Ugc Net Set Commerce Paper - 2 & 3

PAPER- II&III
(COMMERCE)
PREVIOUS YEAR PAPERS
WITH SOLUTION
COMMERCE
UGC PREVIOUS PAPERS II&III (OBJECTIVE)
CONTENT
SR. PAPERS PAGE

NO. NO.
1 June -2015 (Paper-II) with Answer Key 01
2 June -2015 (Paper-III) with Answer Key 13

3 Dec -2014 (Paper-II) with Answer Key 33
4 Dec -2014 (Paper-III) with Answer Key 45
5 June-2014 (Paper-II) with Answer Key 61
6 June-2014 (Paper-III) with Answer Key 69
9 Sept -2013 (Paper-II) with Answer Key 101
10 Sept -2013 (Paper-III) with Answer Key 109
11 June -2013 (Paper-II) with Answer Key 121
12 June -2013 (Paper-III) with Answer Key 129
15 June-2012 (Paper-II) with Answer Key 159
16 June-2012 (Paper-III) with Answer Key 170
17 Dec -2011 (Paper-II) 179
18 Dec -2010 (Paper-II) 186
19 June-2010 (Paper-II) 193
20 Dec -2009 (Paper-II) 200
SR. PAGE
NO. PAPERS NO.
21 June-2009 (Paper-II) 207
-
JUNE-2015
COMMERCE
PAPER - II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.
The world’s first electronic stock market is :

(1) KOSPI (2) Nikkie (3) NASDAQ (4) Dow Jones
The Human Development Index (HDI) is introduced by :

(1) UNDP (2) UNICEF (3) IMF (4) World Bank
Examine the following statements and choose the correct code :

Assertion (A) : American style option, compared to European style, provides more freedom
to option holders in exercising the option.
Reason (R) :American style option can be exercised only at a specified date which is
generally 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.
From the statements given below, identify the correct code :

Statement (I) : The key strategy behind acquiring a company is to create share holder’s
value.
Statement (II) : Conglomeration is a merger between two companies that have common
business areas.
Statement (III) : MRTP Act got replaced by the Competition Act, 2002 in India.
Codes :
All the three statements are correct.
Statements (I) and (II) only are correct.
Statements (I) and (III) only are correct.
Statement (II) only is correct.
Paper-II
1
From the following, identify the tools of fiscal policy :
Public expenditure
Open market operations
Deficit financing
Taxation
Reserve requirements
Codes :
(1) (i), (iii), (iv) and (v) (2) (i), (ii), (iv) and (v)
(3) (ii) and (v) (4) (i), (iii) and (iv)
The basic difference between a static budget and flexible budget is that :
A flexible budget considers only variable costs but a static budget considers all costs.
Flexible budgets allow management latitude in meeting goals, whereas static budget is
based on fixed standards.
A flexible budget is applicable for a single department only but a static budget for entire
production facility.
A flexible budget can be prepared for any production level within a relevant range but a
static budget is based on one specific level of production.
A retiring partner continues to be liable for obligations incurred after his retirement :
If unpaid amount is transferred to his loan account.
If he does not give public notice.
If he starts a similar business elsewhere.
In all the situations till he survives.
In what order, the following assets are shown in the balance sheet of a company ?
Trade receivables
Cash
Furniture and fittings
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)
Paper-II
2
When opening stock is ` 50,000, closing stock is ` 60,000 and the cost of goods sold is `
2,20,000, the stock turnover ratio is :
(1) 2 times (2) 3 times (3) 4 times (4) 5 times
If : Stock turnover ratio is 56 times
Average stock 58,000
Selling price 525% above cost
What is the amount of gross profit ?

(1) ` 2,000 (2) ` 4,000 (3) ` 10,000 (4) ` 12,000
A rectangular hyperbola shaped demand curve on all its points has :
Equal slopes of the price demand curve
Price elasticity equal to unity
Varying price elasticity
Both slope and price elasticity equal
In case of short-run equilibrium, a perfectly competitive firm while earning abnormal profits
operates at an output level where :
Marginal cost is the minimum
Average cost is the minimum
Both marginal cost and average cost are equal
Marginal cost is higher than average cost
Which one of the following statements is false ?
Normally, a price demand curve slopes downward from left to right.
Economies of scale and economies of scope are the same.
For optimization, equality between marginal cost and marginal revenue is a necessary
condition but it is not a sufficient one.
Law of variable proportions denotes input-output relationship during short-run.
!HILAL AHMAD
786 6 Paper-II
Ahmed
Match the items of List-I with the items of List-II :
List-I List-II
(a) Law of diminishing marginal (i) Cross demand
Utility
(b) Relationship between price of (ii) Oligopoly
one commodity and demand for
other commodity
(c) Skimming the cream policy (iii) Cardinal approach
(d) Price rigidity (iv) Pioneer pricing
Codes :
(b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iii) (i) (ii) (iv)
(3) (ii) (iv) (i) (iii)
(iv) (iii) (ii) (i)
The following are the demand and supply equations in a perfectly competitive market :
P51210.3 Qs
P54020.4 Qd
The equilibrium market price would be :
(1) 24 (2) 10 (3) 40 (4) 20
Which of the following is not an accounting software package ?

(1) Quick Books (2) Sage one (3) Sage M (4) Sage 50
Which one of the following formula is used to calculate probable error of correlation-coefficient
between two variables of ‘n’ pairs of observations ?
2 2
12r 12r
(1) 0.6745 (2) 0.5758
n n
2 2
12r 12r
(3) 0.675 (4) 0.5758
n n
If the population is heterogeneous, which one of the following probability sampling methods
is more appropriate ?
(1) Sequential sampling (2) Quota sampling
(3) Double sampling (4) Stratified sampling
J-0815 !HILAL AHMAD 8 Paper-II

Which of the following relating to normal distribution are not correct ?
Co-efficient of skewness is three.
It is mesokurtic.
2
(iii) Mean deviation for it is 3 s .
(iv) m62s covers 95.45% area.
(v) Mean, median and mode are equal.
(vi) The standard normal variate z has mean one and SD zero.
Codes :
(1) (i), (iii) and (vi) (2) (iii), (iv) and (v) (3) (i), (iii) and (v) (4) (i), (iii) and (iv)
Which one of the following statements is false ?

Both correlation and regression co-efficients have same sign.
Arithmetic mean of the regression co-efficients is always more than the correlation co-
efficient.
Regression co-efficients are independent of both the origin and scale.
Correlation co-efficient is the square root of two regression co-efficients.
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 (ii) William B. Cornell
does not remain a factory, it is converted
into a laboratory”.
(c) “Management succeeds or fails as (iii) F.W. Taylor
human relations in business are
intelligently or unintelligently handled”.
(d) “A place for everything, and (iv) Lawrance A. Appley
everything in its place”.
Codes :
(b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (ii) (iv) (iii)
(3) (iv) (iii) (ii) (i)
(iii) (ii) (i) (iv)
786!HILAL AHMAD 10 Paper-II

Assertion (A) : Management is mainly associated with economic affairs.
Reasoning (R) : Big business houses are the result of effective financial management.
Codes :
(A) is correct and (R) is the right explanation of (A).
Both (A) and (R) are correct but (R) is not the right explanation of (A).
(A) is incorrect but (R) is correct in isolation.
Both (A) and (R) are incorrect.
Areas of establishing objectives under MBO are :

Market Standing
Innovation
Industrial Relations
Public Accountability
Productivity
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)
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 :
(b) (c) (d)
(1) (i) (iv) (ii) (iii)

(2) (iii) (iv) (i) (ii)
(3) (iv) (iii) (ii) (i)
(iii) (iv) (ii) (i)
6
!HILAL AHMAD
786 12 Paper-II
7
Narayan Murthy Committee revised its recommendations on Corporate Governance as on
th
29 October 2004 which diluted the following areas :
Independence of Directors
Whistle Blower Policy
Performance evaluation of Non-Executive Directors
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)
The service marketing mix is an extended marketing mix and includes :

People
Process
Service
Physical evidence
Codes :
(1) (ii), (iii) and (iv) (2) (i), (ii) and (iii) (3) (i), (ii) and (iv) (4) (i), (iii) and (iv)
Black box model in marketing relates to :

(1) Marketing planning (2) Marketing mix
(3) Marketing control (4) Consumer behaviour
Items, considered part of the augmented product, do not include :

(1) Guarantee (2) Warranty
(3) Complementary products (4) Channels of distribution
Which of the following is not a type of direct marketing ?

(1) Direct mail marketing (2) Retail marketing
(3) Telemarketing (4) Email direct marketing
786
14
!HILAL AHMAD Paper-II
‘Press release’ is a part of :
Public relations
Sales promotion
Advertising
None of the above
In capital budgeting, the term capital rationing implies :
that no retained earnings are available.
that limited funds are available for investment.
that no external funds can be raised.
that no fresh investment is required in current year.
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
Combined leverage is calculated as :

Operating Leverage1Financial Leverage
Which of the following is not true with reference to capital budgeting ?

Capital budgeting is related to asset replacement decisions.
Cost of capital is equal to minimum required return.
Existing investment in a project is not treated as sunk cost.
Timing of cash flows is relevant.
What is Economic Order Quantity ?
(1) Cost of an order (2) Cost of stock

(3) Reorder level (4) Optimum order size
Which of the following is not a basic objective of HRM ?

To attract HR into the organisation
To develop and motivate HR for better performance
To have the reward and punishment system for HR
To integrate and maintain HR in the organisation
!HILAL AHMAD
786 16 Paper-II
What is ‘gate hiring’ ?
To select people who approach on their own for employment in the organisation.
To select people who are recommended by the employees.
To select people from public employment exchanges.
To select people supplied by labour contractors.
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
The barriers to effective performance appraisal are :
Psychological blocks of managers
Faulty assumptions of the parties concerned
Technical pitfalls
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.
Who has developed the ‘Systems Approach’ of industrial relations ?
(1) John Dunlop (2) Garry S. Becker

(3) Michael J. Jucius (4) Edwin B. Flippo
In 1992, the banking sector reforms were introduced as per :
C. Rangarajan Committee Report
M. Narasimham Committee Report
Suresh Tandulkar Committee Report
Sukhamoy Chakrabarty Committee Report

!HILAL AHMAD
786 18 Paper-II
For the purpose of extending rural banking and agro finance, the NABARD :
Directly lends and monitors the rural borrowers
Refinances the banks extending rural finance
Refinances the rural borrowers obtaining credit from banks
Directly finances the rural borrowers and gets refinance from government
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
E-banking business is essentially regulated by the Information Technology Act, 2000, under
which personal signature is replaced by :
(1) Encrypted signature (2) Image signature

(3) Digital signature (4) Online signature
In order to control inflation and ensure stability in money market :
The RBI works under the direction of ministry of finance, government of India.
The RBI acts independently and can refuse the government directive.
The RBI acts under the board of directors.
The RBI’s board of governors shall abide by the government directive.
In respect of international business, a project is called a turnkey project because :
The licensee agrees to construct an entire plant in his home county and hands over the key.
The licensor starts the operation and hands over the key of the operating plant to the
licensee.
The licensor starts the operation and then invites the licensee and hands over the key to
complete the remaining work.
The licensor and the licensee jointly carry out the project and agree to share profit equally.
786!HILAL AHMAD 20 Paper-II
10
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) IDA
Codes :
(b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iv) (iii) (ii) (i)
(3) (ii) (iv) (i) (iii)
(iv) (ii) (iii) (i)
Assertion (A) : The member nations, consistently finding balance of payments crisis, may
approach the World Bank seeking financial accommodation to mitigate the
cirsis.
Reasoning (R) : The member nations facing balance of payments crisis can approach the
IMF seeking redressal of the BOP crisis.
Codes :
(A) is correct and (R) is correct explanation of (A).
(A) is correct but (R) is wrong.
(R) is correct and (A) is wrong.
Both (A) and (R) are wrong.
In computation of balance of payments, overall balance of payments5

Balance of current account1Balance of capital account1Statistical discrepancy
Export of goods and invisibles2Import of goods
Foreign exchange inflow2Foreign exchange outflow
Export of goods and invisibles1Import of goods and invisibles
The instrument chosen for enhancement of international liquidity is :

Society for World wide Inter bank Financial Telecommunications (SWIFT)
Special Drawing Rights (SDRs)
Multilateral Netting
Netting of Payments
o0o-
!HILAL AHMAD
786 22 Paper-II
11
UGC - NET JUNE 2015
ANSWER KEYS (PAPER II)
SUBJECT : 08 (Commerce)
Qus. No. Ans. Qus. No. Ans.
1 3 26 3
2 1 27 4
3 3 28 4
4 3 29 2
5 4 30 1
6 4 31 2
7 2 32 4
8 3 33 3
9 3 34 3
10 4 35 4
11 2 36 3
12 4 37 1
13 2 38 2
14 3 39 4
15 1 40 1
16 3 41 2
17 1 42 2
18 4 43 4
19 1 44 3
20 3 45 2
21 3 46 2
22 3 47 3
23 2 48 3
24 4 49 1
25 4 50 2
12
JUNE-2015
COMMERCE
PAPER - III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
GNP at market prices2Indirect taxes1subsidies is referred to as :
(1) GNP at factor cost (2) GDP at factor cost

(3) NNP at factor cost (4) NDP at factor cost
EDI system got legal recognition under which one of the following Acts ?
(1) Electronics Act, 1996 (2) Right to Data Act, 1998

(3) DGFT Act, 1999 (4) Information Technology Act, 2000
Following statements are related to futures contracts. Choose the statements that are not
true :
Purchase of a futures contract is called short position.
Currency futures are traded on an exchange in standardised form and in fixed quantity.
Default risk in futures contract is high compared to forward contract.
Codes :
(1) only (a) and (b) (2) only (a) and (c) (3) (a), (b) and (c) (4) only (b)
From the following, identify the trading blocks in the world and choose the correct code :
European Union
North American Free Trade Agreements
South Asian Association of Regional Co-operation
Central American Common Market
Central African Customs Union
Codes :
(1) (a), (b) and (c) (2) (a), (b), (c) and (d)
(3) (a), (b), (c), (d) and (e) (4) (a), (b) and (e)
786 !AHMED! 2 Paper-III
13
Match the items of List - I with items of List - II and choose the correct code :
List - I List - II
(a) Carroll Model (i) International trade
(b) Corlett - Hague Rule (ii) Interest rate
(c) Hecksher Ohlin Theorem (iii) Principles of taxation
(d) Knut Wick sell’s Theory (iv) Social responsibility of business
Codes :
(b) (c) (d)
(1) (iv) (iii) (i) (ii)

(2) (iii) (ii) (i) (iv)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)
Labour Rate of Pay Variance can be calculated by which one of the following equations ?
Budgeted Labour Costs2Actual Labour Costs
(Standard Hours2Actual Hours)3Actual Wage Rate
(Standard Wage Rate2Actual Wage Rate)3Actual Hours Worked
(Standard Wage Rate2Actual Wage Rate)3Standard Hours Worked
Given :
Margin of Safety ` 80,000

Profit ` 20,000
Sales ` 3,00,000
What is the amount of Fixed Cost ?
(1) ` 1,00,000 (2) ` 75,000 (3) ` 55,000 (4) ` 20,000
Preparation of consolidated statement of accounts as per AS - 21 is :

Optional
Mandatory for Private Ltd. Companies
Mandatory for Listed Companies
Mandatory for all Companies
786
!AHMED! 4 Paper-III
⸀Ā ᜀ Ā ᜀ Ā ᜀ Ā ᜀ Ā
hich one of the following is not true of cash Budget ?
The shortage or excess of cash would appear in a particular period.
All inflows would arise before outflows for those periods.
Only revenue nature cash flows are shown.
Proceeds from issue of share capital is shown as an inflow.
⸀Ā ᜀ Ā ᜀ Ā ᜀ Ā ᜀ Ā
tudy the following transactions :
Raising of short term loans
Goods purchased for cash
Payment of bonus in the form of shares
Issue of shares in lieu of raw materials
Flow of funds is :
(a), (b), (c), and (d)
(b), (c), and (d)
(c) and (d)
Only (d)
When a consumer increases units of X - commodity by giving up some units of Y- commodity

and even to attain the same level of satisfaction, the marginal rate of substitution, will be
calculated by :
Change in X - Commodity divided by change in Y - Commodity
Change in X - Commodity divided by marginal utility of Y - Commodity
Change in Y - Commodity divided by change in X - Commodity
Change in Y - Commodity divided by marginal utility of X - Commodity
The following is the demand function in the small market :

Q55025P
Where ‘Q’ denotes quantity in physical units and ‘P’ denotes price of the commodity. At price
` 5, the point price elasticity of demand would be :
(1) Zero (2) Equal to unity

(3) Highly elastic (4) Highly inelastic

15
Match the items of List - I with the items of List - II and find out the correct matching.
List - I List - II
Production functions Name of the shapes of returns to scale
(a) Q510.2 K0.19 L0.88 (i) Constant Returns to scale

(b) Q51.01 L0.75 K0.25 (ii) Diminishing Returns to scale
(c) Q50.84 L0.63 K0.3 (iii) Increasing Returns to scale
Codes :
(b) (c)
(i) (ii) (iii)
(ii) (i) (iii)
(ii) (iii) (i)
(4) (i) (iii) (ii)
In the short-run, when a simple monopoly firm attains equilibrium and earns only normal
profit, its level of output will correspond to :
Lowest average cost
Average cost above optimum level of output
Average cost equals marginal cost
Marginal cost much below average cost
Which one of the following is a false statement ?

Ramsey pricing rates to the methodology of pricing to situations where firms are
regulated and the maximization of allocative efficiency is the objective of pricing
together with the objective of profit - maximization.
Peak-load pricing is a pricing practice where price varies with time of the day.
Value-pricing is the practice of pricing where the price is set based on its value to
the customer.
Two - part tariff refers to a price structure which has two parts - a lump sum
charge and a variable charge.
All the properties of order, interval and zero origin are simultaneously possessed by :
(1) Nominal Data (2) Interval Data (3) Ratio Data (4) Ordinal Data
786
!AHMED! 8 Paper-III
16
Under which of the following situations, chi - square test is applicable ?
testing homogenity
testing goodness of fit
testing equality of two sample means
testing equality of two sample proportions
testing independence of attributes
Codes :
(1) Only (a), (b) and (c) (2) Only (a), (b) and (e)
(3) Only (c), (d) and (e) (4) Only (a), (c) and (e)
Which one of the following is not the correct statement regarding sampling distribution of
mean ?
Sampling distribution of mean is normally distributed for large sized samples.
Sampling distribution of mean is normally distributed for small sized samples
drawn from not normally distributed population.
‘t’ distribution is not normally distributed.
Mean of the sampling distribution of mean is equal to the parametric value of mean.
Consider the following statements and identify the wrong statements :

Statement - I : Accepting null hypothesis, when it is false, is called a level of
significance.
Statement - II : 12a is called power of a test.
Statement - III : Critical value of Z - static for two - tailed test at 5% level of significance
is 1.96.
Codes :
Statements I, II and III
Statements I and III
Statements II and III
Statements I and II
The process of thoroughly checking the collected data to ensure optimal quality level is
referred to as :
(1) Validation (2) Editing (3) Classification (4) Entry
786
!AHMED! 10 Paper-III
Statement - (I) : Management is the art of knowing what you want to do and then
seeing that it is done in the best and the cheapest way.
Statement - (II) :Management is the process of planning and regulating the activities of
an enterprise.
Statement (I) is correct, but (II) is incorrect
Statement (II) is correct, but (I) is incorrect
Both the statements (I) and (II) are incorrect
Both the statements (I) and (II) are correct
Assertion - (A) :No business runs itself, even on momentum . . . . . every business needs
repeated stimulus.
Reasoning - (R) : The management is the dynamic, life giving element in every
business, without its leadership, the resources of production remain
as resources and never become production.
Assertion (A) and Reasoning (R), both are correct, and (R) is the correct explanation
of (A).
Assertion (A) and Reasoning (R), both are correct, but (R) is not the correct
explanation of (A).
Assertion (A) is correct, but Reasoning (R) is incorrect.
Reasoning (R) is correct, but Assertion (A) is incorrect.
Match the items of List - I with List - II :

List - I List - II
(a) Credit Mobilier (i) Charles Babbage
(b) Charleton Twist Company (ii) Henry Fayol
(c) Difference Engine (iii) Claud Henri Saint Simon
(d) Commentry Four Chambault (iv) Robert Owen
Codes :
(b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (i) (iv) (ii)
(i) (iii) (iv) (ii)
(4) (ii) (i) (iv) (iii)
Find out the correct combination of statements with regards to business ethics :
Business ethics is the behaviour that a business adheres to in its daily dealings.
The ethics of a particular business can be diverse.
Business ethics has normative and descriptive dimensions.
(1) Only (a) and (b) (2) Only (a) and (c)
(3) Only (b) and (c) (4) All (a), (b) and (c)

Which one of the following is not correct about business ethics ?
Business ethics reflects the philosophy of business.
Business ethics is a form of applied ethics.
Business ethics are governed by the Government Policies.
Ethics are the standards which govern decisions on daily basis.
A marketing network consists of :
The tasks to devise marketing activities.
The tasks of hiring, training and motivating employees.
The activities that help in designing and implementing the marketing programmes.
The company and its supporting stakeholders with whom it has built mutually profitable
business relationships.
Target marketing involves which of the following activities ?
Market positioning
Market targeting
Market behaviour
Market segmentation
Code :
(a) and (b)
(b) and (d) (a),
(b) and (d) (b),
(c) and (d)
The pricing strategy which adjusts the basic price to accommodate differences in customers,
products and locations is called :
(1) Differentiated pricing (2) Promotional pricing
(3) Geographical pricing (4) Price discounts and allowances

Horizontal marketing system comprises of :
the producer, wholesaler and retailer acting in a unified system.
multichannel marketing.
two or more marketing channels to reach one or more customer segments.
two or more unrelated companies put together resources to exploit an emerging market.
Match the items of List - I with the items of List - II :
List - I List - II
(a) Face-to-face interaction with (i) Sales promotion
one or more prospective purchasers
(b) Any paid form of nonpersonal (ii) Public relations
promotion
(c) Short-term incentives to encourage (iii) Personal selling
purchase
(d) Programmes to promote company’s (iv) Advertising
image
Codes :
(b) (c) (d)
(1) (iii) (iv) (ii) (i)

(2) (iii) (iv) (i) (ii)
(3) (ii) (i) (iii) (iv)
(4) (ii) (iii) (i) (iv)
Which of the following techniques for appraisal of investment proposals are based on time
value of money ?
Accounting Rate of Return
Internal Rate of Return
Profitability Index Method
Earnings Per Share
Codes :
(1) (a) and (b) (2) (b) and (c) (3) (a) and (d) (4) (a), (b) and (d)
786
On the basis of the following information, what will be the EBIT corresponding to financial
indifference point ?
Total capital outlay ` 60,00,000
Financing Plans
100% Equity @ ` 10/- per share
Debt – equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%
(1) ` 10,00,000 (2) ` 12,00,000 (3) ` 10,80,000 (4) ` 12,80,000
⤀Ā ᜀ Ā ᜀ Ā ᜀ Ā ᜀ
hich one of the following assumptions is not included in the James E. Walter Valuation
model ?
All financing by retained earnings only
No change in the key variables such as EPS and DPS
The firm has finite life
All earnings are either distributed as dividends or invested internally immediately
⤀Ā ᜀ Ā ᜀ Ā ᜀ Ā ᜀ
atch the items of List - I with the items of List - II and find out the correct matching.
List - I List - II
(Formulae) (Type of leverages)
Contribution
(a) (i) Financial leverage
EBIT
EBIT
(b) Earnings before Tax (EBT) (ii) Super – leverage
Contribution
(c) (iii) Operating leverage
EBT
Codes :
(b) (c)
(ii) (iii) (i)
(i) (ii) (iii)
(iii) (ii) (i)
(ii) (i) (iii)
786
21
Statement - I : Working capital leverage measures the responsiveness of Return on Equity for
changes in current Assets.
Statement - II : When the annual demand for an item is 3200 units, unit cost ` 6, inventory
carrying charges 25% p.a. and cost of one procurement ` 150, the
economic ordering quantity would be 700 units.
Codes :
Both statements are correct
Both statements are incorrect
Statement - I is correct and Statement - II is incorrect
Statement - I is incorrect and Statement - II is correct
List - I List - II
Conventional HRM Strategic HRM
(a) Staff specialists (i) Fast and proactive
(b) Slow and reactive (ii) People and knowledge
(c) Capital and products (iii) Line managers
(d) Cost centre (iv) Investment centre
Codes :
(b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (ii) (iii) (i) (iv)
(3) (iii) (ii) (i) (iv)
(4) (i) (ii) (iii) (iv)
Which one of the following is a traditional method for selection of personnel ?

