COMMERCE PAGE 3
Commerce Page 3- MCQs
1. Under the provisions of the Industries (Development and Regulation) Act, 1951, a licence is necessary for
(A) Changing the location of an existing industrial undertaking.
(B) Producing or manufacturing a ‘new article’ in an existing industrial undertaking.
(C) Establishing a new undertaking.
(D) All of the above.
Ans: D
2. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(i) Political and Legal Environment (a) Important for industries directly depending on imports or exports.
(ii) Demographic Environment (b) Close relationship with the economic system and economic policy.
(iii) Economic Environment (c) Related to natural resources.
(iv) Geographical and Ecological Environment (d) Occupational and spatial mobilities of population having implications for business.
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (b) (d) (c)
Ans: B
3. Match the items of List-I with the items of List-II and select the correct answer:
List – I List – II
(i) SLR (a) Working in the field of consumer protection.
(ii) SIDBI (b) Credit control.
(iii) CUTS (c) Industrial policy.
(iv) ILPIC (d) Facilitating Small Scale Industries.
Codes:
(i) (ii) (iii) (iv)
(A) (a) (c) (d) (b)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (c) (b) (d)
Ans: B
4. Match the following:
List – I List – II
(i) National Stock Exchange (a) Marks the beginning of the process of dematerialisation of shares of the participating companies.
(ii) National Securities Depository Limited (b) Facilitation of equal access to investors across the country.
(iii) Securities and Exchange Board of India (c) To foster the development of an active secondary market for Government Securities.
(iv) Securities Trading Corporation of India (d) Abolition of Capital issues control and retaining the sale authority for new capital issues.
Codes:
(i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (a) (b) (d) (c)
(D) (d) (c) (b) (a)
Ans: A
5. The United Nations Conference on Trade and Development (UNCTAD) was set up in
(A) 1944
(B) 1954
(C) 1960
(D) 1964
Ans: D
6. Indicate the ground on which a complaint under the Consumer Protection Act, 1986, shall be invalid.
(A) A product having short weight.
(B) A service provided free of cost.
(C) A misleading advertisement given in newspaper.
(D) None of the above.
Ans: B
7. Out of the following, which are the four components of food security?
(i) Food availability
(ii) Food market
(iii) Food accessibility
(iv) Food utilization
(v) Food credit
Codes:
(A) (iii), (iv) and (v)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
(D) (i), (ii) and (iv)
Ans: B
8. Performance evaluation of a responsibility centre can be done by
(A) ROI
(B) Return on sales
(C) EVA
(D) All of the above
Ans: D
9. Social Balance Sheet shows
(A) Social costs
(B) Social revenues
(C) Value of employees of the organisation
(D) All of the above
Ans: C
10. Which of the following comes under efficiency ratios?
(A) Average collection period
(B) Inventory turnover ratio
(C) Fixed assets turnover ratio
(D) All of the above
Ans: D
11. Match the items of the following two lists:
List – I List – II
(i) Statement of changes in Working Capital (a) Cash Flow Statement
(ii) Deferred Tax (b) Fixed Assets
(iii) Three activities (c) Funds Flow Statement
(iv) Impairment Loss (d) Balance Sheet
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (c) (d) (b) (a)
(C) (c) (d) (a) (b)
(D) (d) (c) (a) (b)
Ans: C
12. Match the items of the following two lists and indicate the correct answer:
List – I List – II
(i) Earning ability of firm (a) Basis of Accounting
(ii) Conservatism (b) P/V ratio
(iii) Cash profit (c) Cash flow statement
(iv) Cash and Accrual (d) Prudence
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (a) (d) (c)
(C) (c) (d) (a) (b)
(D) (c) (d) (b) (a)
Ans: A
13. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): Only the relevant costs should be taken into consideration for decisionmaking.
Reason (R): All variable costs are relevant costs and all fixed costs are irrelevant costs.
In the above statements, which one alternative of the following is correct?
Codes:
(A) Both (A) and (R) are correct.
(B) Only (A) is correct, but (R) is wrong.
(C) Only (R) is correct, but (A) is wrong.
(D) Both (A) and (R) are wrong.
Ans: B
14. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Variance analysis is undertaken for planning and control of costs.
Reason (R): Future costs are taken into consideration in budgeting and standard costing.
In the above statements, which one alternative of the following is correct?
Codes:
(A) Both (A) and (R) are correct and (R) is the Reason for (A).
(B) Both (A) and (R) are correct and (R) is not the Reason for (A).
(C) (A) is correct, but (R) is wrong.
(D) (A) is wrong, but (R) is correct.
Ans: B
15. Assertion (A): Mark-up pricing is a method of determining price.
Reason (R): P = ATC + (m × ATC) is the expression for that.
Codes:
(A) (A) is correct but (R) is not correct.
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are not correct.
(D) (R) is correct, but (A) is not correct.
Ans: B
16. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(a) Economic profit (i) Total Revenue Explicit cost
(b) Accounting profit (ii) Buyers and Sellers exchanging
(c) Collusion/ Cartel (iii) Total Revenue – Total cost
(d) Market (iv) Oligopoly
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iv) (iii) (ii) (i)
(D) (ii) (iv) (i) (iii)
Ans: A
17. Which one is not the item of economic cost to the business?
(A) Owner supplied resources.
(B) Market supplied resources.
(C) Implicit costs.
(D) Non-monetary opportunity costs of using owner supplied resources.
Ans: B
18. Demand must have the elements
(A) Desire
(B) Want
(C) Quantity, Price and Time
(D) All of the above
Ans: D
19. Match the items of List-I and items of List-II and select the correct code for the answer.
List – I List – II
(a) Utilitarian Approach (i) Marginal Rate of Substitution
(b) Ordinal Approach (ii) Budget line & Indifference Curve
(c) Price- Consumption Curve (iii) U=f (x, y)
(d) Consumer Equilibrium (iv) MRSxy = MRSyx
Codes:
(a) (b) (c) (d)
(A) (i) (iv) (iii) (ii)
(B) (ii) (iii) (iv) (i)
(C) (iii) (i) (ii) (iv)
(D) (iv) (ii) (i) (iii)
Ans: C
20. The Learner Index measures
(A) Market power
(B) Price
(C) Price-Marginal cost
(D) None of the above
Ans: A
21. Match the items of List-I and items of List-II and select the correct answer.
List – I List – II
(a) Perfect competition (i) Different prices for the same product
(b) Monopolistic competition (ii) Dominant strategy
(c) Oligopoly (iii) Product differentiation
(d) Discriminating Monopoly (iv) Identical product
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iv) (i) (iii)
(D) (iii) (i) (iv) (ii)
Ans: A
22. If there are 8 possible classes under consideration for goodness of-fit, the number of degrees of freedom will be
(A) 8
(B) 7
(C) 6
(D) Cannot be determined from the given information.
