You are here
Home > Previous Papers > 2014 Commerce UGC NTA NET JRF Solved Previous Year Paper June-2014 PAPER-II

2014 Commerce UGC NTA NET JRF Solved Previous Year Paper June-2014 PAPER-II

Commerce UGC NTA NET JRF Solved Previous Year Paper June-2014 PAPER-II

1. There is acute shortage of electricity in some of the states in India. This reflects a problem in which type of business environment?
A. Economic B. Demographic
C. Politico-legal D. Socio-cultural
Ans : A

2. Match the items given in List-I and List-II.
List-I List-II
(a) Economic liberalisation (i) IT-enabled services
(b) Out sourcing (ii) SFIO
(c) Corporate frauds (iii) Macro economic stability
(d) Second generation reforms (iv) Increased competition Indicate the correct combination :
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (i) (iii) (ii) (iv)
C. (ii) (iii) (iv) (i)
D. (iv) (i) (ii) (iii)
Ans : D

3. Which of the following is true?
A. A consumer court setup under the Consumer Protection Act, does not have the power to punish for its contempt.
B. Professional services are outside the purview of the CPA.
C. A consumer court cannot force a person indulging in misleading advertising to confess his quit.
D. None of the above.
105
Ans : A

4. Match the items/terms given in List-I with those given in and List-II.
List-I List-II
(a) BIS (i) Print Media
(b) CERC (ii) Minimum support price for agricultural products
(c) CACP (iii) Quality of manufactured products
(d) PCI (iv) Comparative product testing Indicate the correct answer :
Codes :
(a) (b) (c) (d)
A. (iv) (iii) (ii) (i)
B. (i) (ii) (iii) (iv)
C. (iii) (iv) (ii) (i)
D. (ii) (iii) (iv) (i)
Ans : C

5. Which one among the following is not the salient feature of industrial policy since 1991?
A. Enormous expansion of the private sector.
B. Redefining the role of public sector.
C. Limited exposure of Indian industry to foreign competition.
D. Pruning of the list of items reserved for SSI units.
Ans : C

6. A, a partner in a firm, is drawing Rs. 500 regularly on the 16th of every month. He will have to pay interest at the given rate in a year on Rs. 6000 for the total period of
A. 5 months B. 6 months
C. 7 months D. 12 months
Ans : B

7. Subsequent expenditures that extend the useful life, improve the quality of output, or reduce operating costs of an existing asset beyond their originally estimated levels are 1079 (PP) June 14–1
A. Capital expenditures
B. Revenue expenditures
C. Deferred Revenue expenditures
D. None of the above
Ans : A

8. Marginal-costing technique is useful for
A. Make or Buy decisions
B. Profit planning
C. Shut-down decisions
D. All of the above
Ans : D

9. Which one is not a feature of budgetary control?
A. A tool for management control.
B. An instrument of delegation and authority.
C. An instrument for evaluating the overall performance.
D. A statement of budget and forecasts.
Ans : D

10. The Debt-Equity Ratio of a company is 2 : 1. In this relation, match the following :
List-I List-II
(a) Issue of equity shares 1. No change on the ratio
(b) Cash received from debtors 2. Reduce the ratio
(c) Redemption of debentures 3. No change on the ratio
(d) Purchased goods on credit 4. Reduce the ratio
Codes :
(a) (b) (c) (d)
A. 1 2 3 4
B. 2 3 4 1
C. 1 3 4 2
D. 2 4 1 3
Ans : B

11. Which one of the following does not explain the basic nature of Business economics?
A. Behaviour of firms in theory and practice.
B. Distribution theories like rent, wages and interest along with the theory of profit.
C. Use of the tools of economic analysis in clarifying problems in organising and evaluating information and in comparing alternative courses of action.
D. Integration of economic theory with business practices for the purpose of facilitating decision-making.
Ans : B

12. At a point of satiety for a commodity the marginal utility is
A. Negative B. Positive
C. Zero D. Highly positive
Ans : C

13. A rectangular hyperbola shaped demand curve on all its points has
A. Equal slopes and equal point elasticities.
B. Unequal slopes and unequal point elasticities.
C. Unequal slopes and equal point elasticities.
D. Equal slopes and unequal point elasticities.
Ans : C

14. Assertion (A) : A perfectly competitive firm is not a price-maker but is a price-taker.
Reason (R) : The firm is interested in deciding the level of output only.
Codes :
A. Both (A) and (R) are true.
B. Both (A) and (R) are false.
C. (A) is false, while (R) is true.
D. (A) is true, but (R) is not a correct explanation of (A).
Ans : D

