PAPER-II
COMMERCE


1. India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per the commitment to which of the following

South Asian Free Trade Association (SAFTA)

General Agreement on Tariffs and Trade (GATT)

World Trade Organisation

Non-Aligned Movement


2. Globalization is a term used to describe the process of removal of restrictions on which of the following

Foreign Trade

Investment

and above

None of the above

3. When a company takes over another one and clearly becomes a new owner, the action is called

Merger

Acquisition

Strategic Alliance

None of the above

4. Match the following two lists of statements.

List I List II
I. Rate at which RBI gives loans to rate Commercial Banks by bills 1. Bank discounting bills

II. Rate at which RBI borrows from rate Commercial Banks 2. Repo rate

3. Prime lending

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I II
3 1

2 1

1 2

3 2

5. The MRTP Act, 1969 was abolished in

1991

2002

2006

None of the above

6. Read the following statements

Financial statements are only interim reports.
Financial statements are prepared on the basis of realizable values.
The preparation of financial statements is not an ultimate aim.
Certain assumptions are necessary to prepare financial statements.

Which of the following combinations consists of all true statements

and

and

and

and


7. Which of the following is not a subsidiary book

Purchase Book

Sales Book

Bills Receivables Book

Assets Book

8. Which of the following are the application of funds

(i)Redemption of Preference share capital.
(ii)Payment of Dividend.
(iii)Increase in working capital.

only and

only and

only and

and


9. Accounting concepts are based on

Certain assumptions

Certain facts and figures

Certain accounting records

Government guidelines

10. The main purpose of Cost Accounting is to

assist management in decision making.

maximise profits and minimise losses.

comply norms issued by the Government of India from time to time.

prepare cost accounts in line with the accounting standards.


11. The various degrees of price elasticity of demand can be shown on a single demand curve as per which one of the following

Total outlay method

Proportional method

Arc method

Geometrical method


12. Which one of the following is not correct about the price discrimination by a monopolist, who intends to

maximise the sales/profit

share the consumer's surplus

increase the welfare of masses

reduce the welfare of masses


13. Returns to scale involve variations in the quantities of the various factors of production

Simultaneously, and/or

Proportionately


Both and are correct

is correct and is incorrect

is incorrect and is correct

Both and are incorrect.


14. The firm under perfect competition will be in short-run equilibrium when

Rising marginal cost is equal to the minimum average cost

Marginal revenue is equal to rising marginal cost.

Average revenue is equal to average cost

Marginal revenue is equal to the falling marginal cost.


15. Match the following

List I List II

Law of demand is fully applicable Giffen goods

Law of demand is not applicable at all Veblon goods

(iii)Law of demand is partly applicable Normal goods

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1 2 3

2 3 1

3 1 2

2 1 3


16. Statement I The heading for columns and rows are called caption and stub respectively.

Statement II Sturge's Rule is used to decide the nature of manifold classification
Which of the following is correct


Both I and II are false.

Both I and II are true.

I is true and II is false.

I is false and II is true.


17. F-test is used to test the significance of the differences between

Co-efficient of correlation between two sample groups.

Co-efficient of correlation among more than two sample groups.

Averages between two sample groups.

Averages of more than two sample groups.


18. Co-variance between two variables is

The average of the product of deviations taken from their averages.

A is further divided by the product of their standard deviations.

A is further divided by the product of their arithmetic averages.

None of the above


19. Statement A Standard error of the mean is the standard deviation of the sampling distribution of mean.

Statement B Simple random sampling is non-probability sampling method.
Which of the following combination is correct?

Both A and B are true.

Both A and B are false

A is true and B is false.

A is false and B is true.


20. Which of the following has RDBMS

Access

Excel


and

only

only

None of the above


21. In which type of organization is 'grapewine' communication used


Informal organization

Formal organization

Departmental organization

Matrix organization


22. In management science "Grid" refers to

Diverse managerial styles

Co-ordination

Communication

Motivation


23. "SWOT" is used for

Planning

Organising

Motivating

Controlling


24. Which of the following pairs is not matched

List I List II

Frederick Scientific Herzburg Management

Henry Fayol Modern Management

Max Weber Bureaucracy

Philip Kotlar Marketing


25. Which one of the following is not covered under corporate governance

Corporate social responsibility

Business ethics

Role of independent directors

Government monitoring


26. Market gridding means

establishing and running a web marketing facility

a method of survey of expert's opinion.

managing brands and developing brand equity

an analytical technique which facilitates dividing a market into segments.


