COMMERCE PAGE 5
Commerce Page 5- MCQs
1. If Opening Stock is Rs. 10,000, Net Purchases Rs. 70,000, Wages Rs. 2,500, Carriage inward Rs. 500 and closing Stock Rs. 15,000, what is the Manufacturing Cost?
(A) Rs. 65,000
(B) Rs. 83,000
(C) Rs. 68,000
(D) Rs. 73,000
Ans: C
2. What does a high payout ratio indicate?
(A) A High Earning Per Share (EPS)
(B) The management is not ploughing back enough profit.
(C) The management is ploughing back profit.
(D) The company is earning high profit.
Ans: B
3. Which one of the following statements is true?
(A) Capital expenditure does not affect the profitability of a concern but revenue expenditure does.
(B) Capital expenditure affects the profitability of a concern directly but revenue expenditure does not.
(C) Capital expenditure affects the profitability of a concern indirectly but revenue expenditure affects directly.
(D) Both capital expenditure and revenue expenditure affect the profitability of a concern directly.
Ans: C
4. Identify the true statement of the following:
(i) Balance Sheet is always prepared from the point of view of the business but not from that of the owners.
(ii) The financial relationship of the business to its owners is shown in the Balance Sheet.
(iii) Balance Sheet is always related to a period of time.
Codes:
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (i) and (iii)
(D) (i), (ii) and (iii)
Ans: A
5. X and Y are partners in a firm sharing profits in the ratios of 2: 1. Z is admitted with a 1/3 profit sharing. What will be the new profit sharing ratio of X, Y and Z?
(A) 3: 3: 3
(B) 4: 3: 2
(C) 4: 2: 3
(D) 2: 3: 4
Ans: C
6. Which one of the following will not affect the working capital?
(A) Realization of cash from debtors.
(B) Sale of plant and machinery in cash.
(C) Issue of equity shares.
(D) Redemption of debentures.
Ans: A
7. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R): Capital profit cannot be used for distribution as dividend to the shareholders.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is\ correct.
(D) Both (A) and (R) are wrong.
Ans: B
8. Reconstruction of a company takes place when
(i) The company is undercapitalized
(ii) Company has incurred heavy losses which must be written off
(iii) The company is overcapitalized
Which one of the following is correct?
(A) (i) and (ii) only
(B) (i) and (iii) only
(C) (ii) and (iii) only
(D) All the above
Ans: C
9. Match the items of List – I with the items of List – II and select the correct answer using the codes given below the lists:
List – I List – II
(a) Leverage Ratio (i) Short-term solvency
(b) Liquidity Ratio (ii) Earning capacity
(c) Turnover Ratio (iii) Relationship between debt and equity
(d) Profitability Ratio (iv) Efficiency of Asset Management
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (iii) (ii) (i) (iv)
(C) (iv) (iii) (i) (ii)
(D) (iii) (i) (iv) (ii)
Ans: D
10. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Sinking fund is a charge against Profit and Loss Account.
Reason (R): Sinking fund is created for repayment of a long term liability.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
Ans: B
11. Match List – I with List – II and select the correct answer using the codes given below the lists:
List – I List – II
(a) Goodwill of a company (i) Current liability
(b) Overdraft (ii) Fixed Assets
(c) Preliminary Expenses (iii) Reserves and Surplus
(d) Premium on Issue of Shares (iv) Fictitious Assets
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (i) (ii) (iv) (iii)
(C) (i) (ii) (iii) (iv)
(D) (ii) (i) (iii) (iv)
Ans: A
12. In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard – 3)?
(A) Balance Sheet of a Company
(B) Funds Flow Statement
(C) Cash Flow Statement
(D) Consolidated Financial Statement
Ans: C
13. What is the correct sequence of the following actions required for the preparation of financial accounts?
(i) Trading accounts
(ii) Making adjusting entries
(iii) Balance Sheet
(iv) Profit and Loss Account
Select the correct answer from the codes given below:
Codes:
(A) (iv), (ii), (i), (iii)
(B) (ii), (iv), (iii), (i)
(C) (ii), (i), (iv), (iii)
(D) (iv), (ii), (iii), (i)
Ans: C
14. The main effect of inflation on the financial statement is
(A) Profits are understated
(B) Overstatement of Assets
(C) Adequacy of funds for replacement of assets
(D) Erosion of capital
Ans: D
15. Present value of future earnings is a model of Human Resources Accounting suggested by
(A) Brauch Lev & ABA Schwartz
(B) Jaggi & Lau
(C) S.K. Chakraborty
(D) Eric Flamhaltz
Ans: A
16. Which element of the promotion mix do wholesalers generally apply to obtain their promotional objective?
(A) Advertising
(B) Personal Selling
(C) Trade Promotion
(D) Direct Marketing
Ans: C
17. Who has given ‘fourteen Principles of Management’?
(A) Barnard
(B) Henry Fayol
(C) F.W. Taylor
(D) Flemming
Ans: B
18. What is M.B.O?
(A) Management by Objective
(B) Multiple Business Organization
(C) Management by Organization
(D) Multiplicity of Business Operations
Ans: A
19. Match items in List – II with items in List – I:
List – I List – II
I. Mega Marketing 1. Advertising
II. PenetrationPrice 2. Kotler
III. Promotion Mix 3. Low price
IV. Customer Satisfaction 4. Post Purchase Behaviour
Codes:
1 2 3 4
(A) I II III IV
(B) III I II IV
(C) IV III II I
(D) III IV I II
Ans: B
20. Statement (A): Sales promotion has a strong impact on consumer behaviour in rural India.
Reason (R): Rural people in India give utmost significance to sales promotion schemes.
Codes:
(A) Statement (A) is correct but Reason (R) is incorrect.
(B) Statement (A) is incorrect, but Reason (R) is correct.
(C) Both Statement (A) and Reason (R) are correct.
(D) Both Statement (A) and Reason (R) are incorrect.
Ans: A
21. Market sub-divided on the basis of behavioural characteristics is called
(A) Segmentation
(B) Aggregation
(C) Precision
(D) None of the above
Ans: A
22. What is mass marketing?
(A) Offering the same products and marketing mix to all consumers.
(B) Offering variety of products to the entire market.
(C) Offering differentiated products to all customers.
(D) Following concentrated marketing strategy.