15. Match the items of List-I with the items of List-II.
List-I List-II
(a) A market having high price elasticity. I. Skimming pricing
(b) A market having high price inelasticity II. Differential pricing
(c) A market having several segments differing prominently with regard to price elasticities of their demand. III. Penetrating pricing
Codes :
I II III
A. (b) (c) (a)
B. (a) (b) (c)
C. (b) (a) (c)
D. (a) (c) (b)
Ans : A

16. Which one of the following options deals with the process of making estimates, predictions and decisions?
A. Descriptive statistics
B. Inferential statistics
C. Probability theory
D. None of the above
Ans : B

17. A hypothesis test is being performed for a process in which a Type-I error will be very costly, but a Type-II error will be relatively inexpensive and unimportant. Which of the following would be the best choice for alpha (α) in this test ?
A. 0.10 B. 0.05
C. 0.01 D. 0.50
Ans : C

18. If the dependent variable increases as the independent variable increases in an estimating equation, the coefficient of correlation will be in the range
A. 0 to (–) 1 B. 0 to (–) 0
C. 0 to (–) 0.05 D. 0 to 1
Ans : D

19. Assertion (A) : When there is an evidence of a linear relationship between two variables, it may not always mean an independent-dependent relationship between the two variables.
Reason (R) : The causal relationship between the two variables may not imply a reasonable theoretical relationship between the two.
Choose the right answer from the following statements :
Codes :
A. Both (A) and (R) are true and (R) is the correct explanation.
B. Both (A) and (R) are true, but (R) is not the correct explanation.
C. (A) is true, but (R) is false.
D. (A) is false, but (R) is true.
Ans : A

20. Assertion (A) : User interface is most critical task in DSS design Reason (R) : DSS is used by outside Customers frequently.
A. (A) is correct, but (R) is wrong.
B. Both (A) and (R) are wrong.
C. (A) is wrong, but (R) is correct.
D. Both (A) and (R) are correct.
Ans : A

21. Which of the following is not true about Matrix Organisation?
A. It is relatively permanent.
B. Its project managers authority is distributed reasonably.
C. There is slow information processing.
D. Its project heads have to share resources with functional heads.
Ans : C

22. Consider the following leadership styles :
1. Telling 2. Autocratic
3. Selling 4. Motivating
5. Participating 6. Delegating
7. Charismatic Select the four styles of leadership explained by Hersey and Blauchard.
A. 1, 2, 6 and 7 B. 2, 3, 4 and 5
C. 1, 3, 5 and 6 D. 4, 5, 6 and 7
Ans : C

23. Given below are two statements, one labelled as Assertion (A), and the other labelled as Reason
(R).
Assertion (A) : Classical organisations believed in the use of authority to achieve coordination.
Reason (R) : Classical thinkers consider organisation is an open system.
Codes :
A. (A) is correct, but (R) is incorrect.
B. Both (A) and (R) are correct.
C. (A) is incorrect, but (R) is correct.
D. Both (A) and (R) are incorrect.
Ans : A

24. Who has modified Maslow’s Hierarchical levels of needs and developed ERG model?
A. Frederick Herzberg
B. David C. McClelland
C. Douglas McGregor
D. Clayton Alderfer
Ans : D

25. Taylor’s differential piece work plan provides that
A. All labourers should be assigned different amount of work.
B. All labourers should be put in different time-period.
C. Those who produce above standard should receive higher wages than those producing below standard.
D. Payment should be the same on a fixed standard.
Ans : A

26. Which one of the following stages of the marketing research process is most expensive?
A. Data analysis
B. Data collection
C. Developing the research plan
D. Report writing
Ans : B

27. The people to adopt a new product first are called
A. Early adopters B. First users
C. Initial adopters D. Innovators
Ans : D

28. A concept in retailing that helps explain the emergence of new retailers is called the ______ hypothesis.
A. Product life cycle
B. Service assortment
C. Retail life cycle
D. ‘Wheel-of-retailing’
Ans : D

29. Manufacturers of cars and motor cycles typically seek _______ distribution.
A. selective B. intensive
C. exclusive D. None of these
Ans : C

30. Which method of setting advertising budget is most scientific and logical?
A. All-you-can afford method
B. Competitive parity method
C. Objective-and-task method
D. Percentage-of-sales method
Ans : C

31. Assertion (A) : Weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal.
Reason (R) : It is because by financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.
Codes :
A. Both (A) and (R) are false.
B. Both (A) and (R) are true.
C. (A) is true, while (R) is false.
D. (A) is false, while (R) is true.
Ans : B

