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# Commerce UGC NTA NET JRF Solved Previous Year Paper June-2015 PAPER-II

1. The world’s first electronic stock market is :
A. KOSPI B. Nikkie
C. NASDAQ D. Dow Jones
Ans : C

2. The Human Development Index (HDI) is introduced by :
A. UNDP B. UNICEF
C. IMF D. World Bank
Ans : A

3. Examine the following statements and choose the correct code :
Assertion (A) : American style option, compared to European style, provides more freedom to option holders in exercising the option.
Reason (R) : American style option can be exercised only at a specified date which is generally the expiration date.
Codes :
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 not correct, but (R) is correct.
Ans : C

4. From the statements given below, identify the correct code :
Statement (I) : The key strategy behind acquiring a company is to create shareholder’s value.
Statement (II) : Conglomeration is a merger between two companies that have common business areas.
Statement (III) : MRTP Act got replaced by the Competition Act, 2002 in India.
Codes :
A. All the three statements are correct.
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B. Statements (I) and (II) only are correct.
C. Statements (I) and (III) only are correct.
D. Statement (II) only is correct.
Ans : C

5. From the following, identify the tools of fiscal policy :
(i) Public expenditure
(ii) Open market operations
(iii) Deficit financing
(iv) Taxation
(v) Reserve requirements
Codes :
A. (i), (iii), (iv) and (v)
B. (i), (ii), (iv) and (v)
C. (ii) and (v)
D. (i), (iii) and (iv)
Ans : D

6. The basic difference between a static budget and flexible budget is that :
A. A flexible budget considers only variable costs but a static budget considers all costs.
B. Flexible budgets allow management latitude in meeting goals, whereas static budget is based on fixed standards.
C. A flexible budget is applicable for a single department only but a static budget for entire production facility.
D. A flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production.
Ans : D

7. A retiring partner continues to be liable for obligations incurred after his retirement :
A. If unpaid amount is transferred to his loan account.
B. If he does not give public notice.
C. If he starts a similar business elsewhere.
D. In all the situations till he survives.
UGC Comm.(E) J’15–1
Ans : B

8. In what order, the following assets are shown in the balance sheet of a company?
(ii) Cash
(iii) Furniture and fittings
(iv) Investment in shares and debentures
Codes :
A. (ii), (i), (iv), (iii) B. (i), (ii), (iii), (iv)
C. (iii), (iv), (i), (ii) D. (iv), (iii), (ii), (i)
Ans : C

9. When opening stock is Rs. 50,000, closing stock is Rs. 60,000 and the cost of goods sold is Rs. 2,20,000, the stock turnover ratio is :
A. 2 times B. 3 times
C. 4 times D. 5 times
Ans : C

10. If : Stock turnover ratio is = 6 times Average stock = Rs. 8,000 Selling price = 25% above cost What is the amount of gross profit?
A. Rs. 2,000 B. Rs. 4,000
C. Rs. 10,000 D. Rs. 12,000
Ans : D

11. A rectangular hyperbola shaped demand curve on all its points has :
A. Equal slopes of the price demand curve
B. Price elasticity equal to unity
C. Varying price elasticity
D. Both slope and price elasticity equal
Ans : B

12. In case of short-run equilibrium, a perfectly competitive firm while earning abnormal profits operates at an output level where :
A. Marginal cost is the minimum
B. Average cost is the minimum
C. Both marginal cost and average cost are equal
D. Marginal cost is higher than average cost
Ans : D

13. Which one of the following statements is false?
A. Normally, a price demand curve slopes downward from left to right
B. Economies of scale and economies of scope are the same
C. For optimization, equality between marginal cost and marginal revenue is a necessary condition but it is not a sufficient one
D. Law of variable proportions denotes inputoutput relationship during short-run
Ans : B

14. Match the items of List-I with the items of List-II.
List-I List-II
(a) Law of diminishing marginal utility (i) Cross demand
(b) Relationship between price of one commodity and demand for other commodity(ii) Oligopoly
(c) Skimming the cream policy (iii) Cardinal approach
(d) Price rigidity (iv) Pioneer pricing
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (iii) (i) (ii) (iv)
C. (ii) (iv) (i) (iii)
D. (iv) (iii) (ii) (i)
Ans : C

15. The following are the demand and supply equations in a perfectly competitive market :
P = 12 + 0.3 Qs P = 40 – 0.4 Qd The equilibrium market price would be :
A. 24 B. 10
C. 40 D. 20
Ans : A

16. Which of the following is not an accounting software package?
A. Quick Books B. Sage one
C. Sage M D. Sage 50
Ans : C

17. Which one of the following formula is used to calculate probable error of correlationcoefficient between two variables of ‘n’ pairs of observations?
A. $$0.6745\left[\frac{1-r^2}{\sqrt n}\right]$$ B. $$0.5758\left[\frac{1-r^2}{\sqrt n}\right]$$
C. $$0.675\left[\frac{1-r^2}{n}\right]$$ D. $$0.5758\left[\frac{1-r^2}{n}\right]$$
Ans : A