Ans: A
23. Which concept of marketing is based on the assumption that superior products sell themselves?
(A) Production
(B) Marketing
(C) Societal
(D) Product
Ans: D
24. In broader sense, marketing communication includes
(A) Product
(B) Price
(C) Place
(D) All
Ans: D
25. Physical distribution provides
(A) Place utility
(B) Time utility
(C) Place and Time utility
(D) Form utility
Ans: C
26. What is relevant to place variable of marketing mix?
(A) Branding
(B) Price penetration
(C) Sales personnel motivation
(D) None
Ans: C
27. Find incorrect statement:
(A) Marketers arouse emotional motives
(B) Marketers satisfy rational motives
(C) Marketers formulate different sales promotions for different motives
(D) None of the above
Ans: D
28. Non-store marketing includes
(A) Home selling
(B) V.P.P.
(C) Vending Machines
(D) All of the above
Ans: D
29. What is customer delight?
(A) Performance equal to expectation
(B) Performance less than expectation
(C) Performance more than expectation
(D) Expectation more than performance
Ans: A
30. Which terms are often used interchangeably in marketing literature?
(A) Concept, method, philosophy
(B) Concept, approach, technique
(C) Orientation, concept, philosophy
(D) Philosophy, system, concept
Ans: C
31. Which one of the following is not the operative function of HRM?
(A) Development
(B) Controlling
(C) Compensation
(D) Integration
Ans: B
32. Which one of the following is not in sequence of personnel training procedure?
1. Instructor Preparation
2. Present the task
3. Try out performance
4. Training preparation
5. Follow up
(A) 1, 2, 3, 4, 5
(B) 2, 1, 4, 3, 5
(C) 1, 4, 2, 3, 5
(D) 3, 1, 2, 5, 4
Ans: C
33. Under which method of performance appraisal one person is compared with all others for the purpose of placing them in a simple order of work?
(A) Grading
(B) Person to Person comparison
(C) Ranking
(D) None of the above
Ans: C
34. Which one of the following is not the fundamental procedure that should be considered for the collective bargaining?
(A) Prenegotiation phase
(B) Selection of Negotiators
(C) Tactic and Strategy of Bargaining
(D) None of the above
Ans: D
35. Assertion (A): Inevitably the firm must go to the external sources for lower entry jobs.
Reason (R): For positions where required qualification/ experience are not met.
Codes:
(A) Both (A) and (R) are not correct.
(B) (A) is true, but (R) is false.
(C) (R) is true, but (A) is false.
(D) Both (A) and (R) are correct.
Ans: D
36. Match the following items of List – I and List – II:
List – I List – II
1. Asbestos I. Lung Cancer
2. Benzene II. Cancer
3. Ethylene Disbromide III. Leukemia
4. Kerosene IV. Acute Nervous System Depression
Codes:
I II III IV
(A) 4 2 3 1
(B) 4 3 2 1
(C) 1 3 2 4
(D) 3 4 2 1
Ans: C
37. Assertion (A): Business Economics is tool centric facilitating decision making in business.
Reason (R): It provides an analytical understanding of economic activities.
Codes:
(A) Both (A) and (R) are not correct.
(B) Both (A) and (R) are correct.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: B
38. Demand has the following elements:
(A) Quantity
(B) Price
(C) Time
(D) All the above
Ans: D
39. A perfectly competitive firm attains equilibrium when
(A) AC = AR
(B) MR = MC
(C) MC = AC
(D) TC = TR
Ans: B
40. The purpose of job evaluation is
(A) Fixation of Responsibility
(B) Promotion
(C) Wage Determination
(D) Transfer to a better job
Ans: C
41. For testing of hypothesis H0: M1 = M2 and H1: M1 < M2, the critical value of Z at 5% level of significance when size of sample is more than 30 is
(A) 1.96
(B) 2.32
(C) 1.645
(D) 2.5758
Ans: C
42. Which of the following is the nonrandom method of selecting samples from a population?
(A) Stratified Sampling
(B) Quota Sampling
(C) Systematic Sampling
(D) Cluster Sampling
Ans: B
43. If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of correlation is
(A) + 0.16
(B) – 0.40
(C) – 0.16
(D) + 0.40
Ans: D
44. Which one of the following is a relative measure of dispersion?
(A) Standard deviation
(B) Variance
(C) Coefficient of variation
(D) None of the above
Ans: C
45. Assertion (A): Internal factors of business environment are controllable factors.
Reason (R): The Company can alter or modify such factors to suit the environment.
Codes:
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is incorrect.
(C) Both (A) and (R) are incorrect.
(D) (A) is incorrect.
Ans: A
46. The concept of ‘Rolling Plan’ in India was introduced by the
(A) BJP Government
(B) Janta Government
(C) Congress Government
(D) All of the above
Ans: B
47. Which one of the following is an obstacle to globalization?
(A) Wide base
(B) Niche markets
(C) Obsolescence
(D) Competition
Ans: C
48. ‘VSAT’ technology is first followed for on-line trading by
(A) BSE
(B) OTCEI
(C) NSE
(D) ISE
Ans: C
49. Match the following:
List – I List – II
Years Act
(a) 1956 (i) Consumer Protection Act
(b) 1986 (ii) Indian Companies Act
(c) 1992 (iii) Securities and Exchange Board of India
(d) 2002 (iv) Securitization Act
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iii) (i) (iv)
(D) (i) (iv) (iii) (ii)
Ans: A
50. The flagship project of Government of India launched for generating guaranteed employment in rural areas is known as
(A) PMRY
(B) MNREGA
(C) JRY
(D) NREP
Ans: B
(A) Rs. 65,000
(B) Rs. 83,000
(C) Rs. 68,000
(D) Rs. 73,000
Ans: C
2. What does a high payout ratio indicate?
(A) A High Earning Per Share (EPS)
(B) The management is not ploughing back enough profit.
(C) The management is ploughing back profit.
(D) The company is earning high profit.
Ans: B
3. Which one of the following statements is true?
(A) Capital expenditure does not affect the profitability of a concern but revenue expenditure does.
(B) Capital expenditure affects the profitability of a concern directly but revenue expenditure does not.
(C) Capital expenditure affects the profitability of a concern indirectly but revenue expenditure affects directly.
(D) Both capital expenditure and revenue expenditure affect the profitability of a concern directly.
Ans: C
4. Identify the true statement of the following:
(i) Balance Sheet is always prepared from the point of view of the business but not from that of the owners.
(ii) The financial relationship of the business to its owners is shown in the Balance Sheet.
(iii) Balance Sheet is always related to a period of time.
Codes:
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (i) and (iii)
(D) (i), (ii) and (iii)
Ans: A
5. X and Y are partners in a firm sharing profits in the ratios of 2: 1. Z is admitted with a 1/3 profit sharing. What will be the new profit sharing ratio of X, Y and Z?
(A) 3: 3: 3
(B) 4: 3: 2
(C) 4: 2: 3
(D) 2: 3: 4
Ans: C
6. Which one of the following will not affect the working capital?
(A) Realization of cash from debtors.
(B) Sale of plant and machinery in cash.