32. A firm wants to know the Degree of Operating Leverage (DOL) with the following information :
Current level of sales : 6000 units Break-even point sales : 4000 units What would be the DOL?
A. 1.50 B. 0.67
C. 3.00 D. None of the above
Ans : C

33. Assertion (A) : When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV and PI methods may give contradictory results.
Reason (R) : The contradictory results in the ranking are due to differing dimensions relating to the scale of investments, cash flow patterns and project lives.
Indicate the correct answer :
Codes :
A. Both (A) and (R) are true.
B. (A) is true, but (R) is a necessary condition, but not a sufficient condition.
C. Both (A) and (R) are false.
D. Both (A) and (R) are true and (R) explains the reason sufficiently.
Ans : B

34. Which one of the following assumptions is not covered in the Walter’s Model of the dividend policy?
A. All financing is done through retained earnings.
B. Firm’s business risk does not change due to additional investments.
C. The firm has an infinite life.
D. The key variables like EPS and DPS keep on changing.
Ans : D

35. Which one of the following emphasizes the qualitative aspects of working capital management?
A. Gross working capital
B. Quick working capital
C. Net working capital
D. None of the above
Ans : C

36. Which of the following training methods exposes the newly recruited employee to the various business functions, divisions and departments ?
A. Orientation
B. Vestibule Training
C. Transition Analysis
D. Role playing
Ans : A

37. Match the names of the Authors given below with the motivational theories they are associated with
List-I List-II
1. Herzberg (a) ERG Theory
2. McGregor (b) Three-need theory
3. Alderfer (c) Theory X and Theory Y
4. David McClelland (d) Two-factor theory
Codes :
1 2 3 4
A. (a) (b) (c) (d)
B. (d) (c) (b) (a)
C. (b) (a) (d) (c)
D. (d) (c) (a) (b)
Ans : D

38. Who was closely associated with industrial relations in India?
A. B. Kurien
B. Gadgil
C. V.V. Giri
D. Vinoba Bhave
Ans : C

39. Under the Trade Union Act 1926, how many minimum number of members are required for a trade union to be registered?
A. 5 B. 7
C. 9 D. 11
Ans : B

40. The idea that a manager tends to be promoted to a level of his incompetence is referred to as
A. the advancement principle
B. the Paul principle
C. the Peter principle
D. the job design principle
Ans : C

41. Which of the following committees is intended to review the working of the monetary system in India?
A. Narasimham Committee
B. Tandon Committee
C. Sukhamoy Chakravarty Committee
D. Deheja Committee
Ans : C

42. Match the items of List-I with those in List-II and select the correct answer.
List-I List-II
(a) Bank Rate Policy 1. Involving the shortening of the currency of bills eligible for rediscount
(b) Credit Rationing 2. Involving the Purchase and sale of securities in the open market
(c) Variable Reserve System 3. Involving the alteration of discount rate
(d) Open Market Operations 4. Involving the variation of the minimum reserves
Codes :
(a) (b) (c) (d)
A. 1 4 2 3
B. 2 1 3 4
C. 4 2 1 3
D. 3 1 4 2
Ans : D

43. 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) Rural Industries Programme (i) Meant for various target groups like Rural youth, Exserviceman, women and Scheduled Castes/ Tribes
(b) Mahila Vikas Nidhi Scheme (ii) Aim at ensuring flow of credit to the disadvantaged sections of the society
(c) Entrepreneurship Development Programme (iii) Commercial exploitation of local resources
(d) Micro Credit Scheme (iv) Provides assistance to voluntary organizations for the benefit of women
Codes :
(a) (b) (c) (d)
A. (i) (iii) (ii) (iv)
B. (ii) (iv) (i) (iii)
C. (iv) (ii) (iii) (i)
D. (iii) (iv) (i) (ii)
Ans : D

44. According to the FDI Policy of the Government of India (2012), the FDI in banks is limited to
A. 20% in Nationalised Banks and 74% in Private Sector Banks.
B. 20% in Nationalised Banks and 49% in Private Sector Banks.
C. 16% in Nationalised Banks and 74% in Private Sector Banks.
D. 49% in Nationalised Banks and 51% in Private Sector Banks.
Ans : A

45. According to the recent guidelines (2013) of the Reserve Bank of India the Private Sector Banks are required to have a minimum paid up equity capital of
A. Rs. 300 crores
B. Rs. 200 crores
C. Rs. 400 crores
D. Rs. 500 crores
Ans : D