(1) Interview (2) Selection Test (3) Phrenology (4) Aptitude Test
The method of training in crafts, trades and technical areas is known as :
(1) Vestibule training (2) Coaching

(3) Mentoring (4) Apprenticeship
22
Behaviourally Anchored Rating Scale is a technique used for :
(1) Selection (2) Succession Planning
(3) Performance appraisal (4) Recruitment
Which one of the following is not a mechanism of managing stress ?
(1) Rust out (2) Cognitive therapy
(3) Job enrichment (4) Networking
Interest earned by a depositor against a deposit with a commercial bank for custodial service :
is a fund based income
is a fee based income
is a combination of fund and fee based gain
is a commitment based gain
Match the items in List - I with the items in List - II :
List - I List - II
(a) ATM card (i) NPA
(b) Debts due for more than 30 days (ii) John Shephard Barron
(c) Micro finance (iii) State Finance Corporations Act
(d) State level finance corporations (iv) NABARD
Codes :
(b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (iv) (iii) (ii) (i)
(ii) (i) (iii) (iv)
786
23
Assertion (A) : A well developed money market is the basis for an effective monetary policy. It
is in the money market that the Central Bank comes into contact with the
financial sectors of the economy as a whole and it is through the liquidity in
the market that influence the cost and availability of credit.
Reasoning (R) : A well organised money market is an essential condition for the successful
operation of the Central Banking policies, and for holding the conditions of
liquidity within the bounds of what the monetary authorities consider
desirable.
(A) is true but (R) is false
(R) is true but (A) is false
(A) is true and (R) offers correct explanation to (A)
Both (A) and (R) are false
The operations of banks and financial institutions are regulated by :
The RBI Act 1934 only
The Banking Regulation Act 1949 only
Information Technology Act 2000 only
All of the above
To operationalise online, internet, mobile banking, debit card and credit card tools, some of the
essential ingredients are :
Compliance with the Information Technology Act 2000
Satellite connection
Selection of a portal and server
All of the above
Any country consistently facing balance of payment deficiency can approach :
The World Bank
The Smithsonian Institute
IMF
The IMF and the IBRD
786
24
Counter–trade means :
A sort of bilateral trade where one set of goods is exchanged for another set of goods
and a seller provides a buyer with deliveries.
A company takes full responsibility for making its goods available in the target market
by selling directly to the end-users.
The companies in two separate sovereigns agree to exchange one set of goods for
another set of goods.
A set of multilateral trade where one of goods and services may be exchanged for
another set of goods and services among the trading partners.
The floating rate system is characterised by :

the market forces that determine the exchange rate between two currencies.
the central banking authorities of the two countries mutually agree upon the rate.
help realigning the par value of major currencies.
the rate of exchange mutually agreed upon between IMF and its member nations.
A practice of selling a commodity in a foreign market at a price lower than the domestic price;
and even at equal to the cost of production to capture foreign market is known as :
(1) Gouging (2) Forging (3) Dumping (4) Forfeiting
The highest percentage of export from India went to which of the following regions in
2013-14 ?
(1) OECD countries (2) USA
(3) SAARC (4) Latin America
Match the items of List - I with the items of List - II and select a correct code :
List - I List - II
(a) SEBI (i) Exchange for small companies
(b) RBI (ii) Secondary market in treasury bills
(c) STCI (iii) Regulation of secondary market
(d) OTCEI (iv) Ad-hoc treasury bills
Codes :
(b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (iii) (iv) (ii) (i)
(3) (iii) (i) (ii) (iv)
(ii) (iii) (i) (iv)
786
X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd. It is a
case of :
(1) Amalgamation (2) Absorption
(3) Internal reconstruction (4) External reconstruction
When the cost incurred on recruiting, training and developing the employees is considered for
determining the value of employees, it is called :
(1) The replacement cost approach (2) The historical cost approach
(3) The opportunity cost approach (4) None of the above
In India, NIFTY and SENSEX are calculated on the basis of :

(1) Market capitalisation (2) Paid up capital
(3) Free-float market capitalisation (4) Authorized share capital
Financial Instruments which are issued with detachable warrants and are redeemable after
certain period is known as :
(1) Deep Discount Bonds (2) Secured Premium Notes
(3) Bunny Bonds (4) Junk Bonds
Which of the following can be used by a company as communication mix to reach the target
customers ?
Advertising
Sales promotion
Events and experiences
Public relations
Direct marketing
Personal selling
Codes :
(1) (a), (b), (d) and (f) (2) (a), (b), (e) and (f)
(3) (a), (b), (d), (e) and (f) (4) (a), (b), (c), (d), (e) and (f)
In addition to motivation, learning and memory, which one of the following is included in the
main psychological processes affecting consumer behaviour ?
(1) Perception (2) Life cycle (3) Life style (4) Social class
786
List - I List - II
(a) Geographic Segmentation (i) Gender, income, religion
(b) Demographic Segmentation (ii) Knowledge, attitude, response
(c) Psychographic Segmentation (iii) Regions, cities, neighbourhoods
(d) Behavioural Segmentation (iv) Lifestyle, personality traits, values
Codes :
(b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (ii) (iv) (i) (iii)
(3) (iv) (ii) (i) (iii)
(4) (iv) (i) (ii) (iii)
Which one of the following is not a stage in the product life cycle ?
(1) Introduction (2) Growth (3) Equilibrium (4) Decline
Which one of the following is correct statement in respect of co-branding ?

Co-branding is an umbrella branding of goods of a company.
In co-branding, two or more well-known existing brands are combined into a joint
product.
Co-branding is the process of combining two brands for promoting brand equity.
All of the above
Which one of the following is not a major punishment ?

(1) Withholding of increments (2) Demotion
(3) Transfer (4) Suspension
Assertion (A) : Job evaluation is essentially a job rating process, not unlike the rating of
employees.
Reasoning (R): Job evaluation is a practice which seeks to provide a degree of objectivity in
measuring the comparative value of jobs within an organisation and among
similar organisations.
Both Assertion (A) and Reasoning (R) are correct
Both Assertion (A) and Reasoning (R) are incorrect
Assertion (A) is correct, but Reasoning (R) is incorrect
Reasoning (R) is correct, but Assertion (A) is incorrect
786
Identify the correct combinations from the following :
Training and Development

Skills Target Trainees
Methods
(a) Knowledge Deliberation/Lecture Managerial
(b) Multi-skills Vestibule training Operative
(c) Decision-making skills Management game Managerial
(d) Behavioural skills Sensitivity training Supervisory
Codes :
(1) (a), (b) and (c) (2) (a), (c) and (d)
(3) (b), (c) and (d) (4) (a), (b) and (d)
Which among the following are not part of staffing process ?
(a) Human Resource Planning (b) Recruitment
(c) Selection (d) Induction and Orientation
(e) Training and Development (f) Performance Appraisal
(g) Transfers (h) Separations
Codes :
(1) (e), (f), (g) and (h) (2) (g) and (h)
(3) (f) and (h) (4) None of the above

Match the items of List - I with List - II :
List - I List - II
(a) INTUC (i) 1920
(b) AITUC (ii) 1947
(c) CITU (iii) 1955
(d) BMS (iv) 1970
Codes :
(b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (ii) (i) (iii) (iv)
(4) (iii) (i) (iv) (ii)
Assertion (A) : Amended Patent Act, in compliance with WTO, provides for grant of product
patent as well as a process patent for a period of 20 years from the date of
application.
Reasoning (R) : Under the Act, patent may be granted to an invention which means a new
product or process involving an inventive step and capable of industrial
application, a technical advance over existing knowledge.
Codes :
Both (A) and (R) are true but (R), is not correct explanation to (A).
(A) is false but (R) is correct.
Both (A) and (R) are true and (R), is correct explanation to (A).
(A) is correct but (R) is false.
Which of the following have been recognised under the intellectual property eligible for creation
of rights as per WTO mandate ?
Computer software, music disc, performing art
Geographical indicator
Global positioning system
Journals, books, seeds, design, brand
Codes :
(1) (a), (b) and (c) (2) (d), (c) and (a)
(3) (a), (b) and (d) (4) (c), (a) and (b)

NAFTA came into force from January, 1994 embracing :
The USA, Canada, Cuba, Trinidad and Tobago
The USA, Canada, Mexico
Cuba, Mexico, USA, Havana
Trinidad, The USA, Mexico
A common market is one where :

all the trading nations agree commonly to levy a common and uniform tariff rate for all
goods.
all the trading nations agree commonly to rationalise tariff and non-tariff barriers
mutually to promote intra-region trade.
there is a customs union along with free intra - union movement of factors of production.
there is an economic union along with free intra-union movement of residents.
The Maastricht Treaty of February, 1992 renamed the European Community (EC) as :
the European Union (EU)
the European Economic Union (EEU)
the European Monetary Union (EMU)
the European Economic Community (EEC)
In which of the following cases, Assessing officer has the discretion to assess the income of
the previous year in the previous year or in the subsequent assessment year ?
Shipping business of non-residents
Association of Persons (AOP) or Body of Individuals (BOI) formed for a particular event
or purpose
Assessment of persons likely to transfer property to avoid tax
Discontinued business
Rental income received by a foreign individual, from another foreign individual, in respect of the
property situated in Delhi is taxable in the hands of :
Resident and Ordinarily Resident (OR) only
Ordinarily Resident (OR) and Not Ordinarily Resident (NOR) only
Non Resident (NR) only
Ordinarily Resident (OR), Not Ordinarily Resident (NOR) and Non Resident (NR)
786
Which of the following income is not chargeable under the head ‘income from business and
profession’ ?
Profits and Gains carried on by an assessee during the previous year.
Income derived by a trade professional or similar association from specific services
performed for its members.
Income from the activity of owning or owning and maintaining race horses.
Salary received by a partner of a firm from the same firm.
Mr. A earned a capital gain of ` 100 lakhs on 31-2-2014 from the sale of a long term capital
asset (land) within the limits of Jaipur corporation. If he invests ` 60 lakhs, out of ` 100 lakhs,
in Rural Electricity Corporation Bonds approved under Sec. 54 EC in 20-2-2014, what is the
amount of exemption he can claim under Sec. 54 EC of Income Tax Act for the AY 2014-15
?
(1) ` 60 lakhs (2) ` 50 lakhs (3) ` 100 lakhs (4) ` 30 lakhs
Under which of the following situations, the Appellate Tribunal can rectify the mistake in the
order passed by it under Sec 254 (2) of Income Tax Act ?
If subsequent decision of the Supreme Court/High Court is available on the subject
after the Appellate Tribunal’s order
If an assessee apply for rectification of the Tribunal’s order by raising fresh grounds
before the Tribunal
If the omission or mistake is on the part of Appellate Tribunal
If the order is passed by the Appellate Tribunal under an erroneous impression of fact
or law
Codes :
(a), (b) and (c)
(b), (c) and (d)
(a), (c) and (d)
only (c) and (d)
-oOo-
786
UGC - NET JUNE 2015
ANSWER KEYS (PAPER III)
Qus. No. Ans. Qus. No. Ans. Qus. No. Ans.
1 1 26 4 51 2
2 4 27 3 52 4
3 2 28 1 53 2
4 3 29 4 54 3
5 1 30 2 55 2
6 3 31 2 56 4
7 3 32 3 57 1
8 3 33 3 58 *
9 3 34 1 59 3
10 4 35 2 60 2
11 3 36 2 61 3
12 2 37 3 62 1
13 3 38 4 63 2
14 4 39 3 64 4
15 1 40 1 65 2
16 3 41 1 66 3
17 2 42 2 67 3
18 2 43 3 68 2
19 4 44 4 69 3
20 1 45 4 70 1
21 4 46 3 71 4
22 1 47 1 72 4
23 1 48 1 73 3
24 4 49 3 74 *
25 3 50 1 75 3
* = No Option Is correct or The Question is Wrong
32
'HF
COMMERCE
Paper – II
Note :This paper contains fifty (50) objective type questions of two (2) marks each. All
The responsibility of the organization to the workers includes :

The payment of fair wages
Arrangement of proper training and education of the workers
The installation of an efficient grievance handling system
Welfare of family members
The provision of the best possible working
conditions Identify the correct combination :
(A) (i), (ii), (iii) and (v) (B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (iv) (D) (i), (iii), (iv) and (v)
Match the items of List – I with List – II :

List – I List – II
a. Industries Development Regulation Act
i. 1947
b. Import and Export Control Act ii.
1948
c. Foreign Exchange Management Act
iii. 1951
d. Factories Act iv. 1999
Identify the correct combination :
Codes :
a b c d
(A) i iii iv ii
(B) iii i ii iv
(C) iii i iv ii
(D) iii iv ii i
Which among the following is not a correct sequential combination ?

Macro Environment → Economic Environment → National Income → Pattern of
Income Distribution
Business Environment → Internal Environment → Business Ethics → Payment of
Fair Wages
Business Environment → External Environment → Micro Environment →
Suppliers
33
Macro Environment → External Environment → Customers → Prospects of
Business Development
34
Which among the following is not a correct combination ?
Industrial Policy – 1948
Industrial Policy Statement – 1977
Statement – I : The industrial policy of the Government of India is aimed at increasing the
tempo of industrial development.
Statement – II : After the New Industrial Policy – 1991, the Balance of Trade for India
has always been positive.
Codes :
Statement (I) is correct, but (II) is incorrect.
Statement (II) is correct, but (I) is incorrect.
Both Statements (I) and (II) are correct.
Both Statements (I) and (II) are incorrect.
Current Ratio 2.5, Liquid Ratio 1.5 and Working Capital ` 60,000. What is Current Assets ?
(A) ` 60,000 (B) ` 80,000

(C) ` 1,00,000 (D) `
1,20,000
th
X, Y, Z are sharing profits in the ratio of 6 : 5 : 3. A is admitted into partnership for 1/8
share. The sacrificing ratio of X, Y and Z is
(A) Equal (B) 6:5:3
(C) 5/14, 4/14, 5/14 (D) 4:5:5
Accounting information given by a company :

Total assets turnover 3 times
Net profit margin 10%
Total assets ` 1,00,000
The net profit is
(A) ` 10,000 (B) ` 15,000
(C) ` 25,000 (D) ` 30,000
“Make sufficient provisions for future losses, but do not anticipate future profits.” This
statement is in accordance to the concept of :
(A) Matching (B) Objectivity
(C) Conservatism (D) Materiality
When a firm is dissolved, profit or loss on realisation is shared by the partners

Equal
In the ratio of their capital balances
In the profit sharing ratio
In the ratio laid down in Garner Vs. Murray
The inverse relationship between variations in the price and quantity demanded is not due to
(A) Income Effects (B) Substitution Effects
(C) Future Expectations (D) Law of Diminishing Marginal Utility
Consumer is said to be in equilibrium, maximizing his total utility, when

the marginal utilities of the two goods consumed are equal.
the proportions of the marginal utilities and respective prices are equal.
the consumer gets full satisfaction from the consumption.
the consumer feels satisfied with his expenditure on the various goods.
Match the items of the following two lists and suggest the correct code :
a. Zero Income Elasticity i. Substitute goods
b. Unit Cross Elasticity ii. Complementary goods
c. Positive Cross Elasticity iii. Indifferent goods
d. Negative Cross Elasticity iv. Independent goods
Choose the correct option :
Codes :
a b c d
(A) iii ii i iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv i ii iii
35
Statement (A) : The isoquant curves are drawn convex to the origin due to diminishing
technical rate of substitution.
Statement (B) : The lesser the convexity of the isoquant curve the greater the possibility
of the complementarity of the two inputs.
Codes :
Statements (A) and (B) both are correct.
Statement (A) is correct but (B) is incorrect.
Statement (A) is incorrect but (B) is correct.
Statements (A) and (B) both are incorrect.
Match the items of the List – I with those of List – II and suggest the correct code :
a. Constant average cost over a i. Economic capacity
range of output
b. Average cost becomes constant ii. Reserve capacity
momentarily
c. Normal average cost is a iii. Production and Managerials
U-shaped curve costs effects
d. Modern Long-run average cost is iv. Economies and Diseconomies
L-shaped
Codes :
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv ii i
(D) ii i iv iii
Which one of the following is not probability sampling method ?

(A) Simple Random Sampling (B) Cluster Sampling
(C) Judgemental Sampling (D) Systematic Sampling
The research carried out to expand the knowledge of a particular field is known as
(A) Applied research (B) Qualitative research
(C) Quantitative research (D) Basic research
36
In univariate data analysis t-test is used when the data are in the form of
Metric data with one sample
Non-metric data
Non-metric data with independent variable
Metric data with independent two sample
To show the trend for a variable, which one of the presentation method is used ?
(A) Histogram (B) Frequency polygon
(C) Line graph (D) Scatter graph
Which one of the following objectives is not the objective of secondary data collection ?
Identify the problem
Test the hypotheses of the relevant present problem
Better define the problem
Interpret primary data more insightfully
The structure of an organisation in which there is separation of ownership and management

is called
(A) Sole proprietorship (B) Partnership
(C) Company (D) Cooperative society
When a person transacts with a company on matters which is beyond the power of the
company, the person will be governed by the Doctrine of
(A) Management by Exception (B) Constructive Notice
(C) Indoor Management (D) Self Management
Assertion (A) : MBO is effective way of planning and organizing the work.
Reason (R) : Employees participate in setting the objectives.
Codes :
Both (A) and (R) are true.
Both (A) and (R) are false.
(A) is true, but (R) is false.
(A) is false, but (R) is correct.
The appropriate sequence of the formation of a company are in the following order :
Promotion, commencement of business and incorporation
Promotion, incorporation, capital subscription and commencement of business
Capital subscription, promotion, incorporation and commencement of business
Incorporation, capital subscription, commencement of business and promotion
Delegation of authority makes the size of the organization :

Smaller organization
Larger organization
Very big organization
It does not affect the size of the organization
Managerial Grid suggests the following as the best leader behaviour :

High structure and high consideration
Low structure and low consideration
High concern both for production and people
Low concern both for production and people
Marketing strategy development is also known as

(A) Marketing Control (B) Marketing Exercise
(C) Marketing Planning (D) Situation Analysis
For most people, the purchase of cheese for daily use can be described as a
(A) Completely novel buy (B) Modified re-buy
(C) Routine re-buy (D) High involvement product
The promotion mix of a company consists of these –

Marketing communication, promotion decisions
Personal selling, product objectives
Advertising, personal selling, sales promotion , publicity and public relations
Consumer psychology, buyers motives, brand equity
Rational buying motives that determine purchase decisions are mostly based on
(A) Price factor (B) Psychological factors
(C) Quality of product (D) Advertisement
Statement – I : Capital structure refers to composition of long-term funds.

Statement – II : These include equity share capital, preference share capital,
debentures, all debts and all reserves.
Both Statements I and II are correct.
Statement I is correct but Statement II is incorrect.
Statement I is incorrect but Statement II is correct.
Both statements are incorrect.
a. Pay-back Rate of Return i. Discounted Cash Flow Technique
b. Internal Rate of Return ii. Compounded values of investments
and returns
c. Benefit Cost Ratio iii. Crude method for project evaluation
d. Net Terminal Value Method iv. Varying sized projects evaluation
Codes :
a b c d
(A) ii iii i iv
(B) iii i iv ii
(C) i iv ii iii
(D) iv ii iii i
a. Realised yield method i. Cost of equity share capital
b. Taxation ii. Cost of equity capital
c. Cost of total capital employed iii. Cost of debt capital
d. Dividend growth is a consideration iv. Weighted cost of capital
Codes :
a b c d
(A) iv iii ii i
(B) ii iv i iii
(C) ii iii iv i
(D) i ii iii iv
Cash Flow Management involves :
I.Lock-box system
Marketable securities
Playing the float
IV. Concentration Bank Account
Codes :
(A) I, II and III only (B) II, III and IV only
(C) I, III and IV only (D) I, II and IV only
Dividend capitalisation model was developed by

(A) Ezra Solomon (B) Myron J. Gordon
(C) James E. Walter (D) Merton H. Miller and Franco Modigliani
The process of narrowing a large number of candidates to a smaller field is called

(A) Rushing (B) Recruitment
(C) Selection (D) Enrollment
According to which theory, people are motivated to the extent to which they expect that
their actions will help in achievement of goals ?
(A) Vroom’s Vector Valence Theory (B) Need Theory
(C) Z Theory (D) X Theory
Match the items of List – I with List – II and select the correct code :
Getting Effective Leadership in the i. Dale Yoder
Industrial Organization
b. The Nature of Leadership, ii. Alford and Beatty
Organization and Management
c. Industrial Management iii. Douglas McGregor
d. Personnel Management iv. Chester I. Bernard
Codes :
a b c d
(A) i ii iii iv
(B) iii iv ii i
(C) iii iv i ii
(D) iv iii ii i
a. AITUC i. Indian National Congress
b. BMS ii. Socialists
c. INTUC iii. Rashtriya Swayamsevak Sangh
d. CITU iv. Communist Party of India
Codes :
a b c d
(A) iv iii ii i
(B) iv i ii iii
(C) iv iii i ii
(D) iv i iii ii
The main characteristics of Weber’s bureaucracy are :

(A) Specialization (B) Hierarchy of authority
(C) System of rules (D) All of the above

List – I List –
II
a. RBI Nationalization i. 1964
b. Imperial Bank Nationalization ii. 1949
c. Nationalization of 14 Commercial Banks iii. 1955
d. Establishment of IDBI iv. 1969
Codes :
a b c d
(A) i ii iii iv
(B) ii iii i iv
(C) iii ii iv i
(D) ii iii iv i
As per the RBI Act, 1934, the following functions are described as the functions of a Central
Bank :
Banking functions
Advisory functions
Supervisory functions
Promotional functions
(A) (i), (iii) and (iv) (B) (i), (ii) and (iv)
(C) (ii), (iii) and (iv) (D) Only (i) and (iii)
Phishing is an attempt to acquire :

Loan from unauthorized firms
Sensitive information such as username, password, etc.
Personal information from banks
None of the above
What is Call Money ?

Money borrowed or lent for a day or overnight.
Money borrowed for more than one day but upto 3 days.
The Regulatory Authority of Regional Rural Banks is

(A) NABARD (B) Central Government
(C) State Government (D) Sponsor Bank
Which of the following is not ensured to the consumer in the globalization ?

(A) Lower prices (B) Better selection
(C) Clear origin of goods and services (D) Improved services
In international trade which of the following is a non-tariff trade barrier ?
(A) Quotas (B) Import bans
(C) Export controls (D) Anti dumping laws
Match the items of List – I with items in List – II and select a correct
List – List – II
code : I
a. Current Account i. Official Capital
b. Capital Account ii. Reserves from foreign countries
c. Unilateral Payments iii. Reparations
d. Official Statement Account iv. Visible Exports and Imports
Codes :
a b c d
(A) i iii ii iv
(B) iv i ii iii
(C) iv i iii ii
(D) iii ii i iv
Match the items of List – I with the items in List – II and select a correct code :
a. Vishesh Krishi Upaj Yojana i. Scheme intended to reduce difficulties
of exporters
b. EPCG ii. Duty Entitlement Pass Book
c. DFRC iii. To boost exports of fruits, vegetables,
flowers, minor forest produce etc.
d. DEPB iv. Relating to import of duty free fuel
Codes :
a b c d
(A) iv i ii iii
(B) iv iii i ii
(C) iii iv ii i
(D) iii i iv ii
Which of the following is not the agency of World Bank ?
(A) MIGA (B) ICSID
(C) ADB (D) IDA
UGC - NET DECEMBER 2014
1 A 26 C
2 C 27 C
3 D 28 C
4 D 29 C
5 A 30 B
6 C 31 B
7 B 32 B
8 D 33 C
9 C 34 C
10 C 35 B
11 C 36 C
12 B 37 A
13 C 38 B
14 B 39 C
15 D 40 D
16 C 41 D
17 D 42 A
18 D 43 B
19 C 44 B
20 B 45 A
21 C 46 C
22 B 47 B
23 A 48 C
24 B 49 D
25 B 50 C
44
'HF
COMMERCE
Paper – III

(International Economic Groups) (Year of Establishment)
a. European Union (EU) i. 1973
b. European Free Trade Association (EFTA) ii. 1992
c. Caribbean Community (CARICOM) iii. 1985
d. South Asian Association for Regional iv. 1960
Cooperation (SAARC)
Codes :
a b c d
(A) ii iv iii i
(B) ii iv i iii
(C) iv ii i iii
(D) iii i ii iv
The important objectives of WTO are :

To improve the quality of technology in the member countries.
To improve the standard of living of people in the member countries.
To ensure full employment and broad increase in effective demand.
To enlarge production and trade of goods.
To increase trade of services
Codes :
(A) (i), (ii), (iii) and (iv) (B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (v) (D) (i), (iii), (iv) and (v)
Assertion (A) : The industrial growth in India has been hampered by the burden of many
controls and regulations.
Reason (R) : The New Industrial Policy seeks to liberate the industry from the shackles
of Licensing System.
Codes :
Assertion (A) is correct, but Reason (R) is not correct.
Assertion (A) is correct and Reason (R) is right explanation of (A).
Both Assertion (A) and Reason (R) are correct.
Both Assertion (A) and Reason (R) are incorrect.
45
Internal environment of a business includes :
Business ethics and moral standards
Business and managerial policies
Prospects of business development
Government rules and regulations
Industrial relations
Codes :
(A) (i), (ii), (iv) and (v) (B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (iv) (D) (i), (ii), (iii) and (v)
Identify the incorrect combination from the following :

Finance Constituted Report Chairman
Commission (Year) Submitted (Year)
(A) 1st 1951 1953 K.C. Neogi
(B) 7th 1977 1978 J.M. Shelat
(C) 11th 1998 2000 N.K.P. Salve
(D) 13th 2007 2009 V.L. Kelkar
A flexible budget requires careful study and classification of expenses into

Product expenses and period expenses
Past and current expenses
Administrative, selling and factory expenses
Fixed, semi-variable and variable expenses
Responsibility accounting aims at collecting and reporting costing information

(A) Department-wise (B) Cost centre-wise
(C) Function-wise (D) Product-wise
Return on Investment (RoI) is computed as

Net Profit Ratio × Capital Turnover Ratio
Operating Net Profit Ratio × Shareholders Fund
Net Profit / Sales
Cost of Sales / Capital Employed Margin
of Safety is calculated by using

Profit Fixed Cost
(A) P / V Ratio (B) Contribution
Break Even Sales Profit
(C) Sales (D) Sales
Pre-acquisition profit in subsidiary company is considered as
(A) Revenue profit (B) Capital profit
(C) Goodwill (D) Minority interest
Assertion (A) : The financial statements prepared on historical cost basis result into an
erosion of capital in the long run.
Reason (R) : Maintaining the books of accounts as per Current Purchasing Power
Technique only may contain the inflationary pressure.
In the context of above two statements, which one of the following is correct one ?
Both (A) and (R) are true and (R) is the correct explanation of (A).
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(A) is false, but (R) is true.
Secondary market intermediaries for corporate securities in India are

I. Investors II. Jobbers
III. Brokers and sub-brokers IV. Portfolio consultants
Codes :
(A) I, II and III only (B) II, III and IV only
(C) II and III only (D) III and IV only
The type of lease requiring an agreement between the financier and lessor is known as
(A) Financial lease (B) Sale and lease back
(C) Leveraged lease (D) Operating lease
Match the various stock exchanges in List – I with the years of their establishment in List –
II as follows and suggest the correct code :
a. National Stock Exchange (NSE) i. 1875
b. MCX Stock Exchange (MCX-SX) ii. 1992
c. Bombay Stock Exchange (BSE) iii. 2000
d. Interconnected Stock Exchange of India (ISEI) iv. 2008
Codes :
a b c d
(A) ii iv i iii
(B) ii iii iv i
(C) i iii ii iv
(D) iii ii iv i
Monopolists prefer to sell the products in the markets with
(A) Elastic demand (B) Unitary elastic demand
(C) Inelastic demand (D) Absence of elasticity of demand
Assertion (A) : In long run under Perfect Competition all firms invariably get only normal
profit.
Reason (R) : All firms incur minimum average cost and incur no selling cost due to
absence of product differentiation.
Codes :
Assertion (A) and Reason (R) both are correct.
Assertion (A) is correct, but Reason (R) is incorrect.
Assertion (A) is incorrect, but Reason (R) is correct.
Assertion (A) and Reason (R) both are incorrect.
Assertion (A) : Differential pricing structure is designed to accommodate the various

categories of buyers.
Reason (R) : It aims at increasing sales and revenues and driving the competitors out
from the market.
Codes :
Assertion (A) and Reasoning (R) both are correct.
Assertion (A) is correct, but Reasoning (R) is incorrect.
Assertion (A) is incorrect, but Reasoning (R) is correct.
Assertion (A) and Reasoning (R) both are incorrect.
Cost-plus pricing is considered appropriate for :

I. Product Tailoring II. Public Utility Pricing
III. Refusal Pricing IV. Monopoly Pricing
Codes :
(A) I and II only (B) I, II and III only
(C) II, III and IV only (D) III and IV only
For promoting sales advertising endeavours may be made as per

I. Competitive parity II. Objective and task
III. Tied sales IV. All-one-can-Afford
Codes :
(A) I and II only (B) II, III and IV only
(C) I, II and IV only (D) III and IV only
In the hypothesis testing procedure a researcher may commit type II error in which of the
following conditions ?
When the true null hypothesis is rejected.
When the alternative hypothesis is accepted.
When the false null hypothesis is accepted.
When the true null hypothesis is accepted.
Which one of the following tenets is not correct in the context of Central Limit Theorem ?
If a population from which a sample is drawn is normally distributed the sampling
distribution of mean (SDM) will be normal for all sample sizes.
The mean of the SDM is the population mean.
If the population is not normal from which the sample is drawn, the SDM is not
normal for any sample size.
If the population is not normal from which a sample is drawn, the SDM approaches
normality as the sample size increases.
Which one of the following is not an example of tax evasion?