(C) Issue of equity shares.
(D) Redemption of debentures.
Ans: A
7. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R): Capital profit cannot be used for distribution as dividend to the shareholders.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is\ correct.
(D) Both (A) and (R) are wrong.
Ans: B
8. Reconstruction of a company takes place when
(i) The company is undercapitalized
(ii) Company has incurred heavy losses which must be written off
(iii) The company is overcapitalized
Which one of the following is correct?
(A) (i) and (ii) only
(B) (i) and (iii) only
(C) (ii) and (iii) only
(D) All the above
Ans: C
9. Match the items of List – I with the items of List – II and select the correct answer using the codes given below the lists:
List – I List – II
(a) Leverage Ratio (i) Short-term solvency
(b) Liquidity Ratio (ii) Earning capacity
(c) Turnover Ratio (iii) Relationship between debt and equity
(d) Profitability Ratio (iv) Efficiency of Asset Management
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (iii) (ii) (i) (iv)
(C) (iv) (iii) (i) (ii)
(D) (iii) (i) (iv) (ii)
Ans: D
10. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Sinking fund is a charge against Profit and Loss Account.
Reason (R): Sinking fund is created for repayment of a long term liability.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
Ans: B
11. Match List – I with List – II and select the correct answer using the codes given below the lists:
List – I List – II
(a) Goodwill of a company (i) Current liability
(b) Overdraft (ii) Fixed Assets
(c) Preliminary Expenses (iii) Reserves and Surplus
(d) Premium on Issue of Shares (iv) Fictitious Assets
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (i) (ii) (iv) (iii)
(C) (i) (ii) (iii) (iv)
(D) (ii) (i) (iii) (iv)
Ans: A
12. In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard – 3)?
(A) Balance Sheet of a Company
(B) Funds Flow Statement
(C) Cash Flow Statement
(D) Consolidated Financial Statement
Ans: C
13. What is the correct sequence of the following actions required for the preparation of financial accounts?
(i) Trading accounts
(ii) Making adjusting entries
(iii) Balance Sheet
(iv) Profit and Loss Account
Select the correct answer from the codes given below:
Codes:
(A) (iv), (ii), (i), (iii)
(B) (ii), (iv), (iii), (i)
(C) (ii), (i), (iv), (iii)
(D) (iv), (ii), (iii), (i)
Ans: C
14. The main effect of inflation on the financial statement is
(A) Profits are understated
(B) Overstatement of Assets
(C) Adequacy of funds for replacement of assets
(D) Erosion of capital
Ans: D
15. Present value of future earnings is a model of Human Resources Accounting suggested by
(A) Brauch Lev & ABA Schwartz
(B) Jaggi & Lau
(C) S.K. Chakraborty
(D) Eric Flamhaltz
Ans: A
16. Which element of the promotion mix do wholesalers generally apply to obtain their promotional objective?
(A) Advertising
(B) Personal Selling
(C) Trade Promotion
(D) Direct Marketing
Ans: C
17. Who has given ‘fourteen Principles of Management’?
(A) Barnard
(B) Henry Fayol
(C) F.W. Taylor
(D) Flemming
Ans: B
18. What is M.B.O?
(A) Management by Objective
(B) Multiple Business Organization
(C) Management by Organization
(D) Multiplicity of Business Operations
Ans: A
19. Match items in List – II with items in List – I:
List – I List – II
I. Mega Marketing 1. Advertising
II. PenetrationPrice 2. Kotler
III. Promotion Mix 3. Low price
IV. Customer Satisfaction 4. Post Purchase Behaviour
Codes:
1 2 3 4
(A) I II III IV
(B) III I II IV
(C) IV III II I
(D) III IV I II
Ans: B
20. Statement (A): Sales promotion has a strong impact on consumer behaviour in rural India.
Reason (R): Rural people in India give utmost significance to sales promotion schemes.
Codes:
(A) Statement (A) is correct but Reason (R) is incorrect.
(B) Statement (A) is incorrect, but Reason (R) is correct.
(C) Both Statement (A) and Reason (R) are correct.
(D) Both Statement (A) and Reason (R) are incorrect.
Ans: A
21. Market sub-divided on the basis of behavioural characteristics is called
(A) Segmentation
(B) Aggregation
(C) Precision
(D) None of the above
Ans: A
22. What is mass marketing?
(A) Offering the same products and marketing mix to all consumers.
(B) Offering variety of products to the entire market.
(C) Offering differentiated products to all customers.
(D) Following concentrated marketing strategy.
Ans: A
23. Which concept of marketing is based on the assumption that superior products sell themselves?
(A) Production
(B) Marketing
(C) Societal
(D) Product
Ans: D
24. In broader sense, marketing communication includes
(A) Product
(B) Price
(C) Place
(D) All
Ans: D
25. Physical distribution provides
(A) Place utility
(B) Time utility
(C) Place and Time utility
(D) Form utility
Ans: C
26. What is relevant to place variable of marketing mix?
(A) Branding
(B) Price penetration
(C) Sales personnel motivation
(D) None
Ans: C
27. Find incorrect statement:
(A) Marketers arouse emotional motives
(B) Marketers satisfy rational motives
(C) Marketers formulate different sales promotions for different motives
(D) None of the above
Ans: D
28. Non-store marketing includes
(A) Home selling
(B) V.P.P.
(C) Vending Machines
(D) All of the above
Ans: D
29. What is customer delight?
(A) Performance equal to expectation
(B) Performance less than expectation
(C) Performance more than expectation
(D) Expectation more than performance
Ans: A
30. Which terms are often used interchangeably in marketing literature?
(A) Concept, method, philosophy
(B) Concept, approach, technique
(C) Orientation, concept, philosophy
(D) Philosophy, system, concept
Ans: C
31. Which one of the following is not the operative function of HRM?
(A) Development
(B) Controlling
(C) Compensation
(D) Integration
Ans: B
32. Which one of the following is not in sequence of personnel training procedure?
1. Instructor Preparation
2. Present the task
3. Try out performance
4. Training preparation
5. Follow up
(A) 1, 2, 3, 4, 5
(B) 2, 1, 4, 3, 5
(C) 1, 4, 2, 3, 5
(D) 3, 1, 2, 5, 4
Ans: C
33. Under which method of performance appraisal one person is compared with all others for the purpose of placing them in a simple order of work?
(A) Grading
(B) Person to Person comparison
(C) Ranking
(D) None of the above
Ans: C
34. Which one of the following is not the fundamental procedure that should be considered for the collective bargaining?
(A) Prenegotiation phase
(B) Selection of Negotiators
(C) Tactic and Strategy of Bargaining
(D) None of the above
Ans: D
35. Assertion (A): Inevitably the firm must go to the external sources for lower entry jobs.
Reason (R): For positions where required qualification/ experience are not met.