46. International trade theory which provides that capital intensive country should export labourintensive goods and import capital goods is referred to as
A. Leontief Paradox
B. Heckscher-Ohlin Theory
C. Mercantilism Theory
D. Theory of Comparative Advantage
Ans : A

47. Which of the following is not a form of economic integration in the context of intraregional trade?
A. Customs Union
B. European Union
C. Economic Union
D. African Union
Ans : D

48. ‘Crawling Peg System’ means
A. Fixed Exchange Rate System
B. Floating Exchange Rate System
C. Hybrid of Fixed and Floating Exchange System
D. None of the above
Ans : C

49. From the following modes of international business, identify the mode which involves strategic alliance
A. Franchising
B. Leasing
C. Turnkey Project
D. Joint venture
Ans : D

50. Which of the following expressions amount to the import restriction measures?
(i) Currency control
(ii) Establishment of EPZs
(iii) Tariff cuts
(iv) Imposition of tariffs
(v) Imposition of non-tariff barriers
Codes :
A. (i), (ii) and (iii)
B. (i), (iv) and (v)
C. (iii), (iv) and (v)
D. (ii), (iii) and (v)
Note :
This paper contains seventy five (75) objective type questions of two (2) marks each. All questions are compulsory.
Ans : B

1. The Competition Act, 2002, seeks to regulate
A. Anti-competitive agreements
B. Mergers and amalgamation
C. Unfair trade practices
D. A and B above
Ans : D

2. Indicate the true statement :
A. Large industrial houses are outside the purview of the Competition Act, 2002
B. There is no provision for curbing frivolous complaints under the CPA.
C. The Trade Marks Act, 1999 does not apply to services.
D. All of the above are true.
Ans : C

3. The time limit for filing a complaints before the District forum under the Consumer Protection Act, 1986 is
A. one year
B. two years
C. three years
D. There is no such time limit.
Ans : B

4. The Foreign Investment Promotion Board
(FIPB) revamps the rules and regulations pertaining to
A. Accounting of Foreign Investment
B. Investment by NRIs
C. Foreign investments
D. All of the above
Ans : C

5. Which of the legislation(s) do (does) not form part of the legal environment of business in India?
A. The Drugs and Cosmetics Act, 1940
B. The Prevention of Food Adulteration Act, 1954
C. The Monopolies and Restrictive Trade Practices Act, 1969
D. Both B and C above
Ans : D

6. What is the underlying concept that support the immediate recognition of an estimated loss?
A. Substance over form
B. Consistency
C. Matching
D. Prudence
Ans : D

7. Which is not the limitation of budgetary control?
A. Budgets are based on forecasts which may not be true
B. Installation and operation of a system of budgetary control is costly.
C. Budget is a tool of management and not a substitute of management.
D. Budgets do not pinpoint the lack of efficiency or the presence of it.
Ans : D

8. Profit volume ratio of an enterprise is 40%. To offset 10% decrease in selling price, how much sales must be increased?
A. 10% B. 20%
C. 25% D. 40%
Ans : B

9. If debt is Rs. 220, cash balance is Rs. 20 and equity is Rs. 300, then the gearing ratio is
A. 20% B. 40%
C. 50% D. 30%
Ans : B

10. Responsibility accounting aims to
A. ensure that a manager is punished if things go wrong.
B. ensure that costs become the responsibility of a specific manager.
C. allocate costs to all areas of a business.
D. reduce the costs that a department incurs.
Ans : B

11. Find the correct matching of the items of List-I with the items of List-II given below :
List-I List-II
(a) Normal Profit I. Excess of total revenue over total explicit cost
(b) Economic profit II. Total revenue equals total economic cost
(c) Accounting profit III. Excess of total revenue over total of explicit and implicit costs and a normal rate of return
Codes :
I II III
A. (c) (a) (b)
B. (b) (a) (c)
C. (a) (b) (c)
D. (a) (c) (b)
Ans : A

12. Assertion (A) : A monopoly firm’s revenue curve is downward sloping from left to right.
Reason (R) : The monopoly firm does not simultaneously enjoy the freedom to determine both price and quantity to be sold according to its whims and fancy.
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

13. The equilibrium level of output for a perfect competitive firm is given by the point where :
A. MR = MC
B. MR < MC
C. MR > MC
D. MR = MC and MC starts rising
Ans : D

