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2012 Commerce UGC NTA NET JRF Solved Previous Year Paper June–2012 Paper–II

Commerce UGC NTA NET JRF Solved Previous Year Paper June–2012 Paper–II

1. Which of the following denote the structural changes in Indian economy?
A. Primary sector contribution has gone down.
B. Service sector contribution has gone up.
C. Secondary sector has not changed much.
D. All of the above
Ans : D

2. Broad Money has to be sensitized through :
A. CRR
B. SLR
C. Repo Rate
D. All of the above
Ans : D

3. Which one is not an element of legal environment?
A. Act of Parliamentarians in Lok Sabha
B. Indian Contract Act, 1872
C. Indian Partnership Act, 1932
D. Negotiable instruments Act, 1881
Ans : A

4. Out of the following, which are four dimensions of Human Development Index?
(i) Life Expectancy
(ii) Literacy Level
(iii) Success Rate of Marriages
(iv) Standard of Living
(v) Crime Rate
(vi) Corruption Level
(vii) Economic Entitlement
(viii) Foreign Visits
Codes :
A. (i), (ii), (vi) and (viii)
B. (i), (ii), (iv) and (vii)
C. (ii), (iii), (vi) and (vii)
D. (iii), (v), (vii) and (viii)
Ans : B

5. Public Enterprise is defined as :
A. An organisation run by joint efforts of Centre and State Governments.
B. An organisation which caters to the needs relating to public utilities.
C. An organisation in which capital is invested by public.
D. An organisation owned and managed by public authorities for definite set of public purposes.
Ans : D

6. Match List-I with List-II and select the correct answer :
List-I
(a) Measurement of income
(b) Recognition of expense
(c) Basis of realization
(d) Identification of revenue
List-II
(i) Accrues to the equity of owners
(ii) Recognition of revenue
(iii) Matching revenue with expenses
(iv) Accounting period
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (ii) (i) (iii) (iv)
C. (iii) (iv) (i) (ii)
D. (iii) (iv) (ii) (i)
Ans : D

7. Consider the following items :
(i) Debentures (ii) Prepaid rent
(iii) Interest accrued (iv) Bank overdraft Which of them are current liabilities?
A. (i), (ii), (iii) and (iv)
B. (iv)
C. (ii), (iii) and (iv)
D. (i), (ii) and (iii)
Ans : B

8. Conversion cost is the sum of :
A. Indirect wages and factory overhead
B. Direct wages, direct expenses and factory overhead
C. Direct material cost and indirect wages
D. Prime cost and selling & distribution overhead
Ans : B

9. Assertion (A) : Premium received on issue of shares is credited to share premium account but not to Profit and Loss account.
Reasoning (R) : Since share premium is not a trading profit, it is not distributed to shareholders.
A. Both (A) and (R) are true but (R) is not correct explanation to (A).
B. (A) is false but (R) is correct.
C. Both (A) and (R) are true and (R) is correct explanation of (A).
D. (A) is correct but (R) is false.
Ans : C

10. Consider the following :
(i) Basic defensive and interval ratio
(ii) Current ratio
(iii) Superquick ratio
(iv) Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order.
A. (ii), (iv), (iii) and (i)
B. (i), (ii), (iv) and (iii)
C. (iv), (ii), (iii) and (i)
D. (iii), (iv), (i) and (ii)
Ans : A

11. Normally Demand curve slopes :
A. Upward B. Downward
C. Horizontal D. Vertical
Ans : B

12. Which of the following refers to Perfect Competition?
(i) There are restrictions on buyers and sellers
(ii) There are no restrictions on movement of goods
(iii) There are no restrictions on factors of production Correct one is
A. only (i) and (ii) B. only (ii) and (iii)
C. only (i) and (iii) D. only (i)
Ans : B

13. Assertion (A) : Total utility will be maximum when marginal utility to price of respective products are equal.
Reason (R) : Deviation from this situation leads to reduction in maximum utility.
A. (A) and (R) are not correct.
B. (A) is correct but (R) is not correct.
C. (A) and (R) are correct.
D. (A) is incorrect, (R) is correct.
Ans : C

