. Choose the statements that are not
true :
(a) Purchase of a futures contract is called short position.
(b) Currency futures are traded on an exchange in standardised form and in fixed quantity.
(c) Default risk in futures contract is high compared to forward contract.
Codes :
(1) only (a) and (b) (2) only (a) and (c) (3) (a), (b) and (c) (4) only (b)

4. From the following, identify the trading blocks in the world and choose the correct code :
(a) European Union
(b) North American Free Trade Agreements
(c) South Asian Association of Regional Co-operation
(d) Central American Common Market
(e) Central African Customs Union
Codes :
(1) (a), (b) and (c) (2) (a), (b), (c) and (d)

(3) (a), (b), (c), (d) and (e) (4) (a), (b) and (e)

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5. Match the items of List - I with items of List - II and choose the correct code :
List - I List - II
(a) Carroll Model (i) International trade
(b) Corlett - Hague Rule (ii) Interest rate
(c) Hecksher Ohlin Theorem (iii) Principles of taxation
(d) Knut Wick sell’s Theory (iv) Social responsibility of business
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iii) (ii) (i) (iv)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)

6. Labour Rate of Pay Variance can be calculated by which one of the following equations ?
(1) Budgeted Labour Costs2Actual Labour Costs
(2) (Standard Hours2Actual Hours)3Actual Wage Rate
(3) (Standard Wage Rate2Actual Wage Rate)3Actual Hours Worked
(4) (Standard Wage Rate2Actual Wage Rate)3Standard Hours Worked

7. Given :
Margin of Safety ` 80,000
Profit ` 20,000
Sales ` 3,00,000
What is the amount of Fixed Cost ?
(1) ` 1,00,000 (2) ` 75,000 (3) ` 55,000 (4) ` 20,000

8. Preparation of consolidated statement of accounts as per AS - 21 is :

(1) Optional
(2) Mandatory for Private Ltd. Companies
(3) Mandatory for Listed Companies
(4) Mandatory for all Companies

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9. Which one of the following is not true of cash Budget ?

(1) The shortage or excess of cash would appear in a particular period.
(2) All inflows would arise before outflows for those periods.
(3) Only revenue nature cash flows are shown.
(4) Proceeds from issue of share capital is shown as an inflow.

10. Study the following transactions :

(a) Raising of short term loans
(b) Goods purchased for cash
(c) Payment of bonus in the form of shares
(d) Issue of shares in lieu of raw materials
Flow of funds is :
(1) (a), (b), (c), and (d)
(2) (b), (c), and (d)
(3) (c) and (d)
(4) Only (d)

11. When a consumer increases units of X - commodity by giving up some units of Y- commodity
and even to attain the same level of satisfaction, the marginal rate of substitution, will be
calculated by :
(1) Change in X - Commodity divided by change in Y - Commodity
(2) Change in X - Commodity divided by marginal utility of Y - Commodity
(3) Change in Y - Commodity divided by change in X - Commodity
(4) Change in Y - Commodity divided by marginal utility of X - Commodity

12. The following is the demand function in the small market :

Q55025P
Where ‘Q’ denotes quantity in physical units and ‘P’ denotes price of the commodity. At
price ` 5, the point price elasticity of demand would be :
(1) Zero (2) Equal to unity
(3) Highly elastic (4) Highly inelastic

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13. Match the items of List - I with the items of List - II and find out the correct matching.
List - I List - II
Production functions Name of the shapes of returns to scale
(a) Q510.2 K0.19 L0.88 (i) Constant Returns to scale
(b) Q51.01 L0.75 K0.25 (ii) Diminishing Returns to scale
(c) Q50.84 L0.63 K0.3 (iii) Increasing Returns to scale
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (ii) (i) (iii)
(3) (ii) (iii) (i)
(4) (i) (iii) (ii)

14. In the short-run, when a simple monopoly firm attains equilibrium and earns only normal
profit, its level of output will correspond to :
(1) Lowest average cost
(2) Average cost above optimum level of output
(3) Average cost equals marginal cost
(4) Marginal cost much below average cost

15. Which one of the following is a false statement ?

(1) Ramsey pricing rates to the methodology of pricing to situations where firms are
regulated and the maximization of allocative efficiency is the objective of pricing
together with the objective of profit - maximization.
(2) Peak-load pricing is a pricing practice where price varies with time of the day.
(3) Value-pricing is the practice of pricing where the price is set based on its value to
the customer.
(4) Two - part tariff refers to a price structure which has two parts - a lump sum
charge and a variable charge.

16. All the properties of order, interval and zero origin are simultaneously possessed by :
(1) Nominal Data (2) Interval Data (3) Ratio Data (4) Ordinal Data

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17. Under which of the following situations, chi - square test is applicable ?
(a) testing homogenity
(b) testing goodness of fit
(c) testing equality of two sample means
(d) testing equality of two sample proportions
(e) testing independence of attributes
Codes :
(1) Only (a), (b) and (c) (2) Only (a), (b) and (e)
(3) Only (c), (d) and (e) (4) Only (a), (c) and (e)

18. Which one of the following is not the correct statement regarding sampling distribution of
mean ?
(1) Sampling distribution of mean is normally distributed for large sized samples.
(2) Sampling distribution of mean is normally distributed for small sized samples
drawn from not normally distributed population.
(3) ‘t’ distribution is not normally distributed.
(4) Mean of the sampling distribution of mean is equal to the parametric value of mean.

19. Consider the following statements and identify the wrong statements :
Statement - I : Accepting null hypothesis, when it is false, is called a level of
significance.
Statement - II : 12a is called power of a test.
Statement - III : Critical value of Z - static for two - tailed test at 5% level of significance
is 1.96.
Codes :
(1) Statements I, II and III
(2) Statements I and III
(3) Statements II and III
(4) Statements I and II

20. The process of thoroughly checking the collected data to ensure optimal quality level is referred
to as :
(1) Validation (2) Editing (3) Classification (4) Entry

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21. Statement - (I) : Management is the art of knowing what you want to do and then
seeing that it is done in the best and the cheapest way.
Statement - (II) :Management is the process of planning and regulating the activities
of an enterprise.
(1) Statement (I) is correct, but (II) is incorrect
(2) Statement (II) is correct, but (I) is incorrect
(3) Both the statements (I) and (II) are incorrect
(4) Both the statements (I) and (II) are correct

22. Assertion - (A) : No business runs itself, even on momentum . . . . . every business
needs repeated stimulus.
Reasoning - (R) : The management is the dynamic, life giving element in every business,
without its leadership, the resources of production remain as resources
and never become production.
(1) Assertion (A) and Reasoning (R), both are correct, and (R) is the correct explanation
of (A).
(2) Assertion (A) and Reasoning (R), both are correct, but (R) is not the correct explanation
of (A).
(3) Assertion (A) is correct, but Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, but Assertion (A) is incorrect.

23. Match the items of List - I with List - II :

List - I List - II
(a) Credit Mobilier (i) Charles Babbage
(b) Charleton Twist Company (ii) Henry Fayol
(c) Difference Engine (iii) Claud Henri Saint Simon
(d) Commentry Four Chambault (iv) Robert Owen
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (i) (iv) (ii)
(3) (i) (iii) (iv) (ii)
(4) (ii) (i) (iv) (iii)

24. Find out the correct combination of statements with regards to business ethics :
(a) Business ethics is the behaviour that a business adheres to in its daily dealings.
(b) The ethics of a particular business can be diverse.
(c) Business ethics has normative and descriptive dimensions.
(1) Only (a) and (b) (2) Only (a) and (c)
(3) Only (b) and (c) (4) All (a), (b) and (c)

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25. Which one of the following is not correct about business ethics ?

(1) Business ethics reflects the philosophy of business.

(2) Business ethics is a form of applied ethics.

(3) Business ethics are governed by the Government Policies.

(4) Ethics are the standards which govern decisions on daily basis.

26. A marketing network consists of :

(1) The tasks to devise marketing activities.

(2) The tasks of hiring, training and motivating employees.

(3) The activities that help in designing and implementing the marketing programmes.

(4) The company and its supporting stakeholders with whom it has built mutually profitable
business relationships.

27. Target marketing involves which of the following activities ?

(a) Market positioning

(b) Market targeting

(c) Market behaviour

(d) Market segmentation

Code :

(1) (a) and (b)

(2) (b) and (d)

(3) (a), (b) and (d)

(4) (b), (c) and (d)

28. The pricing strategy which adjusts the basic price to accommodate differences in customers,
products and locations is called :

(1) Differentiated pricing (2) Promotional pricing

(3) Geographical pricing (4) Price discounts and allowances

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29. Horizontal marketing system comprises of :

(1) the producer, wholesaler and retailer acting in a unified system.
(2) multichannel marketing.
(3) two or more marketing channels to reach one or more customer segments.
(4) two or more unrelated companies put together resources to exploit an emerging market.

30. Match the items of List - I with the items of List - II :

List - I List - II
(a) Face-to-face interaction with (i) Sales promotion
one or more prospective purchasers
(b) Any paid form of nonpersonal (ii) Public relations
promotion
(c) Short-term incentives to encourage (iii) Personal selling
purchase
(d) Programmes to promote company’s (iv) Advertising
image
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (iii) (iv) (i) (ii)
(3) (ii) (i) (iii) (iv)
(4) (ii) (iii) (i) (iv)

31. Which of the following techniques for appraisal of investment proposals are based on time
value of money ?
(a) Accounting Rate of Return
(b) Internal Rate of Return
(c) Profitability Index Method
(d) Earnings Per Share
Codes :
(1) (a) and (b) (2) (b) and (c) (3) (a) and (d) (4) (a), (b) and (d)

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32. On the basis of the following information, what will be the EBIT corresponding to financial
indifference point ?
Total capital outlay ` 60,00,000
Financing Plans
(a) 100% Equity @ ` 10/- per share
(b) Debt – equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%
(1) ` 10,00,000 (2) ` 12,00,000 (3) ` 10,80,000 (4) ` 12,80,000

33. Which one of the following assumptions is not included in the James E. Walter Valuation
model ?
(1) All financing by retained earnings only
(2) No change in the key variables such as EPS and DPS
(3) The firm has finite life
(4) All earnings are either distributed as dividends or invested internally immediately

34. Match the items of List - I with the items of List - II and find out the correct matching.
List - I List - II
(Formulae) (Type of leverages)

Contribution
(a) (i) Financial leverage
EBIT

EBIT
(b) Earnings before Tax (EBT) (ii) Super – leverage

Contribution
(c) (iii) Operating leverage
EBT
Codes :
(a) (b) (c)
(1) (ii) (iii) (i)
(2) (i) (ii) (iii)
(3) (iii) (ii) (i)
(4) (ii) (i) (iii)

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35. Statement - I : Working capital leverage measures the responsiveness of Return on Equity
for changes in current Assets.
Statement - II : When the annual demand for an item is 3200 units, unit cost ` 6, inventory
carrying charges 25% p.a. and cost of one procurement ` 150, the economic
ordering quantity would be 700 units.
Codes :
(1) Both statements are correct
(2) Both statements are incorrect
(3) Statement - I is correct and Statement - II is incorrect
(4) Statement - I is incorrect and Statement - II is correct

36. Match the items of List - I with the items of List - II :

List - I List - II
Conventional HRM Strategic HRM
(a) Staff specialists (i) Fast and proactive
(b) Slow and reactive (ii) People and knowledge
(c) Capital and products (iii) Line managers
(d) Cost centre (iv) Investment centre
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (ii) (iii) (i) (iv)
(3) (iii) (ii) (i) (iv)
(4) (i) (ii) (iii) (iv)

37. Which one of the following is a traditional method for selection of personnel ?
(1) Interview (2) Selection Test (3) Phrenology (4) Aptitude Test

38. The method of training in crafts, trades and technical areas is known as :
(1) Vestibule training (2) Coaching
(3) Mentoring (4) Apprenticeship

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39. Behaviourally Anchored Rating Scale is a technique used for :

(1) Selection (2) Succession Planning

(3) Performance appraisal (4) Recruitment

40. Which one of the following is not a mechanism of managing stress ?

(1) Rust out (2) Cognitive therapy

(3) Job enrichment (4) Networking

41. Interest earned by a depositor against a deposit with a commercial bank for custodial
service :

(1) is a fund based income

(2) is a fee based income

(3) is a combination of fund and fee based gain

(4) is a commitment based gain

42. Match the items in List - I with the items in List - II :

List - I List - II

(a) ATM card (i) NPA

(b) Debts due for more than 30 days (ii) John Shephard Barron

(c) Micro finance (iii) State Finance Corporations Act

(d) State level finance corporations (iv) NABARD

Codes :

(a) (b) (c) (d)

(1) (i) (iii) (ii) (iv)

(2) (ii) (i) (iv) (iii)

(3) (iv) (iii) (ii) (i)

(4) (ii) (i) (iii) (iv)

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43. Assertion (A) : A well developed money market is the basis for an effective monetary policy.
It is in the money market that the Central Bank comes into contact with the
financial sectors of the economy as a whole and it is through the liquidity in
the market that influence the cost and availability of credit.

Reasoning (R) : A well organised money market is an essential condition for the successful
operation of the Central Banking policies, and for holding the conditions of
liquidity within the bounds of what the monetary authorities consider
desirable.

(1) (A) is true but (R) is false

(2) (R) is true but (A) is false

(3) (A) is true and (R) offers correct explanation to (A)

(4) Both (A) and (R) are false

44. The operations of banks and financial institutions are regulated by :

(1) The RBI Act 1934 only

(2) The Banking Regulation Act 1949 only

(3) Information Technology Act 2000 only

(4) All of the above

45. To operationalise online, internet, mobile banking, debit card and credit card tools, some of
the essential ingredients are :

(1) Compliance with the Information Technology Act 2000

(2) Satellite connection

(3) Selection of a portal and server

(4) All of the above

46. Any country consistently facing balance of payment deficiency can approach :

(1) The World Bank

(2) The Smithsonian Institute

(3) IMF

(4) The IMF and the IBRD

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47. Counter–trade means :

(1) A sort of bilateral trade where one set of goods is exchanged for another set of goods
and a seller provides a buyer with deliveries.
(2) A company takes full responsibility for making its goods available in the target market
by selling directly to the end-users.
(3) The companies in two separate sovereigns agree to exchange one set of goods for another
set of goods.
(4) A set of multilateral trade where one of goods and services may be exchanged for
another set of goods and services among the trading partners.

48. The floating rate system is characterised by :

(1) the market forces that determine the exchange rate between two currencies.
(2) the central banking authorities of the two countries mutually agree upon the rate.
(3) help realigning the par value of major currencies.
(4) the rate of exchange mutually agreed upon between IMF and its member nations.

49. A practice of selling a commodity in a foreign market at a price lower than the domestic
price; and even at equal to the cost of production to capture foreign market is known as :
(1) Gouging (2) Forging (3) Dumping (4) Forfeiting

50. The highest percentage of export from India went to which of the following regions in
2013-14 ?
(1) OECD countries (2) USA
(3) SAARC (4) Latin America

51. Match the items of List - I with the items of List - II and select a correct code :
List - I List - II
(a) SEB (i) Exchange for small companies
(b) RBI (ii) Secondary market in treasury bills
(c) STCI (iii) Regulation of secondary market
(d) OTCEI (iv) Ad-hoc treasury bills
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (iii) (iv) (ii) (i)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)

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52. X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd. It is
a case of :
(1) Amalgamation (2) Absorption
(3) Internal reconstruction (4) External reconstruction

53. When the cost incurred on recruiting, training and developing the employees is considered
for determining the value of employees, it is called :
(1) The replacement cost approach (2) The historical cost approach
(3) The opportunity cost approach (4) None of the above

54. In India, NIFTY and SENSEX are calculated on the basis of :

(1) Market capitalisation (2) Paid up capital
(3) Free-float market capitalisation (4) Authorized share capital

55. Financial Instruments which are issued with detachable warrants and are redeemable after
certain period is known as :
(1) Deep Discount Bonds (2) Secured Premium Notes
(3) Bunny Bonds (4) Junk Bonds

56. Which of the following can be used by a company as communication mix to reach the target
customers ?
(a) Advertising
(b) Sales promotion
(c) Events and experiences
(d) Public relations
(e) Direct marketing
(f) Personal selling
Codes :
(1) (a), (b), (d) and (f) (2) (a), (b), (e) and (f)
(3) (a), (b), (d), (e) and (f) (4) (a), (b), (c), (d), (e) and (f)

57. In addition to motivation, learning and memory, which one of the following is included in
the main psychological processes affecting consumer behaviour ?
(1) Perception (2) Life cycle (3) Life style (4) Social class

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58. Match the items of List - I with the items of List - II :

List - I List - II
(a) Geographic Segmentation (i) Gender, income, religion
(b) Demographic Segmentation (ii) Knowledge, attitude, response
(c) Psychographic Segmentation (iii) Regions, cities, neighbourhoods
(d) Behavioural Segmentation (iv) Lifestyle, personality traits, values
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (ii) (iv) (i) (iii)
(3) (iv) (ii) (i) (iii)
(4) (iv) (i) (ii) (iii)

59. Which one of the following is not a stage in the product life cycle ?
(1) Introduction (2) Growth (3) Equilibrium (4) Decline

60. Which one of the following is correct statement in respect of co-branding ?

(1) Co-branding is an umbrella branding of goods of a company.
(2) In co-branding, two or more well-known existing brands are combined into a joint
product.
(3) Co-branding is the process of combining two brands for promoting brand equity.
(4) All of the above

61. Which one of the following is not a major punishment ?

(1) Withholding of increments (2) Demotion
(3) Transfer (4) Suspension

62. Assertion (A) : Job evaluation is essentially a job rating process, not unlike the rating of
employees.
Reasoning (R): Job evaluation is a practice which seeks to provide a degree of objectivity in
measuring the comparative value of jobs within an organisation and among
similar organisations.
(1) Both Assertion (A) and Reasoning (R) are correct
(2) Both Assertion (A) and Reasoning (R) are incorrect
(3) Assertion (A) is correct, but Reasoning (R) is incorrect
(4) Reasoning (R) is correct, but Assertion (A) is incorrect

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63. Identify the correct combinations from the following :

Training and Development

Skills Target Trainees
Methods
(a) Knowledge Deliberation/Lecture Managerial
(b) Multi-skills Vestibule training Operative
(c) Decision-making skills Management game Managerial
(d) Behavioural skills Sensitivity training Supervisory

Codes :

(1) (a), (b) and (c) (2) (a), (c) and (d)

(3) (b), (c) and (d) (4) (a), (b) and (d)

64. Which among the following are not part of staffing process ?

(a) Human Resource Planning (b) Recruitment

(c) Selection (d) Induction and Orientation

(e) Training and Development (f) Performance Appraisal

(g) Transfers (h) Separations

Codes :

(1) (e), (f), (g) and (h) (2) (g) and (h)

(3) (f) and (h) (4) None of the above

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65. Match the items of List - I with List - II :

List - I List - II
(a) INTUC (i) 1920
(b) AITUC (ii) 1947
(c) CITU (iii) 1955
(d) BMS (iv) 1970
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (ii) (i) (iii) (iv)
(4) (iii) (i) (iv) (ii)

66. Assertion (A) : Amended Patent Act, in compliance with WTO, provides for grant of
product patent as well as a process patent for a period of 20 years from the
date of application.
Reasoning (R) : Under the Act, patent may be granted to an invention which means a new
product or process involving an inventive step and capable of industrial
application, a technical advance over existing knowledge.
Codes :
(1) Both (A) and (R) are true but (R), is not correct explanation to (A).
(2) (A) is false but (R) is correct.
(3) Both (A) and (R) are true and (R), is correct explanation to (A).
(4) (A) is correct but (R) is false.

67. Which of the following have been recognised under the intellectual property eligible for
creation of rights as per WTO mandate ?
(a) Computer software, music disc, performing art
(b) Geographical indicator
(c) Global positioning system
(d) Journals, books, seeds, design, brand
Codes :
(1) (a), (b) and (c) (2) (d), (c) and (a)
(3) (a), (b) and (d) (4) (c), (a) and (b)

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68. NAFTA came into force from January, 1994 embracing :

(1) The USA, Canada, Cuba, Trinidad and Tobago
(2) The USA, Canada, Mexico
(3) Cuba, Mexico, USA, Havana
(4) Trinidad, The USA, Mexico

69. A common market is one where :

(1) all the trading nations agree commonly to levy a common and uniform tariff rate for all
goods.
(2) all the trading nations agree commonly to rationalise tariff and non-tariff barriers
mutually to promote intra-region trade.
(3) there is a customs union along with free intra - union movement of factors of production.
(4) there is an economic union along with free intra-union movement of residents.