18. If the population is heterogeneous, which one of the following probability sampling methods is more appropriate?
A. Sequential sampling
B. Quota sampling
C. Double sampling
D. Stratified sampling
Ans : D

19. Which of the following relating to normal distribution is not correct?
(i) Co-efficient of skewness is three
(ii) It is mesokurtic
(iii) Mean deviation for it is $$\frac{2}{3}$$ σ
(iv) μ ± 2σ covers 95.45% area
(v) Mean, median and mode are equal
(vi) The standard normal variate z has mean one and SD zero
Codes :
A. (i), (iii) and (vi) B. (iii), (iv) and (v)
C. (i), (iii) and (v) D. (i), (iii) and (iv)
Ans : A

20. Which one of the following statements is false?
A. Both correlation and regression co-efficients have same sign
B. Arithmetic mean of the regression co-efficients is always more than the correlation co-efficient
C. Regression co-efficients are independent of both the origin and scale
D. Correlation co-efficient is the square root of two regression co-efficients
Ans : C

21. Match the items of List-I with the items of List-II.
List-I List-II
(a) “He who can manage, can manage anything”. (i) Henry Fayol
(b) “Due to these experiments, a factory does not remain a factory, it is converted into a laboratory”. (ii) William B. Cornell
(c) “Management succeeds or fails as human relations in business are intelligently or unintelligently handled”. (iii) F.W. Taylor
(d) “A place for everything, and everything in its place”. (iv) Lawrance A. Appley
Codes :
(a) (b) (c) (d)
A. (i) (ii) (iii) (iv)
B. (i) (ii) (iv) (iii)
C. (iv) (iii) (ii) (i)
D. (iii) (ii) (i) (iv)
Ans : C

22. Assertion (A) : Management is mainly associated with economic affairs.
Reason (R) : Big business houses are the result of effective financial management.
Codes :
A. (A) is correct, and (R) is the right explanation of (A).
B. Both (A) and (R) are correct but (R) is not the right explanation of (A).
C. (A) is incorrect but (R) is correct in isolation.
D. Both (A) and (R) are incorrect.
Ans : C

23. Areas of establishing objectives under MBO are :
(i) Market Standing
(ii) Innovation
(iii) Industrial Relations
(iv) Public Accountability
(v) Productivity
(vi) Industrial Policy
Codes :
A. (iii), (iv), (v) and (vi)
B. (i), (ii), (iv) and (v)
C. (i), (ii), (v) and (vi)
D. (ii), (iii), (iv) and (v)
Ans : B

24. Match the items of List-I with List-II.
List-I List-II
(a) Management of Tomorrow (i) Chris Argyris
(b) Motivation and Personality (ii) Fredrick Hergberg
(c) The Motivation of Work (iii) L.F. Urwick
(d) Personality and Organisation (iv) A.H. Maslow
Codes :
(a) (b) (c) (d)
A. (i) (iv) (ii) (iii)
B. (iii) (iv) (i) (ii)
C. (iv) (iii) (ii) (i)
D. (iii) (iv) (ii) (i)
Ans : D

25. Narayan Murthy Committee revised its recommendations on Corporate Governance as on 29th October 2004 which diluted the following areas :
(i) Independence of Directors
(ii) Whistle Blower Policy
(iii) Performance evaluation of Non-Executive Directors
(iv) Mandatory training of Non-Executive Directors
Codes :
A. (i), (ii) and (iii) only
B. (i) and (iii) only
C. (i), (ii) and (iv) only
D. All (i), (ii), (iii) and (iv)
Ans : D

26. The service marketing mix is an extended marketing mix and includes :
(i) People
(ii) Process
(iii) Service
(iv) Physical evidence
Codes :
A. (ii), (iii) and (iv)
B. (i), (ii) and (iii)
C. (i), (ii) and (iv)
D. (i), (iii) and (iv)
Ans : C

27. Black box model in marketing relates to :
A. Marketing planning
B. Marketing mix
C. Marketing control
D. Consumer behaviour
Ans : D

28. Items, considered part of the augmented product, do not include :
A. Guarantee
B. Warranty
C. Complementary products
D. Channels of distribution
Ans : D

29. Which of the following is not a type of direct marketing?
A. Direct mail marketing
B. Retail marketing
C. Telemarketing
D. Email direct marketing
Ans : B

30. ‘Press release’ is a part of :
C. Sales promotion D. None of the above
Ans : A

31. In capital budgeting, the term capital rationing implies :
A. that no retained earnings are available
B. that limited funds are available for investment
C. that no external funds can be raised
D. that no fresh investment is required in current year
Ans : B

32. In certainty equivalent approach, adjusted cash flows are discounted at :
A. Accounting Rate of Return
B. Internal Rate of Return
C. Hurdle Rate
D. Risk Free Rate
Ans : D