Codes:
(A) Both (A) and (R) are not correct.
(B) (A) is true, but (R) is false.
(C) (R) is true, but (A) is false.
(D) Both (A) and (R) are correct.
Ans: D
36. Match the following items of List – I and List – II:
List – I List – II
1. Asbestos I. Lung Cancer
2. Benzene II. Cancer
3. Ethylene Disbromide III. Leukemia
4. Kerosene IV. Acute Nervous System Depression
Codes:
I II III IV
(A) 4 2 3 1
(B) 4 3 2 1
(C) 1 3 2 4
(D) 3 4 2 1
Ans: C
37. Assertion (A): Business Economics is tool centric facilitating decision making in business.
Reason (R): It provides an analytical understanding of economic activities.
Codes:
(A) Both (A) and (R) are not correct.
(B) Both (A) and (R) are correct.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: B
38. Demand has the following elements:
(A) Quantity
(B) Price
(C) Time
(D) All the above
Ans: D
39. A perfectly competitive firm attains equilibrium when
(A) AC = AR
(B) MR = MC
(C) MC = AC
(D) TC = TR
Ans: B
40. The purpose of job evaluation is
(A) Fixation of Responsibility
(B) Promotion
(C) Wage Determination
(D) Transfer to a better job
Ans: C
41. For testing of hypothesis H0: M1 = M2 and H1: M1 < M2, the critical value of Z at 5% level of significance when size of sample is more than 30 is
(A) 1.96
(B) 2.32
(C) 1.645
(D) 2.5758
Ans: C
42. Which of the following is the nonrandom method of selecting samples from a population?
(A) Stratified Sampling
(B) Quota Sampling
(C) Systematic Sampling
(D) Cluster Sampling
Ans: B
43. If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of correlation is
(A) + 0.16
(B) – 0.40
(C) – 0.16
(D) + 0.40
Ans: D
44. Which one of the following is a relative measure of dispersion?
(A) Standard deviation
(B) Variance
(C) Coefficient of variation
(D) None of the above
Ans: C
45. Assertion (A): Internal factors of business environment are controllable factors.
Reason (R): The Company can alter or modify such factors to suit the environment.
Codes:
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is incorrect.
(C) Both (A) and (R) are incorrect.
(D) (A) is incorrect.
Ans: A
46. The concept of ‘Rolling Plan’ in India was introduced by the
(A) BJP Government
(B) Janta Government
(C) Congress Government
(D) All of the above
Ans: B
47. Which one of the following is an obstacle to globalization?
(A) Wide base
(B) Niche markets
(C) Obsolescence
(D) Competition
Ans: C
48. ‘VSAT’ technology is first followed for on-line trading by
(A) BSE
(B) OTCEI
(C) NSE
(D) ISE
Ans: C
49. Match the following:
List – I List – II
Years Act
(a) 1956 (i) Consumer Protection Act
(b) 1986 (ii) Indian Companies Act
(c) 1992 (iii) Securities and Exchange Board of India
(d) 2002 (iv) Securitization Act
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iii) (i) (iv)
(D) (i) (iv) (iii) (ii)
Ans: A
50. The flagship project of Government of India launched for generating guaranteed employment in rural areas is known as
(A) PMRY
(B) MNREGA
(C) JRY
(D) NREP
Ans: B
51. Which of the following principle serves as a warning to organisations not to take the selection and promotion process lightly?
(A) Promotion Principle
(B) Drucker Principle
(C) Validity Principle
(D) Peter Principle
Ans: D
52. According to D. Katz morale has four dimensions:
(i) Jobs satisfaction
(ii) Satisfaction with wages and promotional opportunities.
(iii) Identification with company.
(iv) Pride in the work group.
(v) Top Management Support.
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv), and (v)
(D) (i), (iii), (iv) and (v)
Ans: A
53. HRM is viewed as a management process, consisting of four functional activities:
(i) Acquisition
(ii) Motivation
(iii) Development
(iv) Resolution of industrial disputes
(v) Maintenance
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)
Ans: B
54. O C TA PA C stands for
(A) Order, Co-ordination, Trust, Authority, Personality and Cooperation.
(B) Openness, Confrontation, Trust, Authenticity, Pro-action and Collaboration.
(C) Organisation, Conflict, Team, Authority, People and Collaboration.
(D) Oneness, Compromise, Tress pass, Authority, Protection and Combination.
Ans: B
55. Technique of ‘Transaction Analysis’ was developed by
(A) Elton Mayo
(B) Peter Drucker
(C) Eric Berne
(D) Adam Smith
Ans: C
56. Which one of the following methods is not a demand forecasting method of Human Resource Planning?
(A) Managerial judgement
(B) Managerial grid
(C) Work study techniques
(D) Statistical techniques
Ans: B
57. Transaction of Internet Banking excludes
(A) Withdrawal of cash anywhere in India.
(B) Statement of account for a specific period.
(C) Transfer of funds from one account to another account.
(D) Balance enquiry.
Ans: A
58. Which among the following is not a category of Non-Performing Assets?
(A) Substandard Assets
(B) Doubtful Debts
(C) Loss Assets
(D) Devaluated Assets
Ans: D
59. When a loan will be NPA?
(A) Interest and/or loan instalments overdue for more than 90 days.
(B) Account is out of order for more than 90 days in case of overdraft/cash credit.
(C) Bill remains overdue for more than 90 days.
(D) All of the above.
Ans: D
60. Assertion (A): “The problem of rural credit is not primarily one of rural credit, it may be said to be one of rural minded credit.”
Reason (R): The Indian economy has yet to come out of rural mentality.
Codes:
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: C
61. Match the items of List-I with the items of List-II and select the correct answer:
List – I List – II
(i) Debit card (a) Several storage
(ii) Credit card (b) Online recovery of amount
(iii) Electronic purse (c) Image processing use
(iv) Cheque function (d) Revolving credit
Codes:
(i) (ii) (iii) (iv)
(A) (c) (a) (d) (b)
(B) (a) (b) (d) (c)
(C) (d) (c) (a) (b)
(D) (d) (c) (b) (a)
Ans: B
62. Assertion (A): The Indian economy could survive in the recent global recession due to its strong banking system.
Reason (R): The Indian economy contains a large amount of black money.
Codes:
(A) Both (A) and (R) are correct and (R) is the explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (R) is correct, but (A) is not the appropriate assertion of (R).
(D) Both (A) and (R) are incorrect.
Ans: B
63. Assertion (A): Most of the development banks in India have setup private commercial banks after the introduction of capital adequacy norms.
Reason (R): Development banks in India have not adhered to their basic objectives.
