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2014 Commerce UGC NTA NET JRF Solved Previous Year Paper December-2014 III

Commerce UGC NTA NET JRF Solved Previous Year Paper December-2014

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)
Ans : A

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 Identify the correct combination : (iv) 1999
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)
Ans : C

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
Ans : D

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
Ans : D

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.
Ans : A

6. Current Ratio 2.5, Liquid Ratio 1.5 and Working Capital Rs. 60,000. What is Current Assets?
A. Rs. 60,000
B. Rs. 80,000
C. Rs. 1,00,000
D. Rs. 1,20,000
Ans : C

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
Ans : B

8. Accounting information given by a company :
Total assets turnover 3 times Net profit margin 10% Total assets Rs. 1,00,000 The net profit is
A. Rs. 10,000 B. Rs. 15,000
C. Rs. 25,000 D. Rs. 30,000
Ans : D

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
Ans : C

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
Ans : C

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
Ans : C

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.
Ans : B

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)
Ans : C

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.
Ans : B

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 range of output (i) Economic capacity
(b) Average cost becomes constant momentarily (ii) Reserve capacity
(c) Normal average cost is a U-shaped curve (iii) Production and Managerials costs effects
(d) Modern Long-run average cost is L-shaped (iv) Economies and Diseconomies
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)
Ans : D

16. Which one of the following is not probability sampling method?
A. Simple Random Sampling
B. Cluster Sampling
C. Judgemental Sampling
D. Systematic Sampling
Ans : C

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
Ans : D

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
Ans : D

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
Ans : C

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
Ans : B

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
Ans : C

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
Ans : B

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.
Ans : A

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
Ans : B

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
Ans : B

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
Ans : C

27. Marketing strategy development is also known as
A. Marketing Control
B. Marketing Exercise
C. Marketing Planning
D. Situation Analysis
Ans : C

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
Ans : C

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
Ans : C

30. Rational buying motives that determine purchase decisions are mostly based on
A. Price factor
B. Psychological factors
C. Quality of product
D. Advertisement
Ans : B

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.
Ans : B

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)
Ans : B

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)
Ans : C

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
Ans : C

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
Ans : B

36. The process of narrowing a large number of candidates to a smaller field is called
A. Rushing
B. Recruitment
C. Selection
D. Enrollment
Ans : C

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
Ans : A

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 Industrial Organization (i) Dale Yoder
(b) The Nature of Leadership Organization and Management (ii) Alford and Beatty
(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)
Ans : B

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)
Ans : C

40. The main characteristics of Weber’s bureaucracy are :
A. Specialization
B. Hierarchy of authority
C. System of rules
D. All of the above
Ans : D

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 Identify the correct combination : (iv) 1969
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)
Ans : D

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)
Ans : A

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
Ans : B

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.
Ans : A

45. The Regulatory Authority of Regional Rural Banks is
A. NABARD
B. Central Government
C. State Government
D. Sponsor Bank
Ans : A

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
Ans : C

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
Ans : B

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 (iv) Visible Exports Account 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)
Ans : C

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)
Ans : D

50. Which of the following is not the agency of World Bank?
A. MIGA B. ICSID
C. ADB D. IDA
Note :
This paper contains seventy five (75) objective type questions of two (2) marks each. All questions are compulsory.
Ans : C

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 Cooperation (SAARC) (iv) 1960
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)
Ans : B

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)
Ans : B

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.
Ans : A

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)
Ans : D

5. 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 :
A. (b), (c) and (d) B. (a) and (c)
C. (c) and (d) D. (a), (b) and (d)
Ans : C

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
Ans : D

7. Responsibility accounting aims at collecting and reporting costing information
A. Department-wise
B. Cost centre-wise
C. Function-wise
D. Product-wise
Ans : B

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
Ans : A

9. Margin of Safety is calculated by using
A. \(\frac{Profit}{\frac{P}{V}\ Ratio}\)
B. \(\frac{Fixed\ Cost}{Contribution\ }\)
C. \(\frac{Break\ Even\ Sales\ }{Sales\ }\)
D. \(\frac{Profit\ }{Sales}\)
Ans : A

10. Pre-acquisition profit in subsidiary company is considered as
A. Revenue profit B. Capital profit
C. Goodwill D. Minority interest
Ans : B

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.
Ans : B

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
Ans : B

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
Ans : C

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)
Ans : A

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
Ans : A

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.
Ans : C

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 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.
Ans : B

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
Ans : B

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
Ans : C

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.
Ans : C

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.
Ans : C

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.
Ans : D

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.
Ans : C

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
Ans : B

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.
Ans : C

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 Select the code : (iv) Shop discipline
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)
Ans : B

27. F.W. Taylor called “The Military type of Foreman” to
A. Unity of Command
B. Span of Control
C. Delegated Legislature
D. Department
Ans : A

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)
Ans : D

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.
Ans : D

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.
Ans : A

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
Ans : D

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
Ans : B

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
Ans : C

34. Which of the following is not a product-mix strategy?
A. Trading up B. Alteration
C. Simplification D. Value addition
Ans : D

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
Ans : C

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)
Ans : A

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
Ans : A

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
Ans : D

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.
Ans : A

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
Ans : D

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
Ans : A

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.
Ans : C

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
Ans : B

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.
Ans : A

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.
Ans : D

46. Relationship at work is the source of
A. Status anxiety B. Managerial stress
C. Legitimate power D. Expert power
Ans : B

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)
Ans : D

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.
Ans : A

49. Formal conflict is a kind of
A. Goal Conflict
B. Organisational Conflict
C. Role Conflict
D. Emergent Conflict
Ans : B

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
Ans : D

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.
Ans : A

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
Ans : B

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.
Ans : B

54. Which of the following is not a component of Job Analysis?
A. Job Description B. Role Analysis
C. Job Summary D. Job Specification
Ans : C

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
Ans : D

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
Ans : D

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
Ans : B

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.
Ans : C

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).
Ans : 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 per cent by 2006
B. 15 per cent by 2006
C. 10 per cent by 2007
D. 20 per cent by 2007
Ans : D

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.
Ans : A

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
Ans : A

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
Ans : A

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.
Ans : D

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)
Ans : D

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.
Ans : D

67. ADRs’ and GDRs’ are an excellent means of investment to invest in India for
A. NRIs’ B. Foreign nationals
C. Both A and B D. None of the above
Ans : C

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
Ans : B

69. Under Section 271C 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 194C.
B. 100% of tax which is otherwise deductible under Section 194C.
C. 200% of tax which is otherwise deductible under Section 194C.
D. 300% of tax which is otherwise deductible under Section 194C.
Ans : B

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) Rs. 10,000
(b) Section 80D of I.T. Act (ii) Rs. 40,000
(c) Section 80 DDB of I.T. Act (iii) Rs. 1,00,000
(d) Section 80 TTA of I.T. Act (iv) Rs. 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)
Ans : B

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.
Ans : D

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
Ans : B

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
Ans : D

74. Calculate the Gross Annual Value from the following details :
Municipal Value – Rs. 45,000 Fair Rental Value – Rs. 50,000 Standard Rent – Rs. 48,000 Actual Rent – Rs. 42,000
A. Rs. 50,000 B. Rs. 48,000
C. Rs. 45,000 D. Rs. 42,000
Ans : B

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
Note :
This paper contains fifty (50) objective type questions of two (2) marks each. All questions are compulsory.
Ans : A

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