COMMERCEPAPER - II
Note : This paper contains fifty (50) objective type questions of two
(2) marks each. All questionsare compulsory.
(2) marks each. All questionsare compulsory.
1. The world's first electronic stock market is :
(1) KOSPI
(2) Nikkie
(3) NASDAQ
(4) Dow Jones
Answer:(3)
2. The Human Development Index (HDI) is introduced by :
(1) UNDP
(2) UNICEF
(3) IMF
(4) World Bank
Answer:(1)
3. Examine the following statements and choose the correct code :
Assertion (A) : American style option, compared to European style, provides more freedomto option holders in exercising the option.
Reason (R) : American style option can be exercised only at a specified date which isgenerally the expiration date.
Codes :
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are wrong.
(3) (A) is correct, but (R) is wrong.
(4) (A) is not correct, but (R) is correct.
Answer:(3)
4. From the statements given below, identify the correct code :
Statement (I) : The key strategy behind acquiring a company is to create share holdersvalue.
Statement (II) : Conglomeration is a merger between two companies that have commonbusiness areas.
Statement (III) : MRTP Act got replaced by the Competition Act, 2002 in India.
Codes :
(1) All the three statements are correct.
(2) Statements (I) and (II) only are correct.
(3) Statements (I) and (III) only are correct.
(4) Statement (II) only is correct
Answer:(3)
5. From the following, identify the tools of fiscal policy :
(i) Public expenditure(ii) Open market operations
(iii) Deficit financing(iv) Taxation(v) Reserve requirements
Codes :
(1) (i), (iii), (iv) and (v)
(2) (i), (ii), (iv) and (v)
(3) (ii) and (v)
(4) (i), (iii) and (iv)
Answer:(4)
6. The basic difference between a static budget and flexible budget is that :
(1) A flexible budget considers only variable costs but a static budget considers all costs.
(2) Flexible budgets allow management latitude in meeting goals, whereas static budget isbased on fixed standards.
(3) A flexible budget is applicable for a single department only but a static budget forentire production facility.
(4) A flexible budget can be prepared for any production level within a relevant range buta static budget is based on one specific level of production.
Answer:(4)
7. A retiring partner continues to be liable for obligations incurred after his retirement :
(1) If unpaid amount is transferred to his loan account.
(2) If he does not give public notice.
(3) If he starts a similar business elsewhere.
(4) In all the situations till he survives.
Answer:(2)
8. In what order, the following assets are shown in the balance sheet of a company ?
(i) Trade receivables
(ii) Cash
(iii) Furniture and fittings
(iv) Investment in shares and debentures
Codes :
(1) (ii), (i), (iv), (iii)
(2) (i), (ii), (iii), (iv)
(3) (iii), (iv), (i), (ii)
(4) (iv), (iii), (ii), (i)
Answer:(3)
9. When opening stock is INR 50,000, closing stock is INR 60,000 and
the cost of goods sold is INR 2,20,000, the stock turnover ratio is :
(1) 2 times
(2) 3 times
(3) 4 times
(4) 5 times
Answer:(3)
10. If : Stock turnover ratio is = 6 times
Average stock = INR 8,000
Selling price = 25% above cost
What is the amount of gross profit ?
(1) INR 2,000 (2) INR 4,000
(3) INR 10,000 (4) INR 12,000
Answer:(4)
11. A rectangular hyperbola shaped demand curve on all its points has :
(1) Equal slopes of the price demand curve
(2) Price elasticity equal to unity
(3) Varying price elasticity
(4) Both slope and price elasticity equal
Answer:(2)
12. In case of short-run equilibrium, a perfectly competitive firm while earning abnormal
profitsoperates at an output level where :
(1) Marginal cost is the minimum
(2) Average cost is the minimum
(3) Both marginal cost and average cost are equal
(4) Marginal cost is higher than average cost
Answer:(4)
13. Which one of the following statements is false ?
(1) Normally, a price demand curve slopes downward from left to right.
(2) Economies of scale and economies of scope are the same.
(3) For optimization, equality between marginal cost and marginal revenue is a necessarycondition but it is not a sufficient one.
(4) Law of variable proportions denotes input-output relationship during short-run
Answer:(2)
14. Match the items of List-I with the items of List-II :
List-I List-II
(a) Law of diminishing marginal (i) Cross demandutility
(b) Relationship between price of (ii) Oligopolyone commodity and demand forother commodity
(c) Skimming the cream policy (iii) Cardinal approach
(d) Price rigidity (iv) Pioneer pricing
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iii) (i) (ii) (iv)
(3) (ii) (iv) (i) (iii)
(4) (iv) (iii) (ii) (i)
Answer:(3)
15.
Answer:(1)
16. Which of the following is not an accounting software package ?
(1) Quick Books
(2) Sage one
(3) Sage M
(4) Sage 50
Answer:(3)
17.