14. Match List-I with List-II and select the correct answer.
List-I List-II
(a) Survival (i) Economic Objective
(b) R.O.I (ii) Natural Urge
(c) Growth (iii) Business Purpose
(d) Innovation (iv) Primary Objective
Codes :
(a) (b) (c) (d)
A. (ii) (iii) (iv) (i)
B. (ii) (i) (iii) (iv)
C. (i) (ii) (iii) (iv)
D. (iv) (iii) (ii) (i)
Ans : A

15. Consider the oligopoly models :
(i) Sweezy’s kinked demand curve model
(ii) Newman and Morgenstern Game Theory model
(iii) Cournal’s duopoly model
(iv) Baumal’s sales maximisation model Arrange them in correct sequence as per order of evolution.
A. (iv), (iii), (ii), (i)
B. (ii), (i), (iii), (iv)
C. (iii), (i), (ii), (iv)
D. (i), (iii), (ii), (iv)
Ans : C

16. Which of the following is not a restricted random sampling technique?
A. Stratified sampling
B. Simple random sampling
C. Systematic sampling
D. Multistage sampling
Ans : B

17. Classification of respondents only on the basis of gender is an application of :
A. Ordinal scale B. Nominal scale
C. Interval scale D. Ratio scale
Ans : B

18. Karl Pearson’s co-efficient of correlation between two variables is :
A. the product of their standard deviations
B. the square root of the product of their regression co-efficients
C. the co-variance between the variables
D. None of the above
Ans : B

19. Statistical software packages for research in social sciences include :
A. SPSS B. STATA
C. MiniTab D. All of the above
Ans : D

20. F-test is used to test the significance of the differences between/among
A. Two sample mean
B. More than two samples mean
C. Variance of two samples
D. B and C
Ans : D

21. Match the following :
List-I List-II
(a) The Practice of Management (i) Henry Fayol
(b) Philosophy of Management (ii) F.W. Taylor
(c) Scientific Management (iii) Oliver Sheldon
(d) General and Industrial Administration (iv) Peter F Drucker
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (iv) (iii) (ii) (i)
C. (iv) (iii) (i) (ii)
D. (iii) (iv) (ii) (i)
Ans : B

22. Identify the correct sequence of steps involved in planning :
(i) Selecting the best course of action
(ii) Establishing the sequence of activities
(iii) Establishment of objectives
(iv) Evaluating alternative courses
(v) Determining alternative courses
A. (i), (ii), (iii), (iv) and (v)
B. (iii), (v), (iv), (ii) and (i)
C. (v), (iv), (iii), (ii) and (i)
D. (iii), (v), (iv), (i) and (ii)
Ans : D

23. Assertion (A) : One can be sure about future course of actions by making good plans.
Reasoning (R) : Planning brings certainty in future course of actions of an organisation.
A. (R) is correct but (A) is not correct.
B. (A) is correct but (R) is not correct.
C. Both (A) and (R) are correct.
D. Both (A) and (R) are not correct.
Ans : A

24. According to Kieth Devis, which one is not a barrier of communication?
A. Physical Barriers
B. Technological Barriers
C. Personal Barriers
D. Linguistic Barriers
Ans : B

25. While establishing relation between Maslow’s and Herzberg’s theories, which Needs of Hierachy Theory will fall under the Hygiene Factors?
A. Self actualisation, esteem and social needs
B. Esteem, social and safety needs
C. Social, safety and physiological needs
D. Only social needs
Ans : C

26. Howard-Sueth model of consumer behaviour is popularly known as :
A. Machine Model
B. Human Model
C. Marketing Model
D. Purchase Model
Ans : A

27. To generate and facilitate any exchange intended to satisfy human needs or wants such that the satisfaction of these wants occur with minimal detrimental impact on the natural environment is known as :
A. Aggressive marketing
B. Operating marketing
C. Green marketing
D. All of the above
Ans : C

28. All the activities involved in selling goods or services directly to final consumers for personal non-business uses are done by :
A. Wholesalers
B. Retailers
C. Mediators
D. Commission Agents
Ans : B

29. To manage a business well is to manage its future and to manage the future is to manage information is termed as :
A. Management information system
B. Marketing information system
C. Future information system
D. General information system
Ans : A

30. DAGMAR approach in marketing is used to measure :
A. Public relations
B. Advertising results
C. Selling volume
D. Consumer satisfaction
Ans : D