27. Trade Mark is

a name, term, symbol or design which is intended to identify the goods and services of a seller.

a brand that has been given legal protection.

giving protection to the product and adding to it's aesthetics and sales appeal.

providing written information about the product.


28. Which of the following is not a part of strategic planning

Purposes and mission

Objectives

Choice of businesses

Social responsibility

29. Attitude means

Impulses, desires and considerations of the buyer, which induces him to purchase a product

A sum total of the individuals' faith and feelings towards a product.

The customer turning to his environment/world of information around him.

Creating some relentness in the mind of an individual.



30. Match the following

List I List II

Supply chain putting the product in the mind of the prospective buyer
management

Product positioning(ii) the process of gathering, filtering and analysing information relating to the marketing environment.

Marketing environment analysis improving the performance of dealers through sharpening of their sales skills and product knowledge

Dealer training larger in scope than both physical and marketing logistics


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31. Over capitalization may not be as a result of which one of the following

Promotion of a company with inflated assets

Application of low capitalization rate

Shortage of capital

Liberal dividend policy



32. Which one of the following is not matched

List I List II
Interest is a deductible expense Cost of debt capital

Realised-yield approach Cost of equitycapital

Extended yield approach Retained earnings

Dividend capitalization approach Cost of preference share capital



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and

and

and

and

33. The rate of discount at which NPV of a project becomes zero is also known as

Average Rate of Return

Internal Rate of Return

Alternate Rate of Return

None of the above

34. The dividend irrelevance theorem to share valuation was propounded by

James E. Walter

Myron Gordon

Modigliani and Miller

None of the above


35. Assertion Management of working capital refers to the management of current assets and current liabilities.

Reason But the major thrust of course, is on the management of current assets because current liabilities arise in the context of current assets.

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Both and are incorrect.

is correct and is incorrect.

Both and are correct.

is incorrect, but is correct.


36. Business plans designed to achieve the organizational objectives is called

Human Resource Planning

Human Resource Forecasting

Strategic Plan

Corporate Development Plan

37. "360" degree method relates to

Performance appraisal

Organization climate

Employees morale

Retrenchment


38. Match the following

List I List II

Adam Smith Subsistence Theory

Karl Marx Wages Fund Theory

John Davidson The Surplus Value Theory

David Ricardo Bargaining Theory


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39. Assertions

High morale leads to high productivity.

High morale need not necessarily lead to high productivity.


Both and are correct.

Both and are incorrect.

is correct and is incorrect.

is incorrect and is correct.



40. Statements

Fringe benefits, now-a-days, are a significant component of "compensation".

Under Piece-rate plan, employees are paid at a stipulated rate per hour of work done by them

Both and are correct.

Both and are incorrect.

is incorrect and is correct.

is correct and is incorrect.


41. Which one of the following is not an instrument of credit control in the banking system

Open market operations

Moral suasion

Cash Reserve Ratio

Tax rates


42. Match the following with their year of establishment

IDBI 1982

IFCI 1964

NABARD 1948

ICICI 1955


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43. Which of the following is not a function of a Rural Bank

To accept deposits

To waive loans

To grant advances

To supply inputs to farmers


44. From which date have all Banks started sharing their ATM free of cost for transactions

January 2009

April 2009

July 2009

September 2009


45. Which of the following is not the fund based business of commercial banks

D.P. Operations

Loans

Deposits

Discounting of Bills


46. Foreign Exchange and foreign currencies in India are governed by

SCRA Act

Banking Regulation Act

FEMA Act

SEBI Act

47. The balance of payments of a country on Current Account is equal to

Balance of trade plus short term capital flows.

Balance of trade plus net invisible exports.

Balance of payments minus capital flows.

Balance of invisible trade plus imports.

48. The following table shows cost per unit of production of two goods, wheat and cloth in two countries X and Y with no transportation cost and free trade

X Y
Rs. Rs.
Wheat 50 350
Cloth 100 500

Which one of the following will take place

No trade will take place.

X will export wheat and import cloth.

X will export cloth and import wheat.

There is no enough information to comment.


49. A debit balance of payments occurs due to

Low imports and high exports
High imports and low exports.


Both and are correct.

Both and are incorrect.

Only is correct.

Only is correct.


50. Match the following economic institutions with the year of their establishment

World Bank 1946

International 1956 Finance Corporation

International 1960 Development Agency

Asian Development 1966 Bank

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