14. Match the following :
List-I List-II
(i) Dumping (a) Monopolistic competitive firm
(ii) Kinked Revenue Curve (b) Oligopoly firm
(iii) Horizontal straight line revenue curve (c) Perfectively competitive firm
(iv) Large number of buyers and sellers with differentiated products (d) Discriminatory monopoly
Codes :
(i) (ii) (iii) (iv)
A. (a) (d) (c) (b)
B. (b) (d) (a) (c)
C. (d) (b) (c) (a)
D. (a) (b) (c) (d)
Ans : C

15. Penetrating pricing strategy is appropriate when
A. price elasticity of demand in the market is highly inelastic.
B. price elasticity of demand in the market is uncertain.
C. price elasticity of demand in the market is highly elastic.
D. income elasticity of demand in the market is negatively elastic.
Ans : C

16. Assertion (A) : The expected values should be atleast 5 to apply the chi-square test.
Reason (R) : The chi-square distribution provides an adequate approximation of the sampling distribution.
Indicate the correct answer from the following :
Codes :
A. Both (A) and (R) are true, and (R) is the right explanation.
B. Both (A) and (R) are true, but (R) is not the correct explanation.
C. (A) is true, but (R) is false.
D. (A) is false, but (R) is true.
Ans : A

17. In a decision problem having four possible alternative decisions and six possible states of nature, the pay-off table will include
A. Four payoffs
B. Six payoffs
C. Twenty four payoff
D. Ten payoff
Ans : C

18. The mathematical formula for joint probabilities P(AB) = P(A/B) × P(B), holds when
A. The events are statistically independent.
B. The events are statistically dependent.
C. The event is either independent or dependent.
D. None of the above
Ans : B

19. Which one of the following statements is the correct interpretation of P-value of less than 0.01 in hypothesis testing?
A. There is overwhelming evidence to infer that the alternative hypothesis is true.
B. There is strong evidence to infer that the alternative hypothesis is true.
C. There is weak evidence to indicate that the alternative hypothesis is true.
D. There is no evidence to infer that the alternative hypothesis is true.
Ans : A

20. Two lists of items are given below :
List-I List-II
(i) Charles Babbage (a) Mossai
(ii) Herbert A. Simon (b) HTML
(iii) Tim Berners Lee (c) Computer Design
(iv) Maarc Andreessen (d) Decision model
Which one of the following is the correct match?
Codes :
(i) (ii) (iii) (iv)
A. (c) (b) (a) (d)
B. (a) (c) (d) (b)
C. (b) (a) (c) (d)
D. (c) (d) (b) (a)
Ans : D

21. Which of the following statements are true about informal organization?
1. It arises spontaneously.
2. It reflects individual and group goals.
3. It tends to be permanent and stable.
4. It tends to be small and manageable.
5. Its basic purpose is to improve human relations.
6. Its basic purpose is to achieve organisation’s goals.
Codes :
A. 1, 2, 3 and 5 B. 1, 2, 4 and 6
C. 1, 2, 4 and 5 D. 2, 3, 5 and 6
Ans : C

22. Which of the following is not true about an employee-centered leader as identified by Michigan researchers?
A. Treats subordinates as human beings.
B. Shows concern for their well being.
C. Focuses on work standards and close supervision.
D. Encourages and involves them in goal setting.
Ans : C

23. According to Talcott Parson, organizations can be classified primarily into four categories, based on functions. Which of the following is not an organization in Parson’s scheme?
A. Political organisations
B. Integrative organisations
C. Pattern maintenance organisations
D. Commercial organisations
Ans : D

24. An MBO programme usually involves the following steps :
1. Establishing unit’s objectives
2. Establishing organisational goals
3. Negotiating or agreeing
4. Reviewing the performance
5. Creating action plans Indicate the correct sequence of the above steps from the following codes :
A. 1, 2, 3, 4, 5 B. 2, 1, 3, 5, 4
C. 2, 3, 1, 4, 5 D. 5, 4, 3, 2, 1
Ans : B

25. Match the following :
List-I List-II
(a) Fayol (1) Economy and Society
(b) Taylor (2) General and Industrial Administration
(c) Weber (3) Principles of Organization
(d) Mooney and Reilly (4) Shop Management
Codes :
(a) (b) (c) (d)
A. (3) (4) (1) (2)
B. (2) (4) (1) (3)
C. (1) (3) (2) (4)
D. (4) (3) (2) (1)
Ans : B

26. A primary group influencing the buyer behaviour is a
A. Family
B. Professional association
C. Religious group
D. Trade Union
Ans : A

27. After conducting the business analysis for developing a new product, a company must do
A. Idea generation
B. Product positioning
C. Product development and testing
D. Test marketing
Ans : C