70. The Maastricht Treaty of February, 1992 renamed the European Community (EC) as :
(1) the European Union (EU)
(2) the European Economic Union (EEU)
(3) the European Monetary Union (EMU)
(4) the European Economic Community (EEC)

71. In which of the following cases, Assessing officer has the discretion to assess the income of
the previous year in the previous year or in the subsequent assessment year ?
(1) Shipping business of non-residents
(2) Association of Persons (AOP) or Body of Individuals (BOI) formed for a particular
event or purpose
(3) Assessment of persons likely to transfer property to avoid tax
(4) Discontinued business

72. Rental income received by a foreign individual, from another foreign individual, in respect of
the property situated in Delhi is taxable in the hands of :
(1) Resident and Ordinarily Resident (OR) only
(2) Ordinarily Resident (OR) and Not Ordinarily Resident (NOR) only
(3) Non Resident (NR) only
(4) Ordinarily Resident (OR), Not Ordinarily Resident (NOR) and Non Resident (NR)

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73. Which of the following income is not chargeable under the head ‘income from business and
profession’ ?
(1) Profits and Gains carried on by an assessee during the previous year.
(2) Income derived by a trade professional or similar association from specific services
performed for its members.
(3) Income from the activity of owning or owning and maintaining race horses.
(4) Salary received by a partner of a firm from the same firm.

74. Mr. A earned a capital gain of ` 100 lakhs on 31-2-2014 from the sale of a long term capital
asset (land) within the limits of Jaipur corporation. If he invests ` 60 lakhs, out of
` 100 lakhs, in Rural Electricity Corporation Bonds approved under Sec. 54 EC in 20-2-2014,
what is the amount of exemption he can claim under Sec. 54 EC of Income Tax Act for the
AY 2014-15 ?
(1) ` 60 lakhs (2) ` 50 lakhs (3) ` 100 lakhs (4) ` 30 lakhs

75. Under which of the following situations, the Appellate Tribunal can rectify the mistake in
the order passed by it under Sec 254 (2) of Income Tax Act ?
(a) If subsequent decision of the Supreme Court/High Court is available on the subject
after the Appellate Tribunal’s order
(b) If an assessee apply for rectification of the Tribunal’s order by raising fresh grounds
before the Tribunal
(c) If the omission or mistake is on the part of Appellate Tribunal
(d) If the order is passed by the Appellate Tribunal under an erroneous impression of fact
or law
Codes :
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (c) and (d)
(4) only (c) and (d)

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JUNE 2015 PAPER III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 1 11 3 21 4 31 2 41 1 51 2 61 3 71 4

2 4 12 2 22 1 32 3 42 2 52 4 62 1 72 4

3 2 13 3 23 1 33 3 43 3 53 2 63 2 73 3

4 3 14 4 24 4 34 1 44 4 54 3 64 4 74 1

5 1 15 1 25 3 35 2 45 4 55 2 65 2 75 3

6 3 16 3 26 4 36 2 46 3 56 4 66 3

7 3 17 2 27 3 37 3 47 1 57 1 67 3

8 3 18 2 28 1 38 4 48 1 58 4 68 2

9 3 19 4 29 4 39 3 49 3 59 3 69 2

10 4 20 1 30 2 40 1 50 1 60 2 70 1

Note: * Marks Given to all Candidates

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DECEMBER 2014
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.

1. The responsibility of the organization to the workers includes :

(i) The payment of fair wages
(ii) Arrangement of proper training and education of the workers
(iii) The installation of an efficient grievance handling system
(iv) Welfare of family members
(v) The provision of the best possible working conditions
Identify the correct combination :
(A) (i), (ii), (iii) and (v) (B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (iv) (D) (i), (iii), (iv) and (v)

2. Match the items of List – I with List – II :

List – I List – II
a. Industries Development Regulation Act i. 1947
b. Import and Export Control Act ii. 1948
c. Foreign Exchange Management Act iii. 1951
d. Factories Act iv. 1999
Identify the correct combination :
Codes :
a b c d
(A) i iii iv ii
(B) iii i ii iv
(C) iii i iv ii
(D) iii iv ii i

3. Which among the following is not a correct sequential combination ?

(A) Macro Environment → Economic Environment → National Income → Pattern of
Income Distribution
(B) Business Environment → Internal Environment → Business Ethics → Payment of
Fair Wages
(C) Business Environment → External Environment → Micro Environment →
Suppliers
(D) Macro Environment → External Environment → Customers → Prospects of
Business Development

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4. Which among the following is not a correct combination ?

(A) Industrial Policy – 1948
(B) Industrial Policy Statement – 1977
(C) Industrial Policy Statement – 1980
(D) Industrial Policy Statement – 1991

5. Statement – I : The industrial policy of the Government of India is aimed at increasing

the tempo of industrial development.
Statement – II : After the New Industrial Policy – 1991, the Balance of Trade for India
has always been positive.
Codes :
(A) Statement (I) is correct, but (II) is incorrect.
(B) Statement (II) is correct, but (I) is incorrect.
(C) Both Statements (I) and (II) are correct.
(D) Both Statements (I) and (II) are incorrect.

6. Current Ratio 2.5, Liquid Ratio 1.5 and Working Capital ` 60,000. What is Current Assets ?
(A) ` 60,000 (B) ` 80,000
(C) ` 1,00,000 (D) ` 1,20,000

7. X, Y, Z are sharing profits in the ratio of 6 : 5 : 3. A is admitted into partnership for 1/8th
share. The sacrificing ratio of X, Y and Z is
(A) Equal (B) 6:5:3
(C) 5/14, 4/14, 5/14 (D) 4 : 5 : 5

8. Accounting information given by a company :

Total assets turnover 3 times
Net profit margin 10%
Total assets ` 1,00,000
The net profit is
(A) ` 10,000 (B) ` 15,000
(C) ` 25,000 (D) ` 30,000

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9. “Make sufficient provisions for future losses, but do not anticipate future profits.” This
statement is in accordance to the concept of :
(A) Matching (B) Objectivity
(C) Conservatism (D) Materiality

10. When a firm is dissolved, profit or loss on realisation is shared by the partners
(A) Equal
(B) In the ratio of their capital balances
(C) In the profit sharing ratio
(D) In the ratio laid down in Garner Vs. Murray

11. The inverse relationship between variations in the price and quantity demanded is not due
to
(A) Income Effects (B) Substitution Effects
(C) Future Expectations (D) Law of Diminishing Marginal Utility

12. Consumer is said to be in equilibrium, maximizing his total utility, when

(A) the marginal utilities of the two goods consumed are equal.
(B) the proportions of the marginal utilities and respective prices are equal.
(C) the consumer gets full satisfaction from the consumption.
(D) the consumer feels satisfied with his expenditure on the various goods.

13. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Zero Income Elasticity i. Substitute goods
b. Unit Cross Elasticity ii. Complementary goods
c. Positive Cross Elasticity iii. Indifferent goods
d. Negative Cross Elasticity iv. Independent goods
Choose the correct option :
Codes :
a b c d
(A) iii ii i iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv i ii iii

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14. Statement (A) : The isoquant curves are drawn convex to the origin due to diminishing
technical rate of substitution.
Statement (B) : The lesser the convexity of the isoquant curve the greater the possibility
of the complementarity of the two inputs.
Codes :
(A) Statements (A) and (B) both are correct.
(B) Statement (A) is correct but (B) is incorrect.
(C) Statement (A) is incorrect but (B) is correct.
(D) Statements (A) and (B) both are incorrect.

15. Match the items of the List – I with those of List – II and suggest the correct code :
List – I List – II
a. Constant average cost over a i. Economic capacity
range of output
b. Average cost becomes constant ii. Reserve capacity
momentarily
c. Normal average cost is a iii. Production and Managerials
U-shaped curve costs effects
d. Modern Long-run average cost is iv. Economies and Diseconomies
L-shaped
Codes :
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv ii i
(D) ii i iv iii

16. Which one of the following is not probability sampling method ?

(A) Simple Random Sampling (B) Cluster Sampling
(C) Judgemental Sampling (D) Systematic Sampling

17. The research carried out to expand the knowledge of a particular field is known as
(A) Applied research (B) Qualitative research
(C) Quantitative research (D) Basic research

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18. In univariate data analysis t-test is used when the data are in the form of
(A) Metric data with one sample
(B) Non-metric data
(C) Non-metric data with independent variable
(D) Metric data with independent two sample

19. To show the trend for a variable, which one of the presentation method is used ?
(A) Histogram (B) Frequency polygon
(C) Line graph (D) Scatter graph

20. Which one of the following objectives is not the objective of secondary data collection ?
(A) Identify the problem
(B) Test the hypotheses of the relevant present problem
(C) Better define the problem
(D) Interpret primary data more insightfully

21. The structure of an organisation in which there is separation of ownership and

management is called
(A) Sole proprietorship (B) Partnership
(C) Company (D) Cooperative society

22. When a person transacts with a company on matters which is beyond the power of the
company, the person will be governed by the Doctrine of
(A) Management by Exception (B) Constructive Notice
(C) Indoor Management (D) Self Management

23. Assertion (A) : MBO is effective way of planning and organizing the work.
Reason (R) : Employees participate in setting the objectives.
Codes :
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is correct.

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24. The appropriate sequence of the formation of a company are in the following order :
(A) Promotion, commencement of business and incorporation
(B) Promotion, incorporation, capital subscription and commencement of business
(C) Capital subscription, promotion, incorporation and commencement of business
(D) Incorporation, capital subscription, commencement of business and promotion

25. Delegation of authority makes the size of the organization :

(A) Smaller organization
(B) Larger organization
(C) Very big organization
(D) It does not affect the size of the organization

26. Managerial Grid suggests the following as the best leader behaviour :
(A) High structure and high consideration
(B) Low structure and low consideration
(C) High concern both for production and people
(D) Low concern both for production and people

27. Marketing strategy development is also known as

(A) Marketing Control (B) Marketing Exercise
(C) Marketing Planning (D) Situation Analysis

28. For most people, the purchase of cheese for daily use can be described as a
(A) Completely novel buy (B) Modified re-buy
(C) Routine re-buy (D) High involvement product

29. The promotion mix of a company consists of these –

(A) Marketing communication, promotion decisions
(B) Personal selling, product objectives
(C) Advertising, personal selling, sales promotion , publicity and public relations
(D) Consumer psychology, buyers motives, brand equity

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30. Rational buying motives that determine purchase decisions are mostly based on
(A) Price factor (B) Psychological factors
(C) Quality of product (D) Advertisement

31. Statement – I : Capital structure refers to composition of long-term funds.

Statement – II : These include equity share capital, preference share capital, debentures,
all debts and all reserves.
(A) Both Statements I and II are correct.
(B) Statement I is correct but Statement II is incorrect.
(C) Statement I is incorrect but Statement II is correct.
(D) Both statements are incorrect.

32. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Pay-back Rate of Return i. Discounted Cash Flow Technique
b. Internal Rate of Return ii. Compounded values of investments
and returns
c. Benefit Cost Ratio iii. Crude method for project evaluation
d. Net Terminal Value Method iv. Varying sized projects evaluation
Codes :
a b c d
(A) ii iii i iv
(B) iii i iv ii
(C) i iv ii iii
(D) iv ii iii i

33. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Realised yield method i. Cost of equity share capital
b. Taxation ii. Cost of equity capital
c. Cost of total capital employed iii. Cost of debt capital
d. Dividend growth is a consideration iv. Weighted cost of capital
Codes :
a b c d
(A) iv iii ii i
(B) ii iv i iii
(C) ii iii iv i
(D) i ii iii iv

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34. Cash Flow Management involves :

I. Lock-box system
II. Marketable securities
III. Playing the float
IV. Concentration Bank Account
Codes :
(A) I, II and III only (B) II, III and IV only
(C) I, III and IV only (D) I, II and IV only

35. Dividend capitalisation model was developed by

(A) Ezra Solomon (B) Myron J. Gordon
(C) James E. Walter (D) Merton H. Miller and Franco Modigliani

36. The process of narrowing a large number of candidates to a smaller field is called
(A) Rushing (B) Recruitment
(C) Selection (D) Enrollment

37. According to which theory, people are motivated to the extent to which they expect that
their actions will help in achievement of goals ?
(A) Vroom’s Vector Valence Theory (B) Need Theory
(C) Z Theory (D) X Theory

38. Match the items of List – I with List – II and select the correct code :
List – I List – II
a. Getting Effective Leadership in the i. Dale Yoder
Industrial Organization
b. The Nature of Leadership, ii. Alford and Beatty
Organization and Management
c. Industrial Management iii. Douglas McGregor
d. Personnel Management iv. Chester I. Bernard
Codes :
a b c d
(A) i ii iii iv
(B) iii iv ii i
(C) iii iv i ii
(D) iv iii ii i

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39. Match the items of List – I with List – II :

List – I List – II
a. AITUC i. Indian National Congress
b. BMS ii. Socialists
c. INTUC iii. Rashtriya Swayamsevak Sangh
d. CITU iv. Communist Party of India
Identify the correct combination :
Codes :
a b c d
(A) iv iii ii i
(B) iv i ii iii
(C) iv iii i ii
(D) iv i iii ii

40. The main characteristics of Weber’s bureaucracy are :

(A) Specialization (B) Hierarchy of authority
(C) System of rules (D) All of the above

41. Match the items of List – I with List – II :

List – I List – II
a. RBI Nationalization i. 1964
b. Imperial Bank Nationalization ii. 1949
c. Nationalization of 14 Commercial Banks iii. 1955
d. Establishment of IDBI iv. 1969
Identify the correct combination :
Codes :
a b c d
(A) i ii iii iv
(B) ii iii i iv
(C) iii ii iv i
(D) ii iii iv i

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42. As per the RBI Act, 1934, the following functions are described as the functions of a
Central Bank :
(i) Banking functions
(ii) Advisory functions
(iii) Supervisory functions
(iv) Promotional functions
Identify the correct combination :
(A) (i), (iii) and (iv) (B) (i), (ii) and (iv)
(C) (ii), (iii) and (iv) (D) Only (i) and (iii)

43. Phishing is an attempt to acquire :

(A) Loan from unauthorized firms
(B) Sensitive information such as username, password, etc.
(C) Personal information from banks
(D) None of the above

44. What is Call Money ?

(A) Money borrowed or lent for a day or overnight.
(B) Money borrowed for more than one day but upto 3 days.
(C) Money borrowed for more than one day but upto 7 days.
(D) Money borrowed for more than one day but upto 14 days.

45. The Regulatory Authority of Regional Rural Banks is

(A) NABARD (B) Central Government
(C) State Government (D) Sponsor Bank

46. Which of the following is not ensured to the consumer in the globalization ?
(A) Lower prices (B) Better selection
(C) Clear origin of goods and services (D) Improved services

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47. In international trade which of the following is a non-tariff trade barrier ?

(A) Quotas (B) Import bans
(C) Export controls (D) Anti dumping laws

48. Match the items of List – I with items in List – II and select a correct code :
List – I List – II
a. Current Account i. Official Capital
b. Capital Account ii. Reserves from foreign countries
c. Unilateral Payments iii. Reparations
d. Official Statement Account iv. Visible Exports and Imports
Codes :
a b c d
(A) i iii ii iv
(B) iv i ii iii
(C) iv i iii ii
(D) iii ii i iv

49. Match the items of List – I with the items in List – II and select a correct code :
List – I List – II
a. Vishesh Krishi Upaj Yojana i. Scheme intended to reduce difficulties
of exporters
b. EPCG ii. Duty Entitlement Pass Book
c. DFRC iii. To boost exports of fruits, vegetables,
flowers, minor forest produce etc.
d. DEPB iv. Relating to import of duty free fuel
Codes :
a b c d
(A) iv i ii iii
(B) iv iii i ii
(C) iii iv ii i
(D) iii i iv ii

50. Which of the following is not the agency of World Bank ?

(A) MIGA (B) ICSID
(C) ADB (D) IDA

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

December 2014 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 A 11 C 21 C 31 B 41 D

2 C 12 B 22 B 32 B 42 A

3 D 13 C 23 A 33 C 43 B

4 D 14 B 24 B 34 C 44 A

5 A 15 D 25 B 35 B 45 A

6 C 16 C 26 C 36 C 46 C

7 B 17 D 27 C 37 A 47 B

8 D 18 D 28 C 38 B 48 C

9 C 19 C 29 C 39 C 49 D

10 C 20 B 30 B 40 D 50 C

Note: * Marks Given to all Candidates

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DECEMBER 2014
Paper – III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. Match the items of List – I with List – II :

List – I List – II
(International Economic Groups) (Year of Establishment)
a. European Union (EU) i. 1973
b. European Free Trade Association (EFTA) ii. 1992
c. Caribbean Community (CARICOM) iii. 1985
d. South Asian Association for Regional iv. 1960
Cooperation (SAARC)
Codes :
a b c d
(A) ii iv iii i
(B) ii iv i iii
(C) iv ii i iii
(D) iii i ii iv

2. The important objectives of WTO are :

(i) To improve the quality of technology in the member countries.
(ii) To improve the standard of living of people in the member countries.
(iii) To ensure full employment and broad increase in effective demand.
(iv) To enlarge production and trade of goods.
(v) To increase trade of services
Codes :
(A) (i), (ii), (iii) and (iv) (B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (v) (D) (i), (iii), (iv) and (v)

3. Assertion (A) : The industrial growth in India has been hampered by the burden of many
controls and regulations.
Reason (R) : The New Industrial Policy seeks to liberate the industry from the shackles of
Licensing System.
Codes :
(A) Assertion (A) is correct, but Reason (R) is not correct.
(B) Assertion (A) is correct and Reason (R) is right explanation of (A).
(C) Both Assertion (A) and Reason (R) are correct.
(D) Both Assertion (A) and Reason (R) are incorrect.

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4. Internal environment of a business includes :

(i) Business ethics and moral standards
(ii) Business and managerial policies
(iii) Prospects of business development
(iv) Government rules and regulations
(v) Industrial relations
Codes :
(A) (i), (ii), (iv) and (v) (B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (iv) (D) (i), (ii), (iii) and (v)

5. Identify the incorrect combination from the following :

Finance Constituted Report Chairman
Commission (Year) Submitted (Year)
st
(A) 1 1951 1953 K.C. Neogi
th
(B) 7 1977 1978 J.M. Shelat
th
(C) 11 1998 2000 N.K.P. Salve
th
(D) 13 2007 2009 V.L. Kelkar

6. A flexible budget requires careful study and classification of expenses into

(A) Product expenses and period expenses
(B) Past and current expenses
(C) Administrative, selling and factory expenses
(D) Fixed, semi-variable and variable expenses

7. Responsibility accounting aims at collecting and reporting costing information

(A) Department-wise (B) Cost centre-wise
(C) Function-wise (D) Product-wise

8. Return on Investment (RoI) is computed as

(A) Net Profit Ratio × Capital Turnover Ratio
(B) Operating Net Profit Ratio × Shareholders Fund
(C) Net Profit / Sales
(D) Cost of Sales / Capital Employed

9. Margin of Safety is calculated by using

Profit Fixed Cost
(A) P / V Ratio (B) Contribution
Break Even Sales Profit
(C) (D) Sales
Sales

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10. Pre-acquisition profit in subsidiary company is considered as

(A) Revenue profit (B) Capital profit
(C) Goodwill (D) Minority interest

11. Assertion (A) : The financial statements prepared on historical cost basis result into an
erosion of capital in the long run.
Reason (R) : Maintaining the books of accounts as per Current Purchasing Power
Technique only may contain the inflationary pressure.
In the context of above two statements, which one of the following is correct one ?
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.

12. Secondary market intermediaries for corporate securities in India are

I. Investors II. Jobbers
III. Brokers and sub-brokers IV. Portfolio consultants
Codes :
(A) I, II and III only (B) II, III and IV only
(C) II and III only (D) III and IV only

13. The type of lease requiring an agreement between the financier and lessor is known as
(A) Financial lease (B) Sale and lease back
(C) Leveraged lease (D) Operating lease

14. Match the various stock exchanges in List – I with the years of their establishment in
List – II as follows and suggest the correct code :
List – I List – II
a. National Stock Exchange (NSE) i. 1875
b. MCX Stock Exchange (MCX-SX) ii. 1992
c. Bombay Stock Exchange (BSE) iii. 2000
d. Interconnected Stock Exchange of India (ISEI) iv. 2008
Codes :
a b c d
(A) ii iv i iii
(B) ii iii iv i
(C) i iii ii iv
(D) iii ii iv i

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15. Monopolists prefer to sell the products in the markets with

(A) Elastic demand (B) Unitary elastic demand
(C) Inelastic demand (D) Absence of elasticity of demand

16. Assertion (A) : In long run under Perfect Competition all firms invariably get only normal
profit.
Reason (R) : All firms incur minimum average cost and incur no selling cost due to
absence of product differentiation.
Codes :
(A) Assertion (A) and Reason (R) both are correct.
(B) Assertion (A) is correct, but Reason (R) is incorrect.
(C) Assertion (A) is incorrect, but Reason (R) is correct.
(D) Assertion (A) and Reason (R) both are incorrect.

17. Assertion (A) : Differential pricing structure is designed to accommodate the various
categories of buyers.
Reason (R) : It aims at increasing sales and revenues and driving the competitors out
from the market.
Codes :
(A) Assertion (A) and Reasoning (R) both are correct.
(B) Assertion (A) is correct, but Reasoning (R) is incorrect.
(C) Assertion (A) is incorrect, but Reasoning (R) is correct.
(D) Assertion (A) and Reasoning (R) both are incorrect.