31. Which one is not an important objective of Financial Management?
A. Profit Maximisation
B. Wealth Maximisation
C. Value Maximisation
D. Maximisation of social benefits
Ans : D

32. Which one refers to cash inflow under payback period method?
A. Cash flow before depreciation and taxes
B. Cash flow after depreciation and taxes
C. Cash flow after depreciation but before taxes
D. Cash flow before depreciation and after taxes
Ans : D

33. The concept of present value is based on the :
A. Principle of compounding
B. Principle of discounting
C. A and B
D. None of the above
Ans : B

34. Cost of capital from all the sources of funds is called :
A. Specific cost
B. Composite cost
C. Implicit cost
D. Simple Average cost
Ans : B

35. Match the following with most suitable option :
(a) Modigiliani-Miller Approach (i) Commercial papers
(b) Net Operating Income Approach (ii) Working Capital Management
(c) Short term Money Market Instrument (iii) Capital Structure
(d) Factoring (iv) Arbitrage
Codes :
(a) (b) (c) (d)
A. (iv) (iii) (i) (ii)
B. (iii) (iv) (i) (ii)
C. (iii) (ii) (i) (iv)
D. (iii) (ii) (iv) (i)
Ans : A

36. Which four are the factors influencing the Human Resource Management of an organisation?
(i) Size of workforce
(ii) Employee Expectations
(iii) Composition of workforce
(iv) Political influence
(v) Changes in technology
A. (i), (ii), (iii) and (iv)
B. (i),(ii), (iii) and (v)
C. (i), (ii), (iv) and (v)
D. (i), (iii), (iv) and (v)
Ans : C

37. Assertion (A) : One can not be sure about the quality of appraisal on the basis of length of service.
Reasoning (R) : Initial appraisal and promotional appraisal are done separately and differently since the length of service is different.
A. (R) is correct but (A) is not correct.
B. (A) is correct but (R) is not correct.
C. (A) and (R) both are correct.
D. (A) and (R) both are not correct.
Ans : D

38. Which of the following are covered under the scope of Human Resource Management?
(i) Forecasting Human Resource Needs
(ii) Replacement Planning
(iii) Human Resource Dynamics
(iv) Human Resource Development Planning
(v) Human Resource Audit
A. (i), (iii), (v)
B. (i), (ii), (iii), (iv)
C. (iii), (v)
D. (i), (ii), (iii), (iv), (v)
Ans : D

39. On which of the following, at the initial stage, the Indian IT companies relying more for getting good IT professionals?
A. Job Portals
B. Placement Agencies
C. Campus Placement
D. All of the above
Ans : C

40. Statement (i) : Labour always get a major share of productivity gains.
Statement (ii) : Partial stoppage of work by workers amounts to strike.
A. Statement (i) is true but (ii) is false.
B. Statement (ii) is true but (i) is false.
C. Both statements are true.
D. Both statements are false.
Ans : B

41. Imperial Bank was established on January 27, 1921 on the advise of :
A. J. M. Keynes
B. Lord Illingworth
C. King George V
D. Winston Churchill
Ans : A

42. Read the following events :
(i) Allowing convertibility of rupee at the market rate in the current account
(ii) Nationalisation of general insurance business
(iii) Establishment of IDBI
(iv) Nationalisation of life insurance business
(v) Capital adequacy norms for commercial banks Arrange the events in the ascending order of their occurrence :
A. (iv), (iii), (ii), (i), (v)
B. (v), (iv), (iii), (ii), (i)
C. (i), (ii), (iii), (v), (iv)
D. (i), (v), (ii), (iv), (iii)
Ans : A

43. In India, the Commercial Banks are given license of operation by :
A. The Government of India
B. The Ministry of Finance
C. Reserve Bank of India
D. Banking Companies Regulation Act, 1949
Ans : C

44. The provisions of General Reserve in Banking Companies are made keeping in view the provisions of :
A. Indian Companies Act, 1956
B. Banking Companies Act, 1949
C. SEBI Act, 1992
D. Statutory Auditor
Ans : B

45. Which among the following is not true with regard to merchant banker?
(i) It can accept deposits.
(ii) It can advance loans.
(iii) It can do other banking activities.
(iv) It can be manager to a public issue.
A. (i), (ii) and (iii) B. (ii), (iii) and (iv)
C. (i), (iii) and (iv) D. (ii) and (iv)
Ans : A