Submitting misleading documents.
Not maintaining proper accounts of income earned.
Suppression of facts.
Interpreting the tax law in ones own way to minimise tax liability.
Which one of the following is not the purpose of performance-monitoring research ?

To provide feedback for evaluation and control.
To indicate things that are not going as planned.
To help the organisation to plan various activities.
It is required to explain why something went wrong.
The transformation of raw data into a form that will make them easy to understand and
interpret, rearranging and manipulating data to generate information is called
(A) Descriptive research (B) Descriptive analysis
(C) Causal research (D) Exploratory research
Assertion (A) : The span of management at the upper level is generally narrow while at the
lower level span is wide.
Reason (R) : The task allocated to subordinates at the lower level of management are
more specific and precise and thus making supervision easy and simple.
Suggest correct code :
(A) is correct, but (R) is wrong.
(A) is wrong, but (R) is correct.
Both (A) and (R) are correct.
Match the following :
a. To check the quality of work i. Speed loss
b. To see that work is completed in time ii. Inspector
c. To check absenteeism of workers iii. Instruction and check
d. To issue instructions regarding methods of work iv. Shop discipline
Select the code :
Codes :
a b c d
(A) iii ii i iv
(B) ii i iv iii
(C) ii i iii iv
(D) iv iii i ii
Taylor called “The Military type of Foreman” to

(A) Unity of Command (B) Span of Control
(C) Delegated Legislature (D) Department

a. Commentary Four Chambault i. F.W. Taylor
b. Midvale Steel Works ii. Claud Henry Saint Simon
c. Charleton Twist Company iii. Henry Fayol
d. Credit Mobilier iv. Robert Owen
Codes :
a b c d
(A) iii ii iv i
(B) i ii iii iv
(C) iii i ii iv
(D) iii i iv ii
Assertion (A) : The risk condition exists when decision makers have absolutely no idea of
what the results of an implemented alternative would be.
Reason (R) : When operating under complete uncertainty condition, decision makers
usually find that sound decisions are a matter of chance.
In the context of the two statements, which one of the following is correct ?
Codes :
Assertion (A) : In product concept, focus is on innovating and improving products.
Reason (R) : In selling concept, consumers are persuaded to buy products.
Codes :
(A) Both (A) and (R) are true. (A) is true, but (R) is false.
(A) is false, but (R) is (D) Both (A) and (R) are false.
true.
Which of the following is not a method of segmenting a market ?

(A) Behavioural segmentation (B) Psychographic segmentation
(C) Benefits segmentation (D) Customer segmentation
Consumer attitudes and beliefs about diet, health and nutrition are influenced by
(A) Economic environment (B) Cultural environment
(C) Social environment (D) Natural environment
Select the phases of Product Life Cycle :

1. Initiation 2. Decline
3. Boom 4. Introduction
5. Maturity 6. Growth
Codes :
(A) 1, 3, 5, 6 (B) 1, 2, 3, 4
(C) 4, 6, 5, 2 (D) 2, 3, 5, 6
Which of the following is not a product-mix strategy ?

(A) Trading up (B) Alteration
(C) Simplification (D) Value addition
“Relationship” in marketing means

Relation between buyer and seller
Relation between sales person
Relation between company and consumers
All of the above
Match the items of List – I with the items of the List – II :

(Company Name) (Brand)
a. HUL i. Cerelac
b. ITC ii. Eclares
c. Nestle iii. Vivel
d. Cadbury iv. Sunsilk
Codes :
a b c d
(A) iv iii i ii
(B) i ii iii iv
(C) iv ii iii i
(D) iv iii ii i
The following are the steps in designing the market driven distribution :
1. Know what customers want 2. Determine the costs
3. Review assumptions 4. Decide on the outlet
5. Compare alternatives 6. Implement changes
Select the right sequence of the steps from the codes given below :
(A) 1, 4, 2, 5, 3, 6 (B) 1, 2, 3, 5, 4, 6
(C) 1, 3, 4, 5, 2, 6 (D) 2, 3, 4, 5, 6, 1
Which of the following are consumption values that customers look for in any product or
service in a society ?
Functional value
Social value
Money value
Emotional value
Maximum value
Codes :
(A) 1, 2, 3, 5 (B) 1,3, 4, 5
(C) 5, 4, 3, 2, 1 (D) 1,2 and 4
Franchising is a practice of :
Leasing for a prescribed period of time, the right to use firm’s successful business
model and brand.
Selling out a successful business model and brand.
Hiring a firm’s successful business model and brand.
None of the above.
Underwriters of the security issues are required to

Purchase the securities underwritten
Work as agent of the company for marketing the securities
Manage the issues of the securities
Take up securities not subscribed by investors
The optimum capital structure of a company is planned as per considerations of

I. Profitability II. Solvency
III. Marketability of shares IV. Control
Codes :
(A) I, II and IV only (B) II, III and IV only
(C) I and II only (D) III and IV only
Assertion (A) : Investors in capital market seem to be inclined for fixed income securities.
Reason (R) : Debt instruments now have active secondary market.
Codes :
Assertion (A) and Reason (R) both are correct and (R) is correct explanation of (A).
Assertion (A) and Reason (R) both are correct, but (R) is not correct explanation of
(A).
Assertion (A) is not correct, but Reason (R) is
correct.
Insufficient working capital in any enterprise may also result into

Failure to adapt to changes
Overcapitalisation
Reduced availability of trade and cash discounts
IV. Reduced volume of production and sales
Codes :
(A) I, II and III only (B) I, III and IV only
(C) II and III only (D) I and IV only
Assertion (A) : Arbitrage keeps the cost of capital constant despite change in the capital
structure.
Reason (R) : It ensures compensating inverse change in cost of equity capital with a
change in the cost of debt capital.
Codes :
Assertion (A) and Reason (R) both are correct and (R) is correct explanation of (A).
Assertion (A) and Reason (R) are correct, but (R) is not correct explanation of (A).
Assertion (A) is not correct, but Reason (R) is correct.
Assertion (A) : High morale and high productivity go hand-in-hand.

Reason (R) : Workers do not have their own ways for relief from fatigue and monotony.
Codes :
(A) Both (A) and (R) are true. (A) is false, but (R) is true.
(A) is true, but (R) is false. (D) Both (A) and (R) are false.
Relationship at work is the source of
(A) Status anxiety (B) Managerial stress
(C) Legitimate power (D) Expert power
Match the group of words in List – I with the group of words in List – II :
a. Grievances i. Profit sharing
b. Impact of technology ii. Effective planning
c. Adjustment to technology iii. Index of low morale
d. Morale improvement iv. Changes in occupation
Codes :
a b c d
(A) i ii iii iv
(B) iv iii ii i
(C) iii ii iv i
(D) iii iv ii i
Assertion (A) : Functional conflict is a type of institutionalised conflict.

Reason (R) : Politics is a kind of emergent conflict.
Codes :
(A) Both (A) and (R) are true. (A) is true, but (R) is false.
(A) is false, but (R) is true. (D) Both (A) and (R) are false.
Formal conflict is a kind of

(A) Goal Conflict (B) Organisational Conflict
(C) Role Conflict (D) Emergent Conflict
One of the objectives of organisational change is

Increased motivation
Greater innovation
Solving inter-group problems
Changes in an organisation’s level of adaptation to its environment
Assertion (A) : Job design relates to the manner in which tasks are put together to form
complete job.
Reason (R) : The matrix organisation is a project organisation plus a functional
organisation.
Codes :
(A) Both (A) and (R) are true.
54
(A) is true, but (R) is false. (D) Both (A) and (R) are false.
54
HRD as a total system includes the following major sub-systems :
Performance Appraisal
Career Planning
Role Analysis
ABC Analysis
Rewards
Select the correct answer from the codes.
Codes :
(A) 1, 2, 3, 4 (B) 1, 2, 3, 5
(C) 2, 3, 4, 5 (D) 1, 3, 4, 5
Which of the following is not true about employee grievances ?

Grievance is a sign of employee’s discontent with job or its nature.
Grievance provides a downward channel of communication.
Grievance arises only when an employee feels that injustice has been done to him.
Grievance can be real or imaginary.
Which of the following is not a component of Job Analysis ?

(A) Job Description (B) Role Analysis
(C) Job Summary (D) Job Specification
As per the Master Circular on “Prudential Norms on Capital Adequacy – Basel I Framework”,
elements of Tier I capital include :
Authorised Capital (Ordinary shares), statutory reserves, all other free reserves
(disclosed), if any.
Paid-up capital (Preference shares).
Perpetual Non-Cumulative Preference Shares (PNCPS).
Innovative Perpetual Debt Instruments (IPDI).
Codes :
(A) (i) and (ii) only (B) (ii) and (iii) only
(C) (i) and (iii) only (D) (iii) and (iv) only
What is true about the Basel Committee on Banking Supervision (BCBS) ?

BCBS is an Indian National Committee of banking supervisory authority.
BCBS was established by a group of 19 nationalized commercial banks.
BCBS was established in 1996.
It provides a forum for regular cooperation on banking supervisory matters.
Codes :
(A) (i) and (ii) only (B) (ii) and (iii) only
(C) (iii) and (iv) only (D) (iv) only
55
Under the Cooperative Bank structure, the apex institution is
(A) National Cooperative Bank (B) State Cooperative Bank
(C) District Cooperative Bank (D) IDBI Bank
What is SLR ratio of a bank ?

Ratio of total deposits against total investments.
Amount deposited by the bank with the Central Bank in the form of cash, gold and
securities.
Amount that commercial banks are required to maintain before providing credit to
customers.
Amount that commercial banks deposit with the foreign banks.
Assertion (A) : The USA remains the world’s largest FDI recipient country.
Reason (R) : The global economic crisis of 2009, causes a reduction of global FDI flows
took place to USA.
Select the correct code :
Codes :
Both (A) and (R) are correct and (R) is the correct explanation of (A).
(A) is correct, but (R) is not correct.
Both (A) and (R) are correct, but (R) is not correct explanation of (A).
As per the South Asia Free Trade Agreement, 1993 of SAARC, the member countries have
to bring their duties down to
(A) 25 percent by 2006 (B) 15 percent by 2006
(C) 10 percent by 2007 (D) 20 percent by 2007
Which of the following is the correct combination ?

A GSA allows an MNE to enter into activities that might too costly and risky to
pursue on its own.
A GSA does not allow a firm to enhance economics of scale.
A GSA does not allow a firm to bypass entry barriers into a target foreign country.
A GSA allows a firm to acquire partner knowledge.
Codes :
(A) (i), (iv) are correct. (i), (ii) are correct.
(i), (ii), (iii) and (iv) are correct. (D) (ii) and (iii) are correct.
Which of the following are the outcomes of the Sixth Ministerial Conference of WTO which
was held at Hong Kong in December 2005 ?
Select the correct combination :
Resolve to complete the Doha Work Programme fully and to conclude negotiations in
2006.
Amendments to TRIPS agreement reaffirmed to address public health concerns of
developing countries.
To continue export subsidies in agriculture upto 2018.
Duty free, quota free market access for all LDC’s products to all developed countries.
Codes :
(A) (i), (ii) and (iv) (B) (i), (ii), (iii) and (iv)
(C) (i) and (iii) only (D) (ii) and (iv) only
Which of the following is not a function of Foreign Exchange Market ?

(A) Stabilization function (B) Hedging function
(C) Credit function (D) Transfer function
Assertion (A) : The impact of depreciating Indian Rupee leads to less competition for
Indian firms from imports.
Reason (R) : The depreciating Indian Rupee results in downward pressure on inflation .
Codes :
(A) is false, but (R) is correct.
In which of the following Stock Exchanges the GDR’s are listed ?

London Stock Exchange
New-York Stock Exchange
Luxembourg Stock Exchange
Bombay Stock Exchange
Singapore Stock Exchange
Hong Kong Exchange
(A) (i), (ii) and (iii) (B) (i), (iv), (v) and (vi)
(C) (iii), (iv), (v) and (vi) (D) (i), (iii), (v) and (vi)
Statement I : FIIs do not invest in unlisted entities. They participate only through stock
exchanges.
Statement II : FIIs cannot invest at the time of initial allotment.
Codes :
Statements I and II are correct.
Statement I is true and II is false.
Statement I is false and II is correct.
Statements I and II are false.
ADRs’ and GDRs’ are an excellent means of investment to invest in India for
(A) NRIs’ (B) Foreign nationals
(C) Both (A) & (B) (D) None of the above
Which of the following is not provided by EXIM Bank, for financing overseas investments ?
Term loans to Indian Companies upto 80% of their equity investment in overseas
JV/WOS.
Term loans to Indian Companies towards upto 100% of loan extended by them to the
overseas JV/WOS.
Term loan to overseas JV/WOS towards part financing.
Guarantee facility to the overseas JV/WOS for raising term loan/working capital
Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to
deduct tax at source is
10% of tax which is otherwise deductible under Section 194 C.
Match the following items of List – I and List – II and select the correct answer from the
codes given below :
(Sections) (Maximum Deduction)
a. Section 80C of I.T. Act i. ` 10,000
b. Section 80D of I.T. Act ii. ` 40,000
c. Section 80 DDB of I.T. Act iii. ` 1,00,000
d. Section 80 TTA of I.T. Act iv. ` 15,000
Codes :
a b c d
(A) iii i iv ii
(B) iii iv ii i
(C) iv iii ii i
(D) ii iii i iv
58
In which of the following cases, income of previous year is assessable in the previous year
itself ?
A person in employment.
A person engaged in illegal business.
A person who is running charitable business.
A person leaving India permanently.
Long term capital loss can be set off from which of the following ?
Short term capital gain only
Long term capital gain only
Income from business and profession
Capital gain head of income
In which of the following long term assets, cost indexation benefit is allowed ?
Debentures issued by a company
Self generated goodwill of a business
Bonus shares allotted on 1-4-2000
Jewellery
Calculate the Gross Annual Value from the following details :

Municipal Value – ` 45,000
Fair Rental Value – ` 50,000
Standard Rent – ` 48,000
Actual Rent – ` 42,000
(A) ` 50,000 (B) ` 48,000
(C) ` 45,000 (D) ` 42,000
Minimum Alternate Tax (MAT) is imposed on

All companies
Public Limited Companies only
Private Limited Companies only
Partnership Firms and Companies
59
1 B 26 B 51 A
2 B 27 A 52 B
3 A 28 D 53 B
4 D 29 D 54 C
5 C 30 A 55 D
6 D 31 D 56 D
7 B 32 B 57 B
8 A 33 C 58 C
9 A 34 D 59 A
10 B 35 C 60 D
11 B 36 A 61 A
12 B 37 A 62 A
13 C 38 D 63 A
14 A 39 A 64 D
15 A 40 D 65 D
16 C 41 B 66 D
17 B 42 C 67 C
18 B 43 B 68 B
19 C 44 A 69 B
20 C 45 D 70 B
21 C 46 B 71 D
22 D 47 D 72 B
23 C 48 A 73 D
24 B 49 B 74 B
25 C 50 D 75 A
60
June-2014
COMMERCE
Paper – II
There is acute shortage of electricity in
some of the states in India. This Match the items/terms given in List-I
reflects a problem in which type of with those given in and List-II.
business environment ? List – I List – II
Economic (a) BIS (i) Print Media
Demographic (b) CERC (ii) Minimum
Politico-legal support price for
Socio-cultural agricultural
products.
Match the items given in List-I and (c) CACP (iii) Quality of
List-II. manufactured
List – I List – II products.
(a) Economic (i) IT-enabled
(d) PCI (iv) Comparative
liberalisation services
product testing.
(b) Out sourcing (ii) SFIO
(c) Corporate (iii) Macro Indicate the correct answer :
frauds economic Codes :
stability (a) (b) (c) (d)
(d) Second (iv) Increased (A) (iv) (iii) (ii) (i)
generation competition (B) (i) (ii) (iii) (iv)
reforms (C) (iii) (iv) (ii) (i)
Indicate the correct combination :
(D) (ii) (iii) (iv) (i)
Codes :
(a) (b) (c) (d) Which one among the following is not
(A) (i) (ii) (iii) (iv) the salient feature of industrial policy
(B) (i) (iii) (ii) (iv) since 1991 ?
(C) (ii) (iii) (iv) (i) Enormous expansion of the
(D) (iv) (i) (ii) (iii) private sector.
Redefining the role of public
sector.
Which of the following is true ?
Limited exposure of Indian
A consumer court setup under industry to foreign competition.
the Consumer Protection Act, Pruning of the list of items
does not have the power to reserved for SSI units.
punish for its contempt.
Professional services are A, a partner in a firm, is drawing `
outside the purview of the th
500 regularly on the 16 of every
CPA. month. He will have to pay interest at
A consumer court cannot force the given rate in a year on ` 6000
for the total period of
apersonindulgingin (A) 5 months (B) 6 months
misleading advertising to (C) 7 months (D) 12 months
confess his quit.
None of the above.
61
Subsequent expenditures that extend Which one of the following does not explain
the useful life, improve the quality of the basic nature of Business economics ?
output, or reduce operating costs of
an existing asset beyond their Behaviour of firms in theory
and practice.
originally estimated levels are
Capital expenditures Distribution theories like rent,
wages and interest along with
Revenue expenditures the theory of profit.
Deferred Revenue expenditures Use of the tools of economic
None of the above analysis in clarifying problems
in organising and evaluating
information and in comparing
Marginal-costing technique is useful alternative courses of action.
for
Make or Buy decisions Integration of economic theory
with business practices for the
Profit planning purpose of facilitating decision-
Shut-down decisions making.
All of the above
At a point of satiety for a commodity
Which one is not a feature of budgetary the marginal utility is
control ? Negative
A tool for management control. Positive
An instrument of delegation Zero
and authority. Highly positive
An instrument for evaluating
the overall performance. A rectangular hyperbola shaped
A statement of budget and demand curve on all its points has
forecasts. Equal slopes and equal point
elasticities.
Unequal slopes and unequal
The Debt-Equity Ratio of a company is point elasticities.
2 : 1. In this relation, match the following : Unequal slopes and equal point
elasticities.
List – I List – II Equal slopes and unequal point
(a) Issue of equity 1. No change elasticities.
shares on the ratio
(b) Cash received 2. Reduce the Assertion(A) : A perfectly
competitive firm is not a price-
from debtors ratio maker but is a price-taker.
(c) Redemption of 3. No change
Reason (R) : The firm is interested
debentures on the ratio in deciding the level of output
(d) Purchased 4. Reduce the only.
goods on credit ratio Codes :
Codes : Both (A) and (R) are true.
(a) (b) (c) (d) Both (A) and (R) are false.
(A) 1 2 3 4 (A) is false, while (R) is true.
(B) 2 3 4 1 (A) is true, but (R) is not a
(C) 1 3 4 2 correct explanation of (A).
(D) 2 4 1 with
Match the items of List-I 3 the items
of List-II.
(a) A market I. Skimming
having high pricing
price elasticity.
(b) A market having II. Differential
high price pricing
If the dependent variable increases as
inelasticity the independent variable increases in
an estimating equation, the
(c) A market having III. Penetrating coefficient of correlation will be in
several segments pricing the range
differing 0 to (–) 1
prominently with
0 to (–) 0
regard to price
elasticities of 0 to (–) 0.05
their demand. 0 to 1
Codes :
I II III Assertion (A) : When there is an
(b), (c), (a) evidenceofalinear
(a), (b), (c) relationship between two
variables, it may not always
(b), (a), (c) mean an independent-
dependent relationship between
(a), (c), (b) the two variables.
Reason (R) : The causal relationship
between the two variables may
Which one of the following options
deals with the process of making not imply a reasonable
estimates, predictions and decisions ? theoretical relationship between
the two.
Descriptive statistics
Inferential statistics Choose the right answer from the
following statements :
Probability theory
Codes :
None of the above
Both (A) and (R) are true and
is the correct explanation.
A hypothesis test is being performed Both (A) and (R) are true, but
for a process in which a Type-I error is not the correct
will be very costly, but a Type-II explanation.
error will be relatively inexpensive
and unimportant. Which of the (A) is true, but (R) is false.
following would be the best choice (A) is false, but (R) is true.
for alpha (α) in this test ?
0.10
Assertion (A) : User interface is most
0.05 critical task in DSS design
0.01 Reason (R) : DSS is used by
0.50 outside Customers frequently.
Which of the following is not true Taylor’s differential piece work plan
about Matrix Organisation ? provides that
It is relatively permanent.
All labourers should be assigned
Its project managers authority different amount of work.
is distributed reasonably.
All labourers should be put in
There is slow information different time-period.
processing.
Those who produce above
Its project heads have to share standard should receive higher
resources with functional heads.
wages than those producing
below standard.
Consider the following leadership styles :
1. Telling 2. Autocratic Payment should be the same on
a fixed standard.
3. Selling 4. Motivating
5. Participating 6. Delegating Which one of the following stages of
Charismatic the marketing research process is
most expensive ?
Select the four styles of leadership explained Data analysis
by Hersey and Blauchard.
(A) 1, 2, 6 and 7 (B) 2, 3, 4 and 5 Data collection
(C) 1, 3, 5 and 6 (D) 4, 5, 6 and 7 Developing the research plan
Report writing
Given below are two statements, one The people to adopt a new product first
labelled as Assertion (A), and the are called
other labelled as Reason (R). Early adopters
Assertion(A) : Classical First users
organisations believed in the Initial adopters
use of authority to achieve Innovators
coordination.
A concept in retailing that helps explain
the emergence of new retailers is
Reason (R) : Classical thinkers called the
consider organisation is an hypothesis.
open system.
Product life cycle
Codes :
Service assortment
(A) is correct, but (R) is
incorrect. Retail life cycle
Both (A) and (R) are correct. ‘Wheel-of-retailing’
(A) is incorrect, but (R) is
correct. Manufacturers of cars and motor
Both (A) and (R) are incorrect. cyclestypicallyseek
distribution.
Who has modified Maslow’s selective
Hierarchical levels of needs and intensive
developed ERG model ?
Frederick Herzberg exclusive
David C. McClelland restrictive
Douglas McGregor
Clayton Alderfer
Which method of setting advertising
budget is most scientific and logical ?
64
All-you-can afford method Assertion (A) : When two or more
Competitive parity method investment proposals are
mutually exclusive, ranking the
Objective-and-task method proposals on the basis of IRR,
NPV and PI methods may give
Percentage-of-sales method contradictory results.
Reason (R) : The contradictory
results in the ranking are due to
Assertion (A) : Weighted average differing dimensions relating to
cost of capital should be used the scale of investments, cash
as a hurdle rate for accepting or flow patterns and project lives.
rejecting a capital budgeting
proposal. Indicate the correct answer :
Codes :
Reason (R) : It is because by
financing in the proportions Both (A) and (R) are true.
specified and accepting the (A) is true, but (R) is a
project, yielding more than the necessary condition, but not a
sufficient condition.
weighted average required
return, the firm is able to
increase the market price of its Both (A) and (R) are true and
stock. explains the reason
sufficiently.
Codes :
Which one of the following assumptions
Both (A) and (R) are false. is not covered in the Walter’s Model of
the dividend policy ?
All financing is done through
(A) is true, while (R) is false. retained earnings.
(A) is false, while (R) is true. Firm’s business risk does not
change due to additional
investments.
A firm wants to know the Degree of The firm has an infinite life.
Operating Leverage (DOL) with the
following information : The key variables like EPS and
DPS keep on changing.
Current level of sales : 6000 units
Break-even point sales : 4000 units
Which one of the following emphasizes
What would be the DOL ? the qualitative aspects of working
capital management ?
1.50
Gross working capital
0.67 Quick working capital
3.00 Net working capital
None of the above
None of the above
65
Which of the following training methods The idea that a manager tends to be
exposes the newly recruited employee promoted to a level of his
to the various business functions, incompetence is referred to as
divisions and departments ?
the advancement principle
Orientation
the Paul principle
Vestibule Training
the Peter principle
Transition Analysis
the job design principle
Role playing
Which of the following committees is