18. Cost-plus pricing is considered appropriate for :

I. Product Tailoring II. Public Utility Pricing
III. Refusal Pricing IV. Monopoly Pricing
Codes :
(A) I and II only (B) I, II and III only
(C) II, III and IV only (D) III and IV only

19. For promoting sales advertising endeavours may be made as per

I. Competitive parity II. Objective and task
III. Tied sales IV. All-one-can-Afford
Codes :
(A) I and II only (B) II, III and IV only
(C) I, II and IV only (D) III and IV only

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20. In the hypothesis testing procedure a researcher may commit type II error in which of the
following conditions ?
(A) When the true null hypothesis is rejected.
(B) When the alternative hypothesis is accepted.
(C) When the false null hypothesis is accepted.
(D) When the true null hypothesis is accepted.

21. Which one of the following tenets is not correct in the context of Central Limit Theorem ?
(A) If a population from which a sample is drawn is normally distributed the sampling
distribution of mean (SDM) will be normal for all sample sizes.
(B) The mean of the SDM is the population mean.
(C) If the population is not normal from which the sample is drawn, the SDM is not
normal for any sample size.
(D) If the population is not normal from which a sample is drawn, the SDM approaches
normality as the sample size increases.

22. Which one of the following is not an example of tax evasion?

(A) Submitting misleading documents.
(B) Not maintaining proper accounts of income earned.
(C) Suppression of facts.
(D) Interpreting the tax law in ones own way to minimise tax liability.

23. Which one of the following is not the purpose of performance-monitoring research ?
(A) To provide feedback for evaluation and control.
(B) To indicate things that are not going as planned.
(C) To help the organisation to plan various activities.
(D) It is required to explain why something went wrong.

24. The transformation of raw data into a form that will make them easy to understand and
interpret, rearranging and manipulating data to generate information is called
(A) Descriptive research (B) Descriptive analysis
(C) Causal research (D) Exploratory research

25. Assertion (A) : The span of management at the upper level is generally narrow while at
the lower level span is wide.
Reason (R) : The task allocated to subordinates at the lower level of management are
more specific and precise and thus making supervision easy and simple.
Suggest correct code :
(A) (A) is correct, but (R) is wrong.
(B) (A) is wrong, but (R) is correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are wrong.

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26. Match the following :

List – I List – II
a. To check the quality of work i. Speed loss
b. To see that work is completed in time ii. Inspector
c. To check absenteeism of workers iii. Instruction and check
d. To issue instructions regarding methods of work iv. Shop discipline
Select the code :
Codes :
a b c d
(A) iii ii i iv
(B) ii i iv iii
(C) ii i iii iv
(D) iv iii i ii

27. F.W. Taylor called “The Military type of Foreman” to

(A) Unity of Command (B) Span of Control
(C) Delegated Legislature (D) Department

28. Match the items of List – I with List – II :

List – I List – II
a. Commentary Four Chambault i. F.W. Taylor
b. Midvale Steel Works ii. Claud Henry Saint Simon
c. Charleton Twist Company iii. Henry Fayol
d. Credit Mobilier iv. Robert Owen
Codes :
a b c d
(A) iii ii iv i
(B) i ii iii iv
(C) iii i ii iv
(D) iii i iv ii

29. Assertion (A) : The risk condition exists when decision makers have absolutely no idea of
what the results of an implemented alternative would be.
Reason (R) : When operating under complete uncertainty condition, decision makers
usually find that sound decisions are a matter of chance.
In the context of the two statements, which one of the following is correct ?
Codes :
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are wrong.
(C) (A) is correct, but (R) is wrong.
(D) (A) is wrong, but (R) is correct.

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30. Assertion (A) : In product concept, focus is on innovating and improving products.
Reason (R) : In selling concept, consumers are persuaded to buy products.
Codes :
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.

31. Which of the following is not a method of segmenting a market ?

(A) Behavioural segmentation (B) Psychographic segmentation
(C) Benefits segmentation (D) Customer segmentation

32. Consumer attitudes and beliefs about diet, health and nutrition are influenced by
(A) Economic environment (B) Cultural environment
(C) Social environment (D) Natural environment

33. Select the phases of Product Life Cycle :

1. Initiation 2. Decline
3. Boom 4. Introduction
5. Maturity 6. Growth
Codes :
(A) 1, 3, 5, 6 (B) 1, 2, 3, 4
(C) 4, 6, 5, 2 (D) 2, 3, 5, 6

34. Which of the following is not a product-mix strategy ?

(A) Trading up (B) Alteration
(C) Simplification (D) Value addition

35. “Relationship” in marketing means

(A) Relation between buyer and seller
(B) Relation between sales person
(C) Relation between company and consumers
(D) All of the above

36. Match the items of List – I with the items of the List – II :
List – I List – II
(Company Name) (Brand)
a. HUL i. Cerelac
b. ITC ii. Eclares
c. Nestle iii. Vivel
d. Cadbury iv. Sunsilk
Codes :
a b c d
(A) iv iii i ii
(B) i ii iii iv
(C) iv ii iii i
(D) iv iii ii i

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37. The following are the steps in designing the market driven distribution :
1. Know what customers want 2. Determine the costs
3. Review assumptions 4. Decide on the outlet
5. Compare alternatives 6. Implement changes
Select the right sequence of the steps from the codes given below :
(A) 1, 4, 2, 5, 3, 6 (B) 1, 2, 3, 5, 4, 6
(C) 1, 3, 4, 5, 2, 6 (D) 2, 3, 4, 5, 6, 1

38. Which of the following are consumption values that customers look for in any product or
service in a society ?
1. Functional value
2. Social value
3. Money value
4. Emotional value
5. Maximum value
Codes :
(A) 1, 2, 3, 5 (B) 1, 3, 4, 5
(C) 5, 4, 3, 2, 1 (D) 1, 2 and 4

39. Franchising is a practice of :

(A) Leasing for a prescribed period of time, the right to use firm’s successful business
model and brand.
(B) Selling out a successful business model and brand.
(C) Hiring a firm’s successful business model and brand.
(D) None of the above.

40. Underwriters of the security issues are required to

(A) Purchase the securities underwritten
(B) Work as agent of the company for marketing the securities
(C) Manage the issues of the securities
(D) Take up securities not subscribed by investors

41. The optimum capital structure of a company is planned as per considerations of

I. Profitability II. Solvency
III. Marketability of shares IV. Control
Codes :
(A) I, II and IV only (B) II, III and IV only
(C) I and II only (D) III and IV only

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42. Assertion (A) : Investors in capital market seem to be inclined for fixed income securities.
Reason (R) : Debt instruments now have active secondary market.
Codes :
(A) Assertion (A) and Reason (R) both are correct and (R) is correct explanation of (A).
(B) Assertion (A) and Reason (R) both are correct, but (R) is not correct explanation of
(A).
(C) Assertion (A) is correct, but Reason (R) is incorrect.
(D) Assertion (A) is not correct, but Reason (R) is correct.

43. Insufficient working capital in any enterprise may also result into
I. Failure to adapt to changes
II. Overcapitalisation
III. Reduced availability of trade and cash discounts
IV. Reduced volume of production and sales
Codes :
(A) I, II and III only (B) I, III and IV only
(C) II and III only (D) I and IV only

44. Assertion (A) : Arbitrage keeps the cost of capital constant despite change in the capital
structure.
Reason (R) : It ensures compensating inverse change in cost of equity capital with a
change in the cost of debt capital.
Codes :
(A) Assertion (A) and Reason (R) both are correct and (R) is correct explanation of (A).
(B) Assertion (A) and Reason (R) are correct, but (R) is not correct explanation of (A).
(C) Assertion (A) is correct, but Reason (R) is incorrect.
(D) Assertion (A) is not correct, but Reason (R) is correct.

45. Assertion (A) : High morale and high productivity go hand-in-hand.

Reason (R) : Workers do not have their own ways for relief from fatigue and monotony.
Codes :
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.

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46. Relationship at work is the source of

(A) Status anxiety (B) Managerial stress
(C) Legitimate power (D) Expert power

47. Match the group of words in List – I with the group of words in List – II :
List – I List – II
a. Grievances i. Profit sharing
b. Impact of technology ii. Effective planning
c. Adjustment to technology iii. Index of low morale
d. Morale improvement iv. Changes in occupation
Codes :
a b c d
(A) i ii iii iv
(B) iv iii ii i
(C) iii ii iv i
(D) iii iv ii i

48. Assertion (A) : Functional conflict is a type of institutionalised conflict.

Reason (R) : Politics is a kind of emergent conflict.
Codes :
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.

49. Formal conflict is a kind of

(A) Goal Conflict (B) Organisational Conflict
(C) Role Conflict (D) Emergent Conflict

50. One of the objectives of organisational change is

(A) Increased motivation
(B) Greater innovation
(C) Solving inter-group problems
(D) Changes in an organisation’s level of adaptation to its environment

51. Assertion (A) : Job design relates to the manner in which tasks are put together to form
complete job.
Reason (R) : The matrix organisation is a project organisation plus a functional
organisation.
Codes :
(A) Both (A) and (R) are true. (B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true. (D) Both (A) and (R) are false.

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52. HRD as a total system includes the following major sub-systems :

1. Performance Appraisal
2. Career Planning
3. Role Analysis
4. ABC Analysis
5. Rewards
Select the correct answer from the codes.
Codes :
(A) 1, 2, 3, 4 (B) 1, 2, 3, 5
(C) 2, 3, 4, 5 (D) 1, 3, 4, 5

53. Which of the following is not true about employee grievances ?

(A) Grievance is a sign of employee’s discontent with job or its nature.
(B) Grievance provides a downward channel of communication.
(C) Grievance arises only when an employee feels that injustice has been done to him.
(D) Grievance can be real or imaginary.

54. Which of the following is not a component of Job Analysis ?

(A) Job Description (B) Role Analysis
(C) Job Summary (D) Job Specification

55. As per the Master Circular on “Prudential Norms on Capital Adequacy – Basel I
Framework”, elements of Tier I capital include :
(i) Authorised Capital (Ordinary shares), statutory reserves, all other free reserves
(disclosed), if any.
(ii) Paid-up capital (Preference shares).
(iii) Perpetual Non-Cumulative Preference Shares (PNCPS).
(iv) Innovative Perpetual Debt Instruments (IPDI).
Codes :
(A) (i) and (ii) only (B) (ii) and (iii) only
(C) (i) and (iii) only (D) (iii) and (iv) only

56. What is true about the Basel Committee on Banking Supervision (BCBS) ?
(i) BCBS is an Indian National Committee of banking supervisory authority.
(ii) BCBS was established by a group of 19 nationalized commercial banks.
(iii) BCBS was established in 1996.
(iv) It provides a forum for regular cooperation on banking supervisory matters.
Codes :
(A) (i) and (ii) only (B) (ii) and (iii) only
(C) (iii) and (iv) only (D) (iv) only

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57. Under the Cooperative Bank structure, the apex institution is

(A) National Cooperative Bank (B) State Cooperative Bank
(C) District Cooperative Bank (D) IDBI Bank

58. What is SLR ratio of a bank ?

(A) Ratio of total deposits against total investments.
(B) Amount deposited by the bank with the Central Bank in the form of cash, gold and
securities.
(C) Amount that commercial banks are required to maintain before providing credit to
customers.
(D) Amount that commercial banks deposit with the foreign banks.

59. Assertion (A) : The USA remains the world’s largest FDI recipient country.
Reason (R) : The global economic crisis of 2009, causes a reduction of global FDI flows
took place to USA.
Select the correct code :
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(B) (A) is correct, but (R) is not correct.
(C) Both (A) and (R) are incorrect.
(D) Both (A) and (R) are correct, but (R) is not correct explanation of (A).

60. As per the South Asia Free Trade Agreement, 1993 of SAARC, the member countries
have to bring their duties down to
(A) 25 percent by 2006 (B) 15 percent by 2006
(C) 10 percent by 2007 (D) 20 percent by 2007

61. Which of the following is the correct combination ?

(i) A GSA allows an MNE to enter into activities that might too costly and risky to
pursue on its own.
(ii) A GSA does not allow a firm to enhance economics of scale.
(iii) A GSA does not allow a firm to bypass entry barriers into a target foreign country.
(iv) A GSA allows a firm to acquire partner knowledge.
Codes :
(A) (i), (iv) are correct. (B) (i), (ii) are correct.
(C) (i), (ii), (iii) and (iv) are correct. (D) (ii) and (iii) are correct.

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62. Which of the following are the outcomes of the Sixth Ministerial Conference of WTO
which was held at Hong Kong in December 2005 ?
Select the correct combination :
(i) Resolve to complete the Doha Work Programme fully and to conclude negotiations
in 2006.
(ii) Amendments to TRIPS agreement reaffirmed to address public health concerns of
developing countries.
(iii) To continue export subsidies in agriculture upto 2018.
(iv) Duty free, quota free market access for all LDC’s products to all developed
countries.
Codes :
(A) (i), (ii) and (iv) (B) (i), (ii), (iii) and (iv)
(C) (i) and (iii) only (D) (ii) and (iv) only

63. Which of the following is not a function of Foreign Exchange Market ?

(A) Stabilization function (B) Hedging function
(C) Credit function (D) Transfer function

64. Assertion (A) : The impact of depreciating Indian Rupee leads to less competition for
Indian firms from imports.
Reason (R) : The depreciating Indian Rupee results in downward pressure on inflation .
Select the correct code :
Codes :
(A) Both (A) and (R) are correct.
(B) (A) is false, but (R) is correct.
(C) Both (A) and (R) are false.
(D) (A) is true, but (R) is false.

65. In which of the following Stock Exchanges the GDR’s are listed ?
(i) London Stock Exchange
(ii) New-York Stock Exchange
(iii) Luxembourg Stock Exchange
(iv) Bombay Stock Exchange
(v) Singapore Stock Exchange
(vi) Hong Kong Exchange
Identify the correct combination :
(A) (i), (ii) and (iii) (B) (i), (iv), (v) and (vi)
(C) (iii), (iv), (v) and (vi) (D) (i), (iii), (v) and (vi)

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66. Statement I : FIIs do not invest in unlisted entities. They participate only through stock
exchanges.
Statement II : FIIs cannot invest at the time of initial allotment.
Select the correct code :
Codes :
(A) Statements I and II are correct.
(B) Statement I is true and II is false.
(C) Statement I is false and II is correct.
(D) Statements I and II are false.

67. ADRs’ and GDRs’ are an excellent means of investment to invest in India for
(A) NRIs’ (B) Foreign nationals
(C) Both (A) & (B) (D) None of the above

68. Which of the following is not provided by EXIM Bank, for financing overseas
investments ?
(A) Term loans to Indian Companies upto 80% of their equity investment in overseas
JV/WOS.
(B) Term loans to Indian Companies towards upto 100% of loan extended by them to
the overseas JV/WOS.
(C) Term loan to overseas JV/WOS towards part financing.
(D) Guarantee facility to the overseas JV/WOS for raising term loan/working capital

69. Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to
deduct tax at source is
(A) 10% of tax which is otherwise deductible under Section 194 C.
(B) 100% of tax which is otherwise deductible under Section 194 C.
(C) 200% of tax which is otherwise deductible under Section 194 C.
(D) 300% of tax which is otherwise deductible under Section 194 C.

70. Match the following items of List – I and List – II and select the correct answer from the
codes given below :
List – I List – II
(Sections) (Maximum Deduction)
a. Section 80C of I.T. Act i. ` 10,000
b. Section 80D of I.T. Act ii. ` 40,000
c. Section 80 DDB of I.T. Act iii. ` 1,00,000
d. Section 80 TTA of I.T. Act iv. ` 15,000
Codes :
a b c d
(A) iii i iv ii
(B) iii iv ii i
(C) iv iii ii i
(D) ii iii i iv

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71. In which of the following cases, income of previous year is assessable in the previous year
itself ?
(A) A person in employment.
(B) A person engaged in illegal business.
(C) A person who is running charitable business.
(D) A person leaving India permanently.

72. Long term capital loss can be set off from which of the following ?
(A) Short term capital gain only
(B) Long term capital gain only
(C) Income from business and profession
(D) Capital gain head of income

73. In which of the following long term assets, cost indexation benefit is allowed ?
(A) Debentures issued by a company
(B) Self generated goodwill of a business
(C) Bonus shares allotted on 1-4-2000
(D) Jewellery

74. Calculate the Gross Annual Value from the following details :
Municipal Value – ` 45,000
Fair Rental Value – ` 50,000
Standard Rent – ` 48,000
Actual Rent – ` 42,000
(A) ` 50,000 (B) ` 48,000
(C) ` 45,000 (D) ` 42,000

75. Minimum Alternate Tax (MAT) is imposed on

(A) All companies
(B) Public Limited Companies only
(C) Private Limited Companies only
(D) Partnership Firms and Companies

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

December 2014 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 B 11 B 21 C 31 D 41 A 51 A 61 A 71 D

2 B 12 B 22 D 32 B 42 C 52 B 62 A 72 B

3 A 13 C 23 C 33 C 43 B 53 B 63 A 73 D

4 D 14 A 24 B 34 D 44 A 54 C 64 D 74 B

5 C 15 A 25 C 35 C 45 D 55 D 65 D 75 A

6 D 16 C 26 B 36 A 46 B 56 D 66 D

7 D 17 B 27 A 37 A 47 D 57 B 67 C

8 A 18 B 28 D 38 D 48 A 58 C 68 B

9 A 19 C 29 D 39 A 49 B 59 A 69 B

10 B 20 C 30 A 40 D 50 D 60 D 70 B

Note: * Marks Given to all Candidates

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JUNE 2014
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.
1. There is acute shortage of electricity 4. Match the items/terms given in List-I
in some of the states in India. This with those given in and List-II.
reflects a problem in which type of List – I List – II
business environment ?
(A) Economic (a) BIS (i) Print Media
(B) Demographic (b) CERC (ii) Minimum
(C) Politico-legal support price for
(D) Socio-cultural agricultural
products.
2. Match the items given in List-I and (c) CACP (iii) Quality of
List-II. manufactured
List – I List – II products.
(a) Economic (i) IT-enabled (d) PCI (iv) Comparative
liberalisation services product testing.
(b) Out sourcing (ii) SFIO Indicate the correct answer :
(c) Corporate (iii) Macro Codes :
frauds economic
(a) (b) (c) (d)
stability
(d) Second (iv) Increased (A) (iv) (iii) (ii) (i)
generation competition (B) (i) (ii) (iii) (iv)
reforms (C) (iii) (iv) (ii) (i)
Indicate the correct combination : (D) (ii) (iii) (iv) (i)
Codes :
5. Which one among the following is
(a) (b) (c) (d)
not the salient feature of industrial
(A) (i) (ii) (iii) (iv)
policy since 1991 ?
(B) (i) (iii) (ii) (iv)
(C) (ii) (iii) (iv) (i) (A) Enormous expansion of the
(D) (iv) (i) (ii) (iii) private sector.
(B) Redefining the role of public
3. Which of the following is true ? sector.
(A) A consumer court setup under (C) Limited exposure of Indian
the Consumer Protection Act, industry to foreign competition.
does not have the power to (D) Pruning of the list of items
punish for its contempt. reserved for SSI units.
(B) Professional services are 6. A, a partner in a firm, is drawing
outside the purview of the
` 500 regularly on the 16th of every
CPA. month. He will have to pay interest at
(C) A consumer court cannot force the given rate in a year on ` 6000 for
a person indulging in the total period of
misleading advertising to
confess his quit. (A) 5 months (B) 6 months
(D) None of the above. (C) 7 months (D) 12 months

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7. Subsequent expenditures that extend 11. Which one of the following does not
the useful life, improve the quality of explain the basic nature of Business
output, or reduce operating costs of economics ?
an existing asset beyond their (A) Behaviour of firms in theory
originally estimated levels are and practice.
(A) Capital expenditures (B) Distribution theories like rent,
(B) Revenue expenditures wages and interest along with
(C) Deferred Revenue expenditures the theory of profit.
(D) None of the above (C) Use of the tools of economic
analysis in clarifying problems
in organising and evaluating
8. Marginal-costing technique is useful
information and in comparing
for
alternative courses of action.
(A) Make or Buy decisions
(D) Integration of economic theory
(B) Profit planning with business practices for the
(C) Shut-down decisions purpose of facilitating decision-
(D) All of the above making.

9. Which one is not a feature of 12. At a point of satiety for a commodity

budgetary control ? the marginal utility is
(A) A tool for management control. (A) Negative
(B) An instrument of delegation (B) Positive
and authority. (C) Zero
(C) An instrument for evaluating (D) Highly positive
the overall performance. 13. A rectangular hyperbola shaped
(D) A statement of budget and demand curve on all its points has
forecasts. (A) Equal slopes and equal point
elasticities.
10. The Debt-Equity Ratio of a company (B) Unequal slopes and unequal
is 2 : 1. In this relation, match the point elasticities.
following : (C) Unequal slopes and equal point
List – I List – II elasticities.
(a) Issue of equity 1. No change (D) Equal slopes and unequal point
shares on the ratio elasticities.
(b) Cash received 2. Reduce the
14. Assertion (A) : A perfectly
from debtors ratio
competitive firm is not a price-
(c) Redemption of 3. No change maker but is a price-taker.
debentures on the ratio Reason (R) : The firm is interested
(d) Purchased 4. Reduce the in deciding the level of output
goods on credit ratio only.
Codes : Codes :
(a) (b) (c) (d) (A) Both (A) and (R) are true.
(A) 1 2 3 4 (B) Both (A) and (R) are false.
(B) 2 3 4 1 (C) (A) is false, while (R) is true.
(C) 1 3 4 2 (D) (A) is true, but (R) is not a
(D) 2 4 1 3 correct explanation of (A).