46. Balance of Payments can be made favourable if :
A. Exports are increased
B. Imports are increased
C. Devaluation of money
D. A and C
Ans : D

47. Which one is not an objective of IMF?
A. To promote international monetary cooperation
B. To ensure balanced international trade
C. To finance productive efforts according to peace-time requirement
D. To ensure exchange rate stability
Ans : C

48. EPCG denotes :
A. Export Potential and Credit Guarantee
B. Earning Promotion and Credit Guarantee
C. Export Promotion and Credit Guarantee
D. Export Potential and Credit Goods
Ans : C

49. Which one of the following matches correspond to the Member and Observer countries of the SAARC?
(i) India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldive
(ii) Iran, China, Japan, USA, South Korea, European Union
(iii) Pakistan, Nepal, India, Bangladesh, Iran
(iv) UK, USA, North Korea, South Africa
A. (iii) and (iv) B. (ii) and (iv)
C. (i) and (ii) D. (ii) and (iii)
Ans : C

50. Which one is not an international organisation?
A. SAARC B. ASEM
C. ASEAN D. CBDT Note : This paper contains seventy five (75) objective-type questions, each question carrying two (2) marks each. All questions are compulsory.
Ans : D

1. If Opening Stock is Rs. 10,000, Net Purchases Rs. 70,000, Wages Rs. 2,500, Carriage inward Rs. 500 and Closing Stock Rs. 15,000, what is the Manufacturing Cost?
A. Rs. 65,000 B. Rs. 83,000
C. Rs. 68,000 D. Rs. 73,000
Ans : C

2. What does a high payout ratio indicate?
A. A High Earning Per Share (EPS)
B. The management is not ploughing back enough profit.
C. The management is ploughing back profit.
D. The company is earning high profit.
Ans : B

3. Which one of the following statements is true?
A. Capital expenditure does not affect the profitability of a concern but revenue expenditure does.
B. Capital expenditure affects the profitability of a concern directly but revenue expenditure does not.
C. Capital expenditure affects the profitability of a concern indirectly but revenue expenditure affects directly.
D. Both capital expenditure and revenue expenditure affect the profitability of a concern directly.
Ans : C

4. Identify the true statement of the following :
(i) Balance Sheet is always prepared from the point of view of the business but not from that of the owners.
(ii) The financial relationship of the business to its owners is shown in the Balance Sheet.
(iii) Balance Sheet is always related to a period of time.
Codes :
A. (i) and (ii) B. (ii) and (iii)
C. (i) and (iii) D. (i), (ii) and (iii)
Ans : A

5. X and Y are partners in a firm sharing profits in the ratios of 2 : 1. Z is admitted with a 1/3 profit sharing. What will be the new profit sharing ratio of X, Y and Z?
A. 3 : 3 : 3 B. 4 : 3 : 2
C. 4 : 2 : 3 D. 2 : 3 : 4
Ans : C

6. Which one of the following will not affect the working capital?
A. Realisation of cash from debtors.
B. Sale of plant and machinery in cash.
C. Issue of equity shares.
D. Redemption of debentures.
Ans : A

7. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A) : When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R) : Capital profit cannot be used for distribution as dividend to the shareholders.
In the context of the above two statements, which one of the following is correct?
Codes :
A. (A) is correct, but (R) is wrong.
B. Both (A) and (R) are correct.
C. (A) is wrong, but (R) is correct.
D. Both (A) and (R) are wrong.
Ans : B

8. Reconstruction of a company takes place when :
(i) the company is undercapitalised
(ii) company has incurred heavy losses which must be written off
(iii) the company is overcapitalised Which one of the following is correct?
A. (i) and (ii) only
B. (i) and (iii) only
C. (ii) and (iii) only
D. All the above
Ans : C

9. Match the items of List-I with the items of List-II and select the correct answer using the codes given below the lists :
List-I List-II
(a) Leverage Ratio (i) Short-term solvency
(b) Liquidity Ratio (ii) Earning capacity
(c) Turnover Ratio (iii) Relationship between debt and equity
(d) Profitability Ratio (iv) Efficiency of Asset Management
Codes :
(a) (b) (c) (d)
A. (ii) (i) (iv) (iii)
B. (iii) (ii) (i) (iv)
C. (iv) (iii) (i) (ii)
D. (iii) (i) (iv) (ii)
Ans : D

10. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A) : Sinking fund is a charge against Profit and Loss Account.
Reason (R) : Sinking fund is created for repayment of a long term liability.
In the context of the above two statements, which one of the following is correct?
Codes :
A. (A) is correct, but (R) is wrong.
B. Both (A) and (R) are correct.
C. (A) is wrong, but (R) is correct.
D. Both (A) and (R) are wrong.
Ans : C

11. Match List-I with List-II and select the correct answer using the codes given below the lists :
List-I List-II
(a) Goodwill of a company (i) Current liability
(b) Overdraft (ii) Fixed Assets
(c) Preliminary Expenses (iii) Reserves and Surplus
(d) Premium on Issue of Shares (iv) Fictitious Assets
Codes :
(a) (b) (c) (d)
A. (ii) (i) (iv) (iii)
B. (i) (ii) (iv) (iii)
C. (i) (ii) (iii) (iv)
D. (ii) (i) (iii) (iv)
Ans : A

12. In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard -3)?
A. Balance Sheet of a Company
B. Funds Flow Statement
C. Cash Flow Statement
D. Consolidated Financial Statement
Ans : C

13. What is the correct sequence of the following actions required for the preparation of financial accounts?
(i) Trading accounts
(ii) Making adjusting entries
(iii) Balance Sheet
(iv) Profit and Loss Account Select the correct answer from the codes given below :
Codes :
A. (iv), (ii), (i), (iii)
B. (ii), (iv), (iii), (i)
C. (ii), (i), (iv), (iii)
D. (iv), (ii), (iii), (i)
Ans : C

14. The main effect of inflation on the financial statement is :
A. Profits are understated
B. Overstatement of Assets
C. Adequacy of funds for replacement of assets
D. Erosion of capital
Ans : D

15. Present value of future earnings is a model of Human Resources Accounting suggested by :
A. Brauch Lev & ABA Schwartz
B. Jaggi & Lau
C. S.K. Chakraborty
D. Eric Flamhaltz
Ans : A

16. Which element of the promotion mix do wholesalers generally apply to obtain their promotional objective?
A. Advertising
B. Personal Selling
C. Trade Promotion
D. Direct Marketing
Ans : C

17. Who has given ‘fourteen Principles of Management’?
A. Barnard B. Henry Fayol
C. F.W. Taylor D. Flemming
Ans : B

18. What is M.B.O?
A. Management by Objective
B. Multiple Business Organisation
C. Management by Organisation
D. Multiplicity of Business Operations
Ans : A

19. Match items in List-II with items in List-I :
List-I List-II
(a) Mega Marketing (i) Advertising
(b) Penetration Price (ii) Kotler
(c) Promotion Mix (iii) Low price
(d) Customer Satisfaction (iv) Post Purchase Behaviour
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (iii) (i) (ii) (iv)
C. (iv) (iii) (ii) (i)
D. (iii) (iv) (i) (ii)
Ans : B

20. Statement (A) : Sales promotion has a strong impact on consumer behaviour in rural India.
Reason (R) : Rural people in India give utmost significance to sales promotion schemes.
Codes :
A. Statement (A) is correct but Reason (R) is incorrect.
B. Statement (A) is incorrect, but Reason (R) is correct.
C. Both Statement (A) and Reason (R) are correct.
D. Both Statement (A) and Reason (R) are incorrect.
Ans : A

21. Market sub-divided on the basis of behavioural characteristics is called :
A. Segmentation B. Aggregation
C. Precision D. None of the above
Ans : A

22. What is mass marketing?
A. Offering the same products and marketing mix to all consumers.
B. Offering variety of products to the entire market.
C. Offering differentiated products to all customers.
D. Following concentrated marketing strategy.
Ans : A

23. Which concept of marketing is based on the assumption that superior products sell themselves?
A. Production B. Marketing
C. Societal D. Product
Ans : D

24. In broader sense, marketing communication includes :
A. Product B. Price
C. Place D. All
Ans : D

25. Physical distribution provides :
A. Place utility
B. Time utility
C. Place and Time utility
D. Form utility
Ans : C

26. What is relevant to place variable of marketing mix?
A. Branding
B. Price penetration
C. Sales personnel motivation
D. None
Ans : C