Match the names of the Authors given intended to review the working of the
below with the motivational theories monetory system in India ?
they are associated with Narasimham Committee
List-I List-II Tandon Committee
1. Herzberg a. ERG Theory
Sukhamoy Chakravarty
McGregor b. Three-need Committee
theory Deheja Committee
3. Alderfer c. Theory X and
Theory Y
Match the items of List-I with those in List-
4. David d. Two-factor theory II and select the correct answer.
McClelland
List-I List-II
Codes : (a) Bank Rate 1.Involving the
1 2 3 4 Policy shortening of the
(A) a b c d currency of bills
eligible for
(B) d c b a
rediscount.
(C) b a d c
(b) Credit 2.Involving the
(D) d c a b Rationing Purchase and sale
of securities in
the open market.
Who was closely associated with (c) Variable 3.Involving the
industrial relations in India ?
Reserve alteration of
B. Kurien
System discount rate.
Gadgil
(d) Open 4.Involving the
V.V. Giri Market variation of the
Vinoba Bhave Operations minimum
reserves
Codes :
Under the Trade Union Act 1926, how
many minimum number of members (a) (b) (c) (d)
are required for a trade union to be (A) 1 4 2 3
registered ?
(B) 2 1 3 4
(A) 5 (B) 7
(C) 4 2 1 3
(C) 9 (D) 11
(D) 3 1 4 2
Match the items of List-I with the items (a) Rural (i) Meant for
of List-II and select the correct Industries various target
answer using the codes given below Programme groups like
the lists. Rural youth,
List-I List-II
66
Ex-serviceman,
women and International trade theory which
provides that capital intensive
Scheduled country should export labour-
Castes/Tribes intensive goods and import capital
(b) Mahila Vikas (ii) Aim at ensuring goods is referred to as
Nidhi flow of credit to Leontief Paradox
Scheme the dis- Heckscher-Ohlin Theory
advantaged Mercantilism Theory
sections of the
society. Theory of Comparative
(c) Entre- (iii) Commercial Advantage
preneurship exploitation of Which of the following is not a form of
Development local resources. economic integration in the context
Programme of intra-regional trade ?
(d) Micro Credit (iv) Provides Customs Union
Scheme assistance to European Union
voluntary Economic Union
organizations
for the benefit African Union
of women. ‘Crawling Peg System’ means
Codes :
(a) (b) (c) (d) Fixed Exchange Rate System.
(A) (i) (iii) (ii) (iv) Floating Exchange Rate
(B) (ii) (iv) (i) (iii) System.
(C) (iv) (ii) (iii) (i)
Hybrid of Fixed and Floating
(D) (iii) (iv) (i) (ii) Exchange System.
According to the FDI Policy of the None of the above.
Government of India (2012), the FDI
in banks is limited to From the following modes of
20% in Nationalised Banks and international business, identify the
74% in Private Sector Banks. mode which involves strategic alliance
20% in Nationalised Banks and Franchising
49% in Private Sector Banks.
16% in Nationalised Banks and Leasing
74% in Private Sector Banks. Turnkey Project
49% in Nationalised Banks and Joint venture
51% in Private Sector Banks.
According to the recent guidelines Which of the following expressions
(2013) of the Reserve Bank of India amount to the import restriction
the Private Sector Banks are required measures ?
to have a minimum paid up equity Currency control
capital of
(A) ` 300 crores (B) ` 200 crores Establishment of EPZs
(C) ` 400 crores (D) ` 500 Tariff cuts
crores Imposition of tariffs
Imposition of non-tariff
barriers
Codes :
(i), (ii) and (iii)
(i), (iv) and (v)
(iii), (iv) and (v)
(ii), (iii) and (v)
67
UGC - NET JUNE 2014
1 A 26 B
2 D 27 D
3 A 28 D
4 C 29 D
5 C 30 C
6 B 31 B
7 A 32 C
8 D 33 B
9 D 34 D
10 B 35 C
11 B 36 A
12 C 37 D
13 C 38 C
14 D 39 B
15 A 40 C
16 B 41 C
17 C 42 D
18 D 43 D
19 A 44 A
20 A 45 D
21 C 46 A
22 C 47 D
23 A 48 C
24 D 49 D
25 A 50 B
68
June-2014
COMMERCE
Paper – III
Note :This paper contains seventy five (75) objective type questions of two (2) marks each.
The Competition Act, 2002, seeks to What is the underlying concept that
regulate
Anti-competitive agreements support the immediate recognition of
an estimated loss ?
Mergers and amalgamation Substance over form
Unfair trade practices Consistency
(A) and (B) above Matching
Indicate the true statement : Prudence
Large industrial houses are
outside the purriew of the Which is not the limitation of
Competition Act, 2002 budgetary control ?
Budgets are based on forecasts
There is no provision for which may not be true
curbing frivolous complaints
under the CPA. Installation and operation of a
system of budgetary control is
The Trade Marks Act, 1999 costly.
does not apply to services.
All of the above are true. Budget is a tool of management
and not a substitute of
management
The time limit for filing a complaints Budgets do not pinpoint the
before the District forum under the lack of efficiency or the
Consumer Protection Act, 1986 is presence of it.
one year
two years Profit volume ratio of an enterprise is
40%. To offset 10% decrease in
three years selling price, how much sales must
There is no such time limit. be increased ?
(A) 10% (B) 20%
The Foreign Investment Promotion (C) 25% (D) 40%
Board (FIPB) revamps the rules and
regulations pertaining to If debt is ` 220, cash balance is ` 20
Accounting of Foreign Investment and equity is ` 300, then the
Investment by NRIs gearing ratio is
Foreign investments (A) 20% (B) 40%
(C) 50% (D) 30%
All of the above
Responsibility accounting aims to
Which of the legislation(s) do (does) ensure that a manager is
not form part of the legal punished if things go wrong.
environment of business in India ?
ensure that costs become the
The Drugs and Cosmetics Act, responsibility of a specific
1940 manager.
The Prevention of Food allocate costs to all areas of a
Adulteration Act, 1954 business.
The Monopolies and Restrictive reduce the costs that a
Trade Practices Act, 1969 department incurs.
Both (B) and (C) above
69
Find the correct matching of the items The equilibrium level of output for a
of List – I with the items of List – II perfect competitive firm is given by
given below : the point where :
List – I List – II MR = MC
(a) Normal (I) Excess of MR < MC
Profit total revenue
MR > MC
over total
explicit cost MR = MC, and MC starts
rising.
(b) Economic (II) Total
profit revenue
equals total Match the following :
economic List – I List – II
cost (i) Dumping (a) Monopolistic
(c) Accounting (III) Excess of competitive
profit total revenue firm
over total of (ii) Kinked (b) Oligopoly
explicit and Revenue firm
Curve
implicit
costs and a (iii) Horizontal (c) Perfectively
straight line competitive
normal rate
revenue curve firm
of return
(iv) Large number (d) Discrimin-
Codes :
of buyers and atory
(II) (III) sellers with monopoly
(c) (a) (b) differentiated
(b) (a) (c) products
(a) (b) (c) Codes :
(a) (c) (b) (ii) (iii) (iv)
(a) (d) (c) (b)
(b) (d) (a) (c)
Assertion (A) : A monopoly firm’s
revenue curve is downward (d) (b) (c) (a)
sloping from left to right. (a) (b) (c) (d)
Reason (R) : The monopoly firm
does not simultaneously enjoy
Penetrating pricing strategy is
the freedom to determine both appropriate when
price and quantity to be sold
price elasticity of demand in
according to its whims and the market is highly inelastic.
fancy.
Codes : the market is uncertain.
Both (A) and (R) are false. the market is highly elastic.
(A) is true, but (R) is false. income elasticity of demand in
(A) is false, but (R) is true. the market is negatively elastic.
Assertion (A) : The expected values Reason (R) : The chi-square
should be atleast 5 to apply the distribution provides an adequate
chi-square test. approximation of the
sampling distribution.
70
Indicate the correct answer from the
following : Two lists of items are given below :
Codes :
Both (A) and (R) are true, and
(R) is the right explanation. (i) Charles (a) Mossai
Both (A) and (R) are true, but (R) Babbage
is not the correct explanation.
(A) is true, but (R) is false. Herbert A. (b) HTML
(A) is false, but (R) is true. Simon
(iii) Tim (c) Computer
In a decision problem having four
possible alternative decisions and six Berners Design
possible states of nature, the pay-off Lee
table will include
Four payoffs (iv) Maarc (d) Decision
Six payoffs Andreessen model
Twenty four payoff
Ten payoff Which one of the following is the
correct match ?
The mathematical formula for joint
probabilities P(AB) = P(A/B) × P(B), Codes :
holds when (ii) (iii) (iv)
The events are statistically
independent. (c) (b) (a) (d)
The events are statistically
dependent. (a) (c) (d) (b)
The event is either independent
or dependent. (b) (a) (c) (d)
None of the above
(c) (d) (b) (a)
Which one of the following
statements is the correct
interpretation of P-value of less than Which of the following statements are
0.01 in hypothesis testing ? true about informal organization ?
There is overwhelming
evidence to infer that the It arises spontaneously.
alternative hypothesis is true.
It reflects individual and group
There is strong evidence to
infer that the alternative goals.
hypothesis is true.
It tends to be permanent and
There is weak evidence to
indicate that the alternative stable.
hypothesis is true. It tends to be small and
There is no evidence to infer that
the alternative hypothesis is true. manageable.
Its basic purpose is to improve
human relations.
Its basic purpose is to achieve
organisation’s goals.
Codes :
1, 2, 3 andü 5
1, 2, 4 and 6
1, 2, 4 and 5
2, 3, 5 and 6
71
Which of the following is not true MatchList –I
the following : List – II
about an employee-centered leader as
identified by Michigan researchers ? (a) Fayol (1)Economy and
Society
Treats subordinates as human
beings. (b) Taylor (2)General and
Shows concern for their well Industrial
being. Administration
Focuses on work standards and (c) Weber (3)Principles of
close supervision. Organization
Encourages and involves them (d) Mooney (4)Shop
in goal setting.
and Reilly Management
Codes :
According to Talcott Parson,
(b) (c) (d)
organizations can be classified
primarily into four categories, based (3) (4) (1) (2)
on functions. Which of the following (2) (4) (1) (3)
is not an organization in Parson’s
scheme ? (1) (3) (2) (4)
Political organisations (4) (3) (2) (1)
Integrative organisations
Pattern maintenance
organisations A primary group influencing the buyer

Commercial organisations behaviour is a
Family
Professional association
An MBO programme usually involves
the following steps : Religious group
Establishing unit’s objectives Trade Union
Establishing organisational goals
Negotiating or agreeing
After conducting the business analysis
Reviewing the performance
for developing a new product, a
Creating action plans company must do
Indicate the correct sequence of the Idea generation
above steps from the following codes :
Product positioning
1, 2, 3, 4, 5
2, 1, 3, 5, 4 Product development and
testing
2, 3, 1, 4, 5
Test marketing
5, 4, 3, 2, 1
Match the items in List – I with those Match the items of List – I with the
in List – II : items of List – II :
List – I List – II List – I List – II
(a) Post (i) AIDA Trade credit (i) Maturity
purchase and other Financing payables
behaviour that
arise in the
(b) Personal (ii) ACMEE
firm’s day
selling today
(c) Everitt M. (iii) Diffusion of operations
Rogers Innovation Financing and (ii) Factoring
(d) Salesperson (iv) Cognitive asset needs
over time
training dissonance
(c) A tool for (iii) Spontaneous
Indicate the correct matching : accelerating financing
Codes : the collection
from the
(b) (c) (d) customers
(i) (ii) (iii) (iv) (d) Seeking (iv) Lockbox
financial system
(iv) (ii) (iii) (i) service to
(iii) (ii) (i) (iv) finance on its
debtors’
(iv) (i) (iii) (ii) balances
Codes :
Which type of retail stores generally (b) (c) (d)
has the highest operating costs ?
(iv) (iii) (ii) (i)
Department store
(iii) (ii) (iv) (i)
Supermarket
Chain store (ii) (iv) (i) (iii)
Co-operative Store (i) (ii) (iii) (iv)
Indicate the correct statement : Indicate the cost of equity capital,

based on capital asset pricing model,
India has been a pioneer in with the following information :
social marketing.
Beta coefficient – 1.40 Risk-
Advertising Standards Council free rate of interest – 9%
of India is a statutory body set
Expected Rate of Return on
up by the government of India. equity in the market – 16%
Both (A) and (B) are incorrect.
Both (A) and (B) are correct.
(A) 9.8% (B) 18%
(C) 18.8% (D) 16%
The degree of super-leverage would be Indicate the quantitative methods of job
calculated by : evaluation
Adding DOL (Degree of Ranking methods and Job
Operating Leverage) and DFL comparison method
(Degree of Financial Leverage) Point rating method and Factor
Dividing DOL with DFL comparison method
Multiplying DOL and DFL Grading method and Job
classification method
Subtracting DOL from DFL
Factor comparison method and
Ranking method
Interim cash inflows are reinvested at a
rate of return equal to the internal
Match the items of List – I with those
rate of return is the built-in- List – II :
mechanism for
Net Present Value Method
(1) Career (a) The process
Internal Rate of Return Method goals where in an
Profitability Index Method executive
None of the above serves as a
guide
(2) Career (b) The future
Who formulated the following model
path positions one
for estimating the market price of
equity share ? strives to reach
as part of
Ra
career
D + Rc (E – D)
P= (3) Career (c) The sequential
Rc counseling pattern of jobs
Where, P = Market price of equity that form a
share D = DPS career
Mentoring (d) Guiding people
E = EPS
on their
E – D = Retained earning per possible career
share path
Codes :
Ra = Internal rate of return on (2) (3) (4)
investment
(b) (c) (d) (a)
Rc = Cost of capital
(a) (b) (c) (d)
Modigliani-Miller
(d) (c) (b) (a)
Myron-Gordon
James E. Walter (c) (b) (a) (d)
Clarkson and Elliot
74
The process of receiving and Match the items of List – I with those
welcoming an employee when he List – II and select correct answer :
first joins a company and giving him
the basic information he needs to List – I List – II
settle down quickly and happily and (1) Narasimham (a) Lending under
starts working, is referred to as Committee consortium
Placement arrangement
Orientation
(2) Shetty (b) Frauds and
Job Rotation
Committee Malpractices in
Counseling banks
(3) Ghosh (c) Securities
Which is not relevant of succession Committee operations of
planning ? banks and
Analysis of the demand for financial
managers
institutions
Review of existing executives
(4) Janakiraman (d) Financial system
Planning individuals career Committee in India
paths
Codes :
Recruitment to meet immediate
needs (b) (c) (d)
(3) (4) (2) (1)
Where does recognition of an (2) (3) (4) (1)
Employee fall in Maslow’s hierarchy
of needs theory ? (4) (2) (3) (1)
Self-actualisation (3) (4) (1) (2)
Security needs
Social needs Which of the following financial
Esteem needs institutions is not with in the
supervisory Purview of Reserve Bank
of India ?
The profitability of public-sector banks
is low due to Foreign Commercial Banks
Over-cautions approach to Operating in India
lending Regional Rural Banks
Reserve Bank Policies Mutual Funds
High Overhead Costs State Co-operative Banks
Social-sector lending
Identify the correct code :
Codes : The Repo and Reserve Repo rates are
resorted to by the RBI as a tool of
(i) and (ii)
(i) and (iv) Credit Control
(i), (iii) and (iv) Settlement Systems
Currency Management
(ii) and (iii)
Liquidity Control
75
45. Which one of the following
Match the items given in List – I with the
institutions is promoted by the IFCI : most appropriate items in List – II :
Credit Analysis and Research List – I List – II

Ltd (CARE) (a) UNCTAD (i) Foreign
investment
Rashtriya Gramin Vikas Nidhi (b) WTO (ii) Developing
(RGVN) Countries
(c) TRIMS (iii) UNDP
Clearing Corporation of India
(d) ITC (iv) General
Ltd (CCIL)
Council
Small Industries Development Codes :
Bank of India (SIDBI) (b) (c) (d)
(ii) (iv) (i) (iii)
(iii) (iv) (i) (ii)
Indicate the right sequence of the (iv) (ii) (i) (iii)
stages of internationalization : (iii) (ii) (i) (iv)
Multinational Company
Global Company Duty levied on the value of goods
imported is referred to as
Transnational Company Ad valorem Duty
International Company Compound Duty
Specific Duty
Codes :
Import Duty
(i) (iv) (ii) (iii)
(iv) (i) (iii) (ii) Which of the following can be included
in the current account of the balance
(i) (iv) (iii) (ii) of payments ?
(iv) (i) (ii) (iii) Purchase of goods from abroad
Sale of services abroad
Workers’ remittances from
aboard
Which of the following is not one of the Sale of copyright to foreigners
components of ‘International Direct investment in equity
Reserve’ ? capital
Codes :
Special Drawing Rights
(i), (ii) and (iii)
Reserve Position in IMF
(i), (ii) and (iv)
Monetary Gold (i), (ii), (iii) and (v)
Money Market Instruments (i), (ii), (iii) and (iv)
76
51.Which of the following items would 55.Match the following :
be specifically included in the List – I List – II
statement of cash flows constructed (Explanation) (Term)
in compliance with AS-3 ? (a) It involves using (1) Audit Trail
Conversion of debt to equity the version of Controls
Acquiring an asset through master file and
lease the update
(C) Operating and non-operating transactions used
cash flow information to create the
(D) Purchasing a building by current file to re-
giving a mortgage to the seller create the current
master file if it
52. Fixing the value of an employee becomes
depending upon his productivity, damaged.
promotability, transferability and (b) It involves (2) Dumping
retainability is the core of the copying the
(A) Certainty equivalent model whole or a
(B) Stochastic Reward Valuation portion of the
model database to some
(C) Human asset multiplier model back up medium,
typically
(D) Present value of future earnings
magnetics tape.
model
(c) It stores current (3) Grandfather,
and historical
53. Which of the following refers to a
Father, Son
situation in which the merger of data extracted

companies results in over 25% of the from various
market in the hands of the merged operations
companies ? systems and
(A) ‘Gateway’ condition consolidates for
(B) Restrictive practice management
(C) ‘Share of supply’ test reporting and
analysis.
‘Asset’ test
(D) (d) It maintains the (4) Data
chronology of warehouse
54. Which of the following is events that occur for
true ?
(A) Systematic risk is diversifiable either to the Accounting
but unsystematic risk is non- database
diversifiable. definition or the
(B) Systematic risk is non- database itself.
diversifiable but unsystematic Codes :
risk is diversifiable.
(C) Both systematic and (a) (b) (c) (d)
unsystematic risks are (A) (3) (2) (4) (1)
diversifiable. (B) (3) (1) (2) (4)
(D) Both systematic and (C) (1) (3) (2) (4)
unsystematic risks are non-
(D) (4) (3) (2) (1)
diversifiable.
Which one is not a major component of Which one of the following is not an
holistic marketing ?
example of Herzberg’s hygiene
Relationship marketing factors ?
Integrated marketing Advancement
Internal marketing Interpersonal relations
Socially responsible marketing Job security
Work conditions
The final step in target marketing is
Market Analysis Which of the following two forms of
Market Positioning collective bargaining were identified
Market Segmentation by Chamberlain and Kuhn ?
Market Targeting Integrative Bargaining and
Distributive Bargaining
Conjunctive Bargaining and
The most recent consideration in Cooperative Bargaining
product packaging is Integrative Bargaining and
Cost effectiveness Cooperative Bargaining
Product protection Distributive Bargaining and
Conjunctive Bargaining
Product promotion
Economy Who observed that a worker’s
behaviour and sentiments are closely
related ?
Distribution logistics (also termed as (A) Peter Drucker (B) Elton Mayo
‘market logistics’) does not include
Distribution channel (C) F.W. Taylor (D) Dale Yoder
Inventory
What is not an operative function of
Transportation HRM ?
Warehouses Procurement
Development
Most of the money spent in measuring Organising
the effectiveness of advertising is Integration
spent on
Communication-response The total number of Special Economic
research Zones notified by the
Pre-testing the advertisements
Government of India till March 2011
Post-testing the advertisements under the SEZ Act, 2005 is
Sales-response research (A) 154 (B) 184
(C) 286 (D) 386
Which of the following is not included 67. The different forms of IMF assistance
in the model of the systems are given below. Identify the one
approach to human resource which is mainly meant for Less
management ? Developed Countries (LDCs)
Departmentation Credit Tranche Drawing
Recruitment Extended Fund Facility
Performance Appraisal
Compensatory Financing
Promotion Facility
Structural Adjustment Facility
Consider the following problem
In the context of globalization, ‘Levitt relating to a let-out house property :
Thesis’ means Municipal value – ` 60,000
Fair rent – ` 68,000
Standardisation strategy to Standard rent under the Rent Control
respond to the worldwide Act – ` 62,000
homogenised market and Annual Rent received – ` 65,000
expand the market through The Gross Annual Value of the
aggressive low pricing property will be
(A) ` 68,000 (B) ` 62,000
Customise products to regional (C) ` 65,000 (D) ` 60,000
markets
Customise products to meet the From the following, identify by the
national market web-based financial software :
None of the above Private Equity Software
Share Accounting Software
Wealth Management Software
Which one of the following is an WINGS 2013
internal hedging technique ?
Leading Which of the following are true in
Netting tax planning ?
Both (A) and (B) above It is futuristic in its approach.
Swap It has limited scope compared
to tax management.
The benefits arising from it are
Businessconglomerateshave limited particularly in the short
run.
differentnamesindifferent
Its main objective is to reduce
countries. Which country’s the tax liability.
conglomerates are called ‘Chaebols’ ? Codes :
Japan (i), (ii) and (iii)
(i) and (ii)
South Korea (i) and (iv)
Germany (ii), (iii) and (iv)
China
The benefits of debt financing over
equity financing are likely to be
71. Mr. X, a non-resident, earned highest in which of the following
situations ?
36,000 as interest on German
High marginal tax rates and
Development Bonds. Of this, he low non-interest tax benefits
received one-sixth in India. The Low marginal tax rates and low
amount to be included as interest for non-interest tax benefits
the computation of his Gross Total High marginal tax rates and
Income is high non-interest tax benefits
Low marginal tax rates and
(A) ` 36,000 (B) ` 30,000 high non-interest tax benefits.
(C) ` 6,000 (D) Nil
UGC - NET JUNE 2014
1 D 26 A 51 C
2 C 27 C 52 B
3 B 28 D 53 C
4 C 29 A 54 B
5 D 30 A 55 A
6 D 31 C 56 C
7 D 32 C 57 B
8 B 33 C 58 C
9 B 34 B 59 A
10 B 35 C 60 B
11 A 36 B 61 A
12 A 37 A 62 A
13 D 38 B 63 B
14 C 39 D 64 B
15 C 40 D 65 C
16 A 41 C 66 D
17 C 42 B 67 C
18 B 43 C 68 A
19 A 44 D 69 C
20 D 45 B 70 B
21 C 46 D 71 C
22 C 47 D 72 C
23 D 48 A 73 D
24 B 49 A 74 C
25 B 50 A 75 A
80
Dec-2013
COMMERCE
Paper – II
1. Who is the fiscal agent and advisor to 4. Uruguay Round pertains to
Government in monetary and (A) WTO
financial matters ?
(A) NABA (B) IMF
RD (C) GATT
(B) SBI
RBI
(C) (D) World Bank
(D) None of the above
2. Match the items of List – I with the 5. Which of the following are outside
items of List – II List – II the scope of the Consumer Protection
:
Act, 1986 ?
List – I
(a) National (i) Industrial (A) Newspaper industry

Manufactu- Licensing
ring Policy (B) Services provided under

Competitive-
ness Council contract of personal service
(NMCC) (C) Banking industry
(b) National (ii) Eleventh Five
Investment Year Plan (D) Both (A) and (B)
Fund (NIP)
(c) The (iii) The 6. Which of the following is ‘true’
Industries Competition
(Develop- Act, 2002 regarding the? Prudence Principle of
ment and Accounting
Regulation) (A) Taking care of the future losses
Act (IDRA),
1951 (B) Taking care of the future
(d) Increase in (iv) Public Sector profits

Employment Undertakings (C) Taking care of bad debts
Codes :
(D) Taking care of inventory and
(a) (b) (c) (d)
(A) (iv) (i) (ii) (iii) depreciation
(B) (iii) (iv) (i) (ii)
(i) (ii) (iii) (iv)
(C) 7. Which of the following is a non-
(D) (iv) (iii) (ii) (i)
operating expense ?
81
3. Kyoto Protocol pertains to (A) Salary of Managing Director
(A) Capital formulation (B) Depreciation
(B) Globalisation
(C) Environmental (C) Advertisement expenditure
protection
(D) Interest on loan
(D) Unemployment
reduction
A and B are partners sharing profits in Business Economics is a subject which
the ratio of 3 : 2. Their books showed studies economic relationships
goodwill at ` 3,000. C is admitted studies economic activities at
1 th the aggregate level
with 4 share of profits and brings deals with the tools of
` 10,000 as his capital. But he is not economics used for decision
able to bring in cash for his share of making in business
goodwill ` 3,000. How will you treat studies optimum allocation of
this ? limited resources
(A) Goodwill is raised by ` 12,000
(B) C will remain as debtor for
` 3,000
C’s A/c. is debited for ` 3,000
Goodwill is raised by ` 9,000
If there is mutual indebtedness between

the transferor company and the
transferee company in business
combination, which of the following
is correct ?
No adjustment is required in
the books of the transferor
company.
Adjustment is required in the
books of the transferor
company.
No adjustment is required in
the books of the transferee
company.
None of the above
Improvement of profit-volume ratio

can be done by
Increasing selling price
Altering sales mixture
Reducing variable cost
All of the above
82
Match List – I with List – II and select
the correct code for the answer :
(a) Cross (i) Price =
AVC elasticity is
zero
(b) Shut-down (ii) Two
point
commoditie
s are
independen
t
(c) Slutsky (iii) Trans-
theorem formation line
(d) Production (iv)
Substitution Possibility
effect Curve
Codes :
(b) (c) (d)
(ii) (iv) (i) (iii)
(iii) (ii) (iv) (i)
(i) (iii) (ii) (iv)
(ii) (i) (iv) (iii)
Assertion (A) : The demand curve
has negative slope showing
inverse relationship between
price and the quantity
demanded.
Reason (R) : This applies only
to Giffen goods.
Codes :
(A) is false, but (R) is
true. Both (A) and (R) are
false.
The consumer is said to be in
equilibrium when he plans his
expenditure on x, y and z
commodities in such a way that he
ultimately attains :
MUx = MUy =
Mz MUx MUy
MUz
= =
Px Py Pz
83
(C) MUx = MUy =MUz = MU
Px Py Pz m
(D) MUx < MUy <MUz < MU

Px Py Pz
m
84
Match the items in List – I with those in A distribution, where the value of
List – II and select the correct code arithmetic mean is maximum as
for the answer : compared to median and mode, is
Normal distribution
(a) Monopoly (i) Price Taker
Positively-skewed distribution
Monopolistic (ii) Homo-
competitiongeneous product’s Negatively-skewed distribution
price maker None of these
(c) Perfect (iii) Hetero-
competition geneous The most appropriate average to be
product used to compute the average rate of
(d) Oligopoly (iv) Price
growth in population is
Rigidity
Codes : Arithmetic mean
(b) (c) (d) Median
(ii) (iii) (i) (iv) Geometric mean
(i) (ii) (iv) (iii) Harmonic mean
(iii) (iv) (ii) (i)
(iv) (i) (iii) (ii)
“The life expectancy of people in Kerala
Match the following items in List – I is more than that of Tamil Nadu.” This
with most suitable options in List – II : statement is an example of
List – I List – II Descriptive Hypothesis
(a) Fisher (i) Inverse Causal Hypothesis
probability
Correlational Hypothesis
(b) Karl Pearson (ii) Normal
Distribution None of the above
(c) Thomas (iii) Correlation
Baye’s Coefficient Match the items of List – I with the
(d) Karl Gauss (iv) Index items of List – II and choose the
Numbers correct answer :
Codes : List – I List – II
(b) (c) (d) Intrapersonal (i) Informa-
(iv) (iii) (ii) (i) communicationtion sharing
(iv) (iii) (i) (ii) (b) Element of a (ii) Develop-
(iv) (ii) (iii) (i) communication ment of
(iv) (ii) (i) (iii) event ‘will’ to
work
The law of statistics, which says (c) Objective of (iii) Thinking
‘Moderately large number of items
organisational
chosen at random from a large group
possess the characteristics of the communication
large group’, is referred to as : (d) Goals of (iv) Purpose
The Central Limit Theorem organisational
The Law of Statistical Regularity communication
The Law of Inertia of Large Codes :
Numbers (b) (c) (d)
None of the above
(i) (ii) (iii) (iv)
(iii) (iv) (ii) (i)
(ii) (iii) (i) (iv)
(iv) (iii) (ii) (i)
83
According to the Boston Consulting Which of the following is not the major
Group, a business which has a high component of holistic marketing ?
growth rate but a weak market share Relationship marketing
is referred to as a Integrated marketing
Cash Cow Customer satisfaction
Dog Socially-responsible marketing
Question Mark
Which of the legislations listed below
Star
do not form part of the marketing
environment of India ?
‘No ideas are ever criticized’ and ‘the The Drugs and Cosmetics Act,
more radical the ideas are the better’
1940
The Prevention of Food and
– are the rules of which decision
Adulteration Act, 1954
making process ? TheMonopolies and Restrictive
Programmed decision-making Trade Practices Act, 1969
Non-programmeddecision
making Both (B) and (C)
Brainstorming The set of all actual and potential