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15. Match the items of List-I with the 18. If the dependent variable increases as
items of List-II. the independent variable increases in
List – I List – II an estimating equation, the
coefficient of correlation will be in
(a) A market I. Skimming
having high pricing the range
price elasticity. (A) 0 to (–) 1
(b) A market having II. Differential (B) 0 to (–) 0
high price pricing (C) 0 to (–) 0.05
inelasticity
(D) 0 to 1
(c) A market having III. Penetrating
several segments pricing 19. Assertion (A) : When there is an
differing evidence of a linear
prominently with relationship between two
regard to price variables, it may not always
elasticities of mean an independent-
their demand. dependent relationship between
Codes : the two variables.
I II III Reason (R) : The causal relationship
(A) (b), (c), (a) between the two variables may
(B) (a), (b), (c) not imply a reasonable
theoretical relationship between
(C) (b), (a), (c)
the two.
(D) (a), (c), (b)
Choose the right answer from the
following statements :
16. Which one of the following options
Codes :
deals with the process of making
estimates, predictions and decisions ? (A) Both (A) and (R) are true and
(R) is the correct explanation.
(A) Descriptive statistics
(B) Inferential statistics (B) Both (A) and (R) are true, but
(R) is not the correct
(C) Probability theory explanation.
(D) None of the above
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
17. A hypothesis test is being performed
for a process in which a Type-I error 20. Assertion (A) : User interface is
will be very costly, but a Type-II most critical task in DSS
error will be relatively inexpensive design
and unimportant. Which of the
following would be the best choice Reason (R) : DSS is used by outside
Customers frequently.
for alpha (α) in this test ?
(A) 0.10 (A) (A) is correct, but (R) is wrong.
(B) 0.05 (B) Both (A) and (R) are wrong.
(C) 0.01 (C) (A) is wrong, but (R) is correct.
(D) 0.50 (D) Both (A) and (R) are correct.

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21. Which of the following is not true 25. Taylor’s differential piece work plan
about Matrix Organisation ? provides that
(A) It is relatively permanent. (A) All labourers should be assigned
(B) Its project managers authority different amount of work.
is distributed reasonably. (B) All labourers should be put in
(C) There is slow information different time-period.
processing. (C) Those who produce above
(D) Its project heads have to share standard should receive higher
resources with functional heads. wages than those producing
below standard.
22. Consider the following leadership styles : (D) Payment should be the same on
1. Telling 2. Autocratic a fixed standard.
3. Selling 4. Motivating
5. Participating 6. Delegating 26. Which one of the following stages of
7. Charismatic the marketing research process is
Select the four styles of leadership most expensive ?
explained by Hersey and Blauchard. (A) Data analysis
(A) 1, 2, 6 and 7 (B) 2, 3, 4 and 5 (B) Data collection
(C) 1, 3, 5 and 6 (D) 4, 5, 6 and 7 (C) Developing the research plan
(D) Report writing
23. Given below are two statements, one
labelled as Assertion (A), and the 27. The people to adopt a new product
other labelled as Reason (R). first are called
Assertion (A) : Classical (A) Early adopters
organisations believed in the (B) First users
use of authority to achieve (C) Initial adopters
coordination.
(D) Innovators
Reason (R) : Classical thinkers
consider organisation is an 28. A concept in retailing that helps
open system. explain the emergence of new
Codes : retailers is called the ______
(A) (A) is correct, but (R) is hypothesis.
incorrect. (A) Product life cycle
(B) Both (A) and (R) are correct. (B) Service assortment
(C) (A) is incorrect, but (R) is (C) Retail life cycle
correct.
(D) ‘Wheel-of-retailing’
(D) Both (A) and (R) are incorrect.

24. Who has modified Maslow’s 29. Manufacturers of cars and motor
Hierarchical levels of needs and cycles typically seek_______
developed ERG model ? distribution.
(A) Frederick Herzberg (A) selective
(B) David C. McClelland (B) intensive
(C) Douglas McGregor (C) exclusive
(D) Clayton Alderfer (D) restrictive

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30. Which method of setting advertising 33. Assertion (A) : When two or more
budget is most scientific and logical ? investment proposals are
mutually exclusive, ranking the
(A) All-you-can afford method
proposals on the basis of IRR,
(B) Competitive parity method NPV and PI methods may give
contradictory results.
(C) Objective-and-task method
Reason (R) : The contradictory
(D) Percentage-of-sales method results in the ranking are due to
differing dimensions relating to
the scale of investments, cash
31. Assertion (A) : Weighted average flow patterns and project lives.
cost of capital should be used Indicate the correct answer :
as a hurdle rate for accepting or
rejecting a capital budgeting Codes :
proposal. (A) Both (A) and (R) are true.
Reason (R) : It is because by (B) (A) is true, but (R) is a
financing in the proportions necessary condition, but not a
specified and accepting the sufficient condition.
project, yielding more than the (C) Both (A) and (R) are false.
weighted average required
(D) Both (A) and (R) are true and
return, the firm is able to
(R) explains the reason
increase the market price of its
sufficiently.
stock.
Codes :
34. Which one of the following
(A) Both (A) and (R) are false. assumptions is not covered in the
Walter’s Model of the dividend policy ?
(B) Both (A) and (R) are true.
(A) All financing is done through
(C) (A) is true, while (R) is false. retained earnings.
(D) (A) is false, while (R) is true. (B) Firm’s business risk does not
change due to additional
investments.
32. A firm wants to know the Degree of
Operating Leverage (DOL) with the (C) The firm has an infinite life.
following information : (D) The key variables like EPS and
Current level of sales : 6000 units DPS keep on changing.

Break-even point sales : 4000 units

35. Which one of the following
What would be the DOL ? emphasizes the qualitative aspects of
(A) 1.50 working capital management ?
(A) Gross working capital
(B) 0.67
(B) Quick working capital
(C) 3.00
(C) Net working capital
(D) None of the above
(D) None of the above

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36. Which of the following training 40. The idea that a manager tends to be
methods exposes the newly recruited promoted to a level of his
employee to the various business incompetence is referred to as
functions, divisions and departments ? (A) the advancement principle
(A) Orientation (B) the Paul principle
(B) Vestibule Training (C) the Peter principle
(C) Transition Analysis (D) the job design principle
(D) Role playing
41. Which of the following committees
is intended to review the working of
37. Match the names of the Authors
the monetory system in India ?
given below with the motivational
theories they are associated with (A) Narasimham Committee
List-I List-II (B) Tandon Committee
1. Herzberg a. ERG Theory (C) Sukhamoy Chakravarty
Committee
2. McGregor b. Three-need
theory (D) Deheja Committee
3. Alderfer c. Theory X and
Theory Y 42. Match the items of List-I with those in
List-II and select the correct answer.
4. David d. Two-factor theory
McClelland List-I List-II
(a) Bank Rate 1. Involving the
Codes :
Policy shortening of the
1 2 3 4 currency of bills
(A) a b c d eligible for
(B) d c b a rediscount.
(C) b a d c (b) Credit 2. Involving the
Rationing Purchase and sale
(D) d c a b
of securities in
the open market.
38. Who was closely associated with (c) Variable 3. Involving the
industrial relations in India ? Reserve alteration of
(A) B. Kurien System discount rate.
(B) Gadgil (d) Open 4. Involving the
(C) V.V. Giri Market variation of the
Operations minimum
(D) Vinoba Bhave
reserves
Codes :
39. Under the Trade Union Act 1926,
(a) (b) (c) (d)
how many minimum number of
members are required for a trade (A) 1 4 2 3
union to be registered ? (B) 2 1 3 4
(A) 5 (B) 7 (C) 4 2 1 3
(C) 9 (D) 11 (D) 3 1 4 2

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43. Match the items of List-I with the 46. International trade theory which
items of List-II and select the correct provides that capital intensive
answer using the codes given below country should export labour-
the lists. intensive goods and import capital
List-I List-II goods is referred to as
(a) Rural (i) Meant for (A) Leontief Paradox
Industries various target (B) Heckscher-Ohlin Theory
Programme groups like
Rural youth, (C) Mercantilism Theory
Ex-serviceman, (D) Theory of Comparative
women and Advantage
Scheduled
Castes/Tribes 47. Which of the following is not a form
(b) Mahila Vikas (ii) Aim at ensuring of economic integration in the
Nidhi flow of credit to context of intra-regional trade ?
Scheme the dis- (A) Customs Union
advantaged (B) European Union
sections of the (C) Economic Union
society.
(c) Entre- (iii) Commercial (D) African Union
preneurship exploitation of 48. ‘Crawling Peg System’ means
Development local resources. (A) Fixed Exchange Rate System.
Programme
(d) Micro Credit (iv) Provides (B) Floating Exchange Rate
Scheme assistance to System.
voluntary (C) Hybrid of Fixed and Floating
organizations Exchange System.
for the benefit (D) None of the above.
of women.
Codes : 49. From the following modes of
(a) (b) (c) (d) international business, identify the
(A) (i) (iii) (ii) (iv) mode which involves strategic alliance
(B) (ii) (iv) (i) (iii) (A) Franchising
(C) (iv) (ii) (iii) (i) (B) Leasing
(D) (iii) (iv) (i) (ii)
(C) Turnkey Project
44. According to the FDI Policy of the (D) Joint venture
Government of India (2012), the FDI
in banks is limited to 50. Which of the following expressions
(A) 20% in Nationalised Banks and amount to the import restriction
74% in Private Sector Banks. measures ?
(B) 20% in Nationalised Banks and
49% in Private Sector Banks. (i) Currency control
(C) 16% in Nationalised Banks and (ii) Establishment of EPZs
74% in Private Sector Banks. (iii) Tariff cuts
(D) 49% in Nationalised Banks and (iv) Imposition of tariffs
51% in Private Sector Banks. (v) Imposition of non-tariff
45. According to the recent guidelines barriers
(2013) of the Reserve Bank of India Codes :
the Private Sector Banks are required (A) (i), (ii) and (iii)
to have a minimum paid up equity
capital of (B) (i), (iv) and (v)
(A) ` 300 crores (B) ` 200 crores (C) (iii), (iv) and (v)
(C) ` 400 crores (D) ` 500 crores (D) (ii), (iii) and (v)

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JUNE 2014 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 A 11 B 21 C 31 B 41 C

2 D 12 C 22 C 32 C 42 D

3 A 13 C 23 A 33 B 43 D

4 C 14 D 24 D 34 D 44 A

5 C 15 A 25 A 35 C 45 D

6 B 16 B 26 B 36 A 46 A

7 A 17 C 27 D 37 D 47 D

8 D 18 D 28 D 38 C 48 C

9 D 19 A 29 D 39 B 49 D

10 B 20 A 30 C 40 C 50 B

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JUNE 2014
Paper – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. The Competition Act, 2002, seeks to 6. What is the underlying concept that
regulate support the immediate recognition of
(A) Anti-competitive agreements an estimated loss ?
(B) Mergers and amalgamation (A) Substance over form
(C) Unfair trade practices (B) Consistency
(D) (A) and (B) above (C) Matching
(D) Prudence
2. Indicate the true statement :
(A) Large industrial houses are 7. Which is not the limitation of
outside the purriew of the budgetary control ?
Competition Act, 2002 (A) Budgets are based on forecasts
(B) There is no provision for which may not be true
curbing frivolous complaints (B) Installation and operation of a
under the CPA. system of budgetary control is
(C) The Trade Marks Act, 1999 costly.
does not apply to services. (C) Budget is a tool of management
(D) All of the above are true. and not a substitute of
management
3. The time limit for filing a complaints (D) Budgets do not pinpoint the
before the District forum under the lack of efficiency or the
Consumer Protection Act, 1986 is presence of it.
(A) one year 8. Profit volume ratio of an enterprise is
(B) two years 40%. To offset 10% decrease in
(C) three years selling price, how much sales must
(D) There is no such time limit. be increased ?
4. The Foreign Investment Promotion (A) 10% (B) 20%
Board (FIPB) revamps the rules and (C) 25% (D) 40%
regulations pertaining to 9. If debt is ` 220, cash balance is ` 20
(A) Accounting of Foreign Investment and equity is ` 300, then the gearing
(B) Investment by NRIs ratio is
(C) Foreign investments (A) 20% (B) 40%
(D) All of the above (C) 50% (D) 30%
5. Which of the legislation(s) do (does)
10. Responsibility accounting aims to
not form part of the legal
(A) ensure that a manager is
environment of business in India ? punished if things go wrong.
(A) The Drugs and Cosmetics Act, (B) ensure that costs become the
1940 responsibility of a specific
(B) The Prevention of Food manager.
Adulteration Act, 1954 (C) allocate costs to all areas of a
(C) The Monopolies and Restrictive business.
Trade Practices Act, 1969 (D) reduce the costs that a
(D) Both (B) and (C) above department incurs.

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11. Find the correct matching of the 13. The equilibrium level of output for a
items of List – I with the items of perfect competitive firm is given by
List – II given below : the point where :
List – I List – II (A) MR = MC
(a) Normal (I) Excess of (B) MR < MC
Profit total revenue (C) MR > MC
over total (D) MR = MC, and MC starts
explicit cost rising.
(b) Economic (II) Total
profit revenue
14. Match the following :
equals total
economic List – I List – II
cost (i) Dumping (a) Monopolistic
(c) Accounting (III) Excess of competitive
firm
profit total revenue
over total of (ii) Kinked (b) Oligopoly
explicit and Revenue firm
Curve
implicit
costs and a (iii) Horizontal (c) Perfectively
straight line competitive
normal rate
revenue curve firm
of return
Codes : (iv) Large number (d) Discrimin-
of buyers and atory
(I) (II) (III) sellers with monopoly
(A) (c) (a) (b) differentiated
(B) (b) (a) (c) products
Codes :
(C) (a) (b) (c)
(i) (ii) (iii) (iv)
(D) (a) (c) (b)
(A) (a) (d) (c) (b)
(B) (b) (d) (a) (c)
12. Assertion (A) : A monopoly firm’s
revenue curve is downward (C) (d) (b) (c) (a)
sloping from left to right. (D) (a) (b) (c) (d)
Reason (R) : The monopoly firm
does not simultaneously enjoy 15. Penetrating pricing strategy is
the freedom to determine both appropriate when
price and quantity to be sold (A) price elasticity of demand in
according to its whims and the market is highly inelastic.
fancy. (B) price elasticity of demand in
Codes : the market is uncertain.
(A) Both (A) and (R) are true. (C) price elasticity of demand in
(B) Both (A) and (R) are false. the market is highly elastic.
(C) (A) is true, but (R) is false. (D) income elasticity of demand in
(D) (A) is false, but (R) is true. the market is negatively elastic.

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16. Assertion (A) : The expected values 20. Two lists of items are given below :
should be atleast 5 to apply the List – I List – II
chi-square test. (i) Charles (a) Mossai
Reason (R) : The chi-square
distribution provides an Babbage
adequate approximation of the (ii) Herbert A. (b) HTML
sampling distribution. Simon
Indicate the correct answer from the
following : (iii) Tim (c) Computer
Codes : Berners Design
(A) Both (A) and (R) are true, and Lee
(R) is the right explanation.
(B) Both (A) and (R) are true, but (R) (iv) Maarc (d) Decision
is not the correct explanation. Andreessen model
(C) (A) is true, but (R) is false. Which one of the following is the
(D) (A) is false, but (R) is true.
correct match ?
17. In a decision problem having four
possible alternative decisions and six Codes :
possible states of nature, the pay-off (i) (ii) (iii) (iv)
table will include
(A) Four payoffs (A) (c) (b) (a) (d)
(B) Six payoffs (B) (a) (c) (d) (b)
(C) Twenty four payoff
(C) (b) (a) (c) (d)
(D) Ten payoff
(D) (c) (d) (b) (a)
18. The mathematical formula for joint
probabilities P(AB) = P(A/B) × P(B),
21. Which of the following statements
holds when
(A) The events are statistically are true about informal organization ?
independent. 1. It arises spontaneously.
(B) The events are statistically
dependent. 2. It reflects individual and group
(C) The event is either independent goals.
or dependent. 3. It tends to be permanent and
(D) None of the above
stable.
19. Which one of the following 4. It tends to be small and
statements is the correct
interpretation of P-value of less than manageable.
0.01 in hypothesis testing ? 5. Its basic purpose is to improve
(A) There is overwhelming human relations.
evidence to infer that the
alternative hypothesis is true. 6. Its basic purpose is to achieve
(B) There is strong evidence to organisation’s goals.
infer that the alternative Codes :
hypothesis is true.
(C) There is weak evidence to (A) 1, 2, 3 andü 5
indicate that the alternative (B) 1, 2, 4 and 6
hypothesis is true.
(D) There is no evidence to infer that (C) 1, 2, 4 and 5
the alternative hypothesis is true. (D) 2, 3, 5 and 6

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22. Which of the following is not true 25. Match the following :
about an employee-centered leader as List – I List – II
identified by Michigan researchers ? (a) Fayol (1) Economy and
(A) Treats subordinates as human Society
beings.
(b) Taylor (2) General and
(B) Shows concern for their well
Industrial
being.
Administration
(C) Focuses on work standards and
close supervision. (c) Weber (3) Principles of
(D) Encourages and involves them Organization
in goal setting. (d) Mooney (4) Shop
and Reilly Management
23. According to Talcott Parson, Codes :
organizations can be classified
(a) (b) (c) (d)
primarily into four categories, based
on functions. Which of the following (A) (3) (4) (1) (2)
is not an organization in Parson’s (B) (2) (4) (1) (3)
scheme ?
(C) (1) (3) (2) (4)
(A) Political organisations
(B) Integrative organisations (D) (4) (3) (2) (1)

(C) Pattern maintenance

organisations 26. A primary group influencing the
(D) Commercial organisations buyer behaviour is a
(A) Family
24. An MBO programme usually (B) Professional association
involves the following steps : (C) Religious group
1. Establishing unit’s objectives (D) Trade Union
2. Establishing organisational goals
3. Negotiating or agreeing
27. After conducting the business
4. Reviewing the performance analysis for developing a new
5. Creating action plans product, a company must do
Indicate the correct sequence of the
(A) Idea generation
above steps from the following codes :
(B) Product positioning
(A) 1, 2, 3, 4, 5
(C) Product development and
(B) 2, 1, 3, 5, 4
testing
(C) 2, 3, 1, 4, 5
(D) 5, 4, 3, 2, 1 (D) Test marketing

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28. Match the items in List – I with those 31. Match the items of List – I with the
in List – II : items of List – II :
List – I List – II List – I List – II
(a) Post (i) AIDA (a) Trade credit (i) Maturity
and other Financing
purchase
payables that
behaviour arise in the
(b) Personal (ii) ACMEE firm’s day
selling today
operations
(c) Everitt M. (iii) Diffusion of
(b) Financing and (ii) Factoring
Rogers Innovation
asset needs
(d) Salesperson (iv) Cognitive over time
training dissonance (c) A tool for (iii) Spontaneous
Indicate the correct matching : accelerating financing
Codes : the collection
from the
(a) (b) (c) (d) customers
(A) (i) (ii) (iii) (iv) (d) Seeking (iv) Lockbox
financial system
(B) (iv) (ii) (iii) (i) service to
(C) (iii) (ii) (i) (iv) finance on its
debtors’
(D) (iv) (i) (iii) (ii)
balances
Codes :
29. Which type of retail stores generally
has the highest operating costs ? (a) (b) (c) (d)

(A) Department store (A) (iv) (iii) (ii) (i)

(B) (iii) (ii) (iv) (i)
(B) Supermarket
(C) (ii) (iv) (i) (iii)
(C) Chain store
(D) (i) (ii) (iii) (iv)
(D) Co-operative Store

32. Indicate the cost of equity capital,

30. Indicate the correct statement :
based on capital asset pricing model,
(A) India has been a pioneer in with the following information :
social marketing. Beta coefficient – 1.40
(B) Advertising Standards Council Risk-free rate of interest – 9%
of India is a statutory body set Expected Rate of Return on
up by the government of India. equity in the market – 16%
(C) Both (A) and (B) are incorrect. (A) 9.8% (B) 18%
(D) Both (A) and (B) are correct. (C) 18.8% (D) 16%