Answer:(1)
18. If the population is heterogeneous, which one of the following probability sampling methodsis more appropriate ?
(1) Sequential sampling
(2) Quota sampling
(3) Double sampling
(4) Stratified sampling
Answer:(4)
19.
Answer:(1)
20. Which one of the following statements is false ?
(1) Both correlation and regression co-efficients have same sign.
(2) Arithmetic mean of the regression co-efficients is always more than the correlationco-efficient.
(3) Regression co-efficients are independent of both the origin and scale
(4) Correlation co-efficient is the square root of two regression co-efficients.
Answer:(3)
21. Match the items of List-I with List-II :
List-I List-II
(a) He who can manage, can manage (i) Henry Fayol
anything
(b) Due to these experiments, a factory
does not remain a factory, (ii) William B.
it is convertedinto a laboratory
(c)Management succeeds or fails as
human relations in business areintelligently (iii) F.W. Tayloror
or unintelligently handled
Cornelldoes not remain a factory.
(d) A place for everything, (iv) Lawrance A. Appley
and everything in its place
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (ii) (iv) (iii)
(3) (iv) (iii) (ii) (i)
(4) (iii) (ii) (i) (iv)
Answer:(3)
22. Assertion (A) : Management is mainly associated with economic affairs.
Reasoning (R) : Big business houses are the result of effective financial management.
Codes :
(1) (A) is correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) (A) is incorrect but (R) is correct in isolation.
(4) Both (A) and (R) are incorrect.
Answer:(3)
23. Areas of establishing objectives under MBO are :
(i) Market Standing
(ii) Innovation
(iii) Industrial Relations
(iv) Public Accountability
(v) Productivity(vi) Industrial Policy
Codes :
(1) (iii), (iv), (v) and (vi)
(2) (i), (ii), (iv) and (v)
(3) (i), (ii), (v) and (vi)
(4) (ii), (iii), (iv) and (v)
Answer:(2)
24. Match the items of List-I with List-II :
List-I List-II
(a) Management of Tomorrow (i) Chris Argyris
(b) Motivation and Personality (ii) Fredrick Hergberg
(c) The Motivation of Work (iii) L.F. Urwick
(d) Personality and Organisation (iv) A.H. Maslow
Codes :
(a) (b) (c) (d)
(1) (i) (iv) (ii) (iii)
(2) (iii) (iv) (i) (ii)
(3) (iv) (iii) (ii) (i)
(4) (iii) (iv) (ii) (i)
Answer:(4)
25. Narayan Murthy Committee revised its recommendations on Corporate Governance as
on29th October 2004 which diluted the following areas :
(i) Independence of Directors
(ii) Whistle Blower Policy
(iii) Performance evaluation of Non-Executive Directors
(iv) Mandatory training of Non-Executive Directors
Codes :
(1) (i), (ii) and (iii) only
(2) (i) and (iii) only
(3) (i), (ii) and (iv) only
(4) All (i), (ii), (iii) and (iv)
Answer:(4)
26. The service marketing mix is an extended marketing mix and includes :
(i) People
(ii) Process
(iii) Service
(iv) Physical evidence
Codes :
(1) (ii), (iii) and (iv)
(2) (i), (ii) and (iii)
(3) (i), (ii) and (iv)
(4) (i), (iii) and (iv)
Answer:(3)
27. Black box model in marketing relates to :
(1) Marketing planning
(2) Marketing mix
(3) Marketing control
(4) Consumer behaviour
Answer:(4)
28. Items, considered part of the augmented product, do not include :
(1) Guarantee
(2) Warranty
(3) Complementary products
(4) Channels of distribution
Answer:(4)
29. Which of the following is not a type of direct marketing ?
(1) Direct mail marketing
(2) Retail marketing
(3) Telemarketing
(4) Email direct marketing
Answer:(2)
30. Press release is a part of :
(1) Public relations
(2) Advertising
(3) Sales promotion
(4) None of the above
Answer:(1)
31. In capital budgeting, the term capital rationing implies :
(1) that no retained earnings are available.
(2) that limited funds are available for investment.
(3) that no external funds can be raised.
(4) that no fresh investment is required in current year.
Answer:(2)
32. In certainty equivalent approach, adjusted cash flows are discounted at :
(1) Accounting Rate of Return
(2) Internal Rate of Return
(3) Hurdle Rate
(4) Risk Free Rate
Answer:(4)
33. Combined leverage is calculated as :
(1) Operating Leverage+Financial Leverage
(2) Operating Leverage-Financial Leverage
(3) Operating Leverage*Financial Leverage
(4) Operating Leverage/Financial Leverage
Answer:(3)
34. Which of the following is not true with reference to capital budgeting ?
(1) Capital budgeting is related to asset replacement decisions.
(2) Cost of capital is equal to minimum required return.
(3) Existing investment in a project is not treated as sunk cost.