27. Find incorrect statement :
A. Marketers arouse emotional motives
B. Marketers satisfy rational motives
C. Marketers formulate different sales promotions for different motives
D. None of the above
Ans : D

28. Non-store marketing includes :
A. Home selling
B. V.P.P.
C. Vending Machines
D. All of the above
Ans : D

29. What is customer delight?
A. Performance equal to expectation
B. Performance less than expectation
C. Performance more than expectation
D. Expectation more than performance
Ans : C

30. Which terms are often used interchangeably in marketing literature?
A. Concept, method, philosophy
B. Concept, approach, technique
C. Orientation, concept, philosophy
D. Philosophy, system, concept
Ans : C

31. Which one of the following is not the operative function of HRM?
A. Development
B. Controlling
C. Compensation
D. Integration
Ans : B

32. Which one of the following is not in sequence of personnel training procedure?
(i) Instructor Preparation
(ii) Present the task
(iii) Try out performance
(iv) Training preparation
(v) Follow up
A. (i), (ii), (iii), (iv), (v)
B. (ii), (i), (iv), (iii), (v)
C. (i), (iv), (ii), (iii), (iv)
D. (iii), (i), (ii), (v), (iv)
Ans : C

33. Under which method of performance appraisal one person is compared with all others for the purpose of placing them in a simple order of work?
A. Grading
B. Person to Person comparison
C. Ranking
D. None of the above
Ans : C

34. Which one of the following is not the fundamental procedure that should be considered for the collective bargaining?
A. Prenegotiation phase
B. Selection of Negotiators
C. Tactic and Strategy of Bargaining
D. None of the above
Ans : D

35. Assertion (A) : Inevitably the firm must go to the external sources for lower entry jobs.
Reason (R) : For positions where required qualification/experience are not met.
Codes :
A. Both (A) and (R) are not correct.
B. (A) is true, but (R) is false.
C. (R) is true, but (A) is false.
D. Both (A) and (R) are correct.
Ans : D

36. Match the following items of List-I and List-II :
List-I List-II
(a) Asbestos (i) Lung Cancer
(b) Benzene (ii) Cancer
(c) Ethylene Disbromide (iii) Leukemia
(d) Kerosene (iv) Acute Nervous System Depression
Codes :
(a) (b) (c) (d)
A. (iv) (ii) (iii) (i)
B. (iv) (iii) (ii) (i)
C. (i) (iii) (ii) (iv)
D. (iii) (iv) (ii) (i)
Ans : C

37. Assertion (A) : Business Economics is tool centrics facilitating decision making in business.
Reason (R) : It provides an analytical understanding of economic activities.
Codes :
A. Both (A) and (R) are not correct.
B. Both (A) and (R) are correct.
C. (A) is true, but (R) is false.
D. (R) is true, but (A) is false.
Ans : B

38. Demand has the following elements :
A. Quantity B. Price
C. Time D. All the above
Ans : D

39. A perfectly competitive firm attains equilibrium when :
A. AC = AR B. MR = MC
C. MC = AC D. TC = TR
Ans : B

40. The purpose of job evaluation is :
A. Fixation of Responsibility
B. Promotion
C. Wage Determination
D. Transfer to a better job
Ans : C

41. For testing of hypothesis H0 : M1 = M2 and H1 : M1 < M2, the critical value of Z at 5% level of significance when size of sample is more than 30 is :
A. 1.96 B. 2.32
C. 1.645 D. 2.5758
Ans : C

42. Which of the following is the non-random method of selecting samples from a population?
A. Stratified Sampling
B. Quota Sampling
C. Systematic Sampling
D. Cluster Sampling
Ans : B

43. If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of correlation is :
A. + 0.16 B. – 0.40
C. – 0.16 D. + 0.40
Ans : D

44. Which one of the following is a relative measure of dispersion?
A. Standard deviation
B. Variance
C. Coefficient of variation
D. None of the above
Ans : C