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33. The degree of super-leverage would 36. Indicate the quantitative methods of
be calculated by : job evaluation
(A) Adding DOL (Degree of (A) Ranking methods and Job
Operating Leverage) and DFL comparison method
(Degree of Financial Leverage) (B) Point rating method and Factor
(B) Dividing DOL with DFL comparison method
(C) Grading method and Job
(C) Multiplying DOL and DFL
classification method
(D) Subtracting DOL from DFL
(D) Factor comparison method and
Ranking method
34. Interim cash inflows are reinvested at
a rate of return equal to the internal 37. Match the items of List – I with those
rate of return is the built-in- List – II :
mechanism for
List – I List – II
(A) Net Present Value Method (1) Career (a) The process
(B) Internal Rate of Return Method goals where in an
(C) Profitability Index Method executive
(D) None of the above serves as a
guide
35. Who formulated the following model (2) Career (b) The future
for estimating the market price of path positions one
equity share ? strives to reach
as part of
Ra
D + R (E – D) career
c
P= (3) Career (c) The sequential
Rc
counseling pattern of jobs
Where, P = Market price of equity share that form a
D = DPS career
E = EPS (4) Mentoring (d) Guiding
people on their
E – D = Retained earning per
possible career
share
path
Ra = Internal rate of return on
Codes :
investment
(1) (2) (3) (4)
Rc = Cost of capital
(A) (b) (c) (d) (a)
(A) Modigliani-Miller
(B) Myron-Gordon (B) (a) (b) (c) (d)
(C) James E. Walter (C) (d) (c) (b) (a)
(D) Clarkson and Elliot (D) (c) (b) (a) (d)

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38. The process of receiving and 42. Match the items of List – I with those
welcoming an employee when he List – II and select correct answer :
first joins a company and giving him List – I List – II
the basic information he needs to
settle down quickly and happily and (1) Narasimham (a) Lending under
starts working, is referred to as Committee consortium
(A) Placement arrangement
(B) Orientation (2) Shetty (b) Frauds and
(C) Job Rotation Committee Malpractices in
(D) Counseling banks
(3) Ghosh (c) Securities
39. Which is not relevant of succession Committee operations of
planning ? banks and
(A) Analysis of the demand for financial
managers institutions
(B) Review of existing executives (4) Janakiraman (d) Financial system
(C) Planning individuals career Committee in India
paths Codes :
(D) Recruitment to meet immediate (a) (b) (c) (d)
needs
(A) (3) (4) (2) (1)
(B) (2) (3) (4) (1)
40. Where does recognition of an
Employee fall in Maslow’s hierarchy (C) (4) (2) (3) (1)
of needs theory ? (D) (3) (4) (1) (2)
(A) Self-actualisation
(B) Security needs 43. Which of the following financial
(C) Social needs institutions is not with in the
(D) Esteem needs supervisory Purview of Reserve
Bank of India ?
41. The profitability of public-sector (A) Foreign Commercial Banks
banks is low due to Operating in India
(i) Over-cautions approach to (B) Regional Rural Banks
lending (C) Mutual Funds
(ii) Reserve Bank Policies (D) State Co-operative Banks
(iii) High Overhead Costs
(iv) Social-sector lending
44. The Repo and Reserve Repo rates are
Identify the correct code :
resorted to by the RBI as a tool of
Codes :
(A) Credit Control
(A) (i) and (ii)
(B) Settlement Systems
(B) (i) and (iv)
(C) (i), (iii) and (iv) (C) Currency Management
(D) (ii) and (iii) (D) Liquidity Control

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45. Which one of the following 48. Match the items given in List – I with
institutions is promoted by the IFCI : the most appropriate items in List – II :
List – I List – II
(A) Credit Analysis and Research
(a) UNCTAD (i) Foreign
Ltd (CARE) investment
(B) Rashtriya Gramin Vikas Nidhi (b) WTO (ii) Developing
Countries
(RGVN)
(c) TRIMS (iii) UNDP
(C) Clearing Corporation of India (d) ITC (iv) General
Ltd (CCIL) Council
(D) Small Industries Development Codes :
(a) (b) (c) (d)
Bank of India (SIDBI)
(A) (ii) (iv) (i) (iii)
(B) (iii) (iv) (i) (ii)
46. Indicate the right sequence of the (C) (iv) (ii) (i) (iii)
stages of internationalization : (D) (iii) (ii) (i) (iv)

(i) Multinational Company

49. Duty levied on the value of goods
(ii) Global Company imported is referred to as
(iii) Transnational Company (A) Ad valorem Duty
(B) Compound Duty
(iv) International Company
(C) Specific Duty
Codes : (D) Import Duty
(A) (i) (iv) (ii) (iii)
50. Which of the following can be
(B) (iv) (i) (iii) (ii) included in the current account of the
(C) (i) (iv) (iii) (ii) balance of payments ?
(i) Purchase of goods from abroad
(D) (iv) (i) (ii) (iii)
(ii) Sale of services abroad
(iii) Workers’ remittances from
aboard
47. Which of the following is not one of
(iv) Sale of copyright to foreigners
the components of ‘International
(v) Direct investment in equity
Reserve’ ? capital
(A) Special Drawing Rights Codes :
(A) (i), (ii) and (iii)
(B) Reserve Position in IMF
(B) (i), (ii) and (iv)
(C) Monetary Gold (C) (i), (ii), (iii) and (v)
(D) Money Market Instruments (D) (i), (ii), (iii) and (iv)

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JUNE 2014 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 D 11 A 21 C 31 C 41 C 51 C 61 A 71 C

2 C 12 A 22 C 32 C 42 B 52 B 62 A 72 C

3 B 13 D 23 D 33 C 43 C 53 C 63 B 73 D

4 C 14 C 24 B 34 B 44 D 54 B 64 B 74 C

5 D 15 C 25 B 35 C 45 B 55 A 65 C 75 A

6 D 16 A 26 A 36 B 46 D 56 C 66 D

7 D 17 C 27 C 37 A 47 D 57 B 67 C

8 B 18 B 28 D 38 B 48 A 58 C 68 A

9 B 19 A 29 A 39 D 49 A 59 A 69 C

10 B 20 D 30 A 40 D 50 A 60 B 70 B

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DECEMBER2013
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.
1. Who is the fiscal agent and advisor to 4. Uruguay Round pertains to
Government in monetary and (A) WTO
financial matters ?
(A) NABARD (B) IMF
(B) SBI (C) GATT
(C) RBI (D) World Bank
(D) None of the above

2. Match the items of List – I with the 5. Which of the following are outside
items of List – II : the scope of the Consumer Protection
List – I List – II Act, 1986 ?
(a) National (i) Industrial
Manufactu- Licensing (A) Newspaper industry
ring Policy (B) Services provided under
Competitive-
contract of personal service
ness Council
(NMCC) (C) Banking industry
(b) National (ii) Eleventh Five (D) Both (A) and (B)
Investment Year Plan
Fund (NIP)
(c) The (iii) The 6. Which of the following is ‘true’
Industries Competition regarding the Prudence Principle of
(Develop- Act, 2002
ment and Accounting ?
Regulation) (A) Taking care of the future losses
Act (IDRA),
(B) Taking care of the future
1951
(d) Increase in (iv) Public Sector profits
Employment Undertakings (C) Taking care of bad debts
Codes :
(D) Taking care of inventory and
(a) (b) (c) (d)
(A) (iv) (i) (ii) (iii) depreciation
(B) (iii) (iv) (i) (ii)
(C) (i) (ii) (iii) (iv) 7. Which of the following is a non-
(D) (iv) (iii) (ii) (i)
operating expense ?
3. Kyoto Protocol pertains to (A) Salary of Managing Director
(A) Capital formulation (B) Depreciation
(B) Globalisation
(C) Advertisement expenditure
(C) Environmental protection
(D) Unemployment reduction (D) Interest on loan

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8. A and B are partners sharing profits 12. Match List – I with List – II and
in the ratio of 3 : 2. Their books select the correct code for the answer :
showed goodwill at ` 3,000. C is List – I List – II
1 (a) Cross (i) Price = AVC
admitted with 4th share of profits and elasticity is
brings ` 10,000 as his capital. But he zero
is not able to bring in cash for his (b) Shut-down (ii) Two
share of goodwill ` 3,000. How will point commodities
you treat this ? are
(A) Goodwill is raised by ` 12,000 independent
(B) C will remain as debtor for (c) Slutsky (iii) Trans-
` 3,000 theorem formation line
(C) C’s A/c. is debited for ` 3,000 (d) Production (iv) Substitution
(D) Goodwill is raised by ` 9,000 Possibility effect
Curve
9. If there is mutual indebtedness Codes :
between the transferor company and (a) (b) (c) (d)
the transferee company in business (A) (ii) (iv) (i) (iii)
combination, which of the following (B) (iii) (ii) (iv) (i)
is correct ? (C) (i) (iii) (ii) (iv)
(A) No adjustment is required in (D) (ii) (i) (iv) (iii)
the books of the transferor 13. Assertion (A) : The demand curve
company. has negative slope showing
(B) Adjustment is required in the inverse relationship between
books of the transferor price and the quantity
company. demanded.
(C) No adjustment is required in Reason (R) : This applies only to
the books of the transferee Giffen goods.
company. Codes :
(D) None of the above (A) Both (A) and (R) are true.
(B) (A) is true, but (R) is false.
10. Improvement of profit-volume ratio (C) (A) is false, but (R) is true.
can be done by (D) Both (A) and (R) are false.
(A) Increasing selling price 14. The consumer is said to be in
(B) Altering sales mixture equilibrium when he plans his
(C) Reducing variable cost expenditure on x, y and z
(D) All of the above commodities in such a way that he
ultimately attains :
11. Business Economics is a subject which (A) MUx = MUy = Mz
(A) studies economic relationships MUx MUy MUz
(B) studies economic activities at (B) Px = Py = Pz
the aggregate level
(C) deals with the tools of MUx MUy MUz
economics used for decision (C) Px = Py = Pz = MUm
making in business MUx MUy MUz
(D) studies optimum allocation of (D)
limited resources Px < Py < Pz < MUm

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15. Match the items in List – I with those 18. A distribution, where the value of
in List – II and select the correct code arithmetic mean is maximum as
for the answer : compared to median and mode, is
List – I List – II (A) Normal distribution
(a) Monopoly (i) Price Taker (B) Positively-skewed distribution
(b) Monopolistic (ii) Homo- (C) Negatively-skewed distribution
competition geneous (D) None of these
product’s
price maker 19. The most appropriate average to be
(c) Perfect (iii) Hetero- used to compute the average rate of
competition geneous growth in population is
product (A) Arithmetic mean
(d) Oligopoly (iv) Price
(B) Median
Rigidity
(C) Geometric mean
Codes :
(a) (b) (c) (d) (D) Harmonic mean
(A) (ii) (iii) (i) (iv)
(B) (i) (ii) (iv) (iii) 20. “The life expectancy of people in
(C) (iii) (iv) (ii) (i) Kerala is more than that of Tamil
(D) (iv) (i) (iii) (ii) Nadu.” This statement is an example of
(A) Descriptive Hypothesis
16. Match the following items in List – I (B) Causal Hypothesis
with most suitable options in List – II : (C) Correlational Hypothesis
List – I List – II (D) None of the above
(a) Fisher (i) Inverse
probability 21. Match the items of List – I with the
(b) Karl Pearson (ii) Normal items of List – II and choose the
Distribution correct answer :
(c) Thomas (iii) Correlation List – I List – II
Baye’s Coefficient (a) Intrapersonal (i) Informa-
(d) Karl Gauss (iv) Index communication tion
Numbers sharing
Codes : (b) Element of a (ii) Develop-
(a) (b) (c) (d) communication ment of
(A) (iv) (iii) (ii) (i) event ‘will’ to
(B) (iv) (iii) (i) (ii) work
(C) (iv) (ii) (iii) (i) (c) Objective of (iii) Thinking
(D) (iv) (ii) (i) (iii) organisational
communication
17. The law of statistics, which says
(d) Goals of (iv) Purpose
‘Moderately large number of items
organisational
chosen at random from a large group
communication
possess the characteristics of the
large group’, is referred to as : Codes :
(A) The Central Limit Theorem (a) (b) (c) (d)
(B) The Law of Statistical Regularity (A) (i) (ii) (iii) (iv)
(C) The Law of Inertia of Large (B) (iii) (iv) (ii) (i)
Numbers (C) (ii) (iii) (i) (iv)
(D) None of the above (D) (iv) (iii) (ii) (i)

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22. According to the Boston Consulting 26. Which of the following is not the
Group, a business which has a high major component of holistic
growth rate but a weak market share marketing ?
is referred to as a (A) Relationship marketing
(B) Integrated marketing
(A) Cash Cow
(C) Customer satisfaction
(B) Dog (D) Socially-responsible marketing
(C) Question Mark
(D) Star 27. Which of the legislations listed
below do not form part of the
marketing environment of India ?
23. ‘No ideas are ever criticized’ and ‘the (A) The Drugs and Cosmetics Act,
more radical the ideas are the better’ 1940
– are the rules of which decision (B) The Prevention of Food and
making process ? Adulteration Act, 1954
(A) Programmed decision-making (C) The Monopolies and
Restrictive Trade Practices Act,
(B) Non-programmed decision
1969
making
(D) Both (B) and (C)
(C) Brainstorming
(D) Group discussion 28. The set of all actual and potential
buyers of a product is known as
(A) Customer group
24. According to McClelland’s Needs
(B) Industry
Theory, which of the following is not
(C) Market
a motivating need ?
(D) None of the above
(A) Need for Power
(B) Need for Security 29. In the model of consumer behaviour
(C) Need for Achievement given by Philip Kotler, what
constitutes the marketing stimuli ?
(D) Need for Affiliation
(A) Marketing environment
(B) Four P’s of marketing
25. In the managerial grid, developed by (C) Consumer needs and wants
Blake and Mouton, a manager who (D) None of the above
has high consideration for production
but little concern for people is known 30. The factor that exerts the broadest
as and deepest influence on consumer
behaviour is
(A) 1.1 Management
(A) Culture
(B) 1.9 Management
(B) Sub-culture
(C) 9.1 Management (C) Social class
(D) 5.5 Management (D) Income

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31. Which one of the following is not 36. Who propounded “Theory Z” ?
among the assumptions of the (A) William Ouchi
Modigliani-Miller model ? (B) Peter F. Drucker
(A) Perfect capital market
(C) Joseph H. Jurau
(B) Equivalent risk classes
(C) Unity for dividend payout ratio (D) Douglas McGregor
(D) Absence of taxes
37. Another name for MATRIX
32. The most suitable coverage ratio for organisation is
deciding the debt capacity of a firm
(A) Flexible organisation
is
(B) Geographic organisation
(A) Interest Coverage Ratio
(B) Cash Flow Coverage Ratio (C) Project organisation
(C) Debt Service Coverage Ratio (D) None of the above
(D) Fixed Assets Coverage Ratio

38. Which of the following are methods

33. Which one of the following is the
of on-the-job training ?
most popular method for estimating
the cost of equity ? (i) Coaching
(A) Capital asset pricing model (ii) Vestibule training
(B) Dividend yield method (iii) Demonstration
(C) Gordon’s dividend discount
(iv) Role-playing
model
(v) Apprenticeship training
(D) Earnings yield method
Select the right answer from the
34. Which one of the following is not the following codes :
internal factor affecting the weighted (A) (i), (ii), (iii), (iv)
average cost of capital of a firm ? (B) (i), (iii), (v)
(A) Investment policy of the firm
(C) (ii), (iii), (iv)
(B) Capital structure of the firm
(C) Dividend policy followed (D) (i), (ii), (iii), (iv), (v)
(D) Market risk premium for the
firm 39. The idea that a manager tends to be
promoted to the level of his
35. Most common approach for analysing incompetence is referred to as
the capital structure of a firm is
(A) The advancement principle
(A) Ratio Analysis
(B) The Parkinson’s law
(B) Cash Flow Analysis
(C) Comparative Analysis (C) The Peter principle
(D) Leverage Analysis (D) The job design principle

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40. Assertion (A) : The emphasis in 42. Which of the following are included
industrial psychology has under representation functions of a
shifted from the studies of the bank ?
isolated individual and the (i) Payment of cheques and bills
physical environment to the (ii) Providing remittance facilities
consideration of motivation and (iii) Underwriting of securities
morale. (iv) Advancing clean credit
(v) Allowing overdrafts on current
Reason (R) : A motivated
account
employee with a high morale (vi) Purchase and sale of securities
will always give high Codes :
productivity. (A) (i), (ii), (iii) and (iv)
Codes : (B) (iii), (iv), (v) and (vi)
(A) Both (A) and (R) are correct, (C) (i), (ii), (iii) and (vi)
and (R) is the right explanation (D) (ii), (iii), (v) and (vi)
of (A).
(B) (A) is correct, but (R) is not 43. Call money rate is applicable for a
correct. very short period to
(A) Inter bank advances
(C) Both (A) and (R) are incorrect.
(B) Bank to Reserve Bank
(D) Both (A) and (R) are correct, advances
but (R) is not the right (C) Reserve Bank to Bank advances
explanation of (A). (D) Commercial Banks to
Industrial Banks advances
41. Match the following items of List – I
44. Match the following List – I with
and List – II in terms of functions of
List – II :
commercial banks :
List – I List – II
List – I List – II (Name of (Type of
(a) Letter of (i) Advancing Securities) Securities)
reference loans (a) Bonds of (i) Semi-
(b) Sale of gold (ii) Receiving Land Government
coins deposits Development Securities
Banks
(c) Recurring (iii) Non-banking
(b) Treasury (ii) First Order
Account function Bills Securities
(d) Overdrafts (iv) Agency (c) Shares of a (iii) Personal
function Public Ltd. Securities
Codes : Co.
(a) (b) (c) (d) Codes :
(a) (b) (c)
(A) (i) (ii) (iii) (iv)
(A) (i) (ii) (iii)
(B) (iv) (iii) (ii) (i) (B) (ii) (i) (iii)
(C) (iv) (ii) (iii) (i) (C) (iii) (ii) (i)
(D) (i) (iii) (ii) (iv) (D) (i) (iii) (ii)

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45. Reserve Bank of India controls the 47. Identify the one, from the following,
activities of some of the following which is not a type of disequilibrium
banks in India : in the balance of payments of a
(i) Commercial Banks country :
(ii) Cooperative Banks (A) Cyclical disequilibrium
(iii) Foreign Banks (B) Secular disequilibrium
(iv) Rural Banks (C) Structural disequilibrium
Codes : (D) Sectoral disequilibrium
(A) (i), (ii) and (iii)
(B) (i), (iii) and (iv) 48. The participants who take advantage
of different exchange rates in
(C) (ii), (iii) and (iv)
different markets are
(D) (i), (ii), (iii) and (iv)
(A) Speculators
(B) Arbitrageurs
46. Match the following List – I with
List – II and select the correct answer : (C) Hedgers
(D) Investors
List – I List – II
(a) Comparative (i) Gottfried
Cost Theory of Haberler 49. Assertion (A) : The liability of the
International option buyer is limited in the
Trade currency options market.
(b) International (ii) J.S. Mill Reason (R) : Option buyer need
Trade Theory not exercise the option if the
of Opportunity exchange rate is not favourable
Cost for him.
(c) Factor (iii) David Codes :
Endowment Ricardo
(A) (R) is correct and (A) is wrong.
Theory of
International (B) (A) is correct and (R) is wrong.
Trade (C) Both (A) and (R) are correct.
(d) Doctrine of (iv) Hecksher- (D) Both (A) and (R) are wrong.
Reciprocal Ohlin
Demand 50. An MNC that maintains a balance
Codes : between the home market and host
(a) (b) (c) (d) market oriented policies is
(A) (iii) (ii) (iv) (i) (A) Ethnocentric firm
(B) (i) (iii) (ii) (iv) (B) Polycentric firm
(C) (iii) (i) (iv) (ii) (C) Geocentric firm
(D) (ii) (i) (iv) (iii) (D) None of the above

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

December 2013 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 C 11 C 21 B 31 C 41 B

2 B 12 D 22 C 32 B 42 C

3 C 13 B 23 C 33 A 43 A

4 C 14 C 24 B 34 D 44 A

5 B 15 A 25 C 35 C 45 D

6 A 16 B 26 C 36 A 46 C

7 D 17 B 27 D 37 C 47 D

8 D 18 B 28 C 38 B 48 B

9 A 19 C 29 B 39 C 49 C

10 D 20 C 30 A 40 B 50 C

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DECEMBER2013
Paper – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. The present regime of subsidies can 3. The freedom of private enterprise is
the greatest in the free market
be improved by focussing on economy. This is characterized by
which of the following assumptions ?
(i) Reducing the overall scale of (i) The factors of production
subsidies. (labour, land, capital) are
privately owned and production
(ii) Making subsidies as occurs at the initiative of the
private enterprise.
transparent as possible. (ii) Income is received in monetary
form by the sale of services of
(iii) Giving a specific amount to the the factors of production and
from the profits of the private
Member of Parliament for enterprise.
subsidies. (iii) Members of the free market
economy have freedom of
(iv) Setting clear limits on duration choice in so far as consumption,
occupation, savings and
of any new subsidy scheme. investments are concerned.
(iv) The free market economy is not
(v) Eliminating system of periodic planned, controlled or
review of subsidies regulated by the government.
(v) The free market economy is
(vi) Using subsidies for well- prone to corrupt practices.
Codes :
defined economic objectives. (A) (i), (ii) and (iii)
(B) (i), (ii), (iii) and (iv)
Codes : (C) (i), (ii), (iii), (iv) and (v)
(D) (ii), (iii), (iv) and (v)
(A) (i), (ii), (iii) and (iv)
4. The important responsibilities of a
(B) (ii), (iii), (iv) and (v) business to the customers are
(i) To ensure family welfare of the
(C) (i), (iii), (iv) and (vi) customers.
(ii) To understand customer needs
(D) (i), (ii), (iv) and (vi) and to take the necessary
measures to satisfy these needs.
(iii) To ensure health condition of
the customers.
2. Which of the following is not (iv) To ensure that the product
regulated by The Competition Act, supplied has no adverse effect
on the customer.
2002 ? (v) To provide an opportunity for
being heard and to redress
(A) Abuse of dominant position genuine grievances.
(B) Anti-competitive agreements Codes :
(A) (i), (ii), (iii), (iv) and (v)
(C) Medical negligence (B) (i), (ii), (iii) and (iv)
(C) (ii), (iv) and (v)
(D) Predatory pricing (D) (ii), (iii), (iv) and (v)