Group discussion buyers of a product is known as
Customer group
Industry
According to McClelland’s Needs Market
Theory, which of the following is not None of the above
a motivating need ?
Need for Power In the model of consumer behaviour
Need for Security given by Philip Kotler, what
constitutes the marketing stimuli ?
Need for Achievement
Marketing environment
Need for Affiliation Four P’s of marketing
Consumer needs and wants
None of the above
In the managerial grid, developed by
Blake and Mouton, a manager who
The factor that exerts the broadest and
has high consideration for production
deepest influence on consumer
but little concern for people is known
behaviour is
as Culture
1.1 Management Sub-culture
1.9 Management Social class
Income
9.1 Management
5.5 Management
84
Which one of the following is not Who propounded “Theory Z” ?
among the assumptions of the
William Ouchi
Modigliani-Miller model ?
Perfect capital market Peter F. Drucker
Equivalent risk classes Joseph H. Jurau
Unity for dividend payout ratio Douglas McGregor
Absence of taxes
Another name for MATRIX

The most suitable coverage ratio for
organisation is
deciding the debt capacity of a firm is
Flexible organisation
Interest Coverage Ratio Geographic organisation
Cash Flow Coverage Ratio Project organisation
Debt Service Coverage Ratio None of the above
Fixed Assets Coverage Ratio
Which one of the following is the most Which of the following are methods of
popular method for estimating the on-the-job training ?
cost of equity ? Coaching
Capital asset pricing model
Vestibule training
Dividend yield method
Demonstration
Gordon’s dividend discount
model Role-playing
Earnings yield method Apprenticeship training
Select the right answer from the
Which one of the following is not the following codes :
internal factor affecting the weighted (i), (ii), (iii), (iv)
average cost of capital of a firm ?
(i), (iii), (v)
Investment policy of the firm
Capital structure of the firm (ii), (iii), (iv)
Dividend policy followed (i), (ii), (iii), (iv), (v)
Market risk premium for the
firm
The idea that a manager tends to be
Most common approach for analysing promoted to the level of his
the capital structure of a firm is incompetence is referred to as
Ratio Analysis The advancement principle
Cash Flow Analysis
The Parkinson’s law
Comparative Analysis
Leverage Analysis The Peter principle
89
The job design principle
40. Assertion (A) : The emphasis in Which of the following are included
industrial psychology has under representation functions of a
shifted from the studies of the bank ?
isolated individual and the Payment of cheques and bills
physical environment to the Providing remittance facilities
consideration of motivation and Underwriting of securities
morale. Advancing clean credit
Reason (R) : A motivated Allowing overdrafts on current
employee with a high morale account
will always give high Purchase and sale of securities
productivity. Codes :
Codes : (i), (ii), (iii) and (iv)
Both (A) and (R) are correct, (iii), (iv), (v) and (vi)
and (R) is the right explanation (i), (ii), (iii) and (vi)
of (A). (ii), (iii), (v) and (vi)
(A) is correct, but (R) is not
correct. Call money rate is applicable for a very
Both (A) and (R) are incorrect. short period to
Both (A) and (R) are correct, Inter bank advances
but (R) is not the right Bank to Reserve Bank
explanation of (A). advances
Reserve Bank to Bank advances
CommercialBanks to Industrial
Match the following items of List – I Banks advances
and List – II in terms of functions of
commercial banks : Match the following List – I with List –
II : List – I List – II
(Name of (Type of
(a) Letter of (i) Advancing Securities) Securities)
reference loans (a) Bonds of (i) Semi-
(b) Sale of gold (ii) Receiving Land Government
coins deposits Development Securities
(c) Recurring (iii) Non-banking Banks
Account function (b) Treasury (ii) First Order
Bills Securities
Overdrafts (iv) Agency
(c) Shares of a (iii) Personal
function Public Ltd. Securities
Codes : Co.
(b) (c) (d) Codes :
(i) (ii) (iii) (iv) (i) (iii) (ii) (iv)
(iv) (iii) (ii) (i)
(iv) (ii) (iii) (i)
90
(b) (c) (iii) (ii) (i)
(i) (ii) (iii) (i) (iii) (ii)
(ii) (i) (iii)
Reserve Bank of India controls the (i) (iii) (ii) (iv)
activities of some of the following (iii) (i) (iv) (ii)
banks in India :
(ii) (i) (iv) (iii)
Commercial Banks
Cooperative Banks
Foreign Banks
Rural Banks
Codes :
(i), (ii) and (iii)
(i), (iii) and (iv)
(ii), (iii) and (iv)
(i), (ii), (iii) and (iv)
Match the following List – I with List –

II and select the correct answer :
(a) Comparative (i) Gottfried
Cost Theory of Haberler
International
Trade
(b) International (ii) J.S. Mill
Trade Theory
of Opportunity
Cost
(c) Factor (iii) David
Endowment Ricardo
Theory of
International
Trade
(d) Doctrine of (iv) Hecksher-
Reciprocal Ohlin
Demand
Codes :
(b) (c) (d)
(iii) (ii) (iv) (i)
91
Identify the one, from the following, Assertion (A) : The liability of the
which is not a type of disequilibrium option buyer is limited in the
in the balance of payments of a currency options market.
country : Reason (R) : Option buyer need not
Cyclical disequilibrium exercise the option if the
Secular disequilibrium exchange rate is not favourable
Structural for him.
disequilibrium Sectoral Codes :
disequilibrium (R) is correct and (A) is wrong.
(A) is correct and (R) is wrong.
The participants who take advantage Both (A) and (R) are correct.
of different exchange rates in Both (A) and (R) are wrong.
different markets are
Speculators An MNC that maintains a balance
Arbitrageur between the home market and host
s Hedgers market oriented policies is
Investors Ethnocentric firm
Polycentric firm
Geocentric firm
None of the above
92
1 C 26 C
2 B 27 D
3 C 28 C
4 C 29 B
5 B 30 A
6 A 31 C
7 D 32 B
8 D 33 A
9 A 34 D
10 D 35 C
11 C 36 A
12 D 37 C
13 B 38 B
14 C 39 C
15 A 40 B
16 B 41 B
17 B 42 C
18 B 43 A
19 C 44 A
20 C 45 D
21 B 46 C
22 C 47 D
23 C 48 B
24 B 49 C
25 C 50 C
88
Dec-2013
COMMERCE
Paper – III
The present regime of subsidies can be The freedom of private enterprise is the
improved by focussing on greatest in the free market economy.
This is characterized by which of the
Reducing the overall scale of following assumptions ?
The factors of production
subsidies. (labour, land, capital) are
privately owned and production
Making subsidies as occurs at the initiative of the
private enterprise.
transparent as possible. Income is received in monetary
form by the sale of services of
the factors of production and
Giving a specific amount to the from the profits of the private
enterprise.
Member of Parliament for Members of the free market
economy have freedom of
subsidies. choice in so far as consumption,
occupation, savings and
Setting clear limits on duration investments are concerned.
The free market economy is not
of any new subsidy scheme. planned, controlled or
regulated by the government.
Eliminating system of periodic The free market economy is
prone to corrupt practices.
review of subsidies Codes :
(i), (ii) and (iii)
Using subsidies for well- (i), (ii), (iii) and (iv)
(i), (ii), (iii), (iv) and (v)
defined economic objectives. (ii), (iii), (iv) and (v)
Codes : The important responsibilities of a
business to the customers are
(i), (ii), (iii) and (iv) To ensure family welfare of the
customers.
(ii), (iii), (iv) and (v) To understand customer needs
and to take the necessary
(i), (iii), (iv) and (vi) measures to satisfy these needs.
To ensure health condition of
the customers.
(i), (ii), (iv) and (vi) To ensure that the product
supplied has no adverse effect
on the customer.
To provide an opportunity for
Which of the following is not regulated being heard and to redress
genuine grievances.
by The Competition Act, 2002 ? Codes :
(i), (ii), (iii), (iv) and (v)
Abuse of dominant position (i), (ii), (iii) and (iv)
(ii), (iv) and (v)
Anti-competitive (ii), (iii), (iv) and (v)
agreements Medical
negligence Predatory pricing
89
The rationale of expanding role of the If bonus shares are issued out of pre-
public sector stems mainly from acquisition profit, it will have
which of the following factors ? Directeffect on the
The failure of the private sector Consolidated Balance Sheet
in certain crucial areas No effect on the Consolidated
The exploitation of the society Balance Sheet
by the private sector No effect on Net Profit
The revenue need of the None of the above
Central Government
The demand of economic The present value of the future
justice contributions of employees is one of
The need for accelerating the the methods of
pace of economic growth HR Accounting
Codes : Inflation Accounting
(i), (ii), (iii) and (iv) Social Accounting
(ii), (iii), (iv) and (v) Responsibility Accounting
(i), (iii), (iv) and (v)
(i), (ii), (iv) and (v) A standard which can be attained under
Which of the following factors may the most favourable working
lead to a sick industrial unit ? conditions is called
Shortage of funds and faulty Attainable Standard
financial management Basic Standard
Investment by the FIIs in Current Standard
Indian industries Ideal Standard
Unauthorized FDI in Indian
industries Which of the following ratios are taken
Lack of experience on the part into consideration by a banker before
of promoters sanctioning the loan ?
Technological factors including Proprietory Ratio
obsolete or improper technology Stock-Turnover Ratio
Codes : Debt-Equity Ratio
(i), (ii), (iii) and (iv) All of the above
(ii), (iii), (iv) and (v)
(i), (iv) and (v) Match the items of the following two
(i), (ii) and (iii) lists :
Indicate what is not correct in respect List – I List – II
of the Consumer Protection Act, (i) Zero-base (a) Internal
1986. Budgeting Reconstruction
No complaint can be entertained in respect (ii) Goodwill or (b) Earnings Per
of a product purchased more than 2 years Capital Reserve Share
back. (iii) Reduction of (c) Control of
A complaint against medical Capital Expenditure
negligence can be filed by legal (iv) Basic & (d) Business
heir or representative of the Diluted Combination
deceased. Codes : (ii) (iii) (iv)
A complaint involving a claim
of ` 15 lakhs is to be filed (c) (d) (b) (a)
before the State Commission. (d) (c) (a) (b)
Both (A) and (C) (d) (a) (c) (b)
(c) (d) (a) (b)
90
Assertion (A) : Dividend paid out of A measure of the responsiveness of
pre-acquisition profit by the quantity demanded to changes in the
subsidiary company to the
price of a related good is known as
holding company is deducted
from the cost of investment. Cross Elasticity of Demand
Reason (R) : Dividend paid out of Substitution Elasticity of
pre-acquisition profit by the Demand
subsidiary company should be Complementary Elasticity of
treated as a return of capital to
the holding company. Demand
Which one of the following is correct ? Price Elasticity of Demand
(A) is correct, but (R) is wrong. If the total cost is ` 260 and the total
(A) is wrong, but (R) is correct. variable cost is ` 60, what will be
Both (A) and (R) are wrong. total fixed cost if output is (a) 100
Given below are two statements, one units and (b) 200 units ?
labelled as Assertion (A) and the
other labelled as Reason (R) : ` 200 and ` 200
Assertion (A) : Increasing the ` 100 and ` 200
value of closing inventory ` 260 and ` 100
increases profit. ` 160 and ` 100
Reason (R) : Increasing the value of
closing inventory reduces cost
of goods sold. Optimal input combination to minimize
In the context of the above two the cost for a given output will be at
statements, which of the following is the point where :
correct ? Isocost is tangent to Isoquant
Codes :
Both (A) and (R) are correct. MRTS between inputs is equal
Only (A) is correct. Any movement from optimum
Only (R) is correct. point will lead to low level of
Both (A) and (R) are wrong. output
Match the items of List – I with the items of All the above conditions are
List – II and select the correct code for the fulfilled.
answer :
List – I List – II What kinds of actions can be taken to
(a) Multiple (i) MRPT = MC = put the rivals at a disadvantageous
plants MRPX = MRPPY
position under oligopoly market ?
(b) Cost-plus (ii) MRT = MC =
pricing Commitments
MR1 = MR2
(c) Multiple (iii) MR = MC = Threats
markets MC = MC T Promises
(d) Multiple (iv) P = (1 + m) ATC All the above
A B
products There is no exceptions to the law of

Codes : demand in the case of
(b) (c) (d) Giffen goods
(iv) (ii) (i) (iii)
Normal goods
(i) (iii) (iv) (ii)
(ii) (i) (iii) (iv) Articlesof conspicuous
(iii) (iv) (ii) (i) consumption
Ignorance of the buyer

91
What is the degree of elasticity of The regression equation of profits (X)
demand in case the demand is on sales (Y) of a firm is given as : 3Y
represented by a straight line parallel – 5X + 110 = 0. If the sales of the
to the x-axis ? firm is ` 44,000, the profit will be
e>1
(A) ` 23,370 (B) ` 26,422
e=0 (C) ` 24,422 (D) ` 21,370
e=∝
e<1
Cricketer ‘A’ scores on an average
If a chi-square test is to be performed runs with a standard deviation of
on a contingency table with 3 rows Scores of players ‘B’ and ‘C’, on
and 4 columns, how many degrees of an average, are 75 and 90 with
freedom should be used ? standard deviations 10 and 18
6 respectively. Arrange the players in
12 the descending order of consistency :
8 A, B and C
9 C, B and A
B, A and C
23. Assertion (A) : If regression co- C, A and B
efficient of X on Y is greater
than one, regression co- Among the following, choose the most
efficient of Y on X must be less suitable ‘test’ that can be applied to
than one. examine the influence of one factor
Reason (R) : The geometric on different groups :
mean between two regression ‘t’ test
coefficients is the co-efficient ‘F’ test
of correlation. ‘Chi-square’ test
On the basis of the above, choose the None of the above
appropriate answer :
(A) and (R) are correct.
A machine produced 20 defective
(A) is correct, but (R) is not
articles in a batch of 400. After
correct.
overhauling, it produced 10%
(A) is not correct, but (R) is
defectives in a batch of 300. Which
correct.
test of hypothesis can be applied to
Both (A) and (R) are not
the above situation to examine
correct.
whether the machine has improved ?
Test of significance of a sample
If the sum of squares of deviations proportion (two-tail test)
within samples is 140 with 12 Test of significance of a sample
degrees of freedom and the sum of
proportion (one-tail test)
squares of deviations between
Test of significance of
samples is 190 with 2 degrees of
difference between two sample
freedom, the test statistic will be
81.4 proportion (two-tail test)
12.28 Test of significance of
difference between two sample
8.14
proportion (one-tail test)
1.22
92
Strategies and policies The following are the steps of
are not closely related management control process :
give direction
are the framework for Taking corrective action from
performance standards
appraisal both (A)
and (B) Establishing standards
According to Vroom’s Expectancy Measuring actual performance
Theory of Motivation, Comparingperformance
Force = valence divided by against standard
expectancy Select the correct sequence of these
Force = valence × expectancy
Force = strength of an steps from the codes given below :
individual preference for an Codes :
outcome
Valence = probability that a (i), (ii), (iii), (iv)
particular action shall lead to a (ii), (iii), (iv), (i)
desired outcome (iii), (iv), (i), (ii)
In the managerial grid, the managers
who have little or no concern for (ii), (iv), (i), (iii)
production but are concerned only for Consider the following :
people are known as what type of
managers ? Planning is today’s action for
1.1 Management tomorrow’s decision.
5.5 Management Planning is forward looking
9.1 Management
while controlling is looking
1.9 Management
back.
According to the Boston Consulting
group, a business, which has a strong Motivation is about getting
market share in a low growth voluntary willingness of
industry is referred to as a
Dog subordinates for action.
Cash Cow Line and staff organisation is
Star
Question mark the oldest form of organisation.
Which of the following are major Select the correct statements from the
principles of leading ? codes given below :
Principle of motivation Codes :
Principle of continuous (ii) and (iii) are correct.
development
Principle of harmony of (i), (ii) and (iv) are correct.
objectives (i), (iii) and (iv) are correct
Principle of open competition
Principle of communication All are correct.
clarity Which is not one of the stages in the
Select the correct answer from the
codes given below : consumer buying-decision process ?
Codes : Purchase decision
(i), (ii), (iii), (v) Post-purchase behaviour
(i), (ii), (iii), (iv), (v)
(i), (iii), (iv), (v) Problem recognition
(i), (iii), (v) Cultural factors
At which stage of product-life-cycle are
the pricing decisions most complex ?
Decline
Growth
Introduction
Matu
rity
93
Which one is not an element of market Match the items of List – I with those
logistics ? of List – II and indicate the correct
Inventory combination from the codes given
below :
Order-processing
Warehousing (i) AIDA (a) Consumer
Supply chain management Model behaviour
Hierarchy of (b) Marketing
effects communication model
Under which legislation, the
manufacturers and distributors are
(iii) Howard (c) Consumer
required to declare Maximum Retail
and Sheth buying-
Price (MRP) on packaged
model decision
commodities ?
process
The Bureau of Indian Standards
Information (d) Advertising
Act, 1986
searcheffectiveness
The Consumer Protection Act,
Codes :
1986 (ii) (iii) (iv)
The Standards of Weights and (a) (b) (c) (d)
Measures Act, 1976 (b) (c) (d) (a)
The Essential Commodities (b) (d) (a) (c)
Act, 1955 (d) (a) (c) (b)
Inability of the firm to meet its

In modern marketing, which of the obligations results in financial
following functions of a distribution distress which may lead to
bankruptcy resulting into the
middleman is gaining maximum following :
importance ? Distress sale of assets at lower
Making persuasive price.
Legal and administrative costs
communication for bankruptcy.
Price negotiation Dilution of stakeholders’
commitment to the firm.
Keeping adequate inventory Stretching of payments to
Gathering market information suppliers and creditors.
The direct costs of such financial
distress may be
Which method of setting the (A) 1 and 4 (B) 2 and 3
advertising budget of a company is (C) 1 and 2 (D) 3 and 4
considered to be the most scientific ? Mutually exclusive projects can be
All-you-can-afford method more accurately ranked as per
Percentage of sales method Internal rate of return method
Net Present Value Method
Competitive-parity method Modified Internal Rate of
Objectives and tasks method Returns Method
97
Accounting or Average
Rate of Return Method
Which one of the following does not
Which one of the following does not
constitute a Standalone Risk Analysis ? serve the main objective of
Simulation Analysis performance appraisal ?
Developmental uses
Break-even Analysis Administrative uses
Corporate Risk Analysis Ethical and moral values
Scenario Analysis Organisational objectives
Statement (I) : Job evaluation is a
technique of assessing the
Financial leverage in a firm is worth of each job in
positively affected by comparison with others
Intensity of tangible assets throughout an organization.
Statement (II) : Job evaluation and job
Operating leverage rating are one and the same for
Profitability employees’ appraisal purposes.
Tax Rate Codes :
Statement (I) is correct, but
Statement (II) is incorrect.
Which combination of the following Statement (II) is correct, but
two statements (A) and (R) is correct Statement (I) is incorrect.
Both the Statements (I) and (II)
? Assertion (A) : The IRR of a are correct.
project is the discount rate which Both the Statements (I) and (II)
reduces its NPV to zero. Reason (R) are incorrect.
: A project is worth accepting if the Match the items of List – I with the items
of List – II and select the correct
IRR exceeds answer :
the cost of capital.
Codes :
(A) is right, but (R) is wrong. List – I Codes :
Both (A) and (R) are correct. (i) Job
(A) is wrong, but (R) is correct. Rotation
Assertion (A) : A company should pay

minimum dividend to its
shareholders. (ii) Job
Reason (R) : Dividends are Design
heavily taxed than capital
(iii)Job
gains.
Evalua-
Codes : tion
(A) is not correct, but (R) is
correct. (iv) Jo
(A) is correct, but (R) is wrong. b
Enrich-
ment
Dividend irrelevance hypothesis is
implied in the
98
List – II (c) Seeks to nity for individual
(a) Involves conscious efforts, to improve growth
organise tasks, duties and both
responsibilities into a unit of work task (d) The formal process by
to achieve certain objectives. efficienc which the relative
y and worth of various jobs
human in the
(b) Involves movement of employees satisfacti
from job to job on and organisation is
more determined for pay
opportu purpose.
Traditional Model (ii) (iii) (iv)
Walter Model (a) (b) (c) (d)
Gordon Model (d) (c) (b) (a)
(c) (d) (b) (a)
M.M. Model
(b) (a) (d) (c)
Assertion (A) : Merit rating of an Various labour laws do not apply to
employee is the process of public sector undertakings.
evaluating the employees Codes :
performance on the job in terms While 1 and 2 are correct, others are
of the requirements of the job.
Reason (R) : Employees’ merit not.
rating is a technique for fair All the statements are correct.
and systematic evaluation of an Only 1 is correct, others are
employee’s capacities and incorrect.
abilities and performance on Only 1 is incorrect, all others are
the specific job. correct.
Codes :
Both (A) and (R) are correct,
and (R) is the right explanation
of (A).
Both (A) and (R) are correct,
but (R) is not the right
explanation of (A).
(R) is correct, but (A) is incorrect. The major
provisions for employees’
health and safety are contained in
The Industrial Disputes Act, 1947
The Factories Act, 1948
The Industrial Employment
(Standing Orders) Act, 1946
The Employees’ Compensation
Act, 1923
Indicate your choice through the codes
given below :
A club is an industry under the
Industrial Disputes Act, 1947
Factory as defined under the
Factories Act, 1948 includes a
mine.
For purpose of the payment of
bonus to employees, the gross
profits earned by a bank is to be
calculated in the manner
specified in Schedule – I of the
Payment of the Bonus Act, 1965.
99
Match the items of List – I with which involves currency
the items of List – II and select circulation
the correct answer : Reason (R) : The Central Bank is the
List – I List – II only authorized entity to do so.
(i) Abraham (a) Achievement
Maslow Motivation
Theory Codes :
(ii) Herzberg (b) ERG Theory (A) and (R) both are correct.
(iii) Alderfer (c) Two Factor (A) and (R) both are incorrect.
Theory (A) is correct, but (R) is
McClelland (d) Need Hierarchy incorrect.
Theory (R) is correct, but (A) is
incorrect.
Codes :
(ii) (iii) (iv) Identify the quantitative credit control
(a) (b) (c) (d) methods among the following :
Bank Rate
(d) (c) (b) (a) Credit Rationing
(c) (b) (a) (d) Open Market Operations
(d) (c) (a) (b) Variable Reserve Ratio
Selective Credit Control
Assertion (A) : The Central Liquidity Ratio
Bank of the country is Codes :
responsible to maintain (i), (ii), (iii) and (iv)
stability of the
(i), (ii), (v) and (vi)
monetary standard
(i), (iii), (iv) and (vi)
The following activities are mainly Match the following items of List – I
related to which organization ?
with List – II :
Micro Finance
Rural Finance List – I List – II
Self Help Groups (i) SWIFT (a) 1996
Cooperative Banks Finance (ii) NEFT (b) 1988
Industrial Finance Corporation
(iii) BASEL I (c) 1973
of India
Accord
Ministry of Finance
Reserve Bank of India (iv) BASEL II (d) 2004
National Bank for Agriculture Accord
and Rural Development Codes :
Personal Identification Number
PIN in banking transaction is known as Public Interlocking Numeric
Postal Index Number
Permanent Identification Reserve Bank of India was nationalized on
Number January 26, 1948
January 01, 1949
10
January 26, 1950 (ii) (iii) (iv)
January 01, 1956 (a) (b) (c) (d)
(b) (c) (a) (d)

When a banking company is placed
(d) (c) (b) (a)
under moratorium under Section 45
of the Banking (Regulation) Act, (c) (a) (d) (b)
1949, the RBI must prepare a scheme
of
VRS for staff The main features of TRIMS are :
Capital Buy-Back
All restrictions on foreign
Reconstruction of the company
capital are imposed.
or amalgamation with any
other bank No restriction is imposed on
IPO of the bank any area of investment.
Restrictions on repatriation of
dividend is eliminated.
Imports of raw material is
allowed freely.
No limit on the extent of
foreign investment.
Indicate the correct combination
(i), (ii), (iii) and (v)
(iii), (iv) and (v)
(iv) and (v)
10
Assertion (A) : TRIPS requires an Match the items of List – I and items of
understanding about the scope
List – II and select the correct answer
of the new patent regime.
Reason (R) : Patent protection will :
be extended to micro
organisms, non-biological and List – I List – II
micro-biological processes and (i) Free Trade (a) MERCOSUR
plant varieties.
Area
Codes :
(A) and (R) are not related with (ii) Customs (b) European
each other. Union Union
(R) is related with (A).
(iii) OEEC (c) EFTA
(A) is independent of (R).
While (R) is related with TRIMS, (iv) Common (d) Marshall
is related with TRIPS. Market Plan
Codes :
Possible impact of WTO on various
aspects of the Indian economy : (ii) (iii) (iv)
Quantitative restriction will be (a) (b) (c) (d)
allowed.
Second hand cars will be (b) (d) (a) (c)
imported.
There will be dumping of (c) (a) (d) (b)
Chinese goods. (d) (c) (b) (a)
Increase in population.
Child labour exploitation
Unemployment will increase Assertion (A) : A futures contract
Which combination is appropriate ?
specifies in advance the
(i), (ii), (iii)
(iii), (iv), (v) exchange rate to be used, but it
(ii), (iii) & (vi) is not as flexible as a forward
(iv), (v) & (vi) contract.
Reason (R) : A futures contract is for
Assertion (A) : Economic integration specific currency amount and a
abolishes cross- specific maturity date.
national economic
discrimination. Codes :
Reason (R) : Geographical (R) is a correct explanation of
proximity is an important (A).
reason for economic
integration. (R) is not a correct explanation
Codes : of (A).
(R) does explain (A).
(A) and (R) are not related with
Both (A) and (R) are not correct. each other.
(A) is correct, but (R) is not (R) is irrelevant for (A).
correct.
98
Out of the following, which are the Which of the following deductions will
important objectives of IMF ?
To promote exchange rate stability not come under Sec. 80 of the
To create standby reserves Income Tax Act ?
To print International currency Deduction in the case of a
notes
To establish a multilateral person with disability
system of payments. Deduction for interest paid on
To maintain orderly exchange
rate stability loan taken for pursuing higher
To create employment education
Codes :
(ii), (iv), (v), (vi) Deduction for interest on loan
(iii), (v), (vi) taken for the construction /
(i), (ii), (iv), (v) purchase of house property
(i), (ii), (v), (vi) Deduction for repayment of
Given that : any instalment of principal
Fair rent of a let out house property is amount borrowed for the
` 75,000. Its Municipal value is ` purchase / construction of
60,000, standard rent is ` 72,000 and
actual rent received is ` 63,000. What house property
is the Gross Annual Value of
this house property ?
(A) ` 60,000 (B) ` 63,000 X purchased a land in the P.Y. 1997-98
(C) ` 72,000 (D) ` 75,000 for ` 50,000. This land was sold by
Match the items of List – I with the him during the P.Y. 2009-10 for `
items of List – II 8,00,000. The fair market value of
List – I List – II this land on 1-4-81 was ` 1,20,000. If
(i) Amount deposited (a) 80-IA
in PPF the Cost Inflation Index for the A.Y.
(ii) Profits and gains (b) 80 G 2010-11 is 632, his capital gain for
from undertakings the A.Y. 2010-11 will be
engaged in
infrastructure ` 4,84,000
development ` 7,50,000
(iii) Contribution to (c) 80-IAB
National Defence ` 6,80,000
Fund
(iv) Profits and gains by (d) 80-C ` 41,600
an undertaking
engaged in the
development of Any amount of money received in
Special Economic excess of ` 50,000 without
Zone consideration is fully taxable in the
Codes :
(ii) (iii) (iv) hands of
(d) (c) (b) (a) Individuals
(d) (a) (b) (c)
(d) (a) (c) (b) Individuals and HUF
(b) (a) (c) (d) Individuals, HUF and Company
All assessees
99
1 D 26 A 51 A
2 C 27 B 52 D
3 B 28 D 53 B
4 C 29 B 54 B
5 D 30 B 55 A
6 C 31 D 56 B
7 C 32 B 57 C
8 B 33 D 58 D
9 A 34 B 59 D
10 D 35 A 60 C
11 C 36 D 61 B
12 D 37 D 62 C
13 A 38 D 63 B
14 A 39 C 64 B
15 D 40 D 65 A
16 A 41 D 66 C
17 A 42 C 67 B
18 D 43 C 68 C
19 D 44 B 69 A
20 B 45 C 70 C
21 C 46 A 71 C
22 A 47 B 72 B
23 A 48 A 73 C
24 C 49 D 74 D
25 B 50 C 75 B
100
Sep-2013
COMMERCE
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks. All questions are compulsory.
1. Government regulation of business is 5. Match the following regarding
basically intended to disinvestment in India :
make sure all business units List – I List – II
have the opportunity to be (a) Disinvestment I. 1999
successful. Policy by the
(B) warn consumers against unfair Chandrashekhar
business practices Government
(C) make sure business firms are Rangarajan
socially responsible. Committee on II. 1996
(D) protect the public from the disivestment in
negative consequences of public sector
business behaviour. enterprises
Strategic and
What is not the advantage of SEZ ? nonstrategic
classification of III. 1991-92
(A) Improvement of infrastructure
public enterprises
in the hinterland.
for disinvestment
Diversion of large tracts of
(d) Formation of
farm land. Disinvestment
Attracting foreign investment.
(D) All of the above. Codes : IV. 1993
I II III IV
3. Which type of the complaints are not (A) (c) (d) (a) (b)
Commission
to be entertained by Consumer (B) (a) (b) (c) (d)
Forums under the Consumer (C) (c) (b) (a) (d)
Protection Act, 1986 ? (D) (a) (d) (c) (b)
(A) A defective product purchased 6. When a partnership is dissolved and