45. Assertion (A) : Internal factors of business environment are controllable factors.
Reason (R) : The company can alter or modify such factors to suit the environment.
Codes :
A. Both (A) and (R) are correct.
B. (A) is correct, but (R) is incorrect.
C. Both (A) and (R) are incorrect.
D. (A) is incorrect.
Ans : A

46. The concept of ‘Rolling Plan’ in India was introduced by the :
A. BJP Government
B. Janta Government
C. Congress Government
D. All of the above
Ans : B

47. Which one of the following is an obstacle to globalisation?
A. Wide base B. Niche markets
C. Obsolescence D. Competition
Ans : C

48. ‘VSAT’ technology is first followed for online trading by :
A. BSE B. OTCEI
C. NSE D. ISE
Ans : C

49. Match the following :
List-I List-II
(Years) (Act)
(a) 1956 (i) Consumer Protection Act
(b) 1986 (ii) Indian Companies Act
(c) 1992 (iii) Securities and Exchange Board of India
(d) 2002 (iv) Securitisation Act
Codes :
(a) (b) (c) (d)
A. (ii) (i) (iii) (iv)
B. (i) (ii) (iii) (iv)
C. (ii) (iii) (i) (iv)
D. (i) (iv) (iii) (ii)
Ans : A

50. The flagship project of Government of India launched for generating guaranteed employment in rural areas is known as :
A. PMRY B. MNREGA
C. JRY D. NREP
Ans : B

51. The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of :
A. Size disparity B. Time disparity
C. Life disparity D. All the above
Ans : D

52. The degree of financial leverage reflects the responsiveness of :
A. Operating income to changes in total revenue
B. EPS to changes in EBIT
C. EPS to changes in total revenue
D. None of the above
Ans : B

53. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by :
A. Traditional Approach
B. Net Income Approach
C. Net Operating Income Approach
D. M-M-Approach
Ans : C

54. Which of the following is not included in the assumptions on which Myron Gordon proposed a model on stock valuation?
A. Retained earnings, the only source of financing
B. Finite life of the firm
C. Taxes do not exist
D. Constant rate of return on firm’s investment
Ans : B

55. Match the following :
List-I List-II
(a) Factoring services (i) Cash Management
(b) Economic Order Quantity (ii) Receivable Management
(c) Commercial paper (iii) Inventory Management
(iv) Working Capital Financing
Codes :
(a) (b) (c)
A. (i) (iii) (ii)
B. (iii) (ii) (i)
C. (ii) (iii) (iv)
D. (ii) (i) (iii)
Ans : C

56. Assertion (A) : International business focuses on global resources, opportunities to buy/sell worldwide.
Reason (R) : The efforts of IMF, World Bank and WTO to liberalise their economies led to globalisation.
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 true.
Ans : A

57. Match the items of List-I with items of List-II :
List-I List-II
(a) Wider Market (i) Modes of Entry
(b) Turn key Projects (ii) Goal of International Business
(c) Expanding the production capacities (iii) Advantages of International Business
(d) Geocentric approach (iv) Stage of Globalisation
Codes :
(a) (b) (c) (d)
A. (iv) (ii) (iii) (i)
B. (iii) (i) (ii) (iv)
C. (i) (ii) (iii) (iv)
D. (iv) (iii) (ii) (i)
Ans : B

58. BRICS includes :
A. Bhutan, Romania, Indonesia, Chile and South Korea
B. Brazil, Russia, Indonesia, Chile and Sudan
C. Brazil, Russia, India, China and South Africa
D. Britain, Russia, India, Czechoslovakia, Sri Lanka
Ans : C

59. Out of the following, one is not related with WTO :
A. TRIPS
B. Ministerial Conference
C. TRIMS
D. TRAI
Ans : D

60. Balance of Payment includes components :
A. Current Account, Capital Account, Unilateral Payments Accounts, Official Settlement Account
B. Revenue Account, P & L Account, Capital Account, Official Account
C. Trade Account, Activity Account, Revenue Account, Currency Account
D. Forex Account, Trade Account, Funds Account
Ans : A

61. Assertion (A) : International Monetary Fund was set up in 1944.
Reason (R) : To promote international monetary cooperation through a permanent institution which provides machinery for consultation and collaboration on international monetary problems.
Codes :
A. Both (A) and (R) are false.
B. Both (A) and (R) are true.
C. (A) is true, but (R) is false.
D. (R) is true, but (A) is false.
Ans : B