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5. The rationale of expanding role of 8. If bonus shares are issued out of pre-
the public sector stems mainly from acquisition profit, it will have
which of the following factors ? (A) Direct effect on the
(i) The failure of the private sector Consolidated Balance Sheet
in certain crucial areas (B) No effect on the Consolidated
(ii) The exploitation of the society Balance Sheet
by the private sector (C) No effect on Net Profit
(iii) The revenue need of the (D) None of the above
Central Government
(iv) The demand of economic 9. The present value of the future
justice contributions of employees is one of
(v) The need for accelerating the the methods of
pace of economic growth (A) HR Accounting
Codes : (B) Inflation Accounting
(A) (i), (ii), (iii) and (iv) (C) Social Accounting
(B) (ii), (iii), (iv) and (v) (D) Responsibility Accounting
(C) (i), (iii), (iv) and (v)
(D) (i), (ii), (iv) and (v) 10. A standard which can be attained
6. Which of the following factors may under the most favourable working
lead to a sick industrial unit ? conditions is called
(i) Shortage of funds and faulty (A) Attainable Standard
financial management (B) Basic Standard
(ii) Investment by the FIIs in (C) Current Standard
Indian industries (D) Ideal Standard
(iii) Unauthorized FDI in Indian
industries 11. Which of the following ratios are
(iv) Lack of experience on the part taken into consideration by a banker
of promoters before sanctioning the loan ?
(v) Technological factors including (A) Proprietory Ratio
obsolete or improper technology (B) Stock-Turnover Ratio
Codes : (C) Debt-Equity Ratio
(A) (i), (ii), (iii) and (iv) (D) All of the above
(B) (ii), (iii), (iv) and (v)
(C) (i), (iv) and (v) 12. Match the items of the following two
(D) (i), (ii) and (iii) lists :
List – I List – II
7. Indicate what is not correct in respect
(i) Zero-base (a) Internal
of the Consumer Protection Act,
Budgeting Reconstruction
1986.
(ii) Goodwill or (b) Earnings Per
(A) No complaint can be
entertained in respect of a Capital Reserve Share
product purchased more than 2 (iii) Reduction of (c) Control of
years back. Capital Expenditure
(B) A complaint against medical (iv) Basic & (d) Business
negligence can be filed by legal Diluted Combination
heir or representative of the Codes :
deceased. (i) (ii) (iii) (iv)
(C) A complaint involving a claim (A) (c) (d) (b) (a)
of ` 15 lakhs is to be filed (B) (d) (c) (a) (b)
before the State Commission. (C) (d) (a) (c) (b)
(D) Both (A) and (C) (D) (c) (d) (a) (b)

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13. Assertion (A) : Dividend paid out 16. A measure of the responsiveness of
of pre-acquisition profit by the quantity demanded to changes in the
subsidiary company to the price of a related good is known as
holding company is deducted (A) Cross Elasticity of Demand
from the cost of investment.
(B) Substitution Elasticity of
Reason (R) : Dividend paid out
of pre-acquisition profit by the Demand
subsidiary company should be (C) Complementary Elasticity of
treated as a return of capital to Demand
the holding company. (D) Price Elasticity of Demand
Which one of the following is correct ?
(A) Both (A) and (R) are correct. 17. If the total cost is ` 260 and the total
(B) (A) is correct, but (R) is wrong. variable cost is ` 60, what will be
(C) (A) is wrong, but (R) is correct. total fixed cost if output is (a) 100
(D) Both (A) and (R) are wrong. units and (b) 200 units ?
14. Given below are two statements, one (A) ` 200 and ` 200
labelled as Assertion (A) and the
other labelled as Reason (R) : (B) ` 100 and ` 200
Assertion (A) : Increasing the value (C) ` 260 and ` 100
of closing inventory increases (D) ` 160 and ` 100
profit.
Reason (R) : Increasing the value 18. Optimal input combination to
of closing inventory reduces minimize the cost for a given output
cost of goods sold. will be at the point where :
In the context of the above two (A) Isocost is tangent to Isoquant
statements, which of the following is
correct ? (B) MRTS between inputs is equal
Codes : (C) Any movement from optimum
(A) Both (A) and (R) are correct. point will lead to low level of
(B) Only (A) is correct. output
(C) Only (R) is correct. (D) All the above conditions are
(D) Both (A) and (R) are wrong. fulfilled.
15. Match the items of List – I with the
items of List – II and select the 19. What kinds of actions can be taken to
correct code for the answer : put the rivals at a disadvantageous
List – I List – II position under oligopoly market ?
(a) Multiple (i) MRPT = MC = (A) Commitments
plants MRPX = MRPPY
(B) Threats
(b) Cost-plus (ii) MRT = MC =
pricing MR1 = MR2 (C) Promises
(c) Multiple (iii) MR = MCT = (D) All the above
markets MCA = MCB
(d) Multiple (iv) P = (1 + m) ATC 20. There is no exceptions to the law of
products demand in the case of
Codes : (A) Giffen goods
(a) (b) (c) (d) (B) Normal goods
(A) (iv) (ii) (i) (iii)
(B) (i) (iii) (iv) (ii) (C) Articles of conspicuous
(C) (ii) (i) (iii) (iv) consumption
(D) (iii) (iv) (ii) (i) (D) Ignorance of the buyer

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21. What is the degree of elasticity of 25. The regression equation of profits (X)
demand in case the demand is on sales (Y) of a firm is given as :
represented by a straight line parallel 3Y – 5X + 110 = 0. If the sales of the
to the x-axis ? firm is ` 44,000, the profit will be
(A) e > 1 (A) ` 23,370 (B) ` 26,422
(B) e = 0 (C) ` 24,422 (D) ` 21,370
(C) e = ∝
(D) e < 1 26. Cricketer ‘A’ scores on an average
40 runs with a standard deviation of
22. If a chi-square test is to be performed 5. Scores of players ‘B’ and ‘C’, on
on a contingency table with 3 rows an average, are 75 and 90 with
and 4 columns, how many degrees of standard deviations 10 and 18
freedom should be used ? respectively. Arrange the players in
(A) 6 the descending order of consistency :
(B) 12 (A) A, B and C
(C) 8
(B) C, B and A
(D) 9
(C) B, A and C
23. Assertion (A) : If regression co- (D) C, A and B
efficient of X on Y is greater
than one, regression co- 27. Among the following, choose the
efficient of Y on X must be less most suitable ‘test’ that can be
than one. applied to examine the influence of
Reason (R) : The geometric one factor on different groups :
mean between two regression (A) ‘t’ test
coefficients is the co-efficient (B) ‘F’ test
of correlation. (C) ‘Chi-square’ test
On the basis of the above, choose the (D) None of the above
appropriate answer :
(A) (A) and (R) are correct.
(B) (A) is correct, but (R) is not 28. A machine produced 20 defective
correct. articles in a batch of 400. After
(C) (A) is not correct, but (R) is overhauling, it produced 10%
correct. defectives in a batch of 300. Which
(D) Both (A) and (R) are not test of hypothesis can be applied to
correct. the above situation to examine
whether the machine has improved ?
24. If the sum of squares of deviations (A) Test of significance of a sample
within samples is 140 with 12 proportion (two-tail test)
degrees of freedom and the sum of (B) Test of significance of a sample
squares of deviations between proportion (one-tail test)
samples is 190 with 2 degrees of (C) Test of significance of
freedom, the test statistic will be difference between two sample
(A) 81.4 proportion (two-tail test)
(B) 12.28 (D) Test of significance of
(C) 8.14 difference between two sample
(D) 1.22 proportion (one-tail test)

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29. Strategies and policies 34. The following are the steps of
(A) are not closely related management control process :
(B) give direction (i) Taking corrective action from
(C) are the framework for
standards
performance appraisal
(D) both (A) and (B) (ii) Establishing standards
(iii) Measuring actual performance
30. According to Vroom’s Expectancy
(iv) Comparing performance
Theory of Motivation,
(A) Force = valence divided by against standard
expectancy Select the correct sequence of these
(B) Force = valence × expectancy steps from the codes given below :
(C) Force = strength of an Codes :
individual preference for an (A) (i), (ii), (iii), (iv)
outcome (B) (ii), (iii), (iv), (i)
(D) Valence = probability that a (C) (iii), (iv), (i), (ii)
particular action shall lead to a
desired outcome (D) (ii), (iv), (i), (iii)
31. In the managerial grid, the managers 35. Consider the following :
who have little or no concern for (i) Planning is today’s action for
production but are concerned only tomorrow’s decision.
for people are known as what type of (ii) Planning is forward looking
managers ? while controlling is looking
(A) 1.1 Management back.
(B) 5.5 Management
(C) 9.1 Management (iii) Motivation is about getting
(D) 1.9 Management voluntary willingness of
subordinates for action.
32. According to the Boston Consulting (iv) Line and staff organisation is
group, a business, which has a strong
market share in a low growth the oldest form of organisation.
industry is referred to as a Select the correct statements from the
(A) Dog codes given below :
(B) Cash Cow Codes :
(C) Star (A) (ii) and (iii) are correct.
(D) Question mark (B) (i), (ii) and (iv) are correct.
33. Which of the following are major (C) (i), (iii) and (iv) are correct
principles of leading ? (D) All are correct.
(i) Principle of motivation
(ii) Principle of continuous 36. Which is not one of the stages in the
development consumer buying-decision process ?
(iii) Principle of harmony of (A) Purchase decision
objectives (B) Post-purchase behaviour
(iv) Principle of open competition (C) Problem recognition
(v) Principle of communication (D) Cultural factors
clarity
Select the correct answer from the 37. At which stage of product-life-cycle
codes given below : are the pricing decisions most
Codes : complex ?
(A) (i), (ii), (iii), (v) (A) Decline
(B) (i), (ii), (iii), (iv), (v)
(C) (i), (iii), (iv), (v) (B) Growth
(D) (i), (iii), (v) (C) Introduction
(D) Maturity

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38. Which one is not an element of 42. Match the items of List – I with those
market logistics ? of List – II and indicate the correct
(A) Inventory combination from the codes given
below :
(B) Order-processing List – I List – II
(C) Warehousing (i) AIDA (a) Consumer
Model behaviour
(D) Supply chain management
(ii) Hierarchy of (b) Marketing
effects communication
39. Under which legislation, the model
manufacturers and distributors are (iii) Howard (c) Consumer
required to declare Maximum Retail and Sheth buying-
model decision
Price (MRP) on packaged process
commodities ? (iv) Information (d) Advertising
(A) The Bureau of Indian search effectiveness
Standards Act, 1986 Codes :
(i) (ii) (iii) (iv)
(B) The Consumer Protection Act, (A) (a) (b) (c) (d)
1986 (B) (b) (c) (d) (a)
(C) The Standards of Weights and (C) (b) (d) (a) (c)
Measures Act, 1976 (D) (d) (a) (c) (b)
(D) The Essential Commodities 43. Inability of the firm to meet its
Act, 1955 obligations results in financial
distress which may lead to
bankruptcy resulting into the
40. In modern marketing, which of the following :
following functions of a distribution 1. Distress sale of assets at lower
middleman is gaining maximum price.
importance ? 2. Legal and administrative costs
for bankruptcy.
(A) Making persuasive 3. Dilution of stakeholders’
communication commitment to the firm.
(B) Price negotiation 4. Stretching of payments to
suppliers and creditors.
(C) Keeping adequate inventory The direct costs of such financial
(D) Gathering market information distress may be
(A) 1 and 4 (B) 2 and 3
(C) 1 and 2 (D) 3 and 4
41. Which method of setting the
advertising budget of a company is 44. Mutually exclusive projects can be
considered to be the most scientific ? more accurately ranked as per
(A) Internal rate of return method
(A) All-you-can-afford method (B) Net Present Value Method
(B) Percentage of sales method (C) Modified Internal Rate of
Returns Method
(C) Competitive-parity method
(D) Accounting or Average Rate of
(D) Objectives and tasks method Return Method

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45. Which one of the following does not 50. Which one of the following does not
constitute a Standalone Risk Analysis ? serve the main objective of
performance appraisal ?
(A) Simulation Analysis (A) Developmental uses
(B) Break-even Analysis (B) Administrative uses
(C) Corporate Risk Analysis (C) Ethical and moral values
(D) Scenario Analysis (D) Organisational objectives
51. Statement (I) : Job evaluation is a
46. Financial leverage in a firm is technique of assessing the
positively affected by worth of each job in
comparison with others
(A) Intensity of tangible assets throughout an organization.
(B) Operating leverage Statement (II) : Job evaluation and
(C) Profitability job rating are one and the same
(D) Tax Rate for employees’ appraisal purposes.
Codes :
(A) Statement (I) is correct, but
47. Which combination of the following Statement (II) is incorrect.
two statements (A) and (R) is correct ? (B) Statement (II) is correct, but
Assertion (A) : The IRR of a Statement (I) is incorrect.
project is the discount rate (C) Both the Statements (I) and (II)
which reduces its NPV to zero. are correct.
(D) Both the Statements (I) and (II)
Reason (R) : A project is worth are incorrect.
accepting if the IRR exceeds 52. Match the items of List – I with the
the cost of capital. items of List – II and select the
Codes : correct answer :
(A) (A) is right, but (R) is wrong. List – I List – II
(i) Job (a) Involves conscious
(B) Both (A) and (R) are correct. Rotation efforts, to organise
(C) (A) is wrong, but (R) is correct. tasks, duties and
(D) Both (A) and (R) are wrong. responsibilities into
a unit of work to
achieve certain
48. Assertion (A) : A company should objectives.
pay minimum dividend to its (ii) Job (b) Involves movement
shareholders. Design of employees from
Reason (R) : Dividends are job to job
(iii) Job (c) Seeks to improve
heavily taxed than capital Evalua- both task efficiency
gains. tion and human
Codes : satisfaction and
(A) Both (A) and (R) are correct. more opportunity
for individual
(B) Both (A) and (R) are incorrect. growth
(C) (A) is not correct, but (R) is (iv) Job (d) The formal process
correct. Enrich- by which the
(D) (A) is correct, but (R) is wrong. ment relative worth of
various jobs in the
organisation is
49. Dividend irrelevance hypothesis is determined for pay
implied in the purpose.
Codes :
(A) Traditional Model (i) (ii) (iii) (iv)
(B) Walter Model (A) (a) (b) (c) (d)
(C) Gordon Model (B) (d) (c) (b) (a)
(D) M.M. Model (C) (c) (d) (b) (a)
(D) (b) (a) (d) (c)

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53. Assertion (A) : Merit rating of an 56. Match the items of List – I with the
employee is the process of items of List – II and select the
evaluating the employees correct answer :
performance on the job in terms
of the requirements of the job. List – I List – II
Reason (R) : Employees’ merit (i) Abraham (a) Achievement
rating is a technique for fair Maslow Motivation
and systematic evaluation of an Theory
employee’s capacities and (ii) Herzberg (b) ERG Theory
abilities and performance on (iii) Alderfer (c) Two Factor
the specific job. Theory
Codes :
(A) Both (A) and (R) are correct, (iv) McClelland (d) Need Hierarchy
and (R) is the right explanation Theory
of (A). Codes :
(B) Both (A) and (R) are correct, (i) (ii) (iii) (iv)
but (R) is not the right (A) (a) (b) (c) (d)
explanation of (A).
(C) Both (A) and (R) are incorrect. (B) (d) (c) (b) (a)
(D) (R) is correct, but (A) is incorrect. (C) (c) (b) (a) (d)
54. The major provisions for employees’ (D) (d) (c) (a) (b)
health and safety are contained in 57. Assertion (A) : The Central Bank
(A) The Industrial Disputes Act, 1947
of the country is responsible to
(B) The Factories Act, 1948
maintain stability of the
(C) The Industrial Employment
(Standing Orders) Act, 1946 monetary standard which
(D) The Employees’ Compensation involves currency circulation
Act, 1923 Reason (R) : The Central Bank is
the only authorized entity to do
55. Indicate your choice through the codes
so.
given below :
1. A club is an industry under the Codes :
Industrial Disputes Act, 1947 (A) (A) and (R) both are correct.
2. Factory as defined under the (B) (A) and (R) both are incorrect.
Factories Act, 1948 includes a (C) (A) is correct, but (R) is
mine. incorrect.
3. For purpose of the payment of (D) (R) is correct, but (A) is
bonus to employees, the gross incorrect.
profits earned by a bank is to be
calculated in the manner specified 58. Identify the quantitative credit control
in Schedule – I of the Payment of methods among the following :
the Bonus Act, 1965. (i) Bank Rate
4. Various labour laws do not apply (ii) Credit Rationing
to public sector undertakings. (iii) Open Market Operations
Codes : (iv) Variable Reserve Ratio
(A) While 1 and 2 are correct, others (v) Selective Credit Control
are not. (vi) Liquidity Ratio
(B) All the statements are correct. Codes :
(C) Only 1 is correct, others are (A) (i), (ii), (iii) and (iv)
incorrect. (B) (ii), (iii), (iv) and (v)
(D) Only 1 is incorrect, all others are (C) (i), (ii), (v) and (vi)
correct. (D) (i), (iii), (iv) and (vi)

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59. The following activities are mainly 63. Match the following items of List – I
related to which organization ? with List – II :
(i) Micro Finance
List – I List – II
(ii) Rural Finance
(i) SWIFT (a) 1996
(iii) Self Help Groups
(iv) Cooperative Banks Finance (ii) NEFT (b) 1988
(A) Industrial Finance Corporation (iii) BASEL I (c) 1973
of India Accord
(B) Ministry of Finance
(iv) BASEL II (d) 2004
(C) Reserve Bank of India
Accord
(D) National Bank for Agriculture
and Rural Development Codes :
(i) (ii) (iii) (iv)
60. PIN in banking transaction is known (A) (a) (b) (c) (d)
as
(B) (b) (c) (a) (d)
(A) Postal Index Number
(B) Permanent Identification (C) (d) (c) (b) (a)
Number (D) (c) (a) (d) (b)
(C) Personal Identification Number
(D) Public Interlocking Numeric
64. The main features of TRIMS are :

61. Reserve Bank of India was (i) All restrictions on foreign

nationalized on capital are imposed.
(A) January 26, 1948 (ii) No restriction is imposed on
(B) January 01, 1949 any area of investment.
(C) January 26, 1950
(iii) Restrictions on repatriation of
(D) January 01, 1956
dividend is eliminated.
(iv) Imports of raw material is
62. When a banking company is placed
under moratorium under Section 45 allowed freely.
of the Banking (Regulation) Act, (v) No limit on the extent of
1949, the RBI must prepare a scheme
foreign investment.
of
(A) VRS for staff Indicate the correct combination
(B) Capital Buy-Back (A) (i), (ii), (iii) and (v)
(C) Reconstruction of the company (B) (ii), (iii), (iv) and (v)
or amalgamation with any
other bank (C) (iii), (iv) and (v)
(D) IPO of the bank (D) (iv) and (v)

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65. Assertion (A) : TRIPS requires an 68. Match the items of List – I and items
understanding about the scope of List – II and select the correct
of the new patent regime.
Reason (R) : Patent protection answer :
will be extended to micro List – I List – II
organisms, non-biological and
micro-biological processes and (i) Free Trade (a) MERCOSUR
plant varieties. Area
Codes : (ii) Customs (b) European
(A) (A) and (R) are not related with
Union Union
each other.
(B) (R) is related with (A). (iii) OEEC (c) EFTA
(C) (A) is independent of (R). (iv) Common (d) Marshall
(D) While (R) is related with TRIMS,
(A) is related with TRIPS. Market Plan
Codes :
66. Possible impact of WTO on various
aspects of the Indian economy : (i) (ii) (iii) (iv)
(i) Quantitative restriction will be (A) (a) (b) (c) (d)
allowed.
(B) (b) (d) (a) (c)
(ii) Second hand cars will be
imported. (C) (c) (a) (d) (b)
(iii) There will be dumping of (D) (d) (c) (b) (a)
Chinese goods.
(iv) Increase in population.
(v) Child labour exploitation 69. Assertion (A) : A futures contract
(vi) Unemployment will increase specifies in advance the
Which combination is appropriate ? exchange rate to be used, but it
(A) (i), (ii), (iii)
(B) (iii), (iv), (v) is not as flexible as a forward
(C) (ii), (iii) & (vi) contract.
(D) (iv), (v) & (vi) Reason (R) : A futures contract
is for specific currency amount
67. Assertion (A) : Economic
and a specific maturity date.
integration abolishes cross-
national economic Codes :
discrimination.
(A) (R) is a correct explanation of
Reason (R) : Geographical
proximity is an important (A).
reason for economic integration. (B) (R) is not a correct explanation
Codes :
of (A).
(A) (R) does explain (A).
(B) Both (A) and (R) are correct. (C) (A) and (R) are not related with
(C) Both (A) and (R) are not correct. each other.
(D) (A) is correct, but (R) is not
(D) (R) is irrelevant for (A).
correct.