28. Match the items in List-I with those in List-II :
List-I List-II
(a) Post purchase behaviour (i) AIDA
(b) Personal selling (ii) ACMEE
(c) Everitt M. Rogers (iii) Diffusion of Innovation
(d) Salesperson training (iv) Cognitive dissonance
Indicate the correct matching :
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (iv) (ii) (iii) (i)
C. (iii) (ii) (i) (iv)
D. (iv) (i) (iii) (ii)
Ans : D

29. Which type of retail stores generally has the highest operating costs?
A. Department store
B. Supermarket
C. Chain store
D. Co-operative Store
Ans : A

30. Indicate the correct statement :
A. India has been a pioneer in social marketing.
B. Advertising Standards Council of India is a statutory body set up by the government of India.
C. Both A and B are incorrect.
D. Both A and B are correct.
Ans : A

31. Match the items of List-I with the items of List- II :
List-I List-II
(a) Trade credit and other payables that arise in the firm’s day-to-day operations (i) Maturity Financing
(b) Financing and asset needs over time(ii) Factoring
(c) A tool for accelerating the collection from the customers(iii) Spontaneous financing
(d) Seeking financial service to finance on its debtors’ balances (iv) Lockbox system
Codes :
(a) (b) (c) (d)
A. (iv) (iii) (ii) (i)
B. (iii) (ii) (iv) (i)
C. (ii) (iv) (i) (iii)
D. (i) (ii) (iii) (iv)
Ans : C

32. Indicate the cost of equity capital, based on capital asset pricing model, with the following information :
Beta coefficient – 1.40 Risk-free rate of interest – 9% Expected Rate of Return on equity in the market – 16%
A. 9.8% B. 18%
C. 18.8% D. 16%
Ans : C

33. The degree of super-leverage would be calculated by :
A. Adding DOL (Degree of Operating Leverage) and DFL (Degree of Financial Leverage)
B. Dividing DOL with DFL
C. Multiplying DOL and DFL
D. Subtracting DOL from DFL
Ans : C

34. Interim cash inflows are reinvested at a rate of return equal to the internal rate of return is the built-inmechanism for
A. Net Present Value Method
B. Internal Rate of Return Method
C. Profitability Index Method
D. None of the above
Ans : B

35. Who formulated the following model for estimating the market price of equity share?
\(P=\) \(\frac{D+\frac{R_a}{R_c}(E-D)}{R_c}\)
Where, P = Market price of equity share
D = DPS
E = EPS
E – D = Retained earning per share
Ra = Internal rate of return on investment
Rc = Cost of capital
A. Modigliani-Miller
B. Myron-Gordon
C. James E. Walter
D. Clarkson and Elliot
Ans : C

36. Indicate the quantitative methods of job evaluation
A. Ranking methods and Job comparison method
B. Point rating method and Factor comparison method
C. Grading method and Job classification method
D. Factor comparison method and Ranking method
Ans : B

37. Match the items of List-I with those List-II :
List-I List-II
(1) Career goals (a) The process where in an executive serves as a guide
(2) Career path (b) The future positions one strives to reach as part of career
(3) Career counselling (c) The sequential pattern of jobs that form a career
(4) Mentoring (d) Guiding people on their possible career path
Codes :
(1) (2) (3) (4)
A. (b) (c) (d) (a)
B. (a) (b) (c) (d)
C. (d) (c) (b) (a)
D. (c) (b) (a) (d)
Ans : A

38. The process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and starts working, is referred to as
A. Placement B. Orientation
C. Job Rotation D. Counselling
Ans : B

39. Which is not relevant of succession planning?
A. Analysis of the demand for managers
B. Review of existing executives
C. Planning individuals career paths
D. Recruitment to meet immediate needs
Ans : D

40. Where does recognition of an Employee fall in Maslow’s hierarchy of needs theory?
A. Self-actualisation B. Security needs
C. Social needs D. Esteem needs
Ans : D

41. The profitability of public-sector banks is low due to
(i) Over-cautions approach to lending
(ii) Reserve Bank Policies
(iii) High Overhead Costs
(iv) Social-sector lending Identify the correct code :
Codes :
A. (i) and (ii) B. (i) and (iv)
C. (i), (iii) and (iv) D. (ii) and (iii)
Ans : C