Codes:
(A) (A) and (R) both are correct, and (R) is correct explanation of (A).
(B) (A) and (R) both are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: C
64. Match the following items of List-I with List-II:
List – I List – II
(a) Bretton woods conference (i) 1947
(b) General Agreement on Trade and Tariffs (ii) 1964
(c) ACCRA conference (iii) 1944
(d) United Nations Conference on Trade and Development (iv) 2008
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (b) (d) (c) (a)
(C) (b) (c) (d) (a)
(D) (c) (a) (b) (d)
Ans: A
65. The forces that lend momentum to the process of globalization have been identified by Michael Porter include the following:
(i) Fluid global capital market.
(ii) Technological restructuring.
(iii) Decreasing religious command.
(iv) Ethnic decontrol.
(v) New-global competitors.
(vi) End of the ‘cold war’ in 1990s.
Codes:
(A) (vi), (v), (iv) and (iii)
(B) (vi), (iii), (ii) and (i)
(C) (vi), (v), (ii) and (i)
(D) (iv), (iii), (ii) and (i)
Ans: C
66. Statement (I): Green Box subsidies include amount spent on Government services such as research, disease control, infrastructure and food security.
Statement (II): Blue Box subsidies are certain direct payments made to farmers, to limit production, and are certain government assistance programmes to encourage agriculture and rural development.
Codes:
(A) Statement (I) is correct, but (II) is not correct.
(B) Statement (II) is correct, but (I) is not correct.
(C) Both statements (I) and (II) are correct.
(D) Both statements (I) and (II) are incorrect.
Ans: C
67. Assertion (A): The major economic powers have succeeded in creating a new international regime where the profits and the dominance of their transnational corporations will be the decisive consideration.
Reason (R): This regime will legitimise the process of progressive erosion of the sovereign economic space of the third-world countries.
(A) Both (A) and (R) are 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) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is not correct.
Ans: B
68. Assertion (A): The ‘Balance of Payments’ presents a classified record of all receipts on account of goods exported, services rendered and capital received by ‘residents’ and payments made by them on account of goods imported and services received from capital transferred to ‘non-residents’ or ‘foreigners”.
Reason (R): The ‘Balance of Payments’ of a country is a systematic record of all economic transactions between the ‘residents’ of a country and the rest of the world.
(A) Both (A) and (R) are 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) (R) is correct, but (A) is not correct.
(D) Both (A) and (R) are incorrect.
Ans: A
69. Which among the following is not rightly explained?
(i) M1 = Currency with the public + demand deposits of the public.
(ii) M2 = M1 + Post Office Savings Deposits.
(iii) M3 = M1 + Time Deposits of the public with Banks.
(iv) M4 = M3 + Total Post Office Deposits.
(v) M1 = Narrow money
(vi) M3 = Broad money
(A) Only (v) and (vi)
(B) Only (i) and (iii)
(C) Only (vi)
(D) None of the above
Ans: D
70. Which of the followings are not effects of dumping on importing country?
(i) Domestic industry might be affected adversely by a decline in sales and profits.
(ii) If dumping is continued for a longer period, survival of the domestic industry may be threatened.
(iii) Dumping may create BOP problems for the country.
(iv) It finds market for its surplus production.
Codes:
(A) (i), (ii), (iii) and (iv)
(B) (ii), (iii) and (iv)
(C) (iii) and (iv)
(D) Only (iv)
Ans: D
71. Donation to National Children’s Fund will come in which of the following deduction under Sec. 80G of Income Tax Act, 1961.
(A) 100 percent deduction without any qualifying limit.
(B) 50 percent deduction without any qualifying limit.
(C) 100 percent deduction subject to qualifying limit.
(D) 50 percent deduction subject to qualifying limit.
Ans: B
72. If the taxable income of a domestic company for the Assessment Year 2011-12 is Rs. 9, 00,000, its tax liability will be
(A) Rs. 2, 76,800
(B) Rs. 2, 78,100
(C) Rs. 3, 70,800
(D) Rs. 3, 70,880
Ans: B
73. Unabsorbed depreciation which could not be setoff in the same assessment year, can be carried forward up to
(A) 4 years
(B) 8 years
(C) 10 years
(D) Indefinite period
Ans: D
74. If the book profits of a partnership firm is Rs. 1, 10,000, the remuneration admissible to working partners under Sec.40 (b) of the Income Tax Act, 1961 is
(A) Rs. 1, 10,000
(B) Rs. 1, 50,000
(C) Rs. 99,000
(D) None of the above
Ans: B
75. Which of the following expenses is inadmissible while computing income from other sources?
(A) Interest paid on amounts borrowed to meet tax liabilities.
(B) Collection charges paid to the banker or any other person to collect interest/dividend.
(C) Interest on loan taken to invest in securities.
(D) Depreciation on let-out machinery and plant.
Ans: A
76. Government regulation of business is basically intended to
(A) Make sure all business units have the opportunity to be successful.
(B) Warn consumers against unfair business practices
(C) Make sure business firms are socially responsible.
(D) Protect the public from the negative consequences of business behaviour.
Ans: D
77. What is not the advantage of SEZ?
(A) Improvement of infrastructure in the hinterland.
(B) Diversion of large tracts of farm land.
(C) Attracting foreign investment.
(D) All of the above.
Ans: B
78. Which type of the complaints are not to be entertained by Consumer Forums under the Consumer Protection Act, 1986?
(A) A defective product purchased 1½ years back.
(B) Misleading advertisement in a newspaper.
(C) Services provided free of cost.
(D) Tie in sales.
Ans: C
79. Which of the following is a WTO procedure to promote globalisation?
(A) Promotion of free trade.
(B) Reduction of budgetary subsidies.
(C) Reduction in shipping costs.
(D) Promotion of foreign portfolio investment.
Ans: A
80. Match the following regarding disinvestment in India:
List – I List – II
(a) Disinvestment Policy by the Chandrashekhar Government I. 1999
(b) Rangarajan Committee on disinvestment in public sector enterprises II. 1996
(c) Strategic and nonstrategic classification of public enterprises for disinvestment III. 1991-92
(d) Formation of Disinvestment Commission IV. 1993
Codes:
I II III IV
(A) (c) (d) (a) (b)
(B) (a) (b) (c) (d)
(C) (c) (b) (a) (d)
(D) (a) (d) (c) (b)
Ans: A
81. When a partnership is dissolved and the following claims need to be met out piece-meal of the cash released, which is the correct sequence in which these claims have to be met?