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70. Out of the following, which are the 73. Which of the following deductions
important objectives of IMF ? will not come under Sec. 80 of the
(i) To promote exchange rate stability
(ii) To create standby reserves Income Tax Act ?
(iii) To print International currency (A) Deduction in the case of a
notes person with disability
(iv) To establish a multilateral
system of payments. (B) Deduction for interest paid on
(v) To maintain orderly exchange loan taken for pursuing higher
rate stability education
(vi) To create employment
Codes : (C) Deduction for interest on loan
(A) (ii), (iv), (v), (vi) taken for the construction /
(B) (iii), (v), (vi)
purchase of house property
(C) (i), (ii), (iv), (v)
(D) (i), (ii), (v), (vi) (D) Deduction for repayment of
any instalment of principal
71. Given that :
Fair rent of a let out house property amount borrowed for the
is ` 75,000. Its Municipal value is purchase / construction of
` 60,000, standard rent is ` 72,000 house property
and actual rent received is ` 63,000.
What is the Gross Annual Value of
this house property ? 74. X purchased a land in the P.Y. 1997-
(A) ` 60,000 (B) ` 63,000 98 for ` 50,000. This land was sold
(C) ` 72,000 (D) ` 75,000
by him during the P.Y. 2009-10 for
72. Match the items of List – I with the ` 8,00,000. The fair market value of
items of List – II this land on 1-4-81 was ` 1,20,000. If
List – I List – II the Cost Inflation Index for the A.Y.
(i) Amount deposited (a) 80-IA
in PPF 2010-11 is 632, his capital gain for
(ii) Profits and gains (b) 80 G the A.Y. 2010-11 will be
from undertakings (A) ` 4,84,000
engaged in
infrastructure (B) ` 7,50,000
development
(C) ` 6,80,000
(iii) Contribution to (c) 80-IAB
National Defence (D) ` 41,600
Fund
(iv) Profits and gains by (d) 80-C
an undertaking 75. Any amount of money received in
engaged in the excess of ` 50,000 without
development of
consideration is fully taxable in the
Special Economic
Zone hands of
Codes : (A) Individuals
(i) (ii) (iii) (iv)
(A) (d) (c) (b) (a) (B) Individuals and HUF
(B) (d) (a) (b) (c) (C) Individuals, HUF and Company
(C) (d) (a) (c) (b)
(D) (b) (a) (c) (d) (D) All assessees

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

December 2013 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 D 11 C 21 C 31 D 41 D 51 A 61 B 71 C

2 C 12 D 22 A 32 B 42 C 52 D 62 C 72 B

3 B 13 A 23 A 33 D 43 C 53 B 63 B 73 C

4 C 14 A 24 C 34 B 44 B 54 B 64 B 74 D

5 D 15 D 25 B 35 A 45 C 55 A 65 A 75 B

6 C 16 A 26 A 36 D 46 A 56 B 66 C

7 C 17 A 27 B 37 D 47 B 57 C 67 B

8 B 18 D 28 D 38 D 48 A 58 D 68 C

9 A 19 D 29 B 39 C 49 D 59 D 69 A

10 D 20 B 30 B 40 D 50 C 60 C 70 C

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JUNE 2013
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks. All questions are compulsory.
1. Direct supervision over depositories 4. The apex consumer court in India is
and mutual funds is undertaken by referred to as
(A) NBFCs (A) The Consumer Education and
(B) RBI Research Centre.
(C) SEBI (B) The Consumer Unity and Trust
(D) All of the above Society.
2. In the call/notice money market, (C) National Consumer Disputes
which of the following participants is Redressal Commission.
allowed to trade ? (D) None of the above
(A) All Banks, Primary Dealers and
Mutual Funds 5. Who is Chairman of 13th Finance
(B) All Corporates Commission ?
(C) Only Commercial Banks (A) Dr. C. Rangarajan
(D) All of the above
(B) Mr. Vimal Jalan
3. Match the items of List-I with the (C) [Link] C. Kelkar
items of List-II and select the correct (D) None of the above
answer :
List – I List – II
(i) Private (a) Secondary 6. Insurance expenses paid to bring an
ownership Market equipment from the place of
and Free purchase to the place of installation is
Enterprise. a type of
(ii) Government (b) Capitalism (A) Revenue expenditure
ownership (B) Capital expenditure
and Central (C) Deferred revenue expenditure
Authority. (D) Operating expense
(iii) The market (c) Primary
for the sale Market
7. ABC Ltd was incorporated with
and purchase
an authorised Share Capital of
of previously
` 1,00,000 equity shares of ` 10
issued
each. The Board of Directors of the
securities.
company decided to allot 10,000
(iv) The market (d) Socialism
shares credited as fully paid to the
for new long
promoters of the company for their
term capital.
services. Which account should be
Codes :
debited in the books of ABC Ltd. ?
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c) (A) Promoters’ Account
(B) (a) (b) (c) (d) (B) Services Account
(C) (b) (d) (c) (a) (C) Goodwill Account
(D) (a) (c) (b) (d) (D) Share Capital Account

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8. In a reconstruction scheme, the 12. Match the items of List-I with those
reduction of capital may take the in List-II and select the correct code
form of
for the answer :
(A) Reducing the liability of the
shareholders in respect of any List – I List – II
unpaid amount on the shares (a) Contraction (i) Non-Price
held by them. of Demand change effect
(B) Paying-off any paid-up share
capital which is in excess of its (b) Decrease (ii) Demand curve
requirement. in Demand remains the
(C) Cancelling any paid-up share same
capital which is lost or
(c) Increase in (iii) Price change
unrepresented by available
assets. Demand effect
(D) All of the above. (d) Expansion (iv) Shifts the
of Demand Demand curve
9. While determining the normal rate of
Codes :
return for the valuation of shares in
Market Value Method, which of the (a) (b) (c) (d)
following should be taken into (A) (iii) (i) (iv) (ii)
consideration ?
(A) The degree of risk involved. (B) (iv) (iii) (ii) (i)
(B) The current rate of interest on (C) (i) (ii) (iii) (iv)
gilt-edged securities. (D) (ii) (iv) (i) (iii)
(C) Weighted average cost of
capital.
(D) All of the above. 13. Assertion (A) : As the proportion of
one variable factor in a
10. Master budget is a
combination with fixed factor
(A) Functional Budget
(B) Operating Budget is increased, after a point the
(C) Summary Budget marginal product of the factor
(D) Financial Budget will diminish.
Reason (R) : Beyond the level of
11. Assertion (A) : Want-satisfying
optimum combination of inputs
power of a commodity is called
its utility. leads to this.
Reason (R) : Utility may not have Codes :
the characteristic of morality. (A) (R) is appropriate reason of
Codes :
(A) Both (A) and (R) are correct. (A).
(B) (A) is correct, but (R) is not (B) (R) is not appropriate reason of
correct. (A).
(C) Both (A) and (R) are not
(C) (A) and (R) are not related with
correct.
(D) (R) is correct, but (A) is not each other.
correct. (D) (A) is independent of (R).

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14. Match the items of List-I with the 17. The difference between sample
items of List-II and select the correct statistic and its corresponding
answer. population parameter is
List – I List – II (A) Sampling error
(a) Indifference (i) Slopes (B) Measurement error
Curve downward to (C) Coverage error
the right (D) Non-response error
(b) Demand (ii) P=AR=MR=d
Curve 18. Match the items in List-I with items
in List-II.
(c) Perfect (iii) Oligopoly List – I List – II
Competition (i) Level of (a) Sample
(d) Price (iv) Convex to significance mean is
Leadership the origin equal to
Codes : population
mean
(a) (b) (c) (d)
(ii) Standard (b) Parameters
(A) (ii) (iii) (iv) (i) deviation of
(B) (iii) (iv) (i) (ii) sampling
(C) (iv) (i) (ii) (iii) distribution
(iii) Numerical (c) Type-I
(D) (i) (ii) (iii) (iv)
value that error
describes the
15. Price, Marginal Revenue and characteristi
Elasticity are related to each other. cs of the
When e = 1, then : population
(A) MR > 0 (iv) Normally- (d) Standard
distributed error
(B) MR < 0
population
(C) MR = 0 Codes :
(D) MR = 1 (i) (ii) (iii) (iv)
(A) (d) (c) (a) (b)
16. Consider the following statistical (B) (c) (d) (b) (a)
tests : (C) (c) (b) (d) (a)
(D) (d) (b) (c) (a)
(i) ‘F’ test
(ii) ‘t’ test 19. Kendall’s co-efficient of
(iii) ‘z’ test concordance is used to
(A) Test the difference among two
(iv) ‘Chi-square’ test
or more sets of data.
Which of these are parametric tests ? (B) Test the relationship between
(A) (i), (ii) and (iv) variables.
(B) (i), (iii) and (iv) (C) Test the variations in the given
data.
(C) (i), (ii) and (iii)
(D) Test the randomness of
(D) (ii), (iii) and (iv) samples.

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20. Which of the following softwares are 23. Assertion (A) : When span of
used for data processing ? control is wide co-ordination
(i) EXCEL and control becomes difficult.
(ii) ACCESS Reason (R) : In a narrow span, levels
of authority reduces.
(iii) SPSS
Codes :
(iv) STAR (A) Both (A) and (R) are true and
(v) PASW (R) is the correct explanation of
Codes : (A).
(A) (i), (ii), (iii) and (v) (B) Both (A) and (R) are true, but
(R) is not a correct explanation
(B) (ii), (iii), (iv) and (v)
of (A).
(C) (iii) and (iv)
(C) (A) is true, but (R) is false.
(D) (i), (iii) and (iv) (D) (A) is false, but (R) is true.

21. Match the items of List-I with the 24. The general pattern of behaviour,
items of List-II and select the correct shared belief and values that
answer. members have in common is known
List – I List – II as
(i) Grapevine (a) Task (A) Organisation climate
group (B) Organisation culture
(ii) Formal (b) Field force (C) Organisation effectiveness
group theory (D) Organisation matrix
(iii) Informal (c) Gossip
group 25. Which of the following is not a
(iv) Kurt Lewin (d) National principle of management according
group to Henri Fayol ?
Codes : (A) Subordination of individual
interest over the organisational
(i) (ii) (iii) (iv) interest
(A) (c) (a) (d) (b) (B) Esprit de crops.
(B) (d) (c) (b) (a) (C) Unity of Managers
(C) (a) (b) (c) (d) (D) Unity of Direction
(D) (b) (a) (d) (c)
26. Which of the following concepts is
based on development, design and
22. Who has suggested that achievement
implementation of marketing
motivation among individuals and
programmes, processes and activities
nations can be developed through
that recognise their breadth and
training courses ?
interdependence ?
(A) MeClelland
(A) Product concept
(B) Alderfer (B) Sales concept
(C) Maslow (C) Societal marketing concept
(D) Herzberg (D) Holistic marketing concept

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27. The concept of marketing-mix, 30. Consumer attitudes and beliefs about
consisting of the 4 P’s of marketing, diet, health and nutrition are
was developed by influenced by
(A) E. Jerome McCarthy (A) Economic environment
(B) Peter F. Drucker (B) Cultural environment
(C) Philip Kotler (C) Social environment
(D) William J. Stonton (D) Natural environment

28. The selling concept is most likely to 31. Positive NPV in project appraised by
be used by firms which sell a firm may not occur an account of
(A) Convenience goods (A) Economics of scale
(B) Market reach
(B) Shopping goods
(C) Product differentiation
(C) Speciality goods
(D) Intangible benefits
(D) Unsought goods

32. In case the projects are divisible

29. Match the items of List-I with those under capital rationing an appropriate
of List-II and select the correct project appraisal method is
answer from the codes given below :
(A) Net Present Value Method
List – I List – II
(B) Profitability Index Method
(a) Everitt (i) Service
(C) Internal Rate of Return Method
M. Rogers Quality
Model (D) Payback Period Method
(b) J.D. Power (ii) Three types
of 33. Permanent working capital is
marketing generally financed through
for services
(A) Long term Capital Funds
(c) Parasuraman, (iii) Quality
(B) Government Assistance
Zeithaml and rating of
Berry automobiles (C) Internal Financing
(d) Gronroos (iv) Diffusion of (D) Short term loans from Banks
innovation
Codes : 34. The appropriate ratio for indicating
(a) (b) (c) (d) liquidity crisis is
(A) Operating ratio
(A) (iii) (ii) (i) (iv)
(B) Sales turnover ratio
(B) (i) (ii) (iii) (iv)
(C) Current ratio
(C) (ii) (i) (iv) (iii)
(D) Acid test ratio
(D) (iv) (iii) (i) (ii)

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35. Who proposed a model to apply 39. Statement (i) : Sound industrial
economic order quantity concept of relations are essential to
inventory management to determine achieve individual, team goals
the optimum cash holding in a firm ? and organizational goals.
(A) Keith V. Smith Statement (ii) : Congenial labour
management relations create an
(B) Miller and Orr atmosphere of harmony and
low rate of absenteeism.
(C) William J. Baumol
(A) Statement (i) is true, but (ii) is
(D) J.M. Keynes false.
(B) Statement (ii) is true, but (i) is
false.
36. Which of the following is not (C) Both statements are true.
included in the model of the systems
approach to Human Resource (D) Both statements are false.
Management ?
(A) Human Resource Planning 40. Out of the following, which are the
schemes of Social Security ?
(B) Recruitment and Selection (i) Provident Fund Scheme
(C) Performance appraisal (ii) Health Insurance Scheme
(D) Departmentation (iii) Job Guarantee Scheme
(iv) Maternity Benefit Scheme
(v) Merit Promotion Scheme
37. It is generally easy to measure the (vi) Compulsory and Voluntary
performance of the Social Insurance Scheme
(A) Industrial Relations Manger (vii) Child Insurance Scheme
(B) Research and Development Codes :
Manager (A) (i), (ii), (iv) and (vi)
(C) Sales person (B) (ii), (i), (v) and (vii)
(C) (iii), (v), (iv) and (vi)
(D) All of the above
(D) (iv), (vii), (iii) and (ii)

38. Which one of the following is not a 41. RBI ensures that banks operate
monetory incentive to sales people ? within the set norms by conducting
______ inspections and _______
(A) Bonus
monitoring.
(B) Staff meeting (A) on site, off site
(C) Travelling allowance (B) off site, on site
(C) on site, field
(D) Both (B) and (C)
(D) field, on site

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42. Under Section 37 of the Banking 46. Flow of foreign loans and
(Regulation) Act, a moratorium order investments affect
can be issued by the High Court for a (A) Trade balance
maximum total period of
(B) Current Account balance
(A) One month (C) Capital Account balance
(B) Six months (D) None of the above
(C) One year
47. Concessions mainly multinational in
(D) One and a half year character come under the principle of
(A) Non-discrimination
43. Bonds or debentures issued by (B) Reciprocity
Securitization company should bear (C) Market Access
interest not less than
(D) Fair Competition
(A) Bank Rate
(B) Prime Lending Rate 48. From the following identify the one
which is not a commercial counter
(C) 1.5% over the Bank Rate trade ?
(D) 1.5% over the Saving Rate (A) Classical barter
(B) Counter purchase
(C) Pre-compensation
44. Section 131 of the Negotiable
Instruments Act extends protection to (D) Buy-back agreement
the _______
(A) Collecting Banker 49. If the spot price is higher than the
strike price in a call option, it is
(B) Paying Banker referred to as
(C) Advising Banker (A) At-the-money
(B) In-the-money
(D) Confirming Banker
(C) Out-of-the-money
(D) Premium
45. When a customer, by a letter has
advised the bank not to honour/pay a
50. Identity the item which does not
particular cheque, such letter is called
include under Current Account
______
transaction.
(A) Cancellation letter (A) Services
(B) Garnishee letter (B) Non-monetary movement of
gold
(C) Mandate
(C) Unilateral transfer
(D) None of the above (D) Investment income

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JUNE 2013 Paper II

Answer Key (1-50)

Q A Q A Q A Q A Q A

1 C 11 A 21 A 31 D 41 A

2 C 12 A 22 * 32 B 42 B

3 A 13 A 23 C 33 A 43 C

4 C 14 C 24 B 34 D 44 A

5 C 15 C 25 C 35 C 45 D

6 B 16 C 26 D 36 D 46 C

7 C 17 A 27 A 37 C 47 B

8 D 18 B 28 D 38 D 48 D

9 D 19 B 29 D 39 C 49 B

10 C 20 A 30 B 40 A 50 B

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JUNE 2013
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.

1. Under the provisions of the 3. Match the items of List-I with the
Industries (Development and items of List-II and select the correct
Regulation) Act, 1951, a licence is answer :
necessary for List – I List – II
(i) SLR (a) Working in the
(A) Changing the location of an field of consumer
existing industrial undertaking. protection.
(B) producing or manufacturing a (ii) SIDBI (b) Credit control.
‘new article’ in an existing (iii) CUTS (c) Industrial policy.
industrial undertaking. (iv) ILPIC (d) Facilitating Small
(C) Establishing a new Scale Industries.
undertaking. Codes :
(i) (ii) (iii) (iv)
(D) All of the above. (A) (a) (c) (d) (b)
2. Match the items of List-I with the (B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
items of List-II and select the correct (D) (a) (c) (b) (d)
answer.
List – I List – II 4. Match the following :
(i) Political (a) Important for List – I List – II
and Legal industries (i) National (a) Marks the
Environ- directly Stock beginning of the
ment depending Exchange process of
on imports dematerialisation
or exports. of shares of the
(ii) Demo- (b) Close participating
graphic relationship companies.
Environ- with the (ii) National (b) Facilitation of
ment economic Securities equal access to
system and Depository investors across
economic Limited the country.
policy. (iii) Securities (c) To foster the
(iii) Economic (c) Related to and development of
Environ- natural Exchange an active
ment resources. Board of secondary market
(iv) Geo- (d) Occupational India for Government
graphical and spatial Securities.
and mobilities of (iv) Securities (d) Abolition of
Ecological population Trading Capital issues
Environ- having Corporat- control and
ment implications ion of retaining the sale
for business. India authority for new
Codes : capital issues.
(i) (ii) (iii) (iv) Codes :
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a) (A) (b) (a) (d) (c)
(B) (b) (d) (a) (c) (B) (a) (b) (c) (d)
(C) (a) (b) (c) (d) (C) (a) (b) (d) (c)
(D) (d) (c) (b) (a)
(D) (a) (b) (d) (c)
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5. The United Nations Conference on 11. Match the items of the following two
Trade and Development (UNCTAD) lists :
was set up in List – I List – II
(A) 1944 (B) 1954
(C) 1960 (D) 1964 (i) Statement of (a) Cash Flow
changes in Statement
6. Indicate the ground on which a Working
complaint under the Consumer Capital
Protection Act, 1986, shall be invalid. (ii) Deferred (b) Fixed
(A) A product having short weight. Tax Assets
(B) A service provided free of cost. (iii) Three (c) Funds
(C) A misleading advertisement activities Flow
given in newspaper. Statement
(D) None of the above.
(iv) Impairment (d) Balance
7. Out of the following, which are the Loss Sheet
four components of food security ? Codes :
(i) Food availability
(i) (ii) (iii) (iv)
(ii) Food market
(iii) Food accessibility (A) (a) (b) (c) (d)
(iv) Food utilization (B) (c) (d) (b) (a)
(v) Food credit
(C) (c) (d) (a) (b)
Codes :
(A) (iii), (iv) and (v) (D) (d) (c) (a) (b)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
12. Match the items of the following two
(D) (i), (ii) and (iv)
lists and indicate the correct answer :
8. Performance evaluation of a List – I List – II
responsibility centre can be done by
(i) Earning (a) Basis of
(A) ROI
ability of Accounting
(B) Return on sales
firm
(C) EVA
(D) All of the above (ii) Conserva- (b) P/V ratio
tism
9. Social Balance Sheet shows (iii) Cash profit (c) Cash flow
(A) Social costs statement
(B) Social revenues
(C) Value of employees of the (iv) Cash and (d) Prudence
organisation Accrual
(D) All of the above Codes :
10. Which of the following comes under (i) (ii) (iii) (iv)
efficiency ratios ? (A) (b) (d) (c) (a)
(A) Average collection period (B) (b) (a) (d) (c)
(B) Inventory turnover ratio
(C) Fixed assets turnover ratio (C) (c) (d) (a) (b)
(D) All of the above (D) (c) (d) (b) (a)