Ans: D
23. Identify from the following, the test statistic for which the value of numerator should always be greater than that of denominator.
(A) ‘Chi-square’
(B) ‘F’ value
(C) ‘Z’ value
(D) ‘t’ value
Ans: B
24. Which of the following tests can be applied to ordinal scale data?
(i) Chi-square test
(ii) ‘Z’ test
(iii) Kruskal-Wallis test
(iv) Wilcoxon Mann-Whitney test
Codes:
(A) (i), (ii) and (iii)
(B) (ii), (iv) and (iii)
(C) (i), (iii) and (iv)
(D) (i), (ii) and (iv)
Ans: C
25. Which of the following tests can be based on the normal distribution?
(A) Difference between independent means
(B) Difference between dependant means
(C) Difference between proportions
(D) All of the above
Ans: D
26. From the following, identify one situation where ‘F’ test cannot be used?
(A) To compare more than two populations means.
(B) To test the hypothesis about a single population variance.
(C) To test the hypothesis about two-population variance.
(D) To study about randomized block design.
Ans: B
27. Which statistical test should be applied to test the effectiveness of ‘special coaching’ on the marks scored by the students?
(A) Paired‘t’ test
(B) ‘Chi-square’ test
(C) ‘Z’ test
(D) ‘F’ test
Ans: A
28. In a linear equation, y = a + bx, ‘a’ refers to
(A) Slope
(B) Y-intercept
(C) Dependant variable
(D) Independent variable
Ans: B
29. Which among the following is the most popular approach for accomplishing the results?
(A) Management by exception
(B) Reward system
(C) Management by objectives
(D) Mentor system
Ans: C
30. The managerial function of organizing involves
(A) Reviewing and adjusting plan in the light of changing conditions.
(B) Establishing programme for the accomplishment of objectives.
(C) Creating structure of functions and duties to be performed.
(D) Getting things done through others.
Ans: C
31. A leader who identifies what subordinates need to do to achieve objectives, clarify organizational roles and tasks, set up an organization structure, reward performance and provide for the social needs of their followers, is
(A) A transformational leader
(B) A participative leader
(C) A transactional leader
(D) An autocratic leader
Ans: C
32. Which of the following is not an assumption of theory X?
(A) An average human being has an inherent dislike of work and will avoid it if he can.
(B) An average human being prefers to be directed, seeks to avoid responsibility, has relatively little ambition, and wants security above all.
(C) An average human being learns under proper conditions, not only to accept responsibility but also to seek it.
(D) Most people must be coerced, controlled, directed and threatened with punishment to get them put forth adequate effort.
Ans: C
33. If a network of interpersonal relationship that arise when people associate with each other is an informal organization, then find out which of the following is not an informal organization?
(A) The “machine shop” group
(B) Customers’ group
(C) The “sixth floor” group
(D) The “Friday evening bowling” gang
Ans: B
34. Which of the following are sources of ethics?
(i) Religion
(ii) Legal system
(iii) Economic system
(iv) Culture
(v) Family system
Select the correct answer from the codes given below:
(A) (i), (ii), (iii), (v)
(B) (i), (ii), (iv)
(C) (i), (iv), (v)
(D) (i), (ii), (iii), (iv), (v)
Ans: C
35. Which of the following has refined Maslow’s theory of motivation by proposing a hierarchy of three needs?
(A) MeClelland
(B) Aldorfer
(C) Herzburg
(D) Vroom
Ans: B
36. Which segmentation approach is the most compatible with the spirit of the marketing concept?
(A) Benefit sought
(B) Income
(C) Social class
(D) Family size
Ans: A
37. The description of a product’s quality, features, style, brand name and packaging identifiers the
(A) Actual product
(B) Augmented product
(C) Core product
(D) Tangible product
Ans: A
38. Consider the following statements and find out the correct alternative from the codes given below:
(i) A firm’s marketing information system is a component of its marketing research system.
(ii) The most common forms of marketing researches conducted in most of the firms are the measurement of market potential and the analysis of market share.
(iii) Survey research is seldom used for studying consumer perception and attitudes.
(iv) The concept of cognitive dissonance is relevant to study consumer’s post-purchase behaviour.
Codes:
(A) All the statements are true.
(B) All the statements are false.
(C) (i) is false and the rest are true.
(D) (ii) and (iv) are true and the rest are false.
Ans: D
39. In India, which pricing practice is not permissible?
(A) Penetrating pricing
(B) Skimming pricing
(C) Predatory pricing
(D) None of the above
Ans: C
40. Consider the following statements and find out the correct alternative from the codes given below:
(i) A good salesman is one who can sell refrigerator to an Eskimo.
(ii) Salesmen are born, not made.
(iii) Physical distribution is an area where high cost-savings is possible.
Codes:
(A) (i) and (iii) are correct.
(B) (i) and (ii) are correct.
(C) (ii) and (iii) are correct.
(D) All are correct.
Ans: A
41. Which form of retail outlet has the highest operating costs?
(A) Super market
(B) Consumer co-operative store
(C) Department store
(D) Retail chain store
Ans: C
42. Consider the following statements and indicate the correct alternative from the codes given below:
(i) The product management system often turns out to be costly.
(ii) When customers belong to different user groups with distinct buying preferences and practices, a market management organization is not suitable.
(iii) Advertising department has the closest interface with the finance department of the company.
Codes:
(A) (i) and (ii) are correct.
(B) (ii) and (iii) are correct.
(C) Only (i) is correct.
(D) All are correct.
Ans: C
43. Match the statements in List-I with dividend models in List-II as follows:
List – I List – II
I Dividend Capitalisation Approach. 1. Traditional Model
II Dividend Policy has a bearing on the share valuation. 2. Gardon Model
III Stock Market places more weight on dividends than on retain earnings. 3. Walter Model
IV Dividend pay-out is irrelevant to the value of the firm. 4. Modigliani and Miller Model
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 4 3
(C) 4 1 3 2
(D) 3 4 2 1
Ans: A
44. Venture capital financing at starting stage is generally not done through
(A) Debt instruments
(B) Deep discount bonds
(C) Equity shares
(D) Conditional loans
Ans: B
45. Match the statements in List-I with the types of lease in the List-II as follows:
List – I List – II
I Lessor transfer all risks and rewards of an asset to the lessee. 1. Indirect lease
II Lessor transfers the assets to the lessee but bears the cost of maintenance 2. Operating lease
III The owner of the asset sells it to the lessor who in turn leases it back to the owner (now lessee) 3. Finance lease
IV Lessor owns/ acquires the assets that are leased to a given lessee. 4. Direct lease
Codes:
I II III IV
(A) 2 3 4 1
(B) 1 4 2 3
(C) 3 2 1 4
(D) 4 1 3 2
Ans: C
46. Full details for the issue of ADRs by a company must be furnished within 30 days from the date of its closure to
(A) Securities and Exchange Commission (SEC)
(B) Reserve Bank of India (RBI)
(C) Securities and Exchange Board of India (SEBI)
(D) Company Law Board (CLB)
Ans: B
47. The degree to which the returns of the two securities change together, is reflected by
(A) Correlation
(B) Leverage
(C) Covariance
(D) Beta
Ans: C
48. The transfer by a company of one or more of its business divisions to another newly set up company is called
(A) Demerger
(B) Merger
(C) Equity Carve-out
(D) Disinvestment
Ans: A
49. What combination of the following factors influences the working capital requirement?
I Market Conditions
II Production Policy
III Firm’s goodwill
IV Supply conditions
Codes:
(A) I, II and III
(B) II, III and IV
(C) I, III and IV
(D) I, II and IV
Ans: D
50. Which of the followings are the modern methods of performance appraisal?
(i). 360 degree performance appraisal.
