PAPER-II COMMERCE Signature and Name of Invigilator

1. By which Act, the government checks restrictive trade practices

FEMA 1999


Consumer Protection Act, 1986


Industrial Policy Act, 1991


None of the above

2. In which year the new Industrial Policy was announced

1997


1951


1991


1998

3. The Narasimham Committee made separate recommendations for the reforms of

Manufacturing sector


Banking sector


Agriculture sector


Insurance Sector

4. Assertion(A): Disinvestment tends to arouse opposition from employees.

Reason(R): It may increase the cost of Production.

Both and are true.


is true, but is false.


Both and are false.


is false, but is true.

5. Match the following

Books Authors

a. India and Economic Reforms i. Bhagwati. J.

b. Development planning The Indian Experience ii. Chakravarty. S.

c. India Economic Development and Social Opportunity iii. Drenz, J and Amartya Sen

d. Fiscal Policy of Underdeveloped countries. iv. Chelliah, R.J.

Codes

a b c d

i ii iii iv


ii iii iv i


iii iv ii i


i iv iii ii


6. Which of the following accounting equations is not correct


Assets Liabilities Equity


Assets Equity Liability


Assets Liabilities Equity


Liabilities Equity =Assets


7. Which one of the following statements is correct

(A)Increases in liabilities are credits and decreases are debits.


(B)Increases in assets are credits and decreases are debits.


(C)Increases in capital are debits and decreases are credits.


(D)Increases in expenses are credits and decreases are debits.



8. A and B are partners in a firm sharing profit and loss in the ratio of
3 2. They admit C into partnership for 1/4 share and the new ratio between A and Bis 2 1. The sacrificing ratio is


1


1


1


3



9. Arrange the following liabilities in the order of company balance sheet.

(i)Bank Overdraft

(ii)Bank Loan

(iii)Share Capital

(iv)Provision for Taxation


ii, iii, iv


iii, ii, i


ii, iv


ii, iv, i



10. Intrinsic value of a share is given by Total net assets


(A)No. of shares Total assets


(B)No. of shares Share capital


(C)No. of shares Market capitalisation


(D)No. of shares

11. When demand curve is rectangular Hyperbola, the elasticity of demand will be


(A)Perfectly elastic


(B)Unit elastic


(C)Perfectly inelastic


(D)Highly elastic



12. Opportunity cost is a term which describes

bargain price for a factor of production.


(B)Cost related to an optimum level of production.


(C)Average variable cost.


(D)The cost of forgone opportunities.



13. Arrange the following books in order (year) in which they appeared.


a. Economic Theory and Operations Analysis by W.J. Baumol.

b. An introduction to positive Economics by R.G. Lipsey.

c. Economics by P. Samuelson.

d. Managerial Economics by Joel Dean.


d


b


c


a



14. Marginal revenue is at the quantity that generates maximum total revenue and negative beyond that point.

(A)zero


2


1


1



15. Assertion "Utility will be maximised when the marginal unit of expenditure in each direction brings the same increment of utility."

Reason(R): A consumer will try to maximise his utility.

(A)Both and are true.


(B)Both and are false.


is true, but is false.


is false, but is true.



16. In a predominantly illiterate area consisting of 10,000 population, data has to be collected from 10% of them. The appropriate technique for data collection would be

(A)Questionnaire


(B)Schedule


(C)Interview


(D)All the above



17. In a unimodal and symmetric distribution, the relationship between averages is like this.

(A)mean median mode


(B)mean median mode


(C)mean median mode


(D)mean median mode



18. Given the following tests









The concept of degrees of freedom is associated with

and


and


and


and



19. Which one of the following is not an accounting software

(A)Tally


(B)Miracle


(C)Profit


(D)SPSS



20. E-marketing is


(A)Buying and selling of goods and services through internet.


(B)Buying of goods through internet.


(C)Selling of goods through internet.


(D)All of the above.


21. Match the items in List-I with items in List-II.

List I List II

a. Peter F. Druker i. M.B.O.

b. F.W.Taylor ii. Scientific Management

c. Henri J. Fayol iii. Industrial Psychology

d. Hugo Munsterberg iv. Functional Theory

Codes

a b c d

i ii iii iv


i ii iv iii


iv iii ii i



iii i iv ii


22. The main advantage of functional organization is

(A)Simplicity


(B)Specialisation


(C)Experience


(D)Authority


23. Which of the following is the most democratic form of organisation

(A)Line


(B)Line and Staff


(C)Functional


(D)Committee


24. Plan made in the light of a competitor's plan is known as

(A)Policy


(B)Procedure


(C)Strategy


(D)Under-cover plan


25. A proposed organizational change may create

(A)Emotional Turmoil Tension


(B)Problem of social displacement


(C)Fear of unknown


(D)All of the above


26. Match the following statements with their authors

a. "Marketing mix is a pack of four sets of variables, namely; product variables, price variables, promotion variables and place variables". i. Wheeler

b. "The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market." ii. Cundiff, Still Govoni

c. "Marketing is the managerial process by which products are matched with markets and through which transfers of ownership are affected." iii. Mc Carthy

d. "Marketing is concerned with all the resources and activities involved in the flow of goods and services from producer to consumer". iv. Philip Kotler