(a) Any partner’s loan
(b) Capital and Current account balances
(c) Expenses of dissolution
(d) Outsider’s claim (both payable and accrued)
Codes:
(A) (c), (d), (a), (b)
(B) (b), (c), (a), (d)
(C) (a), (b), (d), (c)
(D) (a), (b), (c), (d)
Ans: A
82. In practice, accountants consider revenue from sales if a transaction meets the following condition(s):
(A) The seller has passed the legal or economic ownership of the goods to the buyer.
(B) The seller and the buyer have agreed on the price of the goods.
(C) The buyer has paid the price of the goods or it is certain that he will pay the price.
(D) All of the above.
Ans: D
83. The main difference between marginal costing and absorption costing lies in the treatment of
(A) Direct cost
(B) Fixed overhead
(C) Variable overhead
(D) Semi-variable overhead
Ans: C
84. Which of the following items is not an appropriation of profit for a limited company?
(A) Corporate tax payable
(B) Ordinary dividend payable
(C) Debenture interest payable
(D) Preference dividend payable
Ans: C
85. Which of the following is not applicable to responsibility accounting?
(A) Accounting Centre
(B) Cost Centre
(C) Investment Centre
(D) Profit Centre
Ans: A
86. Which one of the following is not the basic assumption of Cardinal Utility analysis?
(A) Rationality of Consumer.
(B) Utility cardinally measurable.
(C) Diminishing marginal utility of money.
(D) Hypothesis of independent utilities.
Ans: C
87. Which one of the following is not a property of indifference curve?
(A) Negatively sloping.
(B) Convex to the point of origin.
(C) Indifference curves necessarily have to be parallel.
(D) Two indifference curves do not intersect each other.
Ans: C
88. Find the correct matching between items of List-I and the items of List-II.
List – I List – II
(a) Increase in demand (i) Leftward movement along the demand curve.
(b) Contraction of demand (ii) Rightward shift of the demand curve.
(c) Cross demand (iii) Demand of more than one commodity to satisfy one specific want.
(d) Joint demand (iv) Demand of one commodity with changes in the prices of another related commodity
Codes:
(i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (b) (a) (c) (d)
(D) (a) (b) (d) (c)
Ans: A
89. According to the Law of Variable Proportions, the second stage of production ends when
(A) Marginal productivity of the variable input becomes maximum.
(B) Both marginal productivity and average productivity of the variable input are equal.
(C) Marginal productivity of the variable input becomes zero and average productivity is positive.
(D) Marginal productivity of the variable input is negative but average productivity is positive.
Ans: C
90. From a population with mean of 220 and standard deviation of 30, a sample of 36 was drawn at random. Calculate the standard error of the sampling distribution and choose the correct answer from the following options.
(A) 7.3
(B) 6.2
(C) 6.0
(D) 5.0
Ans: D
91. A committee of six people is to be formed from a group of seven men and four women. What is the probability that the committee will have exactly two women?
(A) 0.456
(B) 0.803
(C) 0.962
(D) None of the above
Ans: D
92. For a hypothesis test, alpha (α) is 0.05 and beta (β) is 0.10. The power of this test is
(A) 0.95
(B) 0.90
(C) 0.80
(D) 0.15
Ans: B
93. Which one(s) of the following statements is (are) correct with respect to Decision Support System (DSS)?
(i) It (DSS) is used by middle level management.
(ii) DSS applies to mostly structured problems.
(iii) DSS relies on mathematical models for analysis.
(iv) DSS is largely heuristics based.
Codes:
(A) (i) and (ii) are correct.
(B) (i) and (iii) are correct.
(C) (i), (ii) and (iii) are correct.
(D) All the four are correct.
Ans: C
94. Given below are two statements, one labelled as Assertion (A), and the other labelled as Reason (R). Select the correct answer using the code given below:
Assertion (A): Strategies necessarily need to be changed over time to suit environmental changes.
Reason (R): To remain competitive, organisations develop those strategies that create value for customers.
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: B
95. Which of the following is not true about proactive planning?
(A) Way of thinking about managing the future risks.
(B) Anticipating future contingencies.
(C) Reacting to external events.
(D) Getting ready with alternative routes for unforeseen situations.
Ans: C
96. Which of the following is not a characteristic of non-programmed decisions?
(A) Problems are unique and novel.
(B) There are no pre-established policies or procedures to rely on.
(C) The conditions for non-programmed decisions are highly certain.
(D) These are the responsibility of top-management.
Ans: C
97. Which of the following is an ethical behaviour of a manager?
(A) Trading stocks on the basis of inside information.
(B) Padding expense accounts.
(C) Not divulging trade secrets to competitors.
(D) Being severely critical of competitors.
Ans: C
98. Which of the following is suggested by Blake and Mouton as the best leadership behaviour?
(A) Low concern for people but high concern for production.
(B) Low concern for both people and production.
(C) High concern for both people and production.
(D) High concern for people and low concern for production.
Ans: C
99. If the spot price is higher than the strike price in a call option, it is referred to as
(A) At-the-money
(B) In-the-money
(C) Out-of-the-money
(D) Premium
Ans: B
100. Identity the item which does not include under Current Account transaction.
(A) Services
(B) Non-monetary movement of gold
(C) Unilateral transfer
(D) Investment income
Ans: B
(A) Promotion Principle
(B) Drucker Principle
(C) Validity Principle
(D) Peter Principle
Ans: D
52. According to D. Katz morale has four dimensions:
(i) Jobs satisfaction
(ii) Satisfaction with wages and promotional opportunities.
(iii) Identification with company.
(iv) Pride in the work group.
(v) Top Management Support.
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv), and (v)
(D) (i), (iii), (iv) and (v)
Ans: A
53. HRM is viewed as a management process, consisting of four functional activities:
(i) Acquisition
(ii) Motivation
(iii) Development
(iv) Resolution of industrial disputes
(v) Maintenance
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)
Ans: B
54. O C TA PA C stands for
(A) Order, Co-ordination, Trust, Authority, Personality and Cooperation.
(B) Openness, Confrontation, Trust, Authenticity, Pro-action and Collaboration.
(C) Organisation, Conflict, Team, Authority, People and Collaboration.
(D) Oneness, Compromise, Tress pass, Authority, Protection and Combination.
Ans: B
55. Technique of ‘Transaction Analysis’ was developed by
(A) Elton Mayo
(B) Peter Drucker
(C) Eric Berne
(D) Adam Smith
Ans: C
56. Which one of the following methods is not a demand forecasting method of Human Resource Planning?
(A) Managerial judgement
(B) Managerial grid
(C) Work study techniques
(D) Statistical techniques
Ans: B
57. Transaction of Internet Banking excludes
(A) Withdrawal of cash anywhere in India.
(B) Statement of account for a specific period.
(C) Transfer of funds from one account to another account.
(D) Balance enquiry.