42. Match the items of List-I with those List-II and select correct answer :
List-I List-II
(1) Narasimham Committee (a) Lending under consortium arrangement
(2) Shetty Committee (b) Frauds and Malpractices in banks
(3) Ghosh Committee (c) Securities operations of banks and financial institutions
(4) Janakiraman Committee (d) Financial system in India
Codes :
(a) (b) (c) (d)
A. (3) (4) (2) (1)
B. (2) (3) (4) (1)
C. (4) (2) (3) (1)
D. (3) (4) (1) (2)
Ans : B

43. Which of the following financial institutions is not with in the supervisory Purview of Reserve Bank of India ?
A. Foreign Commercial Banks Operating in India
B. Regional Rural Banks
C. Mutual Funds
D. State Co-operative Banks
Ans : C

44. The Repo and Reserve Repo rates are resorted to by the RBI as a tool of
A. Credit Control
B. Settlement Systems
C. Currency Management
D. Liquidity Control
Ans : D

45. Which one of the following institutions is promoted by the IFCI :
A. Credit Analysis and Research Ltd. (CARE)
B. Rashtriya Gramin Vikas Nidhi (RGVN)
C. Clearing Corporation of India Ltd. (CCIL)
D. Small Industries Development Bank of India (SIDBI)
Ans : B

46. Indicate the right sequence of the stages of internationalization :
(i) Multinational Company
(ii) Global Company
(iii) Transnational Company
(iv) International Company
Codes :
A. (i) (iv) (ii) (iii)
B. (iv) (i) (iii) (ii)
C. (i) (iv) (iii) (ii)
D. (iv) (i) (ii) (iii)
Ans : D

47. Which of the following is not one of the components of ‘International Reserve’?
A. Special Drawing Rights
B. Reserve Position in IMF
C. Monetary Gold
D. Money Market Instruments
Ans : D

48. Match the items given in List-I with the most appropriate items in List-II :
List-I List-II
(a) UNCTAD (i) Foreign investment
(b) WTO (ii) Developing Countries
(c) TRIMS (iii) UNDP
(d) ITC (iv) General Council
Codes :
(a) (b) (c) (d)
A. (ii) (iv) (i) (iii)
B. (iii) (iv) (i) (ii)
C. (iv) (ii) (i) (iii)
D. (iii) (ii) (i) (iv)
Ans : A

49. Duty levied on the value of goods imported is referred to as
A. Ad valorem Duty B. Compound Duty
C. Specific Duty D. Import Duty
Ans : A

50. Which of the following can be included in the current account of the balance of payments?
(i) Purchase of goods from abroad
(ii) Sale of services abroad
(iii) Workers’ remittances from abroad
(iv) Sale of copyright to foreigners
(v) Direct investment in equity capital
Codes :
A. (i), (ii) and (iii)
B. (i), (ii) and (iv)
C. (i), (ii), (iii) and (v)
D. (i), (ii), (iii) and (iv)
Ans : A

51. Which of the following items would be specifically included in the statement of cash flows constructed in compliance with AS-3?
A. Conversion of debt to equity
B. Acquiring an asset through lease
C. Operating and non-operating cash flow information
D. Purchasing a building by giving a mortgage to the seller
Ans : C

52. Fixing the value of an employee depending upon his productivity, promotability, transferability and retainability is the core of the
A. Certainty equivalent model
B. Stochastic Reward Valuation model
C. Human asset multiplier model
D. Present value of future earnings model
Ans : B

53. Which of the following refers to a situation in which the merger of companies results in over 25% of the market in the hands of the merged companies?
A. ‘Gateway’ condition
B. Restrictive practice
C. ‘Share of supply’ test
D. ‘Asset’ test
Ans : C

54. Which of the following is true?
A. Systematic risk is diversifiable but unsystematic risk is non-diversifiable.
B. Systematic risk is non-diversifiable but unsystematic risk is diversifiable.
C. Both systematic and unsystematic risks are diversifiable.
D. Both systematic and unsystematic risks are non-diversifiable.
Ans : B

55. Match the following :
List-I List-II
(Explanation) (Term)
(a) It involves using the version of master file and the update transactions used to create the current file to recreate the current master file if it becomes damaged. (1) Audit Trail Controls
(b) It involves copying the whole or a portion of the data-base to some back up medium, typically magnetics tape. (2) Dumping
(c) It stores current and, historical data extracted from various operations systems and consolidates for management reporting and analysis. (3) Grandfather, Father, Son
(d) It maintains the chronology of events that occur either to the database definition or the database itself. (4) Data ware house for Accounting
Codes :
(a) (b) (c) (d)
A. (3) (2) (4) (1)
B. (3) (1) (2) (4)
C. (1) (3) (2) (4)
D. (4) (3) (2) (1)
Ans : A