(ii). Graphic rating scale.
(iii). Management by Objectives (MBO).
(iv). Forced distribution method.
(v). Behaviourally Anchored Rating Scales (BARS).
Select the correct answer from the codes given below:
(A) (i), (ii), (iii)
(B) (ii), (iv), (v)
(C) (i), (iii), (v)
(D) (iv), (ii), (i)
Ans: C
(A) Changing the location of an existing industrial undertaking.
(B) Producing or manufacturing a ‘new article’ in an existing industrial undertaking.
(C) Establishing a new undertaking.
(D) All of the above.
Ans: D
2. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(i) Political and Legal Environment (a) Important for industries directly depending on imports or exports.
(ii) Demographic Environment (b) Close relationship with the economic system and economic policy.
(iii) Economic Environment (c) Related to natural resources.
(iv) Geographical and Ecological Environment (d) Occupational and spatial mobilities of population having implications for business.
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (b) (d) (c)
Ans: B
3. Match the items of List-I with the items of List-II and select the correct answer:
List – I List – II
(i) SLR (a) Working in the field of consumer protection.
(ii) SIDBI (b) Credit control.
(iii) CUTS (c) Industrial policy.
(iv) ILPIC (d) Facilitating Small Scale Industries.
Codes:
(i) (ii) (iii) (iv)
(A) (a) (c) (d) (b)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (c) (b) (d)
Ans: B
4. Match the following:
List – I List – II
(i) National Stock Exchange (a) Marks the beginning of the process of dematerialisation of shares of the participating companies.
(ii) National Securities Depository Limited (b) Facilitation of equal access to investors across the country.
(iii) Securities and Exchange Board of India (c) To foster the development of an active secondary market for Government Securities.
(iv) Securities Trading Corporation of India (d) Abolition of Capital issues control and retaining the sale authority for new capital issues.
Codes:
(i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (a) (b) (d) (c)
(D) (d) (c) (b) (a)
Ans: A
5. The United Nations Conference on Trade and Development (UNCTAD) was set up in
(A) 1944
(B) 1954
(C) 1960
(D) 1964
Ans: D
6. Indicate the ground on which a complaint under the Consumer Protection Act, 1986, shall be invalid.
(A) A product having short weight.
(B) A service provided free of cost.
(C) A misleading advertisement given in newspaper.
(D) None of the above.
Ans: B
7. Out of the following, which are the four components of food security?
(i) Food availability
(ii) Food market
(iii) Food accessibility
(iv) Food utilization
(v) Food credit
Codes:
(A) (iii), (iv) and (v)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
(D) (i), (ii) and (iv)
Ans: B
8. Performance evaluation of a responsibility centre can be done by
(A) ROI
(B) Return on sales
(C) EVA
(D) All of the above
Ans: D
9. Social Balance Sheet shows
(A) Social costs
(B) Social revenues
(C) Value of employees of the organisation
(D) All of the above
Ans: C
10. Which of the following comes under efficiency ratios?
(A) Average collection period
(B) Inventory turnover ratio
(C) Fixed assets turnover ratio
(D) All of the above
Ans: D
11. Match the items of the following two lists:
List – I List – II
(i) Statement of changes in Working Capital (a) Cash Flow Statement
(ii) Deferred Tax (b) Fixed Assets
(iii) Three activities (c) Funds Flow Statement
(iv) Impairment Loss (d) Balance Sheet
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (c) (d) (b) (a)
(C) (c) (d) (a) (b)
(D) (d) (c) (a) (b)
Ans: C
12. Match the items of the following two lists and indicate the correct answer:
List – I List – II
(i) Earning ability of firm (a) Basis of Accounting
(ii) Conservatism (b) P/V ratio
(iii) Cash profit (c) Cash flow statement
(iv) Cash and Accrual (d) Prudence
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (a) (d) (c)
(C) (c) (d) (a) (b)
(D) (c) (d) (b) (a)
Ans: A
13. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): Only the relevant costs should be taken into consideration for decisionmaking.
Reason (R): All variable costs are relevant costs and all fixed costs are irrelevant costs.
In the above statements, which one alternative of the following is correct?
Codes:
(A) Both (A) and (R) are correct.
(B) Only (A) is correct, but (R) is wrong.
(C) Only (R) is correct, but (A) is wrong.
(D) Both (A) and (R) are wrong.
Ans: B
14. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Variance analysis is undertaken for planning and control of costs.
Reason (R): Future costs are taken into consideration in budgeting and standard costing.
In the above statements, which one alternative of the following is correct?
Codes:
(A) Both (A) and (R) are correct and (R) is the Reason for (A).
(B) Both (A) and (R) are correct and (R) is not the Reason for (A).
(C) (A) is correct, but (R) is wrong.
(D) (A) is wrong, but (R) is correct.
Ans: B
15. Assertion (A): Mark-up pricing is a method of determining price.
Reason (R): P = ATC + (m × ATC) is the expression for that.
Codes:
(A) (A) is correct but (R) is not correct.
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are not correct.
(D) (R) is correct, but (A) is not correct.
Ans: B
16. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(a) Economic profit (i) Total Revenue Explicit cost
(b) Accounting profit (ii) Buyers and Sellers exchanging
(c) Collusion/ Cartel (iii) Total Revenue – Total cost
(d) Market (iv) Oligopoly
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iv) (iii) (ii) (i)
(D) (ii) (iv) (i) (iii)
Ans: A
17. Which one is not the item of economic cost to the business?
(A) Owner supplied resources.
(B) Market supplied resources.
(C) Implicit costs.
(D) Non-monetary opportunity costs of using owner supplied resources.