33. Combined leverage is calculated as :
A. Operating Leverage + Financial Leverage
B. Operating Leverage – Financial Leverage
C. Operating Leverage × Financial Leverage
D. Operating Leverage ÷ Financial Leverage
Ans : C

34. Which of the following is not true with reference to capital budgeting?
A. Capital budgeting is related to asset replacement decisions
B. Cost of capital is equal to minimum required return
C. Existing investment in a project is not treated as sunk cost
D. Timing of cash flows is relevant
Ans : C

35. What is Economic Order Quantity?
A. Cost of an order
B. Cost of stock
C. Reorder level
D. Optimum order size
Ans : D

36. Which of the following is not a basic objective of HRM?
A. To attract HR into the organisation
B. To develop and motivate HR for better performance
C. To have the reward and punishment system for HR
D. To integrate and maintain HR in the organisation
Ans : C

37. What is ‘gate hiring’?
A. To select people who approach on their own for employment in the organisation
B. To select people who are recommended by the employees
C. To select people from public employment exchanges
D. To select people supplied by labour contractors
Ans : A

38. Matching essential managers and essential positions is a step in the process of :
A. Career Cycle
B. Succession Planning
C. Career Planning
D. Career Stages
Ans : B

39. The barriers to effective performance appraisal are :
(i) Psychological blocks of managers
(ii) Faulty assumptions of the parties concerned
(iii) Technical pitfalls
(iv) Faulty written communications
Codes :
A. All are correct
B. Only (ii) and (iii) are correct
C. Only (i) and (ii) are correct
D. Only (i), (ii) and (iii) are correct
Ans : D

40. Who has developed the ‘Systems Approach’ of industrial relations?
A. John Dunlop B. Garry S. Becker
C. Michael J. Jucius D. Edwin B. Flippo
Ans : A

41. In 1992, the banking sector reforms were introduced as per :
A. C. Rangarajan Committee Report
B. M. Narasimham Committee Report
C. Suresh Tendulkar Committee Report
D. Sukhamoy Chakrabarty Committee Report
Ans : B

42. For the purpose of extending rural banking and agro finance, the NABARD :
A. Directly lends and monitors the rural borrowers
B. Refinances the banks extending rural finance
C. Refinances the rural borrowers obtaining credit from banks
D. Directly finances the rural borrowers and gets refinance from government
Ans : B

43. When RBI grants loan to commercial banks and charges interest on it, it is called :
A. Rapo rate
B. Reverse Rapo rate
C. Sweep stack rate, basic rate
D. Bank rate
Ans : D

44. E-banking business is essentially regulated by the Information Technology Act, 2000, under which personal signature is replaced by :
A. Encrypted signature
B. Image signature
C. Digital signature
D. Online signature
Ans : C

45. In order to control inflation and ensure stability in money market :
A. The RBI works under the direction of ministry of finance, government of India
B. The RBI acts independently and can refuse the government directive
C. The RBI acts under the board of directors
D. The RBI’s board of governors shall abide by the government directive
Ans : B

46. In respect of international business, a project is called a turnkey project because :
A. The licensee agrees to construct an entire plant in his home county and hands over the key
B. The lincensor starts the operation and hands over the key of the operating plant to the licensee
C. The licensor starts the operation and then invites the licensee and hands over the key to complete the remaining work
D. The licensor and the licensee jointly carry out the project and agree to share profit equally
Ans : B

47. Match the items of List-I with List-II.
List-I List-II
(a) Bretton woods conference (i) WTO
(b) Soft loan window (ii) World Bank
(c) Geneva (iii) IFC
(d) Loan to private sector (iv) IDA
Codes :
(a) (b) (c) (d)
A. (i) (iii) (ii) (iv)
B. (iv) (iii) (ii) (i)
C. (ii) (iv) (i) (iii)
D. (iv) (ii) (iii) (i)
Ans : C

48. Assertion (A) : The member nations, consistently finding balance of payments crisis, may approach the Wold Bank seeking financial accommodation to mitigate the crisis.
Reason (R) : The member nations facing balance of payments crisis can approach the IMF seeking redressal of the BOP crisis.
Codes :
A. (A) is correct, and (R) is correct explanation of (A).
B. (A) is correct, but (R) is wrong.
C. (R) is correct and (A) is wrong.
D. Both (A) and (R) are wrong.
Ans : C

49. In computation of balance of payments, overall balance of payments =
A. Balance of current account + Balance of capital account + Statistical discrepancy
B. Export of goods and invisibles – Import of goods
C. Foreign exchange inflow – Foreign exchange outflow
D. Export of goods and invisibles + Import of goods and invisibles
Ans : A

50. The instrument chosen for enhancement of international liquidity is :
A. Society for Worldwide Inter bank Financial Telecommunications (SWIFT)
B. Special Drawing Rights (SDRs)
C. Multilateral Netting
D. Netting of Payments
Note :
This paper contains seventy five (75) objective type questions of two (2) marks each. All questions are compulsory.
Ans : B

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