1½ years back. the following claims need to be met
(B) Misleading advertisement in a out piece-meal of the cash released,
newspaper. which is the correct sequence in
(C) Services provided free of cost. which these claims have to be met ?
(D) Tie in sales. (a) Any partner’s loan
(b) Capital and Current account
4. Which of the following is a WTO balances
procedure to promote globalisation ? (c) Expenses of dissolution
(A) Promotion of free trade. (d) Outsider’s claim (both payable
101
(B) Reduction of budgetary and accrued)
subsidies. Codes :
(C) Reduction in shipping costs. (A) (c), (d), (a), (b)
(D) Promotion of foreign portfolio (B) (b), (c), (a), (d)
(C) (a), (b), (d), (c)
investment.
(D) (a), (b), (c), (d)
In practice, accountants consider Which one of the following is not the basic
revenue from sales if a transaction assumption of Cardinal Utility analysis ?
meets the following condition(s) : Rationality of Consumer. Utility
The seller has passed the legal cardinally measurable. Diminishing
or economic ownership of the marginal utility of money.
goods to the buyer. Hypothesis of independent
The seller and the buyer have utilities.
agreed on the price of the
goods.
The buyer has paid the price of
the goods or it is certain that he
will pay the price.
All of the above.
The main difference between marginal

costing and absorption costing lies in
the treatment of
Direct cost
Fixed overhead
Variable overhead
Semi-variable overhead
Which of the following items is not an

appropriation of profit for a limited
company ?
Corporate tax payable
Ordinary dividend payable
Debenture interest payable
Preference dividend payable
Which of the following is not

applicable to responsibility
accounting ?
Accounting Centre
Cost Centre
Investment Centre
Profit Centre
102
Which one of the following is Contraction (ii) Rightward
not a property of indifference of demand shift of the
curve ? demand curve.
Negatively sloping. (c) Cross (iii) Demand of
demand more than one
Convex to the point of origin. commodity to
satisfy one
Indifference curves
specific want.
necessarily have to be
parallel. (d) Joint (iv) Demand of one
demand commodity
Two indifference curves with changes in
do not intersect each other. the prices of
another related
commodity
Find the correct matching between
items of List-I and the items of Codes :
List- II. (ii) (iii) (iv)
(b) (a) (d) (c)
Increase in (i) Leftward
demandmovement (a) (b) (c) (d)
along (b) (a) (c) (d)
the (a) (b) (d) (c)
demand curve.
According to the Law of Variable The profit maximizing output would be
Proportions, the second stage of :
production ends when
Marginal productivity of the 60
variable input becomes 15
maximum. 50
Both marginal productivity and
average productivity of the None of the above
variable input are equal.
Marginal productivity of the From a population with mean of 220 and
variable input becomes zero standard deviation of 30, a sample of 36
and average productivity is
positive. was drawn at random.
Marginal productivity of the Calculate the standard error of the
variable input is negative but sampling distribution and choose the
average productivity is correct answer from the following
positive.
options.
Total Revenue (TR) function and the Total (A) 7.3 (B) 6.2
Cost (TC) function of a perfectly (C) 6.0 (D) 5.0
competitive market firm are as follows :
2 A committee of six people is to be formed
TR = 480 Q – 8 Q
2 from a group of seven men and four
TC = 400 + 8 Q
women. What is the probability that the
103
committee will have exactly two From the following Anova table,
women ? calculate the ‘F’ value and select the
0.456 correct answer from the options
0.803 given below :
0.962 ANOVA Table
None of the above Sources of Sum of Degrees of
Variation Squares Freedom
Between 100 3
columns
Between 24 16
rows
Total 124 19
(A) 22.2 (B) 31.5
(C) 33.3 (D) 36.2
For a hypothesis test, alpha (α) is 0.05

and beta (β) is 0.10. The power of
this test is
0.95
0.90
0.80
0.15
Which one(s) of the following

statements is (are) correct with
respect to Decision Support System
(DSS) ?
It (DSS) is used by middle
level management.
DSS applies to mostly
structured problems.
DSS relies on mathematical
models for analysis.
DSS is largely heuristics based.
Codes :
(i) and (ii) are correct.
(i) and (iii) are correct.
(i), (ii) and (iii) are correct.
All the four are correct.
104
Given below are two statements, one Which of the following is suggested by
labelled as Assertion (A), and the Blake and Mouton as the best
other labelled as Reason (R). Select leadership behaviour ?
the correct answer using the code Low concern for people but
given below : high concern for production.
Low concern for both people
Assertion (A) : Strategies necessarily
need to be changed over time to and production.
suit environmental changes. High concern for both people
Reason (R) : To remain competitive, and production.
organisations develop those
strategies that create value for High concern for people and
customers. low concern for production.
Codes :
(A) is correct, but (R) is Which segmentation approach is the
incorrect.
Both (A) and (R) are correct. most compatible with the spirit of the
(A) is incorrect, but (R) is correct. marketing concept ?
Both (A) and (R) are incorrect. Benefit sought
Which of the following is not true Income
about proactive planning ? Social class
Way of thinking about Family size
managing the future risks.
Anticipating future Which of the stages of new product
development process can be skipped
contingencies.
?
Reacting to external events.
Getting ready with alternative Business analysis
routes for unforseen situations. Idea screening
Product testing
Which of the following is not a Test marketing
characteristic of non-programmed
decisions ? The price-setting method which most
Problems are unique and novel. closely corresponds to the concept of
There are no pre-established product positioning is
policies or procedures to rely on. cost-plus pricing
The conditions for non-
programmed decisions are going-rate pricing
highly certain. perceived value pricing
These are the responsibility of psychological pricing
top-management.
Which of the following is an ethical The most important retail marketing

behaviour of a manager ? decision a retailer has to make is to
Trading stocks on the basis of select the product assortment.
inside information. identify its target market.
choose the desired service
Padding expense accounts.
level.
Not divulging trade secrets to
develop an effective store
competitors. atmosphere.
Being severely critical of
competitors.
105
Which element of the promotion mix Which one of the following is not the
do wholesalers primarily use ? assumption of the Modigliani-Miller
Advertising Irrelevance Theory of Dividend
Policy ?
Personal selling No personal or corporate
Public relations income taxes.
Trade show Dividend policy has its effect
on firm’s cost of equity.
Capital investment policy is
Out of the following alternative independent of its dividend
methods of project evaluation and policy.
selection used in capital budgeting,
which one of the combinations in the Stock floatation or transaction
code corresponds to discounted cash cost does not exist.
flow methods ? Match the items of List-I with the items of
List-II.
Internal Rate of Return List – I List –
Pay Back Period II
(i) Financial (a) Rate of
Profitability Index Break- discount at
Net Present Value even-point which NPV is
zero.
Codes : (ii) Cost- (b) Cost of capital
(i), (ii), (iii) Volume- remains the
Profit same for
(i), (iii), (iv) Analysis different
degrees of
(ii), (iii), (iv)
financial
(i), (ii), (iii), (iv) leverage.
(iii) Internal (c) Analysis to
Rate of study
When the expected level of EBIT Return relationship
among fixed
exceeds the indifferent point for two
costs, variable
alternative financial plans, (Equity-
costs, sales
financing and Debt-financing), then
volume and
The use of debt financing profits.
would be advantageous to (iv) Net (d) The minimum
increase EPS. Operating level of EBIT
the use of equity financing Income needed to
would be advantageous to Approach satisfy all
maximize EPS. fixed financial
charges.
the use of debt-financing would Codes :
(b) (c) (d)
reduce EPS. the use of equity financing would
keep the EPS constant.
106
(iii) (iv) (ii) (i) (iv) (iii) (i) (ii)
(i) (ii) (iii) (iv) (i) (ii) (iv) (iii)
107
Assertion (A) : The focus of working In which method of performance
capital management revolves appraisal, the evaluator keeps a
around managing the operating written record of significant events
cycle of the working capital. and how difficult employees behaved
Reason (R) : It is because the during such events ?
concept is useful to ascertain Field Review Method
the requirements of cash to BARS Method
meet the operating expenses of Critical Incidents Method
a going concern. Assessment Centre Method
Codes :
Both (A) and (R) are true, but In connection with HRD, what is
is not the explanation of incorrect ?
working capital management. It is a reactive function.
Both(A) and (R) are false. It develops total organisation.
(A) is true, but (R) is false. It focuses on autonomous work
(A) is false, but (R) is true. groups.
It is an integrated system.
Which of the following terms, includes
the task, duties and responsibilities of In which method of training, job
a particular job ? conditions are duplicated with
Job Evaluation equipments and machines which are
Job Enrichment identical with those used at the work
Job Analysis Job place ?
Enlargement On the job training
Apprenticeship training
Match the following lists and indicate Vestibule training
the correct pairing : Internship training
1. Simple a Evaluation by
Ranking Superiors, Which one of the following techniques
Peers and is used by the Commercial Banks in
Subordinates. India to measure the risk arising from
2. Paired b Order of rating trading activity ?
Comparison from best to Network Analysis
worst. Sensitivity Analysis Value
360-Degree c Standardised at risk methodology
Appraisalquantitative rating. E.V.A.
4. Graphic d Comparing
Rating ratings to one Which of the following schemes
another. introduced by NABARD is intended
The correct pairing is to provide credit to farmers ?
1 2 3 4 Rural Infrastructure
(A) b d a c
Development Fund
(B) a b c d
(C) c d a b Kisan Credit Card
(D) d a b c Micro-Finance
Co-Operative
Development Fund
106
Which one of the following is a recent Arrange the stages in anti-dumping
E-Banking initiative in Commercial investigation process in right
Banks in India ? sequence.
RTGS Initiation
NEFT Preliminary screening
NECS Rejection of unsubstantiated
NET Banking information
Provisional findings
Which of the following fee-based Final findings and measures
services are provided by IDBI ? Permitting the exporting
Credit syndication country to modify the practices
Corporate trustee services Codes :
Custodial services (i), (ii), (iii), (iv), (vi), (v)
Foreign services (i), (ii), (iv), (iii), (vi), (v)
Identify the correct code : (ii), (iv), (iii), (i), (vi), (v)
Codes : (ii), (iii), (i), (vi), (iv), (v)
(i), (ii) and (iv)
(i) and (ii) A situation where any advantage given
(ii), (iii) and (iv) by one member of the WTO to
another member is extended to all
(iii) and (iv)
WTO members is referred to as
Trade Diversion
SIDBI provides financial assistance in Inter Regional Principle
the following forms : Most Favoured Nation
Bills financing Least Traded Nation
Project financing
Re-finance assistance The collapse of which of the following
Resource support to institutions systems is related to the Triffin
Which of the following sequence is Paradox ?
correct ? Gold Standard
(i), (iii), (iv) and (ii) Exchange rate mechanism (in
(ii), (iv), (i) and (iii) 1992)
Bretton Woods
(iii), (i), (iv) and (ii) None of the above
(iv), (i), (iii) and (ii)
Which of the following is/are the
BOP problems in India cannot be assumptions of the Law of One Price
attributed only to ?
Large trade deficit Restriction on the movement of
goods between countries.
Increase in invisible surplus
No transportation costs.
Sensitive behaviour of foreign
No tariffs
creditors, including NRI
Both (i) and (ii)
foreign-currency depositors.
Only (i)
The declining role of Both (ii) and (iii)
concessional external finance. (i), (ii) and (iii)
107
UGC - NET SEPTEMBER 2013
1 D 26 A
2 B 27 D
3 C 28 C
4 A 29 B
5 A 30 B
6 A 31 B
7 D 32 A
8 C 33 B
9 C 34 A
10 A 35 A
11 C 36 C
12 C 37 A
13 A 38 C
14 C 39 D
15 B 40 C
16 D 41 C
17 D 42 B
18 A 43 C
19 B 44 A
20 C 45 C
21 B 46 B
22 C 47 D
23 C 48 C
24 C 49 C
25 C 50 C
108
Sep-2013
COMMERCE
Paper – III
The first macro-environmental force

Which one of the following is not
that a business firm generally
included in the Consumer Rights as per
monitors is the Consumer Protection Act, 1986 ?
Economic environment Right to be protected against
Demographic environment marketing of hazardous goods
Technological environment and services.
Right to be heard.
International, Political
Rightto a physical environment
environment
that will protect and enhance
quality of life.
Which of the following statements is Right to seek redressal of
true ? legitimate complaints.
The highest growth rate in A consumer can file a complaint under
India is in the Manufacturing the Consumer Protection Act, 1986,
Sector. on any of the following grounds
except :
Agricultural Sector has the
Sale of defective goods
highest share in the GDP in
Provision of deficient service
India.
Charging very high price
The biggest source of Central
Unfair trade practice
Government’s revenue is
Central Excise.
Financial statements provide a true and
None of the above. fair view if
It is free from any material
Which of the following statements is error and bias.
true ? It is prepared using the
The Competition Commission appropriate accounting policy
of India is headed by a person and applicable accounting
having Judicial background. standards.
The definition of the term It is prescribed in the format
‘goods’ as given in the prescribed by the regulator or,
Competition Act, 2002, is the in the absence of a prescribed
same as given in the Sale of format, it is prepared in a
Goods Act, 1930. manner that facilitates analyses
Both (A) and (B) are true. of the financial position and the
None of the above is true. performance of the reporting
enterprise.
It conforms to all of the
above (A), (B) and (C). 109
Which of the formula is used to According to H.A. Simon, if a firm
calculate Absolute Liquid Ratio is ? fails to achieve its target initially, it
Current Assets, Loans & Advances-Inventories Current
Liabilities & Provisions-Bank Overdraft
Current Assets, Loans & Advances results in
Current Liabilities & Provisions Search behaviour
Absolute Liquid Assets Sense of helplessness
Current Liabilities
Absolute Liquid Assets Appropriaterevision of
Quick Liabilities
aspiration level.
A company sells its product at ` 15 per Sacking of its managerial team

unit. In a period if it produces and
sells 8,000 units, it incurs a loss of ` 5 When the demand curve is relatively
per unit. If the volume is raised to highly elastic, the marginal revenue
is
20,000 units it earns a profit of ` 4.
Variable cost per unit will be (A) Zero (B) Unity
` 9 per unit (C) Positive (D) Negative
` 4.5 per unit

In which one of the following market
` 5 per unit situations the practice of price
rigidity is found ?
` 6 per unit
Perfectly competitive market
Monopolistic
Which of the following is a sub- competitive market
variance of labour efficiency Oligopoly market
Discriminating
variance ?
monopoly market
Idle time variance
Labour-mix variance During short-run, the optimum level of
Labour-yield variance output corresponds to that level of
All of the above output where
MC is the minimum
AVC is the minimum
An investment centre is a responsibility AC is the minimum
centre where the manager has control AFC stops declining
over
Costs The opportunity cost is a term which
describes
Costs and profits
a bargain price for a factor of
Costs, profits and product production.
quality production cost related at the
Costs, profits and assets optimum level of production.
average variable cost.
the loss of the reward in the
next best use of that resource.
110
Find chi-square value for the following The steps in data processing are given
: below :
Event Expected Observed Choose the correct sequence of steps
in data processing from the following
X 60 52
options :
Y 40 48
Data Storage
Choose the correct answer from the
Data Validation
following options : Data Capture
(A) 2.67 (B) 2.77 Report Generation
(C) 3.33 (D) 4.33 Data Manipulation
(i), (ii), (iii), (iv), (v)
(ii), (i), (iii), (iv), (v)
A time series is a set of data collected
(iii), (i), (ii), (iv), (v)
at
Random intervals (iii), (ii), (i), (v), (iv)
Regular intervals Which of the following steps are
Convenient intervals essential in the staffing process ?
All of the above Hiring the right kind of people.
Firing the non-performing
employees.
Given the following data calculate the
Developing skills of the
regression coefficient of X on Y.
employees through training.
Pearson’s correlation coefficient = + 0.8.
Collective bargaining.
Regression coefficient of Y on X = 0.8 Maintaining the employees by
Choose the correct answer from the creating favourable conditions
following : of work.
(A) 0.32 (B) 0.64 Codes :
(C) 0.80 (D) 0.82 (A) 1, 3 and 5 (B) 1, 2 and 3
(C) 3, 4 and 5 (D) 2, 3 and 4
Which kind of test from the following Taylor

options is the right test to use when Viewed man as an adjunct of
the hypotheses for testing are stated man.
as : Completely neglected the
psychological aspects.
H0 : Population mean is equal to the
sample mean. Emphasized only a limited
number of the psychological
H1 : Population mean is not equal to variables.
the sample mean. Under-estimated the meaning
One-tailed test of human motivation.
Two-tailed test Select the correct answer from the
Either one tailed or two tailed following :
test (A) 1, 2 and 3 (B) 3, 2 and 4
None of the above (C) 1, 2, 3 and 4 (D) 1 and 4
116
The authoritarian leadership style goes (D) 4 3 1 2
with
Theory X
Theory Y
Theory Z
None of these
Select the four stages of group

development from the following :
1. Forming 2. Storming
Discussing 4. Norming
5. Warning 6. Performing
Codes :
(A) 1, 2, 3 and 5 (B) 2, 3, 4 and 6
(C) 3, 4, 5 and 6 (D) 1, 2, 4 and 6

(a) To check the 1. Speed boss
quality of
work.
To see that 2. Inspection
work is
completed in
time.
(c) To check 3. Instruction
absenteeism clerk
of workers.
(d) To issue 4. Shop
instruction discipline
regarding
method of
work
Codes :
(a) (b) (c) (d)
(A) 3 2 1 4
(B) 2 1 4 3
(C) 2 1 3 4
117
A company plans to create the
largest possible total sales Which promotional tool is most cost
volume. It should use effective when a product is in the
Concentrated decline stage of its product life cycle ?
marketing Advertising
Differentiated Personal selling
marketing Public relations
Homogeneous Sales promotion
marketing
Undifferentiated Match the items of List-I with those of
marketing List-II.
The third stage in the consumer- (a) Product (i) Information
buying decision process is support Technology
Evaluation of service Act 2000
alternatives (b) Interviewers’ (ii) Information
Information search bias Search
Purchase decision (c) On-line (iii) Marketing
None of the above advertising Research
(d) Personal (iv) User’s
Manufacturers of convenience sources Manual
goods typically seek Indicate the correct matching.
(b) (c) (d)
distribution. (iv) (iii) (ii) (i)
Exclusive(B) Intensive (iv) (iii) (i) (ii)
Restrictive (D) (i)(ii) (iii) (iv)
Selective (ii) (iii) (iv) (i)
118
Match the items of List-I with the items (a) (b) (c) (d)
of List-II. (b) (a) (d) (c)
(a) A theory of I. Capital
capital structure Asset
in which the Pricing
weighted average Model
cost of capital
and the total
value of the firm
remains constant
as financial
leverage is
changed.
(b) The value of the II. Traditional
geared company Approach
will always be
greater than an
ungeared
company with
similar business
risk but only by
the amount of
debt associated
tax savings of the
geared company.
(c) Capital structure III. Net
that minimizes Operating
the firm’s cost of Income
capital and Approach
thereby
maximizes the
value of the firm.
(d) Share price is IV. Modigliani-
independent of Miller
the degree of Theory and
financial Corporate
leverage. Taxation
Codes :
II III IV
(c) (d) (b) (a)
(d) (c) (a) (b)
Which one of the following When the internal rate of return of a
expression represents a correct project is more than the hurdle rate,
matching ? the Net Present Value would be :
A decrease in the proportional (A) Zero (B) Positive
claim on earnings and assets (C) Negative (D) Uncertain
of a share of common stock Statement I : The presence of fixed
due to the issuance of operating costs in the operating
additional shares : Dilution. cost structure of a firm
Anticipated annual dividend regardless of the volume
divided by the total book denotes the presence of
value of the firm : Dividend financial leverage.
Yield. Statement II : Super leverage is the
When a shareholder receives result of the multiplicative
lesser number of new shares combination of the degree of
in exchange for a given operating leverage and
number of old shares : Stock financial leverage.
split. Codes :
The costs associated with Both statements are true.
issuing securities, such as Both statements are false.
underwriting, legal, listing Statement I is true, but
and printing fees : Transaction Statement II is false.
Costs. Statement I is false, but
Statement II is true.
113
Which one of the following Performance appraisal
expressions has incorrect matching ? Placement
A method of financing where Selection
each asset would be offset with Span of control
a financing instrument of the
same approximate maturity :
Hedging Approach.
A method of financing where
all long term funds are used to
finance the current assets :
Aggressive Approach.
The amount of current assets
required to meet a firm’s long-
term minimum needs :
Permanent working capital.
Trade credit and other payables
that arise in the firm’s day to
day operations : Spontaneous
Financing.
The Equal Remuneration Act, 1976 is
primarily applicable to workers
working on
Monthly wage basis
Annual wage basis
Daily wage basis
Contractual wage basis
In comparing Maslow’s and
Hertzberg’s Theories of Motivation,
which motivators of Hertzberg are
similar to the need specified by
Maslow ?
Affiliation needs
Physiological needs
Security needs
Self-actualisation needs
The managerial function of staffing is
most closely related to
Controlling (B) Leading
Marketing (D) Organising
The ‘staffing function’ does not include
:
121
On-the-job training does not Which one of the following is not a
include job rotation correct method of calculating
planned progression profitability ratio in banking sector ?
sensitivity (A) Burden = Man power
training ratio expenses ratio +
other
temporary
establishment
promotion expenditure ratio
– non interest
Generally the following are
income ratio.
the important items
(B) Profit- = Spread ratio –
appearing on the assets side of the
ability burden ratio
Balance Sheet of a Commercial ratio
Bank. (C) Spread = Interest earned
Cash in hand ratio ratio + Interest
Bills discounted paid ratio
Money at call and short (D) Interest = Interest
notice Loans and advances earned earned/volume
Investments ratio of business
Which of the following
Capital adequacy norm is expressed as
sequence is correct in the order a percentage of
of liquidity ? Standard Assets
(a), (b), (d), (c) and (e) Risk adjusted Assets
(a), (c), (b), (e) and (d) Sub-standard Assets
(b), (d), (c), (a) and (e) Investments
(c), (d), (b), (e) and (a)
The major sources of funds for IFCI Reserve Bank of India
Ltd. (during the year 2011-12) are IDBI
given below : Central Government State
Reserves and Surpluses
Government
Borrowings in Rupees
Share Capital
BorrowingsinForeign Items given are related to international trade
Currency theories. Match the items in List-A with
Which of the following sequence is most suitable options in List-B.
correct ?
List – A List – B
(i), (iii), (iv) and(i)(ii) Factor
(a) ‘Zero-sum’
(iii), (i), (ii) and (iv) proportion
game
(ii), (i), (iii) and (iv) theory
(b) Labour-
(iv), (ii), (i) and(ii)
(iii) Mercantalism
Capital theory
relationship
The Bonds and Debentures issued by
StateRelative
(c) (iii) Theory of
Financial Corporations are
efficiencies
guaranteed by of ‘Absolute
the producing advantage’
countries
(d) ‘Positive- (iv) Theory of 122
sum’ game Comparative
advantage
The following are the stages in
international business entry process.
Arrange them in correct sequence.
Codes : Direct experience

(b) (c) (d)
In-depth scrutiny
(iii) (iv) (i) (ii)
(ii) (iii) (iv) (i) Country identification
(ii) (i) (iv) (iii)
(iv) (i) (ii) (iii) Preliminary screening
Final selection
Codes :
(iv), (iii), (i), (ii), (v)
(iii), (iv), (i), (ii), (v)
(iii), (iv), (ii), (v), (i)
(iii), (iv), (v), (ii), (i)
Which of the following intellectual

properties were covered under
Uruguay Round Agreement on
TRIPS ?
Copy rights
Trade marks
Industrial designs
Undisclosed information,
including trade secrets
Codes :
(i) and (ii) only
(i), (ii) and (iii)

123
Which of the following statements is Match the following :
true ?
If the absolute Purchasing List – I List – II
Power Parity (PPP) holds good, (Name of the credit (Ownership)
then the relative PPP also holds
rating agency)
good.
If the relative PPP holds good, (a) CRISIL 1. IFCI
then the absolute PPP also
holds good. (b) ICRA 2. ICICI
If the absolute PPP does not (c) CARE 3. Duff &
hold good, then the relative
Phelps
PPP also will not hold good.
If the absolute PPP holds good, Corpn.
then the relative PPP may or Duff and Phelps 4. IDBI
may not hold good. Credit Rating of
India Ltd.
A company is planning to enter a
foreign market. Which of the Codes :
following entry strategies will give it
the maximum control ? (b) (c) (d)
Direct export
(A) 1 2 3 4
Direct investment
Financing (B) 2 1 4 3
Licensing
(C) 1 2 4 3
The opportunity cost approach in (D) 2 4 1 3