Ans: B
18. Demand must have the elements
(A) Desire
(B) Want
(C) Quantity, Price and Time
(D) All of the above
Ans: D
19. Match the items of List-I and items of List-II and select the correct code for the answer.
List – I List – II
(a) Utilitarian Approach (i) Marginal Rate of Substitution
(b) Ordinal Approach (ii) Budget line & Indifference Curve
(c) Price- Consumption Curve (iii) U=f (x, y)
(d) Consumer Equilibrium (iv) MRSxy = MRSyx
Codes:
(a) (b) (c) (d)
(A) (i) (iv) (iii) (ii)
(B) (ii) (iii) (iv) (i)
(C) (iii) (i) (ii) (iv)
(D) (iv) (ii) (i) (iii)
Ans: C
20. The Learner Index measures
(A) Market power
(B) Price
(C) Price-Marginal cost
(D) None of the above
Ans: A
21. Match the items of List-I and items of List-II and select the correct answer.
List – I List – II
(a) Perfect competition (i) Different prices for the same product
(b) Monopolistic competition (ii) Dominant strategy
(c) Oligopoly (iii) Product differentiation
(d) Discriminating Monopoly (iv) Identical product
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iv) (i) (iii)
(D) (iii) (i) (iv) (ii)
Ans: A
22. If there are 8 possible classes under consideration for goodness of-fit, the number of degrees of freedom will be
(A) 8
(B) 7
(C) 6
(D) Cannot be determined from the given information.
Ans: D
23. Identify from the following, the test statistic for which the value of numerator should always be greater than that of denominator.
(A) ‘Chi-square’
(B) ‘F’ value
(C) ‘Z’ value
(D) ‘t’ value
Ans: B
24. Which of the following tests can be applied to ordinal scale data?
(i) Chi-square test
(ii) ‘Z’ test
(iii) Kruskal-Wallis test
(iv) Wilcoxon Mann-Whitney test
Codes:
(A) (i), (ii) and (iii)
(B) (ii), (iv) and (iii)
(C) (i), (iii) and (iv)
(D) (i), (ii) and (iv)
Ans: C
25. Which of the following tests can be based on the normal distribution?
(A) Difference between independent means
(B) Difference between dependant means
(C) Difference between proportions
(D) All of the above
Ans: D
26. From the following, identify one situation where ‘F’ test cannot be used?
(A) To compare more than two populations means.
(B) To test the hypothesis about a single population variance.
(C) To test the hypothesis about two-population variance.
(D) To study about randomized block design.
Ans: B
27. Which statistical test should be applied to test the effectiveness of ‘special coaching’ on the marks scored by the students?
(A) Paired‘t’ test
(B) ‘Chi-square’ test
(C) ‘Z’ test
(D) ‘F’ test
Ans: A
28. In a linear equation, y = a + bx, ‘a’ refers to
(A) Slope
(B) Y-intercept
(C) Dependant variable
(D) Independent variable
Ans: B
29. Which among the following is the most popular approach for accomplishing the results?
(A) Management by exception
(B) Reward system
(C) Management by objectives
(D) Mentor system
Ans: C
30. The managerial function of organizing involves
(A) Reviewing and adjusting plan in the light of changing conditions.
(B) Establishing programme for the accomplishment of objectives.
(C) Creating structure of functions and duties to be performed.
(D) Getting things done through others.
Ans: C
31. A leader who identifies what subordinates need to do to achieve objectives, clarify organizational roles and tasks, set up an organization structure, reward performance and provide for the social needs of their followers, is
(A) A transformational leader
(B) A participative leader
(C) A transactional leader
(D) An autocratic leader
Ans: C
32. Which of the following is not an assumption of theory X?
(A) An average human being has an inherent dislike of work and will avoid it if he can.
(B) An average human being prefers to be directed, seeks to avoid responsibility, has relatively little ambition, and wants security above all.
(C) An average human being learns under proper conditions, not only to accept responsibility but also to seek it.
(D) Most people must be coerced, controlled, directed and threatened with punishment to get them put forth adequate effort.
Ans: C
33. If a network of interpersonal relationship that arise when people associate with each other is an informal organization, then find out which of the following is not an informal organization?
(A) The “machine shop” group
(B) Customers’ group
(C) The “sixth floor” group
(D) The “Friday evening bowling” gang
Ans: B
34. Which of the following are sources of ethics?
(i) Religion
(ii) Legal system
(iii) Economic system
(iv) Culture
(v) Family system
Select the correct answer from the codes given below:
(A) (i), (ii), (iii), (v)
(B) (i), (ii), (iv)
(C) (i), (iv), (v)
(D) (i), (ii), (iii), (iv), (v)
Ans: C
35. Which of the following has refined Maslow’s theory of motivation by proposing a hierarchy of three needs?
(A) MeClelland
(B) Aldorfer
(C) Herzburg
(D) Vroom
Ans: B
36. Which segmentation approach is the most compatible with the spirit of the marketing concept?
(A) Benefit sought
(B) Income
(C) Social class
(D) Family size
Ans: A
37. The description of a product’s quality, features, style, brand name and packaging identifiers the
(A) Actual product
(B) Augmented product
(C) Core product
(D) Tangible product
Ans: A
38. Consider the following statements and find out the correct alternative from the codes given below:
(i) A firm’s marketing information system is a component of its marketing research system.
(ii) The most common forms of marketing researches conducted in most of the firms are the measurement of market potential and the analysis of market share.
(iii) Survey research is seldom used for studying consumer perception and attitudes.
(iv) The concept of cognitive dissonance is relevant to study consumer’s post-purchase behaviour.
Codes:
(A) All the statements are true.
(B) All the statements are false.
(C) (i) is false and the rest are true.
(D) (ii) and (iv) are true and the rest are false.
Ans: D
39. In India, which pricing practice is not permissible?
(A) Penetrating pricing
(B) Skimming pricing
(C) Predatory pricing
(D) None of the above
Ans: C
40. Consider the following statements and find out the correct alternative from the codes given below:
(i) A good salesman is one who can sell refrigerator to an Eskimo.
(ii) Salesmen are born, not made.
(iii) Physical distribution is an area where high cost-savings is possible.
Codes:
(A) (i) and (iii) are correct.
(B) (i) and (ii) are correct.
(C) (ii) and (iii) are correct.
(D) All are correct.
Ans: A
41. Which form of retail outlet has the highest operating costs?
(A) Super market
(B) Consumer co-operative store
(C) Department store
(D) Retail chain store
Ans: C
42. Consider the following statements and indicate the correct alternative from the codes given below:
(i) The product management system often turns out to be costly.
(ii) When customers belong to different user groups with distinct buying preferences and practices, a market management organization is not suitable.
(iii) Advertising department has the closest interface with the finance department of the company.
Codes:
(A) (i) and (ii) are correct.
(B) (ii) and (iii) are correct.
(C) Only (i) is correct.
(D) All are correct.