Ans: A
58. Which among the following is not a category of Non-Performing Assets?
(A) Substandard Assets
(B) Doubtful Debts
(C) Loss Assets
(D) Devaluated Assets
Ans: D
59. When a loan will be NPA?
(A) Interest and/or loan instalments overdue for more than 90 days.
(B) Account is out of order for more than 90 days in case of overdraft/cash credit.
(C) Bill remains overdue for more than 90 days.
(D) All of the above.
Ans: D
60. Assertion (A): “The problem of rural credit is not primarily one of rural credit, it may be said to be one of rural minded credit.”
Reason (R): The Indian economy has yet to come out of rural mentality.
Codes:
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: C
61. Match the items of List-I with the items of List-II and select the correct answer:
List – I List – II
(i) Debit card (a) Several storage
(ii) Credit card (b) Online recovery of amount
(iii) Electronic purse (c) Image processing use
(iv) Cheque function (d) Revolving credit
Codes:
(i) (ii) (iii) (iv)
(A) (c) (a) (d) (b)
(B) (a) (b) (d) (c)
(C) (d) (c) (a) (b)
(D) (d) (c) (b) (a)
Ans: B
62. Assertion (A): The Indian economy could survive in the recent global recession due to its strong banking system.
Reason (R): The Indian economy contains a large amount of black money.
Codes:
(A) Both (A) and (R) are correct and (R) is the explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(C) (R) is correct, but (A) is not the appropriate assertion of (R).
(D) Both (A) and (R) are incorrect.
Ans: B
63. Assertion (A): Most of the development banks in India have setup private commercial banks after the introduction of capital adequacy norms.
Reason (R): Development banks in India have not adhered to their basic objectives.
Codes:
(A) (A) and (R) both are correct, and (R) is correct explanation of (A).
(B) (A) and (R) both are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: C
64. Match the following items of List-I with List-II:
List – I List – II
(a) Bretton woods conference (i) 1947
(b) General Agreement on Trade and Tariffs (ii) 1964
(c) ACCRA conference (iii) 1944
(d) United Nations Conference on Trade and Development (iv) 2008
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (b) (d) (c) (a)
(C) (b) (c) (d) (a)
(D) (c) (a) (b) (d)
Ans: A
65. The forces that lend momentum to the process of globalization have been identified by Michael Porter include the following:
(i) Fluid global capital market.
(ii) Technological restructuring.
(iii) Decreasing religious command.
(iv) Ethnic decontrol.
(v) New-global competitors.
(vi) End of the ‘cold war’ in 1990s.
Codes:
(A) (vi), (v), (iv) and (iii)
(B) (vi), (iii), (ii) and (i)
(C) (vi), (v), (ii) and (i)
(D) (iv), (iii), (ii) and (i)
Ans: C
66. Statement (I): Green Box subsidies include amount spent on Government services such as research, disease control, infrastructure and food security.
Statement (II): Blue Box subsidies are certain direct payments made to farmers, to limit production, and are certain government assistance programmes to encourage agriculture and rural development.
Codes:
(A) Statement (I) is correct, but (II) is not correct.
(B) Statement (II) is correct, but (I) is not correct.
(C) Both statements (I) and (II) are correct.
(D) Both statements (I) and (II) are incorrect.
Ans: C
67. Assertion (A): The major economic powers have succeeded in creating a new international regime where the profits and the dominance of their transnational corporations will be the decisive consideration.
Reason (R): This regime will legitimise the process of progressive erosion of the sovereign economic space of the third-world countries.
(A) Both (A) and (R) are 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) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is not correct.
Ans: B
68. Assertion (A): The ‘Balance of Payments’ presents a classified record of all receipts on account of goods exported, services rendered and capital received by ‘residents’ and payments made by them on account of goods imported and services received from capital transferred to ‘non-residents’ or ‘foreigners”.
Reason (R): The ‘Balance of Payments’ of a country is a systematic record of all economic transactions between the ‘residents’ of a country and the rest of the world.
(A) Both (A) and (R) are 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) (R) is correct, but (A) is not correct.
(D) Both (A) and (R) are incorrect.
Ans: A
69. Which among the following is not rightly explained?
(i) M1 = Currency with the public + demand deposits of the public.
(ii) M2 = M1 + Post Office Savings Deposits.
(iii) M3 = M1 + Time Deposits of the public with Banks.
(iv) M4 = M3 + Total Post Office Deposits.
(v) M1 = Narrow money
(vi) M3 = Broad money
(A) Only (v) and (vi)
(B) Only (i) and (iii)
(C) Only (vi)
(D) None of the above
Ans: D
70. Which of the followings are not effects of dumping on importing country?
(i) Domestic industry might be affected adversely by a decline in sales and profits.
(ii) If dumping is continued for a longer period, survival of the domestic industry may be threatened.
(iii) Dumping may create BOP problems for the country.
(iv) It finds market for its surplus production.
Codes:
(A) (i), (ii), (iii) and (iv)
(B) (ii), (iii) and (iv)
(C) (iii) and (iv)
(D) Only (iv)
Ans: D
71. Donation to National Children’s Fund will come in which of the following deduction under Sec. 80G of Income Tax Act, 1961.
(A) 100 percent deduction without any qualifying limit.
(B) 50 percent deduction without any qualifying limit.
(C) 100 percent deduction subject to qualifying limit.
(D) 50 percent deduction subject to qualifying limit.
Ans: B
72. If the taxable income of a domestic company for the Assessment Year 2011-12 is Rs. 9, 00,000, its tax liability will be
(A) Rs. 2, 76,800
(B) Rs. 2, 78,100
(C) Rs. 3, 70,800
(D) Rs. 3, 70,880
Ans: B
73. Unabsorbed depreciation which could not be setoff in the same assessment year, can be carried forward up to
(A) 4 years
(B) 8 years
(C) 10 years
(D) Indefinite period
Ans: D
74. If the book profits of a partnership firm is Rs. 1, 10,000, the remuneration admissible to working partners under Sec.40 (b) of the Income Tax Act, 1961 is
(A) Rs. 1, 10,000
(B) Rs. 1, 50,000
(C) Rs. 99,000
(D) None of the above
Ans: B
75. Which of the following expenses is inadmissible while computing income from other sources?
(A) Interest paid on amounts borrowed to meet tax liabilities.
(B) Collection charges paid to the banker or any other person to collect interest/dividend.
(C) Interest on loan taken to invest in securities.
(D) Depreciation on let-out machinery and plant.
Ans: A
76. Government regulation of business is basically intended to
(A) Make sure all business units have the opportunity to be successful.
(B) Warn consumers against unfair business practices
(C) Make sure business firms are socially responsible.
(D) Protect the public from the negative consequences of business behaviour.