62. The commercial banks do not perform one function out of the following :
A. Mobilisation of savings
B. Giving Loans and Advances
C. Issuing Currency Notes
D. Financing Priority Sectors
Ans : C

63. There are two lists of items, match the items of List-I with items of List-II :
List-I List-II
(a) Reserve Bank of India (i) NPA
(b) EXIM Bank (ii) Facilitating Small Scale Industries
(c) SIDBI (iii) Credit Control
(d) Capital Adequacy (iv) Export/Import Financing
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (iv) (iii) (ii) (i)
C. (ii) (iii) (iv) (i)
D. (iii) (iv) (ii) (i)
Ans : D

64. One of the items is not related with e-banking :
A. Demand Draft B. SPNS
C. ECS D. ATM
Ans : A

65. Assertion (A) : The Treasury Manager uses the derivatives in the Bond market as well as in Forex market.
Reason (R) : It helps risk coverage.
Codes :
A. Both (A) and (R) are false.
B. Both (A) and (R) are true.
C. (A) is true, but (R) is false.
D. (R) is true, but (A) is false.
Ans : B

66. Factoring and forfeiting have not taken off in the Indian economy due to lack of expertise and experience. One is not included in the factoring services rendered :
A. Purchase of book debts and receivables.
B. Prepayment of debts partially or fully
C. Giving advice
D. Covering the credit risk of the suppliers
Ans : C

67. Which one is not the form of FDI?
A. Purchase of existing assets in foreign currency
B. New Investment in property, plant, equipment
C. Making investment in the mutual funds
D. Transfer of many types of assets
Ans : C

68. Match the items of List-I with items of List-II :
List-I List-II
(a) Measures towards globalization (i) Globalisation
(b) Off-shoring (ii) FEMA
(c) FERA (iii) Liberalise the inflow of FDI
(d) Mr. Aruthur Dunkel (iv) Uruguay Round
Codes :
(a) (b) (c) (d)
A. (iii) (i) (ii) (iv)
B. (ii) (i) (iii) (iv) C (iv) (ii) (i) (iii)
D. (i) (ii) (iv) (iii)
Ans : A

69. Which one of the following is not the advantage of MNCs to the host country?
A. Increase in social activity
B. Increase in economic activity
C. Utilisation of natural resources
D. R & D efforts enhanced
Ans : A

70. India suffered from deficit balance both in trade balance and net invisibles, hence, took up a number of steps to manage this problem.
Which one is not appropriate for this?
A. Export control
B. Current Account Convertibility
C. Liberalised Export Policy
D. Unified Exchange Rate
Ans : A

71. Mr. James, a citizen of U.S., arrived in India for the first time on 1st July, 2010 and left for Nepal on 15th December, 2010. He arrived to India again on 1st January 2011 and stayed till the end of the financial year 2010-11. His residential status for the assessment year 2011-
12 is :
A. Resident (ordinarily resident)
B. Not ordinarily resident
C. Non-resident
D. None of the above
Ans : B

72. The value of free accommodation in Delhi provided by employer in the private sector is :
A. 10% of salary
B. 15% of salary
C. 20% of salary
D. 25% of salary
Ans : B

73. Which of the following is not a capital asset under capital gains head of income?
A. Stock in trade
B. Goodwill of business
C. Agricultural Land in Delhi
D. Jewellery
Ans : A

74. Match the items of List-I with List-II :
List-I List-II
(a) Tax Planning (i) Making suitable arrangement of TDS
(b) Tax Avoidance (ii) Understatement of Income
(c) Tax Evasion (iii) Availing deduction under Section 10A of IT Act.
(d) Tax Administration (iv) Misinterpreting the provisions of the IT Act
Codes :
(a) (b) (c) (d)
A. (ii) (i) (iv) (iii)
B. (i) (iv) (iii) (ii)
C. (iii) (iv) (ii) (i)
D. (iv) (i) (iii) (ii)
Ans : C

75. Under the Income Tax Act, 1961 unabsorbed depreciation can be carried forward for set-off purpose :
A. For 4 years
B. For 5 years
C. For 8 years
D. For unspecified period Note : This paper contains fifty (50) objective-type questions, each question carrying two (2) marks. Attempt all of them.
Ans : D

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