Ans: C
43. Match the statements in List-I with dividend models in List-II as follows:
List – I List – II
I Dividend Capitalisation Approach. 1. Traditional Model
II Dividend Policy has a bearing on the share valuation. 2. Gardon Model
III Stock Market places more weight on dividends than on retain earnings. 3. Walter Model
IV Dividend pay-out is irrelevant to the value of the firm. 4. Modigliani and Miller Model
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 4 3
(C) 4 1 3 2
(D) 3 4 2 1
Ans: A
44. Venture capital financing at starting stage is generally not done through
(A) Debt instruments
(B) Deep discount bonds
(C) Equity shares
(D) Conditional loans
Ans: B
45. Match the statements in List-I with the types of lease in the List-II as follows:
List – I List – II
I Lessor transfer all risks and rewards of an asset to the lessee. 1. Indirect lease
II Lessor transfers the assets to the lessee but bears the cost of maintenance 2. Operating lease
III The owner of the asset sells it to the lessor who in turn leases it back to the owner (now lessee) 3. Finance lease
IV Lessor owns/ acquires the assets that are leased to a given lessee. 4. Direct lease
Codes:
I II III IV
(A) 2 3 4 1
(B) 1 4 2 3
(C) 3 2 1 4
(D) 4 1 3 2
Ans: C
46. Full details for the issue of ADRs by a company must be furnished within 30 days from the date of its closure to
(A) Securities and Exchange Commission (SEC)
(B) Reserve Bank of India (RBI)
(C) Securities and Exchange Board of India (SEBI)
(D) Company Law Board (CLB)
Ans: B
47. The degree to which the returns of the two securities change together, is reflected by
(A) Correlation
(B) Leverage
(C) Covariance
(D) Beta
Ans: C
48. The transfer by a company of one or more of its business divisions to another newly set up company is called
(A) Demerger
(B) Merger
(C) Equity Carve-out
(D) Disinvestment
Ans: A
49. What combination of the following factors influences the working capital requirement?
I Market Conditions
II Production Policy
III Firm’s goodwill
IV Supply conditions
Codes:
(A) I, II and III
(B) II, III and IV
(C) I, III and IV
(D) I, II and IV
Ans: D
50. Which of the followings are the modern methods of performance appraisal?
(i). 360 degree performance appraisal.
(ii). Graphic rating scale.
(iii). Management by Objectives (MBO).
(iv). Forced distribution method.
(v). Behaviourally Anchored Rating Scales (BARS).
Select the correct answer from the codes given below:
(A) (i), (ii), (iii)
(B) (ii), (iv), (v)
(C) (i), (iii), (v)
(D) (iv), (ii), (i)
Ans: C
51. The opportunity cost approach in Human Resources Accounting was introduced by
(A) Hckimian and Jones
(B) Rensis Likert
(C) Eric. G. Flamholtz
(D) William C. Pyle
Ans: A
52. The GDRs and ADRs can be listed on
(A) Luxemburg Stock Exchange (LSE)
(B) New York Stock Exchange (NYSE)
(C) Over the Counter Exchange of India (OTCEI)
(D) Any of the Overseas Stock Exchanges
Ans: D
53. Match the following:
List – I List – II
(Name of the credit rating agency) (Ownership)
(a) CRISIL 1. IFCI
(b) ICRA 2. ICICI
(c) CARE 3. Duff & Phelps Corpn.
(d) Duff and Phelps Credit Rating of India Ltd. 4. IDBI
Codes:
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 1 2 4 3
(D) 2 4 1 3
Ans: D
54. Which of the following is responsible for investigating cases referred to it and deciding whether a proposed merger is in the ‘public interest’?
(A) Director General of Fair Trading (DGFT).
(B) Secretary of State for Trade and Industry.
(C) Competition Commission of India (CCI).
(D) Prime Minister Office.
Ans: C
55. Match the following:
List – I List – II
(a) A popular windows accounting package providing general ledger, accounts receivables, invoicing, accounts payable, inventory and sales analysis capabilities. 1. Sage Accounting Software
(b) A good, entry level accounting package. 2. M.Y.O.B.
(c) Simplest, yet most powerful software to handle financial accounting, inventory, sales and purchase orders, invoicing and more. 3. Best Books
(d) A complete range of accounting software providing an integrated solution at the heart of one’s business. 4. Tally
Codes:
a b c d
(A) 4 3 2 1
(B) 1 2 4 3
(C) 2 4 1 3
(D) 2 3 4 1
Ans: D
56. In order to be useful, market segments must have each of the following characteristics except:
(A) Accessibility
(B) Adaptability
(C) Measurability
(D) Substantiality
Ans: A
57. Mass media has the maximum impact at which stage of consumer adoption process.
(A) Adoption
(B) Awareness
(C) Evaluation
(D) Trial
Ans: B
58. Pricing decisions are most complex at which stage of the product life cycle?
(A) Decline stage
(B) Introductory stage
(C) Growth stage
(D) Maturity stage
Ans: D
59. Industrial buyers are likely to be most responsive to ______ appeal.
(A) Emotional
(B) Moral
(C) Rational
(D) Cognitive
Ans: C
60. Indicate the true statement:
(A) Advertisement’s sales effect is easier to measure than its communication effect.
(B) As a tool of promotion, public relations can be more cost-effective than advertising.
(C) A successful salesperson is one who can sell refrigerator to an Eskimo.
(D) All the above are true.
Ans: B
61. Who observed in 54 of the cases studied that high morale related to high productivity in 11 of the cases high morale was associated with low productivity and in 35% of the cases there was no relationship between morale and productivity?
(A) Michael J. Jucious
(B) Richard E Walton
(C) Frederick Herzberg
(D) None of the above
Ans: C
62. Who developed the goal-setting theory of motivation?
(A) Frederick Herzberg
(B) Edwin Locke
(C) Richard Hackman
(D) None of the above
Ans: B
63. Which of the following concepts, involves setting objectives and comparing performance against those objectives?
(A) Performance Appraisal
(B) Merit Rating
(C) Management by Objectives
(D) Formulation of objectives and policies
Ans: C
64. The career development cycle includes:
(A) Introductory stage → Growth stage → Saturation stage → Decline stage.
(B) Primary stage → Secondary stage → Stage of self-actualisation.
(C) Pioneering stage → Growth stage → Maturity stage → Decline stage.
(D) Exploratory stage → Establishment stage → Maintenance stage → Stage of Decline.
Ans: D
65. It is a mental condition or attitudes of individuals and groups which determine their willingness to cooperate.
(A) Job satisfaction
(B) Motivation
(C) Job Advancement
(D) Morale
Ans: D
66. Which of the following most appropriately describes the meaning of the term ‘option forward’?
(A) Forward contract entered into along with buying a call option.
(B) Forward contract entered into for buying or selling at a future date.
(C) Forward contract entered into for buying or selling over a period of time.
(D) Forward contract entered into with writing a put option.
Ans: C
67. ‘Dual adaptation strategy’, in the context of international product decisions, means:
(A) Modification of product and packaging it to meet local requirements.
(B) Changing product and price to meet local requirements.
(C) Modification of product and the marketing communication to suit the foreign markets.
(D) None of the above.