Codes

a b c d

ii iv i iii


i ii iv iii


iv iii i ii


iii iv ii i



27. Which one of the following is not the mode of Direct Distribution system

(A)Multiple shops


(B)Door to door selling


(C)Broking agent


(D)Direct mail order



28. Which one of the following is not matched correctly


(A)Sales Internal Sales Portfolio Promotion


(B)Merchandise Dealer Allowance Promotion


(C)Count and Consumer Recount of Promotion Stock


(D)Advertising Market Promotion



29. Assertion "Advertising plays a vital role in selling products/services."

Reason(R): "Sales promotion is incomplete without a good advertising plan."

Codes

is correct, but is false.


is false, but is correct.


(C)Both and are correct.


(D)Both and are false.



30. Which one of the following contains the three elements of service marketing triangle

(A)Management, Marketing Agency and Consumer.


(B)Marketing Agency, Government and Consumer.


(C)Management, Employees and Marketing Agency.


(D)Management, Employees and Consumer.



31. Read the following statements

(i)"The rate of return on investment increases with the shortage of working capital."

working capital is the excess of current assets over current liabilities."

(iii)"Greater the size of the business unit, larger will be the requirement of working capital."

(iv)"Working capital is also known as circulating capital."

Which one of the following consists of the correct statements


and


and


and


and



32. Match the following

Capital Budgeting Time adjusted rate of return

Profitability Index Irreversible

Internal rate of return Benefit/cost

Capital investment decisions Planning capital Expenditure

Codes
















33. Which one of the following is correct

(i)Liquidity ratios measure long term solvency of a concern.

(ii)Inventory is a part of liquid assets.

(iii)Rule of thumb for acid test ratio is 2 1.

(iv)The amount of gross assets is equal to net capital employed.


and


and


and


(D)None of the above



34. According to which of the following, the firm's market value is not affected by capital structure

Hypothesis


(B)Net Income approach


(C)The Traditional view


(D)None of the above



35. Modigliani and Miller's dividend policy of a firm is

(A)Relevant


(B)Irrelevant


(C)Unrealistic


(D)None of the above



36. The concept of Quality circles is a brain child of

(A)Karou Ishikawa


(B)Munchu


(C)Japanese Union for Scientists Engineers


(D)None of the above



37. Performance appraisal is

(A)Morale boosting


(B)Training and Development Activity


(C)Job Analysis


(D)None of the above



38. The mechanism to identify employee's growth potentials is done through

(A)Job enrichment


(B)Job evaluation


(C)Assessment centre


(D)Position Description



39. Statements

(i)High morale always leads to high productivity.

(ii)High morale need not necessarily lead to high productivity.


is correct,(ii) is incorrect.


is incorrect,(ii) is correct.


(C)Both are correct


(D)Both are incorrect



40. Arrange the following in order

(i)Promotion

(ii)Performance appraisal

(iii)Recruitment

(iv)Training and Development















41. Find out the odd one out of the following

(A)State Bank of India


(B)Reserve Bank of India


(C)Union Bank of India


(D)Central Bank of India



42. SIDBI was set up in as a wholly owned subsidiary of

(A)1985 EXIM


(B)1969 RRBS


(C)1975 IFCI


(D)1990 IDBI



43. The most important reason for an investor to prefer a Bank deposit is

(A)The credit worthiness of the Bank.


(B)The Bank does not invest in the securities.


(C)The Bank offers a guarantee.


(D)All of the above.



44. Main objectives of CRR and SLR is to ensure

Liquidity position of Bank

Financial position of Bank.

(iii)Profit position of Bank


(A)Only is correct.


(B)Only is correct.


(C)Only is correct.


(D)All are correct.



45. NABARD has taken over the entire functions of

(A)ARDC


(B)ACD of RBI


(C)RPCD of RBI


(D)All of the above



46. Which of the following is the best example of Agreement between oligopolists


(A)GATT


(B)OPEC


(C)WTO


(D)UNIDO



47. Factor Endowment Theory of International Trade was propounded by

(A)David Ricardo


(B)Bertil Ohlin


(C)J.S. Mill


(D)C.P. Kindleberger



48. Assertion(A): The British established and developed Indian Railways.

Reason(R): The British are keenly interested in India's economic development.


(A)Both and true.


(B)Both and are false.


is true, but is false.


is false, but is true.



49. Which of the following is also known as World Bank

(A)IMF


(B)IBRD


(C)ADB


(D)IFC



50. Special Economic Zones have been created first time in the

(A)EXIM Policy 2000


(B)EXIM Policy 2005


(C)Industrial Policy 1956


(D)Industrial Policy 1991