56. Which one is not a major component of holistic marketing?
A. Relationship marketing
B. Integrated marketing
C. Internal marketing
D. Socially responsible marketing
Ans : C

57. The final step in target marketing is
A. Market Analysis
B. Market Positioning
C. Market Segmentation
D. Market Targeting
Ans : B

58. The most recent consideration in product packaging is
A. Cost effectiveness
B. Product protection
C. Product promotion
D. Economy
Ans : C

59. Distribution logistics (also termed as ‘market logistics’) does not include
A. Distribution channel
B. Inventory
C. Transportation
D. Warehouses
Ans : A

60. Most of the money spent in measuring the effectiveness of advertising is spent on
A. Communication-response research
B. Pre-testing the advertisements
C. Post-testing the advertisements
D. Sales-response research
Ans : B

61. Which of the following is not included in the model of the systems approach to human resource management?
A. Departmentation
B. Recruitment
C. Performance Appraisal
D. Promotion
Ans : A

62. Which one of the following is not an example of Herzberg’s hygiene factors?
A. Advancement
B. Interpersonal relations
C. Job security
D. Work conditions
Ans : A

63. Which of the following two forms of collective bargaining were identified by Chamberlain and Kuhn?
A. Integrative Bargaining and Distributive Bargaining
B. Conjunctive Bargaining and Cooperative Bargaining
C. Integrative Bargaining and Cooperative Bargaining
D. Distributive Bargaining and Conjunctive Bargaining
Ans : B

64. Who observed that a worker’s behaviour and sentiments are closely related?
A. Peter Drucker B. Elton Mayo
C. F.W. Taylor D. Dale Yoder
Ans : B

65. What is not an operative function of HRM?
A. Procurement B. Development
C. Organising D. Integration
Ans : C

66. The total number of Special Economic Zones notified by the Government of India till March 2011 under the SEZ Act, 2005 is
A. 154 B. 184
C. 286 D. 386
Ans : D

67. The different forms of IMF assistance are given below. Identify the one which is mainly meant for Less Developed Countries (LDCs)
A. Credit Tranche Drawing
B. Extended Fund Facility
C. Compensatory Financing Facility
D. Structural Adjustment Facility
Ans : C

68. In the context of globalization, ‘Levitt Thesis’ means
A. Standardisation strategy to respond to the worldwide homogenised market and expand the market through aggressive low pricing
B. Customise products to regional markets
C. Customise products to meet the national market
D. None of the above
Ans : A

69. Which one of the following is an internal hedging technique?
A. Leading
B. Netting
C. Both A and B above
D. Swap
Ans : C

70. Business conglomerates have different names in different countries. Which country’s conglomerates are called ‘Chaebols’?
A. Japan B. South Korea
C. Germany D. China
Ans : B

71. Mr. X, a non-resident, earned Rs. 36,000 as interest on German Development Bonds. Of this, he received one-sixth in India. The amount to be included as interest for the computation of his Gross Total Income is
A. Rs. 36,000 B. Rs. 30,000
C. Rs. 6,000 D. Nil
Ans : C

72. Consider the following problem relating to a let-out house property :
Municipal value – Rs. 60,000 Fair rent – Rs. 68,000 Standard rent under the Rent Control Act – Rs. 62,000 Annual Rent received – Rs. 65,000 The Gross Annual Value of the property will be
A. Rs. 68,000 B. Rs. 62,000
C. Rs. 65,000 D. Rs. 60,000
Ans : C

73. From the following, identify by the web-based financial software :
A. Private Equity Software
B. Share Accounting Software
C. Wealth Management Software
D. WINGS 2013
Ans : D

74. Which of the following are true in tax planning?
(i) It is futuristic in its approach.
(ii) It has limited scope compared to tax management.
(iii) The benefits arising from it are limited particularly in the short run.
(iv) Its main objective is to reduce the tax liability.
Codes :
A. (i), (ii) and (iii) B. (i) and (ii)
C. (i) and (iv) D. (ii), (iii) and (iv)
Ans : C

75. The benefits of debt financing over equity financing are likely to be highest in which of the following situations?
A. High marginal tax rates and low noninterest tax benefits
B. Low marginal tax rates and low noninterest tax benefits
C. High marginal tax rates and high noninterest tax benefits
D. Low marginal tax rates and high noninterest tax benefits.

Note :
This paper contains fifty (50) objective type questions, each question carrying two (2) marks each. Attempt all the questions.
Ans : A

Top
error: Content is protected !!