Ans: C
68. The main promoter of international trade liberalisation
(A) GATT - WTO
(B) NAFTA
(C) CEPTA
(D) CISA
Ans: A
69. The most common trade barrier faced by a multinational company is the
(A) Embargo
(B) Quota
(C) Sales tax
(D) Tariff
Ans: D
70. Exchange Rate System where the Central Bank intervenes to smoothen out the exchange rate fluctuations is termed as
(A) Free float
(B) Clean float
(C) Managed float
(D) Fixed rate system
Ans: C
71. Mr. X, after about 20 years’ stay in India, returns to America on January 29, 2009. He came to India in June 2011. His residential status for the Assessment year 2012-13 will be
(A) Ordinarily Resident
(B) Not Ordinarily Resident
(C) Non-Resident
(D) Resident or Non-Resident
Ans: A
72. Mr. X retired from a Pvt. Ltd. Company on 31-3-2011. The company paid Rs. 80,000 in lieu of commutation of 25 percent of pension on 31-01-2012, but does not pay any gratuity to its employees. The amount taxable as commuted pension for the Assessment Year 2012-13 is:
(A) Rs. 80,000
(B) Rs. 3,20,000
(C) Rs. 1,60,000
(D) Nil
Ans: D
73. Consider the following: The book profit of a firm of Chartered Accountants, which satisfies all the conditions of Section 184 and Section 40(b), for the year ended 31-3-2012, is Rs. 72,190.
The actual remuneration paid to the partners for the year is Rs. 1,56,000. The amount of remuneration permissible under Sec: 40(b) is:
(A) Rs. 1,56,000
(B) Rs. 72,190
(C) Rs. 64,971
(D) Rs. 1,50,000
Ans: D
74. ‘Winman’, software can be used for
(A) Preparation of Balance Sheet
(B) Computation of Income Tax
(C) Filing of e-Returns
(D) All of the above
Ans: D
75. Which of the following deductions under Chapter VI A of Income Tax Act, 1961, cannot be claimed by a partnership firm?
(i) Sec. 80-G
(ii) Sec. 80-C
(iii) Sec. 80-D
(iv) Sec. 80-IB
Codes:
(A) (ii), (iii) and (iv)
(B) (i) and (iii)
(C) (i), (ii) and (iii)
(D) (ii) and (iii)
Ans: D
76. GDP at factor cost is
(A) P (Q) + P (S)
(B) GDP- IT- S
(C) GDP + DT +S
(D) GDP- DT + S
Ans: B
77. Which one is not the main objective of fiscal policy of India?
(A) To increase liquidity in the economy.
(B) To promote price stability
(C) To minimize the inequalities of income and wealth
(D) To promote employment opportunities.
Ans: A
78. Which one is not an element of internal environment?
(A) Marketing capability
(B) Operational capability
(C) Money and Capital market
(D) Personnel capability
Ans: C
79. Out of the following, which four benefits are available to hosts countries from MNC’s?
i. Transfer of technology
ii. Learning of business mannerism
iii. Strategic information sharing
iv. Creation of jobs
v. Entertainment
vi. Better utilisation of resources
vii. Enhancing social contacts.
viii. Improved competition in local economy
(A) i, iii, v, vii
(B) ii, iv, vi, viii
(C) i, iv, vi, viii
(D) iii, vi, vii, viii
Ans: C
80. Environmental degradation does not consist of
(A) Land degradation and soil erosion
(B) Problem of overgrazing and ecological degradation
(C) Floods
(D) None of the above
Ans: D
81. Which one of the following concepts is used as fund in the preparation of Funds Flow Statement?
(A) Current Assets
(B) Working Capital
(C) Cash
(D) All Financial Resources
Ans: D
82. Window dressing is prohibited due to
(A) Conservation Convention
(B) Convention of Disclosure
(C) Convention of Materiality
(D) Arrear of book accounts
Ans: B
83. Assertion (A): Ratio analysis is one the tools employed to know the financial health of a concern.
Reason (R): Ratio analysis is not the only technique available to take investment decision.
Codes:
(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 incorrect explanation of (A).
(C) (A) is true, but (R) is false
(D) (A) is false, but (R) is true.
Ans: A
84. Which of the following relate to measures of non-financial performance of a concern?
i. Customer satisfaction
ii. Business process improvement
iii. Learning organisation
Choose the right combination.
(A) i, iii, ii, iv
(B) ii, iv, iii
(C) iv, i, iii
(D) i, ii, iv
Ans: D
85. Consider the following parties:
i. Secured creditors
ii. Unsecured creditors
iii. Partners who have granted loans
iv. Partners who have contributed over and above profit sharing ratio
Arrange them in correct sequence in the event of the dissolution of a firm.
(A) ii, i, iii, iv
(B) i, ii, iii, iv
(C) i, ii, iv, iii
(D) ii, i, iv, iii
Ans: B
86. Which kind of economics explains the phenomenon of cause and effect relationship?
(A) Normative
(B) Positive
(C) Micro
(D) Macro
Ans: B
87. Assertion (A): Marginal cost and differential cost do not convey the same meaning in all the circumstances.
Reason (R): Differential cost increases or decreases due to change in fixed cost.
Codes:
(A) (A) is true but (R) is false
(B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
Ans: C
88. Consider the following:
i. Pricing objectives
ii. Pricing methods
iii. Pricing strategies
iv. Pricing decisions
Arrange them in correct sequences:
(A) i, iii, ii, iv
(B) i, iv, iii, ii
(C) ii, i, iv, iii
(D) iv, ii, iii, i
Ans: B
89. A commodity is used for multiple purposes, and then the demand for it is known as
(A) Joint Demand
(B) Composite Demand
(C) Direct Demand
(D) Autonomous Demand
Ans: B
90. Match List-I with List-II and select the correct answer.
List-I List-II
1. Administered price a. Landed cost of imports
2. Parity pricing b. Liberalized economy
3. Competitive price c. Public enterprises
4. Discriminating price d. Fixed by Government
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 2 1
(D) 4 2 1 3
Ans: B
91. Sample design involves the following:
i. Sampling unit
ii. Size of samples
iii. Type of universe
iv. Sampling procedure
Which one of the following sequences is correct?
(A) i, ii, iii, iv, v
(B) iii, iv, i, ii, iv
(C) iii, i, iv, ii, v
(D) iii, v, i, iv, ii
Ans: C
92. Which one of the following is not a measure of dispersion?
(A) Quartile
(B) Range
(C) Mean Deviation
(D) Standard Deviation
Ans: A
93. If bxy = 0.25 and byx = 0.64, correlation coefficient is
(A) 0.16
(B) 0.40
(C) 0.89
(D) 0.30
Ans: B
94. Struge’s rule is used to find out directly
(A) Number of classes in a continuous distribution
(B) Size of class limits
(C) Direction of the classification
(D) None of the above
Ans: A
95. Which of the following software has application in both Mathematics and Statistics?
(A) SPSS
(B) SAS
(C) R
(D) None of the above
Ans: D
96. Match the following:
a. The Practise of Management 1. Henry Fayol
b. Philosophy of Management 2. F.W. Taylor
c. Scientific Management 3. Oliver Sheldon
d. General and Industrial Administration 4. Peter F. Drucker
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 3 1 2
(D) 3 4 2 1
Ans: B
97. Assertion (A): All decisions taken through mental process are rational.
Reason (R): Decision making is a mental process.