Ans: D
77. What is not the advantage of SEZ?
(A) Improvement of infrastructure in the hinterland.
(B) Diversion of large tracts of farm land.
(C) Attracting foreign investment.
(D) All of the above.
Ans: B
78. Which type of the complaints are not to be entertained by Consumer Forums under the Consumer Protection Act, 1986?
(A) A defective product purchased 1½ years back.
(B) Misleading advertisement in a newspaper.
(C) Services provided free of cost.
(D) Tie in sales.
Ans: C
79. Which of the following is a WTO procedure to promote globalisation?
(A) Promotion of free trade.
(B) Reduction of budgetary subsidies.
(C) Reduction in shipping costs.
(D) Promotion of foreign portfolio investment.
Ans: A
80. Match the following regarding disinvestment in India:
List – I List – II
(a) Disinvestment Policy by the Chandrashekhar Government I. 1999
(b) Rangarajan Committee on disinvestment in public sector enterprises II. 1996
(c) Strategic and nonstrategic classification of public enterprises for disinvestment III. 1991-92
(d) Formation of Disinvestment Commission IV. 1993
Codes:
I II III IV
(A) (c) (d) (a) (b)
(B) (a) (b) (c) (d)
(C) (c) (b) (a) (d)
(D) (a) (d) (c) (b)
Ans: A
81. When a partnership is dissolved and the following claims need to be met out piece-meal of the cash released, which is the correct sequence in which these claims have to be met?
(a) Any partner’s loan
(b) Capital and Current account balances
(c) Expenses of dissolution
(d) Outsider’s claim (both payable and accrued)
Codes:
(A) (c), (d), (a), (b)
(B) (b), (c), (a), (d)
(C) (a), (b), (d), (c)
(D) (a), (b), (c), (d)
Ans: A
82. In practice, accountants consider revenue from sales if a transaction meets the following condition(s):
(A) The seller has passed the legal or economic ownership of the goods to the buyer.
(B) The seller and the buyer have agreed on the price of the goods.
(C) The buyer has paid the price of the goods or it is certain that he will pay the price.
(D) All of the above.
Ans: D
83. The main difference between marginal costing and absorption costing lies in the treatment of
(A) Direct cost
(B) Fixed overhead
(C) Variable overhead
(D) Semi-variable overhead
Ans: C
84. Which of the following items is not an appropriation of profit for a limited company?
(A) Corporate tax payable
(B) Ordinary dividend payable
(C) Debenture interest payable
(D) Preference dividend payable
Ans: C
85. Which of the following is not applicable to responsibility accounting?
(A) Accounting Centre
(B) Cost Centre
(C) Investment Centre
(D) Profit Centre
Ans: A
86. Which one of the following is not the basic assumption of Cardinal Utility analysis?
(A) Rationality of Consumer.
(B) Utility cardinally measurable.
(C) Diminishing marginal utility of money.
(D) Hypothesis of independent utilities.
Ans: C
87. Which one of the following is not a property of indifference curve?
(A) Negatively sloping.
(B) Convex to the point of origin.
(C) Indifference curves necessarily have to be parallel.
(D) Two indifference curves do not intersect each other.
Ans: C
88. Find the correct matching between items of List-I and the items of List-II.
List – I List – II
(a) Increase in demand (i) Leftward movement along the demand curve.
(b) Contraction of demand (ii) Rightward shift of the demand curve.
(c) Cross demand (iii) Demand of more than one commodity to satisfy one specific want.
(d) Joint demand (iv) Demand of one commodity with changes in the prices of another related commodity
Codes:
(i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (b) (a) (c) (d)
(D) (a) (b) (d) (c)
Ans: A
89. According to the Law of Variable Proportions, the second stage of production ends when
(A) Marginal productivity of the variable input becomes maximum.
(B) Both marginal productivity and average productivity of the variable input are equal.
(C) Marginal productivity of the variable input becomes zero and average productivity is positive.
(D) Marginal productivity of the variable input is negative but average productivity is positive.
Ans: C
90. From a population with mean of 220 and standard deviation of 30, a sample of 36 was drawn at random. Calculate the standard error of the sampling distribution and choose the correct answer from the following options.
(A) 7.3
(B) 6.2
(C) 6.0
(D) 5.0
Ans: D
91. A committee of six people is to be formed from a group of seven men and four women. What is the probability that the committee will have exactly two women?
(A) 0.456
(B) 0.803
(C) 0.962
(D) None of the above
Ans: D
92. For a hypothesis test, alpha (α) is 0.05 and beta (β) is 0.10. The power of this test is
(A) 0.95
(B) 0.90
(C) 0.80
(D) 0.15
Ans: B
93. Which one(s) of the following statements is (are) correct with respect to Decision Support System (DSS)?
(i) It (DSS) is used by middle level management.
(ii) DSS applies to mostly structured problems.
(iii) DSS relies on mathematical models for analysis.
(iv) DSS is largely heuristics based.
Codes:
(A) (i) and (ii) are correct.
(B) (i) and (iii) are correct.
(C) (i), (ii) and (iii) are correct.
(D) All the four are correct.
Ans: C
94. Given below are two statements, one labelled as Assertion (A), and the other labelled as Reason (R). Select the correct answer using the code given below:
Assertion (A): Strategies necessarily need to be changed over time to suit environmental changes.
Reason (R): To remain competitive, organisations develop those strategies that create value for customers.
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: B
95. Which of the following is not true about proactive planning?
(A) Way of thinking about managing the future risks.
(B) Anticipating future contingencies.
(C) Reacting to external events.
(D) Getting ready with alternative routes for unforeseen situations.
Ans: C
96. Which of the following is not a characteristic of non-programmed decisions?
(A) Problems are unique and novel.
(B) There are no pre-established policies or procedures to rely on.
(C) The conditions for non-programmed decisions are highly certain.
(D) These are the responsibility of top-management.
Ans: C
97. Which of the following is an ethical behaviour of a manager?
(A) Trading stocks on the basis of inside information.
(B) Padding expense accounts.
(C) Not divulging trade secrets to competitors.
(D) Being severely critical of competitors.
Ans: C
98. Which of the following is suggested by Blake and Mouton as the best leadership behaviour?
(A) Low concern for people but high concern for production.
(B) Low concern for both people and production.
(C) High concern for both people and production.
(D) High concern for people and low concern for production.
Ans: C
99. If the spot price is higher than the strike price in a call option, it is referred to as
(A) At-the-money
(B) In-the-money
(C) Out-of-the-money
(D) Premium
Ans: B
100. Identity the item which does not include under Current Account transaction.
(A) Services
(B) Non-monetary movement of gold
(C) Unilateral transfer
(D) Investment income
Ans: B