Human Resources Accounting was
introduced by
Hckimian and Jones Which of the following is responsible
Rensis Likert
Eric. G. Flamholtz for investigating cases referred to it
William C. Pyle and deciding whether a proposed
merger is in the ‘public interest’ ?
The GDRs and ADRs can be listed on
Director General of Fair
Luxemburg Stock Exchange
(LSE) Trading (DGFT).
New York Stock Exchange Secretary of State for Trade
(NYSE)
and Industry.
Over the Counter Exchange of
India (OTCEI) Competition Commission of
Any of the Overseas Stock India (CCI).
Exchanges
Prime Minister Office.
124
M atch the following : In order to be useful, market segments
List – I List – II must have each of the following
characteristics except :
(a) A popular 1. Sage
accessibility
windows Account-
accounting ing adaptability
package Software measurability
providing general substantiality
ledger, accounts
receivables,
invoicing, Mass media has the maximum impact
accounts payable, at which stage of consumer adoption
inventory and process.
sales analysis Adoption(B) Awareness
Evaluation (D) Trial
capabilities. Pricing decisions are most complex at

A good, entry 2. M.Y.O.B. level which stage of the product life cycle
accounting ?
package. Decline stage
(c) Simplest, yet 3. Best Introductory stage
most powerful Books Growth stage
software to Maturity stage
handle financial
accounting,
inventory, sales Industrial buyers are likely to be most
and purchase responsive to appeal.
orders, invoicing emotional(B) moral
and more.
(C) rational (D) cognitive
A complete range 4. Tally
of accounting
software Indicate the true statement :
providing an Advertisement’s sales effect is
integrated easier to measure than its
solution at the communication effect.
heart of one’s
business.
Codes (b) (c) (d) As a tool of promotion, public
:(A) 4 3 2 1 relations can be more cost-
effective than advertising.
(B) 1 2 4 3
A successful salesperson is one
(C) 2 4 1 3 who can sell refrigerator to an
(D) 2 3 4 1 125
Eski All the above are true.
mo.
126
Who observed in 54 of the cases It is a mental condition or attitudes of
studied that high morale related to individuals and groups which
high productivity in 11 of the cases determine their willingness to
high morale was associated with low cooperate.
productivity and in 35% of the cases Job satisfaction
there was no relationship between
Motivation
morale and productivity ?
Michael J. Jucious Job Advancement
Richard E Walton Morale
Frederick Herzberg
None of the above Which of the following most
Who developed the goal-setting theory appropriately describes the meaning
of motivation ? of the term ‘option forward’ ?
Frederick Herzberg Forward contract entered into
Edwin Locke along with buying a call option.
Richard Hackman Forward contract entered into
None of the above for buying or selling at a future
date.
Which of the following concepts,
involves setting objectives and Forward contract entered into
comparing performance against those for buying or selling over a
objectives ? period of time.
Performance Appraisal Forward contract entered into
Merit Rating with writing a put option.
Management by Objectives
Formulation of objectives and ‘Dual adaptation strategy’, in the
policies context of international product
The career development cycle includes decisions, means :
Modification of product and
:
packaging it to meet local
Introductory stage → Growth
requirements.
stage → Saturation stage →
Changing product and price to
Decline stage.
meet local requirements.
Primary stage → Secondary
Modification of product and
stage → Stage of self-
the marketing communication
actualisation.
to suit the foreign markets.
Pioneering stage → Growth
None of the above.
stage → Maturity stage →
Decline stage.
Exploratorystage → The main promoter of international
Establishment stage → trade liberalisation
Maintenance stage → Stage of GATT - WTO (B) NAFTA
Decline. (C) CEPTA (D) CISA
118
The most common trade barrier Consider the following :
faced by a multinational company is
The book profit of a firm of
the
Embargo(B) Quota Chartered Accountants, which
satisfies all the conditions of Section
(C) Sales tax (D) Tariff
184 and Section 40(b), for the year
ended 31-3-2012, is ` 72,190.
Exchange Rate System where the The actual remuneration paid to the
Central Bank intervenes to smoothen partners for the year is ` 1,56,000.
out the exchange rate fluctuations is
The amount of remuneration
termed as
permissible under Sec: 40(b) is :
Free float
Clean float
Managed float
Fixed rate system
(A) ` 1,56,000 (B) ` 72,190
(C) ` 64,971 (D) ` 1,50,000
Mr. X, after about 20 years’ stay in ‘Winman’, software can be used for
India, returns to America on January
Preparation of Balance Sheet
29, 2009. He came to India in June
2011. His residential status for the Computation of Income Tax
Assessment year 2012-13 will be
Filing of e-Returns
Ordinarily Resident
All of the above
Not Ordinarily Resident
Non-Resident
Resident or Non-Resident Which of the following deductions
under Chapter VI A of Income Tax
Act, 1961, cannot be claimed by a
Mr. X retired from a Pvt. Ltd.
partnership firm ?
Company on 31-3-2011. The
company paid ` 80,000 in lieu of (i) Sec. 80-G (ii) Sec. 80-
C
commutation of 25 percent of
pension on 31-01-2012, but does not (iii) Sec. 80-D (iv) Sec. 80-
pay any gratuity to its employees. IB
The amount taxable as commuted Codes :
pension for the Assessment Year
2012-13 is : (ii), (iii) and (iv)
(A) ` 80,000 (B) ` 3,20,000 (i) and (iii)
(C) ` 1,60,000 (D) Nil (i), (ii) and (iii)
(ii) and (iii)
119
UGC - NET SEPTEMBER 2013
1 B 26 B 51 A
2 C 27 A 52 D
3 D 28 B 53 D
4 C 29 D 54 C
5 C 30 B 55 D
6 D 31 B 56 A
7 C 32 A 57 B
8 C 33 B 58 D
9 D 34 D 59 C
10 C 35 B 60 B
11 A 36 B 61 C
12 C 37 D 62 B
13 C 38 D 63 C
14 C 39 D 64 D
15 D 40 C 65 D
16 A 41 B 66 C
17 B 42 C 67 C
18 C 43 B 68 A
19 B 44 C 69 D
20 D 45 D 70 C
21 A 46 C 71 A
22 C 47 C 72 D
23 A 48 D 73 D
24 D 49 A 74 D
25 B 50 B 75 D
120
June-2013
COMMERCE
Paper – II
marks. All questions are compulsory.
1. Direct supervision over depositories 4. The apex consumer court in India is
and mutual funds is undertaken by referred to as
(A) NBFCs (A) The Consumer Education and
(B) RBI Research Centre.
(C) SEBI (B) The Consumer Unity and Trust
(D) All of the above Society.
2. In the call/notice money market, (C) National Consumer Disputes
which of the following participants is Redressal Commission.
allowed to trade ? (D) None of the above
(A) All Banks, Primary Dealers and
th
Mutual Funds 5. Who is Chairman of 13 Finance
(B) All Corporates Commission ?
(C) Only Commercial Banks
(A) Dr. C. Rangarajan
(D) All of the above
(B) Mr. Vimal Jalan
3. Match the items of List-I with the (C) Dr.Vijay C. Kelkar
items of List-II and select the correct
(D) None of the above
answer :
(i) Private (a) Secondary 6. Insurance expenses paid to bring an
ownership Market equipment from the place of
and Free purchase to the place of installation is
Enterprise. a type of
(ii) Government (b) Capitalism (A) Revenue expenditure
ownership (B) Capital expenditure
and Central (C) Deferred revenue expenditure
Authority. (c) Primary (D) Operating expense
(iii) The market
for the sale Market

andpreviously
of purchase 7. ABC Ltd was incorporated with
issued `an1,00,000
authorised Share
equity sharesCapital
of ` 10of
securities. each. The Board of Directors of the
company decided to allot 10,000
The market (d) Socialism
(iv) for new long shares credited as fully paid to
the promoters of the company for their
term capital.
Codes : services. Which account should be
(i) (ii) (iii) (iv) debited in the books of ABC Ltd. ?
121
(A) (b) (d) (a) (c) (A) Promoters’ Account
(B) (a) (b) (c) (d) (B) Services Account
(C) (b) (d) (c) (a) (C) Goodwill Account
(D) (a) (c) (b) (d) (D) Share Capital Account
In a reconstruction scheme, the Both (A) and (R) are correct.
reduction of capital may take the (A) is correct, but (R) is not
form of correct.
Reducing the liability of the Both (A) and (R) are not
shareholders in respect of any correct.
unpaid amount on the shares (R) is correct, but (A) is not
held by them. correct.
Paying-off any paid-up share
capital which is in excess of its
requirement.
Cancelling any paid-up share
capital which is lost or
unrepresented by available
assets.
All of the above.
While determining the normal rate of

return for the valuation of shares in
Market Value Method, which of the
following should be taken into
consideration ?
The degree of risk involved.
The current rate of interest on
gilt-edged securities.
Weighted average cost of
capital.
All of the above.
Master budget is a
Functional Budget
Operating Budget
Summary Budget
Financial Budget
Assertion (A) : Want-satisfying power

of a commodity is called its
utility.
Reason (R) : Utility may not have
the characteristic of morality.
Codes :
122
Match the items of List-I with those (ii) (iv) (i) (iii)
in List-II and select the correct
code for the answer :
Assertion (A) : As the proportion of
List – I List – II one variable factor in a
(a) Contraction (i) Non-Price combination with fixed factor
of Demand change effect is increased, after a point the
(b) Decrease (ii) Demand curve marginal product of the factor
in Demand remains the will diminish.
same Reason (R) : Beyond the level of
(c) Increase in (iii) Price change optimum combination of inputs
Demand effect leads to this.
(d) Expansion (iv) Shifts the Codes :
of Demand Demand curve (R) is appropriate reason of
Codes : (A).
(b) (c) (d) (R) is not appropriate reason of
(A).
(iii) (i) (iv) (ii)
(A) and (R) are not related with
(iv) (iii) (ii) (i)
each other.
(i) (ii) (iii) (iv)
(A) is independent of (R).
Match the items of List-I with the items of The difference between sample statistic and
List-II and select the correct answer. its corresponding population parameter is
Sampling error
List – I List – II Measurement error
(a) Indifference (i) Slopes Coverage error
Curve downward to Non-response error
the right
(b) Demand (ii) P=AR=MR=d Match the items in List-I with items in
Curve List-II.
(c) Perfect (iii) Oligopoly (i) Level of (a) Sample
Competition significance mean is
(d) Price (iv) Convex to equal to
Leadership the origin population
Codes : mean
(ii) Standard (b) Parameters
(b) (c) (d)
deviation of
(ii) (iii) (iv) (i) sampling
(iii) (iv) (i) (ii) distribution
(iii) Numerical (c) Type-I
(iv) (i) (ii) (iii)
value that error
(i) (ii) (iii) (iv) describes the
characteristi
cs of the
population 123
(iv) Normally- (d) Standard
distributed error
population
Price, Marginal Revenue and Elasticity
are related to each other. When e = 1,
then :
MR > 0
MR < 0
Codes :
MR = 0 (i) (ii) (iii) (iv)
MR = 1 (A) (d) (c) (a) (b)
(B) (c) (d) (b) (a)
(C) (c) (b) (d) (a)
Consider the following statistical tests : (D) (d) (b) (c) (a)
‘F’ test
19. Kendall’s co-efficient of
‘t’ test
concordance is used to
‘z’ test Test the difference among two
‘Chi-square’ test or more sets of data.
Which of these are parametric tests ? Test the relationship between
variables.
(i), (ii) and (iv)
Test the variations in the given
(i), (iii) and (iv) data.
(i), (ii) and (iii) Test the randomness of
samples.
Which of the following softwares are Assertion (A) : When span of control is
used for data processing ? wide co-ordination and control
EXCEL becomes difficult.
ACCESS Reason (R) : In a narrow span,
SPSS levels of authority reduces.
STAR Codes :
Both (A) and (R) are true and
PASW
is the correct explanation of
Codes :
Both (A) and (R) are true, but
(ii), (iii), (iv) and (v) is not a correct explanation
(iii) and (iv) of (A).
(i), (iii) and (iv) (A) is true, but (R) is false.
Match the items of List-I with the items of

The general pattern of behaviour,
List-II andList – Ithe correct List
select – II
answer.
(i) Grapevine (a) Task shared belief and values that
members have in common is known
group
as
(ii) Formal (b) Field force
group theory
(iii) Informal (c) Gossip
124
group
(iv) Kurt Lewin (d) National
group
Organisation climate
Organisation culture
Organisation effectiveness
Organisation matrix
Codes : Which of the following is not a

(ii) (iii) (iv) principle of management according
(c) (a) (d) (b) to Henri Fayol ?
Subordination of individual
(d) (c) (b) (a) interest over the organisational
(a) (b) (c) (d) interest
(D) (b) (a) (d) (c) Esprit de crops.
Unity of Managers
Unity of Direction
Who has suggested that achievement
motivation among individuals and
nations can be developed through Which of the following concepts is
training courses ? based on development, design and
implementation of marketing
MeClelland
programmes, processes and activities
Alderfer that recognise their breadth and
Maslow interdependence ?
Herzberg Product concept
Sales concept
Societal marketing concept
Holistic marketing concept
The concept of marketing-mix, Match the items of List-I with those of List-II
consisting of the 4 P’s of marketing, and select the correct answer from the codes
was developed by given below :
E. Jerome
List –I McCarthyList – II
Peter F. Drucker
(a) Everitt (i) Service
M. Rogers
Philip Kotler Quality
Model
William J. Stonton
(b) J.D. Power (ii) Three types
of
The selling concept is mostmarketing
likely to be
used by firms which sell services
for
(c) Parasuraman, (iii)
Convenience goods
Quality
Shopping goods
Zeithaml and rating of
Berry
Speciality goods automobiles
(d) Gronroos
Unsought goods (iv) Diffusion of
innovation
125
Consumer attitudes and beliefs about diet, Product differentiation
health and nutrition are influenced by Intangible benefits
Economic
environment
In case the projects are divisible under
Cultural capital rationing an appropriate
environment Social project appraisal method is
environment Natural Net Present Value Method
environment Profitability Index Method
Internal Rate of Return Method
Positive NPV in project appraised Payback Period Method
by a firm may not occur an
account of
Permanent working capital is generally
Economics of financed through
scale Market Long term Capital Funds
reach Government Assistance
Internal Financing
Short term loans from Banks
The appropriate ratio for indicating

Codes (b) (c) (d) liquidity crisis is
:
(iii) (ii) (i) (iv) Operating ratio

(i) (ii) (iii) (iv) Sales turnover ratio
(ii) (i) (iv) (iii) Current ratio
(iv) (iii) (i) (ii) Acid test ratio
Who proposed a model to apply Which of the following is not included in the
economic order quantity concept of model of the systems approach to Human
inventory management to determine Resource Management ?
the optimum cash holding in a firm ?
Human Resource Planning
Keith V. Smith
Recruitment and Selection
Miller and Orr
Performance appraisal
William J. Baumol
Departmentation
J.M. Keynes
It is generally easy to measure the

performance of the
Industrial Relations Manger
126
Research and Development 39. Statement (i) : Sound industrial
Manager relations are essential to
Sales person achieve individual, team goals
and organizational goals.
All of the above Statement (ii) : Congenial labour
management relations create an
atmosphere of harmony and
Which one of the following is not a low rate of absenteeism.
monetory incentive to sales people ? Statement (i) is true, but (ii) is
Bonus false.
Statement (ii) is true, but (i) is
Staff meeting false.
Travelling allowance Both statements are true.
Both statements are false.
Both (B) and (C)
Out of the following, which are the

schemes of Social Security ?
Provident Fund Scheme
Health Insurance Scheme
Job Guarantee Scheme
Maternity Benefit Scheme
Merit Promotion Scheme
Compulsory and Voluntary
Social Insurance Scheme
Child Insurance Scheme
Codes :
(i), (ii), (iv) and (vi)
(ii), (i), (v) and (vii)
(iii), (v), (iv) and (vi)
(iv), (vii), (iii) and (ii)
RBI ensures that banks operate within

the set norms by conducting
inspections and
monitoring.
on site, off site
off site, on site
on site, field
field, on site
127
Under Section 37 of the Banking None of the above
(Regulation) Act, a moratorium order
can be issued by the High Court for a
maximum total period of
One month
Six months
One year
One and a half year
Bonds or debentures issued by

Securitization company should bear
interest not less than
Bank Rate
Prime Lending Rate

1.5% over the Bank Rate
1.5% over the Saving Rate
Section 131 of the Negotiable

Instruments Act extends protection to
the
Collecting Banker
Paying Banker
Advising Banker
Confirming
Banker
When a customer, by a letter has

advised the bank not to honour/pay a
particular cheque, such letter is called
Cancellation letter
Garnishee letter
Mandate
128
Flow of foreign loans and Classical barter
investments affect Counter purchase
Trade balance Pre-compensation
Current Account Buy-back agreement
balance Capital
Account balance If the spot price is higher than the strike
None of the above price in a call option, it is referred to
as
At-the-money
Concessions mainly multinational in
character come under the principle In-the-money
of Out-of-the-money
Non- Premium
discrimination
Reciprocity Identity the item which does not
Market include under Current Account
Access Fair transaction.
Competition Services
Non-monetary movement of
gold
From the following identify the one
Unilateral transfer
which is not a commercial counter
trade ? Investment income
129
UGC - NET JUNE 2013
1 C 26 D
2 C 27 A
3 A 28 D
4 C 29 D
5 C 30 B
6 B 31 D
7 C 32 B
8 D 33 A
9 D 34 D
10 C 35 C
11 A 36 D
12 A 37 C
13 A 38 D
14 C 39 C
15 C 40 A
16 C 41 A
17 A 42 B
18 B 43 C
19 B 44 A
20 A 45 D
21 A 46 C
22 47 B
*
23 C 48 D
24 B 49 B
25 C 50 B
128
June-2013
COMMERCE
PAPER – III
1. Under the provisions of the 3. Match the items of List-I with the
Industries (Development and items of List-II and select the correct
answer :
Regulation) Act, 1951, a licence is
SLR
List (a) Working
–I in the
(A) Changing
necessary for the location of an fieldList
of – IIconsumer
existing industrial undertaking. (i) protection.
(B) producing or manufacturing a (ii) SIDBI (b) Credit control.
‘new article’ in an existing (iii) CUTS (c) Industrial policy.
industrial undertaking. (iv) ILPIC (d) Facilitating Small
(C) Establishing a new Codes : Scale Industries.
(i)
undertaking.
(ii) (iii) (iv)
(D) All of the above. (A) (a) (c) (d) (b)
(B) (b) (d) (a) (c)
2. Match the items of List-I with the (C) (a) (b) (c) (d)
items of
answer. List-II and select the correct (D) (a) (c) (b) (d)
4. Match the following :
(i) Political
and Legal (a) industries
Important for List – I List – II
(i) National
Stock (a) Marks the
beginning of the
Environ- on
directlyimports
ment depending Exchange of shares of the
process of
or exports. dematerialisation
(ii) Demo- participating
graphic (b) Close
relationship companies.
Environ- with the (ii) National (b) Facilitation of
ment economic Securities equal access to
system and Depository investors across
economic (iii) Limited the country.
policy. Securities (c) To foster the
(iii) Economic (c) Related to and development of
Environ- natural Exchange an active
(iv) ment resources. Board of secondary market
Geo- (d) Occupational India for Government
graphical and spatial Securities.
and mobilities of (iv) Securities (d) Abolition of
Ecological population Trading Capital issues
Environ- having Corporat- control and
ment implications ion of retaining the sale
for business. India authority for new
Codes : capital issues.
(i) (ii) (iii) (iv) Codes :
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a) (A) (b) (a) (d) (c)
(B) (b) (d) (a) (c) (B) (a) (b) (c) (d)
(C) (a) (b) (d) (c)
(C) (a) (b) (c) (d)
(D) (a) (b) (d) (c) (D) (d) (c) (b) (a)
129
The United Nations Conference on Match the items of the following two
Trade and Development (UNCTAD) lists :
was set up in
130
(A) 1944 (B) 1954
(C) 1960 (D) 1964
Indicate the ground on which a complaint Fixed assets turnover ratio

under the Consumer Protection Act, All of the above
1986, shall be invalid.
A product having short weight.
A service provided free of cost.
A misleading advertisement
given in newspaper.
None of the above.
Out of the following, which are the

four components of food security ?
Food availability
Food market
Food accessibility
Food utilization
Food credit
Codes :
(iii), (iv) and (v)
(i), (iii) and (iv)
(i), (ii) and (iii)
(i), (ii) and (iv)
Performance evaluation of a
responsibility centre can be done by
ROI
Return on sales
EVA
All of the above
Social Balance Sheet shows
Social costs
Social revenues
Value of employees of the
organisation
All of the above
Which of the following comes under

efficiency ratios ?
Average collection period
Inventory turnover ratio
130
(i) Statement of (a) Cash Flow
changes
Match the items in Statement
of the following two
Working
lists and indicate the correct answer :
Capital
(ii) Deferred (b) Fixed
(i) Earning (a) Basis of
Tax Assets
ability of Accounting
(iii) Three (c) Funds
firm
activities Flow
(ii) Conserva- (b) Statement
P/V ratio
tism
(iv) Impairment (d) Balance
(iii) Cash
Loss profit (c) Cash flow
Sheet
statement
Codes :
(iv) Cash and (d) Prudence
(ii) (iii) (iv) Accrual
(a) (b) (c) (d) Codes :
(c) (d) (b) (a) (ii) (iii) (iv)
(c) (d) (a) (b) (b) (d) (c) (a)
(D) (d) (c) (a) (b) (a) (d) (c)
(b) (c) (d) (a) (b)
(c) (d) (b) (a)
130
Given below are two statements, one Match the items of List-I with the items
labelled as Assertion (A) and the of List-II and select the correct
other labelled as Reason (R). answer.
Assertion (A) : Only the relevant List – I List – II
costs should be taken into Economic (i) Total profitRevenue
consideration for decision- Explicit cost Accounting (ii) Buyers
making. and profitSellers exchanging
Reason (R) : All variable costs are
relevant costs and all fixed
costs are irrelevant costs. (c) Collusion/ (iii) Total
In the above two statements, which Cartel Revenue –
one alternative of the following is Total cost
correct ? (d) Market (iv) Oligopoly
Codes :
Codes :
Both (A) and (R) are correct. (b) (c) (d)
Only (A) is correct, but (R) is (iii) (i) (iv) (ii)
wrong. (i) (ii) (iii) (iv)
Only (R) is correct, but (A) is (iv) (iii) (ii) (i)
wrong.
Both (A) and (R) are wrong. (ii) (iv) (i) (iii)
Which one is not the item of economic
Given below are two statements, one cost to the business ?
labelled as Assertion (A) and the Owner supplied resources.
other labelled as Reason (R) : Market supplied resources.
Implicit costs.
Assertion (A) : Variance analysis is Non-monetaryopportunity costs
undertaken for planning and
control of costs. of using owner supplied
Reason (R) : Future costs are taken
into consideration in budgeting resources.
and standard costing.
In the above two statements, which Demand must have the elements
one alternative of the following is Desire
correct ? Want
Codes : Quantity, Price and Time
Both (A) and (R) are correct All of the above
and (R) is the Reason for (A).
Both (A) and (R) are correct Match the items of List-I and items of
and (R) is not the Reason for List-II and select the correct code for the
(A). answer.
(A) is correct, but (R) is wrong. List – I List – II
(A) is wrong, but (R) is correct. (a) Utilitarian (i) Marginal Rate
Approach of Substitution
Assertion (A) : Mark-up pricing is a (b) Ordinal (ii) Budget line &
method of determining price. Approach Indifference
ATC)R Curve
eason(R):P=ATC+(m (c) Price- (iii) U=f (x, y)
is the expression for that. Consumption
Codes : Codes Curve
(A) is correct but (R) is not : (b) (c) (d)
(d) Consumer (iv) MRSxy =
correct.
Equilibrium MRSyx
(i) (iv) (iii) (ii)
Both (A) and (R) are correct. (ii) (iii) (iv) (i)
Both (A) and (R) are not (iii) (i) (ii) (iv)
correct.
(R) is correct, but (A) is not (iv) (ii) (i) (iii)
correct.
135
The Learner Index measures Which of the following tests can be
Market power applied to ordinal scale data ?
Price Chi-square test
Price-Marginal cost ‘Z’ test
None of the above Kruskal-Wallis test
Wilcoxon Mann-Whitney test
Match the items of List-I and items of Codes :
List-II and select the correct answer. (i), (ii) and (iii)
List – I List – II (ii), (iv) and (iii)
(a) Perfect (i) Different (i), (iii) and (iv)
competition prices for the
(i), (ii) and (iv)
same
product
(b) Monopolistic (ii) Dominant Which of the following tests can be
based on the normal distribution ?
competition strategy
Differencebetween independent
(c) Oligopoly (iii) Product
differentiation means
Difference between dependant