(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
98. Who among the following developed the technique of Management by Exception?
(A) Joseph L. Massie
(B) Lester R. Bittel
(C) L.F. Urwick
(D) Peter F. Drucker
Ans: B
99. Which among the following are parts of job description?
i. duties performed
ii. Job summary
iii. Job identification
iv. Supervision given
v. Delegation of authority
(A) i, ii, iii, and iv
(B) ii, iii, iv and v
(C) i, iii, iv, and v
(D) i, ii, iii and v
Ans: A
100. Appointment of independent Directors is the part of Corporate Governance as per the
(A) SEBI
(B) Indian Companies Act
(C) Government of India
(D) RBI
Ans: A
(A) Hckimian and Jones
(B) Rensis Likert
(C) Eric. G. Flamholtz
(D) William C. Pyle
Ans: A
52. The GDRs and ADRs can be listed on
(A) Luxemburg Stock Exchange (LSE)
(B) New York Stock Exchange (NYSE)
(C) Over the Counter Exchange of India (OTCEI)
(D) Any of the Overseas Stock Exchanges
Ans: D
53. Match the following:
List – I List – II
(Name of the credit rating agency) (Ownership)
(a) CRISIL 1. IFCI
(b) ICRA 2. ICICI
(c) CARE 3. Duff & Phelps Corpn.
(d) Duff and Phelps Credit Rating of India Ltd. 4. IDBI
Codes:
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 1 2 4 3
(D) 2 4 1 3
Ans: D
54. Which of the following is responsible for investigating cases referred to it and deciding whether a proposed merger is in the ‘public interest’?
(A) Director General of Fair Trading (DGFT).
(B) Secretary of State for Trade and Industry.
(C) Competition Commission of India (CCI).
(D) Prime Minister Office.
Ans: C
55. Match the following:
List – I List – II
(a) A popular windows accounting package providing general ledger, accounts receivables, invoicing, accounts payable, inventory and sales analysis capabilities. 1. Sage Accounting Software
(b) A good, entry level accounting package. 2. M.Y.O.B.
(c) Simplest, yet most powerful software to handle financial accounting, inventory, sales and purchase orders, invoicing and more. 3. Best Books
(d) A complete range of accounting software providing an integrated solution at the heart of one’s business. 4. Tally
Codes:
a b c d
(A) 4 3 2 1
(B) 1 2 4 3
(C) 2 4 1 3
(D) 2 3 4 1
Ans: D
56. In order to be useful, market segments must have each of the following characteristics except:
(A) Accessibility
(B) Adaptability
(C) Measurability
(D) Substantiality
Ans: A
57. Mass media has the maximum impact at which stage of consumer adoption process.
(A) Adoption
(B) Awareness
(C) Evaluation
(D) Trial
Ans: B
58. Pricing decisions are most complex at which stage of the product life cycle?
(A) Decline stage
(B) Introductory stage
(C) Growth stage
(D) Maturity stage
Ans: D
59. Industrial buyers are likely to be most responsive to ______ appeal.
(A) Emotional
(B) Moral
(C) Rational
(D) Cognitive
Ans: C
60. Indicate the true statement:
(A) Advertisement’s sales effect is easier to measure than its communication effect.
(B) As a tool of promotion, public relations can be more cost-effective than advertising.
(C) A successful salesperson is one who can sell refrigerator to an Eskimo.
(D) All the above are true.
Ans: B
61. Who observed in 54 of the cases studied that high morale related to high productivity in 11 of the cases high morale was associated with low productivity and in 35% of the cases there was no relationship between morale and productivity?
(A) Michael J. Jucious
(B) Richard E Walton
(C) Frederick Herzberg
(D) None of the above
Ans: C
62. Who developed the goal-setting theory of motivation?
(A) Frederick Herzberg
(B) Edwin Locke
(C) Richard Hackman
(D) None of the above
Ans: B
63. Which of the following concepts, involves setting objectives and comparing performance against those objectives?
(A) Performance Appraisal
(B) Merit Rating
(C) Management by Objectives
(D) Formulation of objectives and policies
Ans: C
64. The career development cycle includes:
(A) Introductory stage → Growth stage → Saturation stage → Decline stage.
(B) Primary stage → Secondary stage → Stage of self-actualisation.
(C) Pioneering stage → Growth stage → Maturity stage → Decline stage.
(D) Exploratory stage → Establishment stage → Maintenance stage → Stage of Decline.
Ans: D
65. It is a mental condition or attitudes of individuals and groups which determine their willingness to cooperate.
(A) Job satisfaction
(B) Motivation
(C) Job Advancement
(D) Morale
Ans: D
66. Which of the following most appropriately describes the meaning of the term ‘option forward’?
(A) Forward contract entered into along with buying a call option.
(B) Forward contract entered into for buying or selling at a future date.
(C) Forward contract entered into for buying or selling over a period of time.
(D) Forward contract entered into with writing a put option.
Ans: C
67. ‘Dual adaptation strategy’, in the context of international product decisions, means:
(A) Modification of product and packaging it to meet local requirements.
(B) Changing product and price to meet local requirements.
(C) Modification of product and the marketing communication to suit the foreign markets.
(D) None of the above.
Ans: C
68. The main promoter of international trade liberalisation
(A) GATT - WTO
(B) NAFTA
(C) CEPTA
(D) CISA
Ans: A
69. The most common trade barrier faced by a multinational company is the
(A) Embargo
(B) Quota
(C) Sales tax
(D) Tariff
Ans: D
70. Exchange Rate System where the Central Bank intervenes to smoothen out the exchange rate fluctuations is termed as
(A) Free float
(B) Clean float
(C) Managed float
(D) Fixed rate system
Ans: C
71. Mr. X, after about 20 years’ stay in India, returns to America on January 29, 2009. He came to India in June 2011. His residential status for the Assessment year 2012-13 will be
(A) Ordinarily Resident
(B) Not Ordinarily Resident
(C) Non-Resident
(D) Resident or Non-Resident
Ans: A
72. Mr. X retired from a Pvt. Ltd. Company on 31-3-2011. The company paid Rs. 80,000 in lieu of commutation of 25 percent of pension on 31-01-2012, but does not pay any gratuity to its employees. The amount taxable as commuted pension for the Assessment Year 2012-13 is:
(A) Rs. 80,000
(B) Rs. 3,20,000
(C) Rs. 1,60,000
(D) Nil
Ans: D
73. Consider the following: The book profit of a firm of Chartered Accountants, which satisfies all the conditions of Section 184 and Section 40(b), for the year ended 31-3-2012, is Rs. 72,190.