(4) Timing of cash flows is relevant
Answer:(3)
35. What is Economic Order Quantity ?
(1) Cost of an order
(2) Cost of stock
(3) Reorder level
(4) Optimum order size
Answer:(4)
36. Which of the following is not a basic objective of HRM ?
(1) To attract HR into the organisation
(2) To develop and motivate HR for better performance
(3) To have the reward and punishment system for HR
(4) To integrate and maintain HR in the organisation
Answer:(3)
37. What is gate hiring ?
(1) To select people who approach on their own for employment in the organisation.
(2) To select people who are recommended by the employees.
(3) To select people from public employment exchanges.
(4) To select people supplied by labour contractors.
Answer:(1)
38. Matching essential managers and essential positions is a step in the process of :
(1) Career Cycle
(2) Succession Planning
(3) Career Planning
(4) Career Stages
Answer:(2)
39. The barriers to effective performance appraisal are :
(i) Psychological blocks of managers
(ii) Faulty assumptions of the parties concerned
(iii) Technical pitfalls
(iv) Faulty written communications
Codes :
(1) All are correct.
(2) Only (ii) and (iii) are correct.
(3) Only (i) and (ii) are correct.
(4) Only (i), (ii) and (iii) are correct.
Answer:(4)
40. Who has developed the Systems Approach of industrial relations ?
(1) John Dunlop
(2) Garry S. Becker
(3) Michael J. Jucius
(4) Edwin B. Flippo
Answer:(1)
41. In 1992, the banking sector reforms were introduced as per :
(1) C. Rangarajan Committee Report
(2) M. Narasimham Committee Report
(3) Suresh Tandulkar Committee Report
(4) Sukhamoy Chakrabarty Committee Report
Answer:(2)
42. For the purpose of extending rural banking and agro finance, the NABARD :
(1) Directly lends and monitors the rural borrowers
(2) Refinances the banks extending rural finance
(3) Refinances the rural borrowers obtaining credit from banks
(4) Directly finances the rural borrowers and gets refinance from government
Answer:(2)
43. When RBI grants loan to commercial banks and charges interest on it, it is called :
(1) Rapo rate
(2) Reverse Rapo rate
(3) Sweep stack rate, basic rate
(4) Bank rate
Answer:(1)
44. E-banking business is essentially regulated by the Information Technology Act, 2000, underwhich
personal signature is replaced by :
(1) Encrypted signature
(2) Image signature
(3) Digital signature
(4) Online signature
Answer:(3)
45. In order to control inflation and ensure stability in money market :
(1) The RBI works under the direction of ministry of finance, government of India.
(2) The RBI acts independently and can refuse the government directive.
(3) The RBI acts under the board of directors.
(4) The RBIs board of governors shall abide by the government directive.
Answer:(2)
46. In respect of international business, a project is called a turnkey project because :
(1) The licensee agrees to construct an entire plant in his home county and hands over thekey.
(2) The licensor starts the operation and hands over the key of the operating plant to thelicensee.
(3) The licensor starts the operation and then invites the licensee and hands over the key tocomplete the remaining work.
(4) The licensor and the licensee jointly carry out the project and agree to share profitequally.
Answer:(2)
47. Match the items in List-I with the items in List-II :
List-I List-II
(a) Bretton woods conference (i) WTO
(b) Soft loan window (ii) World Bank
(c) Geneva (iii) IFC
(d) Loan to private sector (iv) IDACodes :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iv) (iii) (ii) (i)
(3) (ii) (iv) (i) (iii)
(4) (iv) (ii) (iii) (i)
Answer:(3)
48. Assertion (A) : The member nations, consistently finding balance of payments crisis, mayapproach the
World Bank seeking financial accommodation to mitigate thecirsis.
Reasoning (R) : The member nations facing balance of payments crisis can approach
theIMF seeking redressal of the BOP crisis.
Codes :
(1) (A) is correct and (R) is correct explanation of (A).
(2) (A) is correct but (R) is wrong.
(3) (R) is correct and (A) is wrong.
(4) Both (A) and (R) are wrong.
Answer:(3)
49. In computation of balance of payments, overall balance of payments=
(1) Balance of current account+Balance of capital account+Statistical discrepancy
(2) Export of goods and invisibles-Import of goods
(3) Foreign exchange inflow-Foreign exchange outflow
(4) Export of goods and invisibles+Import of goods and invisibles
Answer:(1)
50. The instrument chosen for enhancement of international liquidity is :
(1) Society for World wide Inter bank Financial Telecommunications (SWIFT)
(2) Special Drawing Rights (SDRs)
(3) Multilateral Netting
(4) Netting of Payments
Answer:(2)
Commerce 2015 June Paper 2 Solved
Reviewed by Australian Stock Exchange Inc
on
05:05:00
Rating:
Reviewed by Australian Stock Exchange Inc
on
05:05:00
Rating:
Nice
ReplyDelete