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13. Given below are two statements, one 16. Match the items of List-I with the
labelled as Assertion (A) and the items of List-II and select the correct
other labelled as Reason (R). answer.
Assertion (A) : Only the relevant List – I List – II
costs should be taken into (a) Economic (i) Total
consideration for decision- profit Revenue
making. Explicit cost
Reason (R) : All variable costs are (b) Accounting (ii) Buyers and
relevant costs and all fixed profit Sellers
costs are irrelevant costs. exchanging
In the above two statements, which (c) Collusion/ (iii) Total
one alternative of the following is Cartel Revenue –
correct ? Total cost
Codes : (d) Market (iv) Oligopoly
(A) Both (A) and (R) are correct. Codes :
(B) Only (A) is correct, but (R) is (a) (b) (c) (d)
wrong. (A) (iii) (i) (iv) (ii)
(C) Only (R) is correct, but (A) is (B) (i) (ii) (iii) (iv)
wrong. (C) (iv) (iii) (ii) (i)
(D) Both (A) and (R) are wrong. (D) (ii) (iv) (i) (iii)
17. Which one is not the item of
14. Given below are two statements, one economic cost to the business ?
labelled as Assertion (A) and the (A) Owner supplied resources.
other labelled as Reason (R) : (B) Market supplied resources.
Assertion (A) : Variance analysis is (C) Implicit costs.
undertaken for planning and (D) Non-monetary opportunity
control of costs. costs of using owner supplied
Reason (R) : Future costs are taken resources.
into consideration in budgeting 18. Demand must have the elements
and standard costing. (A) Desire
In the above two statements, which (B) Want
one alternative of the following is (C) Quantity, Price and Time
correct ? (D) All of the above
Codes :
(A) Both (A) and (R) are correct 19. Match the items of List-I and items
and (R) is the Reason for (A). of List-II and select the correct code
(B) Both (A) and (R) are correct for the answer.
and (R) is not the Reason for List – I List – II
(A). (a) Utilitarian (i) Marginal Rate
(C) (A) is correct, but (R) is wrong. Approach of Substitution
(D) (A) is wrong, but (R) is correct. (b) Ordinal (ii) Budget line &
Approach Indifference
15. Assertion (A) : Mark-up pricing is a Curve
method of determining price. (c) Price- (iii) U=f (x, y)
Reason (R) : P = ATC + (m × ATC) Consumption
is the expression for that. Curve
Codes : (d) Consumer (iv) MRSxy =
(A) (A) is correct but (R) is not Equilibrium MRSyx
correct.
(B) Both (A) and (R) are correct. Codes :
(C) Both (A) and (R) are not (a) (b) (c) (d)
(A) (i) (iv) (iii) (ii)
correct. (B) (ii) (iii) (iv) (i)
(D) (R) is correct, but (A) is not (C) (iii) (i) (ii) (iv)
correct. (D) (iv) (ii) (i) (iii)

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20. The Learner Index measures 24. Which of the following tests can be
(A) Market power applied to ordinal scale data ?
(B) Price (i) Chi-square test
(ii) ‘Z’ test
(C) Price-Marginal cost
(iii) Kruskal-Wallis test
(D) None of the above (iv) Wilcoxon Mann-Whitney test
Codes :
21. Match the items of List-I and items (A) (i), (ii) and (iii)
of List-II and select the correct (B) (ii), (iv) and (iii)
answer. (C) (i), (iii) and (iv)
List – I List – II (D) (i), (ii) and (iv)
(a) Perfect (i) Different
competition prices for the 25. Which of the following tests can be
same based on the normal distribution ?
product (A) Difference between
(b) Monopolistic (ii) Dominant independent means
competition strategy (B) Difference between dependant
means
(c) Oligopoly (iii) Product
(C) Difference between proportions
differentiation
(D) All of the above
(d) Discriminating (iv) Identical
Monopoly product 26. From the following, identify one
Codes : situation where ‘F’ test cannot be
(a) (b) (c) (d) used ?
(A) (iv) (iii) (ii) (i) (A) To compare more than two
population means.
(B) (i) (ii) (iii) (iv)
(B) To test the hypothesis about a
(C) (ii) (iv) (i) (iii) single population variance.
(D) (iii) (i) (iv) (ii) (C) To test the hypothesis about
two-population variance.
22. If there are 8 possible classes under (D) To study about randomized
consideration for a goodness of-fit, block design.
the number of degrees of freedom
will be 27. Which statistical test should be
applied to test the effectiveness of
(A) 8 ‘special coaching’ on the marks
(B) 7 scored by the students ?
(C) 6 (A) Paired ‘t’ test
(D) Cannot be determined from the (B) ‘Chi-square’ test
given information. (C) ‘Z’ test
(D) ‘F’ test
23. Identify from the following, the test 28. In a linear equation,
statistic for which the value of y = a + bx, ‘a’ refers to
numerator should always be greater (A) Slope
than that of denominator. (B) Y-intercept
(A) ‘Chi-square’ (B) ‘F’ value (C) Dependant variable
(C) ‘Z’ value (D) ‘t’ value (D) Independent variable

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29. Which among the following is the 33. If a network of interpersonal

most popular approach for relationship that arise when people
accomplishing the results ? associate with each other is an
(A) Management by exception informal organization, then find out
(B) Reward system which of the following is not an
(C) Management by objectives informal organization ?
(D) Mentor system (A) The “machine shop” group
30. The managerial function of (B) Customers’ group
organizing involves (C) The “sixth floor” group
(A) Reviewing and adjusting plan (D) The “Friday evening bowling”
in the light of changing gang
conditions.
(B) Establishing programme for the 34. Which of the following are sources
accomplishment of objectives. of ethics ?
(C) Creating structure of functions (i) Religion
and duties to be performed. (ii) Legal system
(D) Getting things done through (iii) Economic system
others. (iv) Culture
31. A leader who identifies what (v) Family system
subordinates need to do to achieve Select the correct answer from the
objectives, clarify organizational codes given below :
roles and tasks, set up an (A) (i), (ii), (iii), (v)
organization structure, reward (B) (i), (ii), (iv)
performance and provide for the (C) (i), (iv), (v)
social needs of their followers, is (D) (i), (ii), (iii), (iv), (v)
(A) a transformational leader
35. Which of the following has refined
(B) a participative leader
Maslow’s theory of motivation by
(C) a transactional leader
proposing a hierarchy of three
(D) an autocratic leader
needs ?
32. Which of the following is not an (A) MeClelland (B) Aldorfer
assumption of theory X ? (C) Herzburg (D) Vroom
(A) An average human being has
an inherent dislike of work and 36. Which segmentation approach is the
will avoid it if he can.
most compatible with the spirit of the
(B) An average human being
marketing concept ?
prefers to be directed, seeks to
(A) Benefit sought
avoid responsibility, has
(B) Income
relatively little ambition, and
(C) Social class
want security above all.
(C) An average human being learns (D) Family size
under proper conditions, not
only to accept responsibility 37. The description of a product’s
but also to seek it. quality, features, style, brand name
(D) Most people must be coerced, and packaging identifiers the
controlled, directed and (A) Actual product
threatened with punishment to (B) Augmented product
get them put forth adequate (C) Core product
effort. (D) Tangible product

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38. Consider the following statements 41. Which form of retail outlet has the
and find out the correct alternative highest operating costs ?
from the codes given below : (A) Super market
(i) A firm’s marketing information (B) Consumer co-operative store
system is a component of its (C) Department store
(D) Retail chain store
marketing research system.
(ii) The most common forms of 42. Consider the following statements
marketing researches and indicate the correct alternative
from the codes given below :
conducted in most of the firms (i) The product management
are the measurement of market system often turns out to be
potential and the analysis of costly.
market share. (ii) When customers belong to
(iii) Survey research is seldom used different user groups with
for studying consumer distinct buying preferences and
perception and attitudes. practices, a market
management organization is
(iv) The concept of cognitive not suitable.
dissonance is relevant to study (iii) Advertising department has the
consumer’s post-purchase closest interface with the
behaviour. finance department of the
Codes : company.
(A) All the statements are true. Codes :
(B) All the statements are false. (A) (i) and (ii) are correct.
(B) (ii) and (iii) are correct.
(C) (i) is false and the rest are true. (C) Only (i) is correct.
(D) (ii) and (iv) are true and the rest (D) All are correct.
are false.
43. Match the statements in List-I with
39. In India, which pricing practice is not dividend models in List-II as follows :
permissible ? List – I List – II
(A) Penetrating pricing I Dividend 1. Traditional
Capitalisation Model
(B) Skimming pricing Approach.
(C) Predatory pricing II Dividend Policy 2. Gardon
(D) None of the above has a bearing on Model
the share
40. Consider the following statements valuation.
and find out the correct alternative III Stock Market 3. Walter
from the codes given below : places more Model
(i) A good salesman is one who weight on
can sell refrigerator to an dividends than
on retain
Eskimo. earnings.
(ii) Salesmen are born, not made. IV Dividend payout 4. Modigliani
(iii) Physical distribution is an area is irrelevant to and Miller
where high cost-savings is the value of the Model
possible. firm.
Codes : Codes :
(A) (i) and (iii) are correct. I II III IV
(A) 2 3 1 4
(B) (i) and (ii) are correct. (B) 1 2 4 3
(C) (ii) and (iii) are correct. (C) 4 1 3 2
(D) All are correct. (D) 3 4 2 1

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44. Venture capital financing at starting 47. The degree to which the returns of
stage is generally not done through the two securities change together, is
(A) Debt instruments reflected by
(B) Deep discount bonds (A) Correlation (B) Leverage
(C) Covariance (D) Beta
(C) Equity shares
48. The transfer by a company of one or
(D) Conditional loans
more of its business divisions to
another newly set up company is
45. Match the statements in List-I with called
the types of lease in the List-II as (A) Demerger
follows : (B) Merger
List – I List – II (C) Equity Carve-out
I Lessor transfers all 1. Indirect (D) Disinvestment
risks and rewards lease 49. What combination of the following
of an asset to the factors influences the working capital
lessee. requirement ?
II Lessor transfers the 2. Operating I Market Conditions
assets to the lessee lease II Production Policy
but bears the cost III Firm’s goodwill
of maintenance IV Supply conditions
III The owner of the 3. Finance Codes :
asset sells it to the lease (A) I, II and III
lessor who in turn (B) II, III and IV
leases it back to the (C) I, III and IV
owner (now lessee) (D) I, II and IV
50. Which of the followings are the
IV Lessor owns/ 4. Direct modern method of performance
acquires the assets lease appraisal ?
that are leased to a (i) 360 degree performance
given lessee. appraisal.
Codes : (ii) Graphic rating scale.
I II III IV (iii) Management By Objectives
(A) 2 3 4 1 (MBO).
(B) 1 4 2 3 (iv) Forced distribution method.
(v) Behaviourally Anchored
(C) 3 2 1 4
Rating Scales (BARS).
(D) 4 1 3 2 Select the correct answer from the
codes given below :
46. Full details for the issue of ADRs by (A) (i), (ii), (iii) (B) (ii), (iv), (v)
a company must be furnished within (C) (i), (iii), (v) (D) (iv), (ii), (i)
30 days from the date of its closure to 51. Which of the following principle
(A) Securities and Exchange serves as a warning to organisations
Commission (SEC) not to take the selection and
promotion process lightly ?
(B) Reserve Bank of India (RBI)
(A) Promotion Principle
(C) Securities and Exchange Board (B) Drucker Principle
of India (SEBI) (C) Validity Principle
(D) Company Law Board (CLB) (D) Peter Principle

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52. According to D. Katz morale has 56. Which one of the following methods
four dimensions : is not a demand forecasting method
(i) jobs satisfaction of Human Resource Planning ?
(ii) satisfaction with wages and (A) Managerial judgement
promotional opportunities. (B) Managerial grid
(iii) Identification with company. (C) Work study techniques
(iv) Pride in the work group. (D) Statistical techniques
(v) Top Management Support.
57. Transaction of Internet Banking
Select the correct combination.
excludes
(A) (i), (ii), (iii) and (iv)
(A) Withdrawal of cash anywhere
(B) (i), (ii), (iii) and (v)
in India.
(C) (i), (ii), (iv), and (v)
(B) Statement of account for a
(D) (i), (iii), (iv) and (v)
specific period.
(C) Transfer of funds from one
53. HRM is viewed as a management
account to another account.
process, consisting of four functional
(D) Balance enquiry.
activities :
(i) Acquisition 58. Which among the following is not a
(ii) Motivation category of Non-Performing Assets ?
(iii) Development (A) Substandard Assets
(iv) Resolution of industrial disputes (B) Doubtful Debts
(v) Maintenance (C) Loss Assets
Select the correct combination. (D) Devaluated Assets
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v) 59. When a loan will be NPA ?
(C) (i), (ii), (iv) and (v) (A) Interest and/or loan instalments
(D) (i), (iii), (iv) and (v) overdue for more than 90 days.
(B) Account is out of order for
54. O C TA PA C stands for more than 90 days in case of
(A) Order, Co-ordination, Trust, overdraft/cash credit.
Authority, Personality and Co- (C) Bill remains overdue for more
operation. than 90 days.
(B) Openness, Confrontation, (D) All of the above.
Trust, Authenticity, Pro-action
and Collaboration. 60. Assertion (A) : “The problem of
(C) Organisation, Conflict, Team, rural credit is not primarily one
Authority, People and of rural credit, it may be said to
Collaboration. be one of rural minded credit.”
(D) Oneness, Compromise, Tress Reason (R) : The Indian economy
pass, Authority, Protection and has yet to come out of rural
Combination. mentality.
Codes :
55. Technique of ‘Transaction Analysis’ (A) Both (A) and (R) are correct.
was developed by (B) Both (A) and (R) are incorrect.
(A) Elton Mayo (C) (A) is correct, but (R) is
(B) Peter Drucker incorrect.
(C) Eric Berne (D) (R) is correct, but (A) is
(D) Adam Smith incorrect.

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61. Match the items of List-I with the 63. Assertion (A) : Most of the
items of List-II and select the correct development bank in India
answer : have setup private commercial
banks after the introduction of
List – I List – II
capital adequacy norms.
(i) Debit card (a) Several
storage Reason (R) : Development banks in
India have not adhered to their
(ii) Credit card (b) Online basic objectives.
recovery
of amount Codes :

(iii) Electronic (c) Image (A) (A) and (R) both are correct,
purse processing and (R) is correct explanation
use of (A).
(iv) Cheque (d) Revolving (B) (A) and (R) both are correct,
function credit but (R) is not a correct
explanation of (A).
Codes :
(C) (A) is correct, but (R) is
(i) (ii) (iii) (iv) incorrect.
(A) (c) (a) (d) (b)
(D) (R) is correct, but (A) is
(B) (a) (b) (d) (c) incorrect.
(C) (d) (c) (a) (b)
(D) (d) (c) (b) (a) 64. Match the following items of List-I
with List-II :

62. Assertion (A) : The Indian economy List – I List – II

could survive in the recent (a) Brettonwoods (i) 1947
global recession due to its conference
strong banking system.
(b) General Agreement (ii) 1964
Reason (R) : The Indian economy on Trade and Tariffs
contains a large amount of
black money. (c) ACCRA conference (iii) 1944
Codes : (d) United Nations (iv) 2008
Conference on Trade
(A) Both (A) and (R) are correct
and Development
and (R) is the explanation of
(A). Codes :
(B) Both(A) and (R) are correct, (i) (ii) (iii) (iv)
but (R) is not the correct
explanation of (A). (A) (b) (d) (a) (c)

(C) (R) is correct, but (A) is not the (B) (b) (d) (c) (a)
appropriate assertion of (R). (C) (b) (c) (d) (a)
(D) Both (A) and (R) are incorrect. (D) (c) (a) (b) (d)

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65. The forces that lend momentum to 67. Assertion (A) : The major economic
the process of globalization have powers have succeeded in
been identified by Michael Porter creating a new international
include the following : regime where the profits and
the dominance of their
(i) Fluid global capital market.
transnational corporations will
(ii) Technological restructuring. be the decisive consideration.
(iii) Decreasing religious command. Reason (R) : This regime will
legitimise the process of
(iv) Ethnic decontrol. progressive erosion of the
(v) New-global competitors. sovereign economic space of
the third-world countries.
(vi) End of the ‘cold war’ in 1990s. (A) Both (A) and (R) are correct,
Codes : and (R) is the right explanation
of (A).
(A) (vi), (v), (iv) and (iii)
(B) Both (A) and (R) are correct,
(B) (vi), (iii), (ii) and (i) but (R) is not the right
(C) (vi), (v), (ii) and (i) explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (iv), (iii), (ii) and (i) (D) (R) is correct, but (A) is not
correct.
66. Statement (I) : Green Box subsidies 68. Assertion (A) : The ‘Balance of
include amount spent on Payments’ presents a classified
Government services such as record of all receipts on
research, disease control, account of goods exported,
infrastructure and food services rendered and capital
security. received by ‘residents’ and
payments made by them on
Statement (II) : Blue Box subsidies account of goods imported and
are certain direct payments services received from capital
made to farmers, to limit transferred to ‘non-residents’ or
production, and are certain ‘foreigners”.
government assistance Reason (R) : The ‘Balance of
programmes to encourage Payments’ of a country is a
agriculture and rural systematic record of all
development. economic transactions between
Codes : the ‘residents’ of a country and
the rest of the world.
(A) Statement (I) is correct, but (II) (A) Both (A) and (R) are correct
is not correct. and (R) is the right explanation
(B) Statement (II) is correct, but (I) of (A).
is not correct. (B) Both (A) and (R) are correct,
but (R) is not the right
(C) Both statement (I) and (II) are explanation of (A).
correct. (C) (R) is correct, but (A) is not
(D) Both statement (I) and (II) are correct.
incorrect. (D) Both (A) and (R) are incorrect.

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69. Which among the following is not 71. Donation to National Children’s
rightly explained ? Fund will come in which of the
following deduction under Sec. 80G
(i) M1 = Currency with the public of Income Tax Act, 1961.
+ demand deposits of the (A) 100 percent deduction without
public. any qualifying limit.
(ii) M2 = M1 + Post Office Savings (B) 50 percent deduction without
any qualifying limit.
Deposits. (C) 100 percent deduction subject
(iii) M3 = M1 + Time Deposits of to qualifying limit.
(D) 50 percent deduction subject to
the public with Banks. qualifying limit.
(iv) M4 = M3 + Total Post Office
Deposits. 72. If the taxable income of a domestic
company for the Assessment Year
(v) M1 = Narrow money 2011-12 is ` 9,00,000, its tax liability
will be
(vi) M3 = Broad money (A) ` 2,76,800 (B) ` 2,78,100
(A) Only (v) and (vi) (C) ` 3,70,800 (D) ` 3,70,880
(B) Only (i) and (iii) 73. Unabsorbed depreciation which
(C) Only (vi) could not be setoff in the same
assessment year, can be carried
(D) None of the above forward upto
(A) 4 years
(B) 8 years
70. Which of the followings are not (C) 10 years
effect of dumping on importing (D) Indefinite period
country ?
74. If the book profits of a partnership
(i) Domestic industry might be firm is ` 1,10,000, the remuneration
affected adversely by a decline admissible to working partners under
in sales and profits. Sec.40(b) of the Income Tax Act,
(ii) If dumping is continued for a 1961 is
(A) ` 1,10,000
longer period, survival of the
(B) ` 1,50,000
domestic industry may be (C) ` 99,000
threatened. (D) None of the above
(iii) Dumping may create BOP 75. Which of the following expenses is
problems for the country. inadmissible while computing
(iv) It finds market for its surplus income from other sources ?
production. (A) Interest paid on amounts
borrowed to meet tax liabilities.
Codes : (B) Collection charges paid to the
(A) (i), (ii), (iii) and (iv) banker or any other person to
collect interest/dividend.
(B) (ii), (iii) and (iv) (C) Interest on loan taken to invest
(C) (iii) and (iv) in securities.
(D) Depreciation on let-out
(D) Only (iv) machinery and plant.

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UGC NET COMMERCE PREVIOUS QUESTION PAPERS

JUNE 2013 Paper III

Answer Key (1-75)

Q A Q A Q A Q A Q A Q A Q A Q A
1 D 11 C 21 A 31 C 41 C 51 D 61 B 71 B

2 B 12 A 22 D 32 C 42 C 52 A 62 B 72 B

3 B 13 B 23 B 33 B 43 A 53 B 63 C 73 D

4 A 14 B 24 C 34 C 44 B 54 B 64 A 74 B

5 D 15 B 25 D 35 B 45 C 55 C 65 C 75 A

6 B 16 A 26 B 36 A 46 B 56 B 66 C

7 B 17 B 27 A 37 A 47 C 57 A 67 B

8 D 18 D 28 B 38 D 48 A 58 D 68 A

9 C 19 C 29 C 39 C 49 D 59 D 69 D

10 D 20 A 30 C 40 A 50 C 60 C 70 D

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