The actual remuneration paid to the partners for the year is Rs. 1,56,000. The amount of remuneration permissible under Sec: 40(b) is:
(A) Rs. 1,56,000
(B) Rs. 72,190
(C) Rs. 64,971
(D) Rs. 1,50,000
Ans: D
74. ‘Winman’, software can be used for
(A) Preparation of Balance Sheet
(B) Computation of Income Tax
(C) Filing of e-Returns
(D) All of the above
Ans: D
75. Which of the following deductions under Chapter VI A of Income Tax Act, 1961, cannot be claimed by a partnership firm?
(i) Sec. 80-G
(ii) Sec. 80-C
(iii) Sec. 80-D
(iv) Sec. 80-IB
Codes:
(A) (ii), (iii) and (iv)
(B) (i) and (iii)
(C) (i), (ii) and (iii)
(D) (ii) and (iii)
Ans: D
76. GDP at factor cost is
(A) P (Q) + P (S)
(B) GDP- IT- S
(C) GDP + DT +S
(D) GDP- DT + S
Ans: B
77. Which one is not the main objective of fiscal policy of India?
(A) To increase liquidity in the economy.
(B) To promote price stability
(C) To minimize the inequalities of income and wealth
(D) To promote employment opportunities.
Ans: A
78. Which one is not an element of internal environment?
(A) Marketing capability
(B) Operational capability
(C) Money and Capital market
(D) Personnel capability
Ans: C
79. Out of the following, which four benefits are available to hosts countries from MNC’s?
i. Transfer of technology
ii. Learning of business mannerism
iii. Strategic information sharing
iv. Creation of jobs
v. Entertainment
vi. Better utilisation of resources
vii. Enhancing social contacts.
viii. Improved competition in local economy
(A) i, iii, v, vii
(B) ii, iv, vi, viii
(C) i, iv, vi, viii
(D) iii, vi, vii, viii
Ans: C
80. Environmental degradation does not consist of
(A) Land degradation and soil erosion
(B) Problem of overgrazing and ecological degradation
(C) Floods
(D) None of the above
Ans: D
81. Which one of the following concepts is used as fund in the preparation of Funds Flow Statement?
(A) Current Assets
(B) Working Capital
(C) Cash
(D) All Financial Resources
Ans: D
82. Window dressing is prohibited due to
(A) Conservation Convention
(B) Convention of Disclosure
(C) Convention of Materiality
(D) Arrear of book accounts
Ans: B
83. Assertion (A): Ratio analysis is one the tools employed to know the financial health of a concern.
Reason (R): Ratio analysis is not the only technique available to take investment decision.
Codes:
(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 incorrect explanation of (A).
(C) (A) is true, but (R) is false
(D) (A) is false, but (R) is true.
Ans: A
84. Which of the following relate to measures of non-financial performance of a concern?
i. Customer satisfaction
ii. Business process improvement
iii. Learning organisation
Choose the right combination.
(A) i, iii, ii, iv
(B) ii, iv, iii
(C) iv, i, iii
(D) i, ii, iv
Ans: D
85. Consider the following parties:
i. Secured creditors
ii. Unsecured creditors
iii. Partners who have granted loans
iv. Partners who have contributed over and above profit sharing ratio
Arrange them in correct sequence in the event of the dissolution of a firm.
(A) ii, i, iii, iv
(B) i, ii, iii, iv
(C) i, ii, iv, iii
(D) ii, i, iv, iii
Ans: B
86. Which kind of economics explains the phenomenon of cause and effect relationship?
(A) Normative
(B) Positive
(C) Micro
(D) Macro
Ans: B
87. Assertion (A): Marginal cost and differential cost do not convey the same meaning in all the circumstances.
Reason (R): Differential cost increases or decreases due to change in fixed cost.
Codes:
(A) (A) is true but (R) is false
(B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is correct explanation of (A).
(D) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
Ans: C
88. Consider the following:
i. Pricing objectives
ii. Pricing methods
iii. Pricing strategies
iv. Pricing decisions
Arrange them in correct sequences:
(A) i, iii, ii, iv
(B) i, iv, iii, ii
(C) ii, i, iv, iii
(D) iv, ii, iii, i
Ans: B
89. A commodity is used for multiple purposes, and then the demand for it is known as
(A) Joint Demand
(B) Composite Demand
(C) Direct Demand
(D) Autonomous Demand
Ans: B
90. Match List-I with List-II and select the correct answer.
List-I List-II
1. Administered price a. Landed cost of imports
2. Parity pricing b. Liberalized economy
3. Competitive price c. Public enterprises
4. Discriminating price d. Fixed by Government
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 2 1
(D) 4 2 1 3
Ans: B
91. Sample design involves the following:
i. Sampling unit
ii. Size of samples
iii. Type of universe
iv. Sampling procedure
Which one of the following sequences is correct?
(A) i, ii, iii, iv, v
(B) iii, iv, i, ii, iv
(C) iii, i, iv, ii, v
(D) iii, v, i, iv, ii
Ans: C
92. Which one of the following is not a measure of dispersion?
(A) Quartile
(B) Range
(C) Mean Deviation
(D) Standard Deviation
Ans: A
93. If bxy = 0.25 and byx = 0.64, correlation coefficient is
(A) 0.16
(B) 0.40
(C) 0.89
(D) 0.30
Ans: B
94. Struge’s rule is used to find out directly
(A) Number of classes in a continuous distribution
(B) Size of class limits
(C) Direction of the classification
(D) None of the above
Ans: A
95. Which of the following software has application in both Mathematics and Statistics?
(A) SPSS
(B) SAS
(C) R
(D) None of the above
Ans: D
96. Match the following:
a. The Practise of Management 1. Henry Fayol
b. Philosophy of Management 2. F.W. Taylor
c. Scientific Management 3. Oliver Sheldon
d. General and Industrial Administration 4. Peter F. Drucker
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 3 1 2
(D) 3 4 2 1
Ans: B
97. Assertion (A): All decisions taken through mental process are rational.
Reason (R): Decision making is a mental process.
(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
98. Who among the following developed the technique of Management by Exception?
(A) Joseph L. Massie
(B) Lester R. Bittel
(C) L.F. Urwick
(D) Peter F. Drucker
Ans: B
99. Which among the following are parts of job description?
i. duties performed
ii. Job summary
iii. Job identification
iv. Supervision given
v. Delegation of authority
(A) i, ii, iii, and iv
(B) ii, iii, iv and v
(C) i, iii, iv, and v
(D) i, ii, iii and v
Ans: A
100. Appointment of independent Directors is the part of Corporate Governance as per the
(A) SEBI
(B) Indian Companies Act
(C) Government of India
(D) RBI
Ans: A