Discriminating (iv) Identical means
Monopolyproduct Difference between proportions
Codes :
All of the above
(b) (c) (d) ‘Chi-square’ (B) ‘F’ value
(iv) (iii) (ii) (i) (C) ‘Z’ value (D) ‘t’ value
(i) (ii) (iii) (iv)
(ii) (iv) (i) (iii)
(iii) (i) (iv) (ii)
If there are 8 possible classes under

consideration for a goodness of-fit,
the number of degrees of freedom
will be
8
7
6
Cannot be determined from the
given information.
Identify from the following, the test

statistic for which the value of
numerator should always be greater
than that of denominator.
From the following, identify one Which statistical test should be applied
situation where ‘F’ test cannot be to test the effectiveness of ‘special
used ? coaching’ on the marks scored by the
To compare more than students ?
two population means. Paired ‘t’ test
To test the hypothesis ‘Chi-square’ test
about a single population ‘Z’ test
variance. ‘F’ test
To test the hypothesis
about two-population In a linear equation,
variance. y = a + bx, ‘a’ refers to
To study about Slope
randomized block Y-intercept
design. Dependant variable
Independent variable
Which among the following is the most Most people must be coerced,
popular approach for accomplishing controlled, directed and threatened
the results ? with punishment to get them put
Management by exception
forth adequate effort.
Reward system
Management by objectives
Mentor system
The managerial function of organizing
involves
Reviewing and adjusting plan
in the light of changing
conditions.
Establishing programme for the
accomplishment of objectives.
Creating structure of functions
and duties to be performed.
Getting things done through
others.
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 transformational leader
a participative leader
a transactional leader
an autocratic leader
Which of the following is not an
assumption of theory X ?
An average human being has
an inherent dislike of work and
will avoid it if he can.
An average human being
prefers to be directed, seeks to
avoid responsibility, has
relatively little ambition, and
want security above all.
An average human being learns
under proper conditions, not
only to accept responsibility
but also to seek it.
138
If a network of interpersonal (i), (ii), (iv)
relationship that arise when (i), (iv), (v)
people associate with each other (i), (ii), (iii), (iv), (v)
is an informal organization, then
find out which of the following is Which of the following has refined
not an informal organization ? Maslow’s theory of motivation by
The “machine shop” proposing a hierarchy of three needs
group Customers’ ?
group MeClelland (B) Aldorfer
The “sixth floor” group Herzburg(D) Vroom
The “Friday evening
bowling” gang Which segmentation approach is the
most compatible with the spirit of the
Which of the following are marketing concept ?
sources of ethics ? Benefit sought
Religion Income
Legal Social class
system Family size
Economic
The description of a product’s quality,
system features, style, brand name and
Culture packaging identifiers the
Family system Actual product
Select the correct answer from Augmented product
the codes given below : Core product
(i), (ii), (iii), (v) Tangible product
Consider the following statements and consumer’s post-purchase
find out the correct alternative from behaviour.
the codes given below : Codes :
A firm’s marketing information All the statements are true. All
system is a component of its the statements are false.
marketing research system. (i) is false and the rest are
The most common forms of true.
marketing researches (ii) and (iv) are true and the rest
conducted in most of the firms are false.
are the measurement of market
potential and the analysis of In India, which pricing practice is not
market share. permissible ?
Survey research is seldom used Penetrating pricing
for studying consumer Skimming pricing
perception and attitudes. Predatory pricing
The concept of cognitive None of the above
dissonance is relevant to study Consider the following statements and find
out the correct alternative
139
from the codes given below : Which form of retail outlet has the
A good salesman is one who highest operating costs ?
can sell refrigerator to an Super market
Eskimo. Consumer co-operative store
Salesmen are born, not made. Department store
Retail chain store
Physical distribution is an area
Consider the following statements and
where high cost-savings is indicate the correct alternative from
possible. the codes given below :
Codes : The product management
system often turns out to be
(i) and (iii) are correct. costly.
(i) and (ii) are correct. When customers belong to
different user groups with
(ii) and (iii) are distinct buying preferences and
correct. All are correct. practices, a market
management organization is
not suitable.
Advertising department has the
closest interface with the
finance department of the
company.
Codes :
(i) and (ii) are correct.
(ii) and (iii) are
correct. Only (i) is
correct.
All are correct.
Match the statements in List-I with dividend
models in List-II as follows :
I Dividend 1. Traditional
Capitalisation Model
Approach.
II Dividend Policy 2. Gardon
has a bearing on Model
the share
valuation.
III Stock Market 3. Walter
places more Model
weight on
dividends than
on retain
earnings.
IV Dividend payout 4. Modigliani
is irrelevant to and Miller
the value of the Model
firm.
II III IV
(A) 2 3 1 4
(B) 1 2 4 3
Codes :
(C) 4I 1 3 2
(D) 3 4 2 1
140
Venture capital financing at starting The degree to which the returns of the
stage is generally not done through two securities change together, is
Debt instruments reflected by
Deep discount bonds Correlation (B) Leverage
Equity shares Covariance (D) Beta
Conditional loans The transfer by a company of one or
more of its business divisions to
another newly set up company is
Match the statements in List-I with the called
types of lease in the List-II as follows Demerger
:
Merger
Equity Carve-out
I Lessor transfers all 1. Indirect
risks and rewards lease Disinvestment
of an asset to the What combination of the following
lessee. factors influences the working capital
II Lessor transfers the 2. Operating requirement ?
assets to the lessee lease I Market Conditions II
but bears the cost Production Policy III
of maintenance Firm’s goodwill
III The owner of the 3. Finance IV Supply conditions
asset sells it to the lease
Codes :
lessor who in turn
I, II and III
leases it back to the II, III and IV
owner (now lessee) I, III and IV
IV Lessor owns/ 4. Direct I, II and IV
acquires the assets lease Which of the followings are the modern
that are leased to a method of performance appraisal ?
given lessee. 360 degree performance
Codes : appraisal.
I II III IV Graphic rating scale.
(A) 2 3 4 1 Management By Objectives
(B) 1 4 2 3 (MBO).
(C) 3 2 1 4 Forced distribution method.
(D) 4 1 3 2 BehaviourallyAnchored
Rating Scales (BARS).
Full details for the issue of ADRs by a Select the correct answer from the
company must be furnished within 30 codes given below :
days from the date of its closure to
(A) (i), (ii), (iii) (B) (ii), (iv), (v)
Securities and Exchange (C) (i), (iii), (v) (D) (iv), (ii), (i)
Commission (SEC) Which of the following principle serves
Reserve Bank of India (RBI) as a warning to organisations not to
Securities and Exchange Board take the selection and promotion
process lightly ?
of India (SEBI) Promotion Principle
Company Law Board (CLB) Drucker Principle
Validity Principle
Peter Principle
135
According to D. Katz morale has four Technique of ‘Transaction Analysis’
dimensions : was developed by
jobs satisfaction Elton Mayo
satisfaction with wages and Peter Drucker
promotional opportunities. Eric Berne Adam
Identification with company. Smith
Pride in the work group.
Top Management Support.
Select the correct combination.
(i), (ii), (iv), and (v)
HRM is viewed as a management

process, consisting of four functional
activities :
Acquisition
Motivation
Development
Resolution of industrial disputes
Maintenance
Select the correct combination.
(i), (ii), (iv) and (v)
O C TA PA C stands for
Order, Co-ordination, Trust,
Authority, Personality and Co-
operation.
Openness,Confrontation, Trust,
Authenticity, Pro-action and
Collaboration.
Organisation, Conflict, Team,
Authority, People and
Collaboration.
Oneness, Compromise, Tress
pass, Authority, Protection and
Combination.
143
Which one of the following Debts Loss Assets
methods is not a demand Devaluated Assets
forecasting method of Human
Resource Planning ? When a loan will be NPA ?
Managerial Interest and/or loan instalments
judgement overdue for more than 90 days.
Managerial grid Account is out of order for
Work study more than 90 days in case of
techniques overdraft/cash credit.
Statistical Bill remains overdue for more
techniques than 90 days.
Transaction of Internet All of the above.
Banking excludes
Assertion (A) : “The problem of rural
Withdrawal of cash
credit is not primarily one of
anywhere in India.
rural credit, it may be said to be
Statement of account
one of rural minded credit.”
for a specific period. Reason (R) : The Indian economy
Transfer of funds from has yet to come out of rural
one account to another mentality.
account. Balance Codes :
enquiry. Both (A) and (R) are correct.
Which among the following is not a Both (A) and (R) are incorrect.
category of Non-Performing Assets ? (A) is correct, but (R) is
Substandard incorrect.
Assets Doubtful (R) is correct, but (A) is
incorrect.
Match the items of List-I with the items (ii) (iii) (iv)
of List-II and select the correct
(c) (a) (d) (b)
answer :
List – I List – II (a) (b) (d) (c)
(i) Debit card (a) Several (d) (c) (a) (b) (D)
storage (d) (c) (b) (a)
(ii) Credit card (b) Online
recovery
of amount Assertion (A) : The Indian economy
(iii) Electronic (c) Image could survive in the recent
purse processing global recession due to its
use strong banking system.
(iv) Cheque (d) Revolving Reason (R) : The Indian economy
function credit contains a large amount of black
money.
Codes :
144
Codes : Assertion (A) : Most of the
Both (A) and (R) are correct development bank in India
and (R) is the explanation of have setup private commercial
(A). banks after the introduction of
capital adequacy norms.
Both(A) and (R) are correct,
but (R) is not the correct Reason (R) : Development banks in
explanation of (A). India have not adhered to their
basic objectives.
(R) is correct, but (A) is not the
appropriate assertion of (R). Codes :
Both (A) and (R) are incorrect. (A) and (R) both are correct,
and (R) is correct explanation
of (A).
(A) and (R) both are correct,
but (R) is not a correct
explanation of (A).
incorrect.
(R) is correct, but (A) is
incorrect.
Match the following items of List-I

with List-II :
(a) Brettonwoods (i) 1947
conference
General Agreement (ii) 1964 on
Trade and Tariffs
(c) ACCRA conference (iii) 1944
(d) United Nations (iv) 2008
Conference on Trade
and Development
Codes :
(ii) (iii) (iv)
(b) (d) (a) (c)
(b) (d) (c) (a)
(b) (c) (d) (a)
145
(c) (a) (b) (d)
The forces that lend momentum to the Both statement (I) and (II) are
process of globalization have been incorrect.
identified by Michael Porter include
the following :
Fluid global capital market.
Technological restructuring.
Decreasing religious command.
Ethnic decontrol.
New-global competitors.
End of the ‘cold war’ in 1990s.
Codes :
(vi), (v), (iv) and (iii)
(vi), (iii), (ii) and (i)
(vi), (v), (ii) and (i)
(iv), (iii), (ii) and (i)
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 :
Statement (I) is correct, but (II)
is not correct.
Statement (II) is correct, but (I)
is not correct.
Both statement (I) and (II) are
correct.
146
Assertion (A) : The major classified record of all receipts
economic powers have on account of goods exported,
succeeded in creating a new services rendered and capital
international regime where received by ‘residents’ and
the profits and the payments made by them on
dominance of their account of goods imported and
transnational corporations services received from capital
will be the decisive transferred to ‘non-residents’ or
consideration. ‘foreigners”.
Reason (R) : This regime will Reason (R) : The ‘Balance of
legitimise the process of Payments’ of a country is a
progressive erosion of the systematic record of all
sovereign economic space of economic transactions between
the third-world countries. the ‘residents’ of a country and
Both (A) and (R) are correct, the rest of the world.
and (R) is the right Both (A) and (R) are correct
explanation of (A). and (R) is the right explanation
Both (A) and (R) are correct, of (A).
but (R) is not the right Both (A) and (R) are correct,
explanation of (A). but (R) is not the right
Both (A) and (R) are incorrect. explanation of (A).
(R) is correct, but (A) is (R) is correct, but (A) is not
not correct. correct.
Assertion (A) : The ‘Balance of
Payments’ presents a
147
Which among the following is not Donation to National Children’s Fund
rightly explained ? will come in which of the following
deduction under Sec. 80G of Income
M1 = Currency with the public Tax Act, 1961.
+ demand deposits of the 100 percent deduction without
public. any qualifying limit.
50 percent deduction without
M2 = M1 + Post Office any qualifying limit.
Savings Deposits. 100 percent deduction subject
to qualifying limit.
M3 = M1 + Time Deposits of 50 percent deduction subject to
the public with Banks. qualifying limit.
M4 = M3 + Total Post Office
If the taxable income of a domestic
Deposits. company for the Assessment Year
M1 = Narrow money 2011-12 is ` 9,00,000, its tax liability
will be
M3 = Broad money (A) ` 2,76,800 (B) ` 2,78,100
Only (v) and (vi) (C) ` 3,70,800 (D) ` 3,70,880
Only (i) and (iii) Unabsorbed depreciation which could
not be setoff in the same assessment
Only (vi) year, can be carried forward upto
None of the above 4 years
8 years
10 years
Which of the followings are not effect Indefinite period
of dumping on importing country ? If the book profits of a partnership firm
Domestic industry might be is ` 1,10,000, the remuneration
admissible to working partners under
affected adversely by a decline Sec.40(b) of the Income Tax Act,
in sales and profits. 1961 is
If dumping is continued for a ` 1,10,000
longer period, survival of the ` 1,50,000
domestic industry may be ` 99,000
threatened. None of the above
Dumping may create BOP Which of the following expenses is
problems for the country. inadmissible while computing
income from other sources ?
It finds market for its surplus Interest paid on amounts
production. borrowed to meet tax liabilities.
Codes : Collection charges paid to the
banker or any other person to
(i), (ii), (iii) and (iv) collect interest/dividend.
Interest on loan taken to invest
in securities.
(iii) and (iv) Depreciationon let-out
Only (iv) machinery and plant.
139
UGC - NET JUNE 2013
1 D 26 B 51 D
2 B 27 A 52 A
3 B 28 B 53 B
4 A 29 C 54 B
5 D 30 C 55 C
6 B 31 C 56 B
7 B 32 C 57 A
8 D 33 B 58 D
9 C 34 C 59 D
10 D 35 B 60 C
11 C 36 A 61 B
12 A 37 A 62 B
13 B 38 D 63 C
14 B 39 C 64 A
15 B 40 A 65 C
16 A 41 C 66 C
17 B 42 C 67 B
18 D 43 A 68 A
19 C 44 B 69 D
20 A 45 C 70 D
21 A 46 B 71 B
22 D 47 C 72 B
23 B 48 A 73 D
24 C 49 D 74 B
25 D 50 C 75 A
140
Dec-2012
141
142
143
144
145
146
147
1 B 26 C
2 A 27 B
3 C 28 A
4 C 29 A
5 D 30 B
6 D 31 B
7 B 32 C
8 A 33 B
9 D 34 B
10 B 35 A
11 B 36 B
12 C 37 D
13 B 38 A
14 B 39 D
15 B 40 A
16 C 41 D
17 A 42 A
18 B 43 C
19 A 44 B
20 D 45 B
21 B 46 C
22 A 47 C
23 B 48 A
24 A 49 C
25 A 50 C
148
Dec-2012
COMMERCE
PAPER – III
1. In accounting, profit prior to 6. In marginal costing, contribution is

incorporation is treated as equal to
Revenue Reserve (A) Sales – Fixed cost
Secret Reserve
(B) Sales – Variable cost
Capital Reserve
(C) Sales – Profit
General Reserve
(D) Sales – Variable Cost + Fixed
2. Receipts and Payments Account is cost
prepared by
Manufacturing concerns 7. The funds available with a company
Non-Trading concerns after paying all claims including tax
Trading concerns and dividend is called
(D) Companies registered under (A) Net Profit
Companies Act, 1956 (B) Net Operating Profit
(C) Capital Profit
Owners equity stands for (D) Retained Earnings
(A) Fixed Assets minus Fixed
Liabilities.
Fixed Assets minus Current 8. Assertion (A) : Accounting
Liabilities. information refers to only events
(C) Current Assets minus Fixed which are concerned with
business firm.
Liabilities.
Total Assets minus Total outside Reason (R) : Accounting information
Liabilities. is presented in financial
statements.
4. When the Debt Turnover Ratio is 4, Codes :
what is the average collection period ? (A) (A) is correct, but (R) is wrong.
5 months (B) 4 months (B) Both (A) and (R) are correct.
(C) 3 months (D) 2 months (C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
5. Which of the following will result into
sources of funds ?
Increase in current assets 9. When average cost is declining
Decrease in current assets (A) Marginal cost must be declining.
Increase in current liabilities (B) Marginal cost must be above
Decrease in current liabilities average cost.
Codes : (C) Marginal cost must be below
(i) and (iv) (B) (ii) and (iii) average cost.
(C) (i) and (iii) (D) (ii) and (iv) (D) Marginal cost must be rising.
ABC Ltd. has declared 40% dividend. The company has declared 40%
Which one of the following does it of profits after tax as dividend.
mean ? The company will provide
The company has declared 40% dividend 40% on issued capital.
of net profit as dividend.
149
The company will provide Which of the following statements are
dividend 40% on paid-up capital. correct ?
I. Inventory includes raw materials,
The main objective of Accounting finished goods and work – in –
Standards is progress.
To prepare the accounting
reports which is easily Inventory is a part of the
understood by common man. working capital.
To comply with the legal Inventory includes goods likely
formalities. to be purchased.
Codes :
To harmonise the diversified
I, II and III
accounting practices.
II and III
To comply with the requirements I and III
of the International Accounting I and II
Standards (IAS).
If the current ratio is 2 : 1 and working
Given below are two statements : capital is ` 60,000, what is the value of
Activity ratios show where the the Current Assets ?
company is going. ` 60,000
Balance Sheet ratios show how ` 1,00,000
the company stand. ` 1,20,000
Codes : ` 1,80,000
I is correct, but II is wrong.
Both I and II are correct. Which of the following steps of purchase
I is wrong, but II is correct. decision process is in sequence ?
Both I and II are wrong. Problem recognition
Search for alternatives
Evaluation of alternatives
Income and Expenditure Account of Purchase action
non-profit organisation is a Post purchase action
Real Account Codes :
Nominal Account 1, 3, 2, 4, 5
Personal Account 1, 2, 4, 3, 5
Representative Personal Account 2, 1, 3, 5, 4
1, 2, 3, 4, 5
What is customer value ?

Ratio between the customer’s
perceived benefits and the
resources used to obtain these
benefits.
Excess of satisfaction over
expectation.
Post purchase dissonance
None of the above
Match the items of List – I with items of a. The silent mental 1. Encoding
List – II. repetition of information.
List – I List – II b. The process by which 2. Rehearsal we
select a word or
150
visual image to represent a perceived Assertion (A) : High customer
object. expectations lead to dissatisfaction as
c. Where information is 3. Working product performance never matches
kept temporarily before Memory them.
further processing. Reason (R) : Product performance is
d. The stage of real 4. Store house always customer specific.
memory in which Codes :
information is processed
and held for just a brief
period.
Codes : incorrect.
a b c d (R) is correct, but (A) is
(A) 2 1 4 3 incorrect.
(B) 1 2 3 4
Under which concept of marketing do
(C) 3 2 1 4
you find greater emphasis on
(D) 4 3 2 1 techniques and technology of
production ?
Product
Selling
Marketing
Fill in the blanks : None
Statements Alternatives
Which is used for short-term sales
a. Loyal customers 1. Less
achievement ?
products. attention
Personal selling
b. Loyal customers are 2. Cheaper
Advertising
sensitive.
Sales Promotion
c. Loyal customers pay 3. Less price
Public Relations
to competitor’s
advertising.
d. Serving existing 4. Buy more Public distribution system relates to
customer is Marketing system
Retailing system
Codes :
Industrial system
a b c d Selling system
(A) 3 1 2 4
(B) 4 3 1 2 Who do buy more, complain less, spread
positive word of mouth, ensure a large
(C) 2 1 3 4 customer base and repeat business ?
(D) 4 3 2 1 Satisfied customers
Delighted customers
Industrial customers
None of the above
151
There are impulses which persuade a Assertion (A) : Management is a
customer to buy certain products continuous process.
without evaluating the positive and
Reason (R) : Managers first plan, then
negative value of the same.
organise and finally perform the
Emotional motives function of controlling.
Blind motives Codes :
Egoistic motives Both (A) and (R) are correct and
All the above is correct explanation of (A).
Both(A) and (R) are correct, but
is not a correct explanation
Which subject is relevant to the study of of (A).
consumer behaviour ? (A) is correct, but (R) is
Economics incorrect.
Psychology (A) is incorrect, but (R) is
Sociology correct.
All the above
Induction of employees relates to
Organisational awareness
Find an incorrect statement.
Training programme
Consumer attitude can be Introduction
summarized as evaluation of an
Assignment of duties
object.
Attitudes are learned.
Attitudes are synonymous with ‘Kinked’ demand curve is related with
behaviour. Monopoly
Attitudes have motivational Discriminating monopoly
qualities. Oligopoly
Perfect competition
Who is considered Father of Scientific
Management ? Who is not associated with HRM ?
Peter Drucker
Michael J Jucius
F.W. Taylor Dale Yodar
Victor Vroom Edvoin B. Flippo
Henry Fayol K.K. Devit
Who did give the concept of hierarchy of
needs ?
Fredrick Herzberg Merit rating is not known as
Efficiency Rating
Victor Vroom
Service Rating
Douglas Mcgregor
Job Rating
A.H. Maslow
Experience Rating
Match the items of List – I with the In perfect competition, the demand curve of a
items of List – II. firm is
List – I List – II Vertical
a. FEMA 1. 1986 Horizontal
b. Indian Factories Act 2. 1999
Positively sloped
c. Industrial Dispute Act 3. 1948
Negatively sloped
d. Consumer Protection Act 4. 1947
Codes :
a b c d Which one is not non-financial incentive
(A) 4 2 3 1 ?
(B) 3 1 2 4 Additional bonus on minimum
(C) 2 3 4 1 wasteful expenditure.
(D) 1 4 3 2 Permanent job.
Participatory decision making.
Recognition of individuality.
If price of any commodity decreases by

20% and the demand for that HRM does not include
commodity increases by 40%, then
elasticity of demand would be job evaluation
perfectly elastic performance appraisal
perfectly inelastic
sales promotion
unit elastic
job enrichment
highly elastic
Which of the following statements is The term (1-B) is called

true ?
Level of the test
In case of inferior goods, the
income effect is negative, Power of the test
although the substitution effect Size of the test
is positive.
None of the above
In inferior goods, the income
and substitution effects are
positive.
The area under normal distribution
In inferior goods, the income
covered within µ 3 limits is
and substitution effects are
negative. 0.6827
In case of inferior goods, the 0.9545
income effect is positive
although the substitution effect 0.9973
is negative.
1.0000
Sampling distribution of mean is very Which one of the following is not a
close to the standard normal benefit of privatisation ?
distribution when Encourage entrepreneurship.
Populationis normally
Concentration of economic
distributed.
power.
Bettermanagement of enterprise.
Population is not normally
distributed, but sample size is
Freedom from bureaucracy.
large.
Both (A) and (B).
Neither (A) nor (B). ‘BOLT’ system in the Indian Securities
If the value of co-efficient of market is related to
determination is 0.64, what is the National Stock Exchange
value of coefficient of correlation ? Bombay Stock Exchange
0.40
Over the Counter Exchange of
0.80
India
0.08 Multi Commodity Stock
0.04 Exchange
Which one of the following is not a Which one of the following is not a
source of conflict in project ranking in money market instrument ?
capital budgeting decision as per NPV
Commercial paper
and IRR ?
Independent Investment Project Participatory certificates
No Capital Budget Constraints Warrants
No time disparity Treasury Bills
None of the above
Match the following : Which one is related with micro-

financing ?
a. Trade policy 1. Economic SHG
conditions Anganwadi workers
b. Trade flows 2. Economic Women Entrepreneurs
policies
None of the above
c. Price trends 3. Global linkages
d. Internal sectoral 4. Structure and
linkages Nature of
Economy Which one of the following is not an
element of internal environment ?
Codes :
a b c d Mission/Objectives
(A) 3 1 2 4 Human Resources
(B) 2 3 1 4 Customers
(C) 1 2 3 4 Shareholders’ values
(D) 1 2 4 3
154
The presence of fixed costs in the total Assertion (A) : Operating style of the
cost structure of a firm results into international business can be
Financial leverage spread to the entire globe.
Operating leverage Reason (R) : The style is limited to
Super leverage the internal economy only.
None of the above Codes :
“The cost of capital declines when the
degree of financial leverage (A) is true, but (R) is false.
increases.” Who advocated it ? (A) is false, but (R) is true.
Net operating income approach
Net income approach
Modigliani-Miller approach
Traditional approach The Comparative Cost Advantage
Theory was given by
A view that the dividend policy of a firm David Ricardo
has a bearing on share valuation Adam Smith
advocated by James E. Walter is based
Raymond Vernon
on which one of the following
assumptions ? Michael E. Porter
Retained earnings is only source
of financing.
Cost of capital does not remain The companies globalise their operations
constant. through different means :
Return on investment fluctuates. Exporting directly
All the above. Licensing/Franchising
Joint ventures
Match the following : All the above
a. Matching 1. Dividend Policy
The components of W.T.O. are
approach
b. Structural 2. Inventory Ministerial Conference
ratios Management Disputes Settlement Body
c. Ordering 3. Financing Director General
quantity Working Capital
All the above
d. Bonus shares 4. Capital Structure
Codes :
a b c d India is not associated with
(A) 1 2 3 4 SAARC
(B) 3 4 1 2 NAFTA
(C) 3 4 2 1
BRICS
(D) 2 1 3 4
None of the above
155
Which one of the following is true Which one of the statements is not true ?
statement ?
Institutionalinfrastructure
A balance of trade deals with facilitates market intelligence.
export and import of invisible STC is the chief canalizing agent
items only. for export and import of
A balance of payment deals with agricultural products.
both visible and invisible items. IIPO organizes trade fairs and
The current account is not a exhibitions.
component of balance of Letter of credit does not indicate
payment. that the bank will pay the value
All the above. of imports to the exporter.
Match the items of List – I with items of

SDRs are popularly known as List – II.
Currency Notes List – I List – II
Paper Gold a. Selective credit 1. Consumer
control Credit
Silver Coin
Regulation
Gold Coin b. Encourage credit 2. Cash Reserve
for desirable use Ratio
c. Quantitative 3. Variation in
Which one is not international institution
credit control Margin
? d. Bank Rate 4. Re-discounting
IMF IDA IBRD Rate
TRAI Codes :
a b c d
(A) 4 2 3 1
Assertion (A) : Indent may be open or
(B) 3 1 2 4
closed. Open indent does not
specify the price and other (C) 1
Assertion 3 : Use
(A) 2 of paper
4 money is
details of the goods. The closed (D) 2 replaced
1 3 plastic
by 4 money. The
indent specifies the brand, price, future will see the electronic
number, packing, shipping money clearance through
mode, insurance, etc. satellite networking.
Reason (R) : RBI is encouraging e-
Reason (R) : This is required as a part
banking.
of export procedures.
Codes :
Codes : (A) is false, but (R) is true.
Both (A) and (R) are correct. (A) is true, but (R) is false.
Both (A) and (R) are not correct. Both (A) and (R) are false.
(A) is true, but (R) is false. Both (A) and (R) are true.
(R) is true, but (A) is false.
156
Which one is not Finance Company ? For the Assessment Year 2011-12,
deduction under Sec. 80G is available
Hire-Purchase Finance Company
without any limit but at the rate of
IRDA 50% on
Prime Minister’s National Relief
MutualBenefit Finance
Companies Fund.
NationalFoundation for
communal Harmany.
Loan Companies
Jawahar Lal Nehru Memorial
Fund.
Chief Minister Relief Fund.
The Securities and Exchange Board of
India was not entrusted with the
function of Interest on capital paid by a firm to its
Investor Protection. partners, under the Income Tax Act,
1961, is allowed
Ensuring Fair practices by 6%
companies.
12%
Promotion of efficient services
by brokers. 15%
Improving the earnings of equity 18%

holders.
Under capital gains head of the Income

Tax Act, the income from sale of
Which one is not Non-Marketable
Household Furniture is
securities ?
Taxable Income
Corporate Securities
Capital Gain
Bank Deposits
Revenue Gain
Deposits with Companies Exempted Income
Post Office Certificates and
Deposits
Under Section 80E of the Income Tax
Act, 1961 deduction in respect of
payment of interest on loan taken for
Minimum Alternative Tax (MAT) under higher education shall be allowed up
Sec.115 JB of the Income Tax Act is to
applicable on ` 10,000
Partnership firm ` 15,000
Association of persons ` 20,000
Certain companies Without any limit
All types of companies
157
1 C 26 D 51 C
2 B 27 C 52 B
3 D 28 B 53 B
4 C 29 D 54 A
5 B 30 A 55 C
6 B 31 C 56 B
7 D 32 C 57 S
8 B 33 D 58 D
9 C 34 C 59 D
10 D 35 C 60 B
11 C 36 D 61 B
12 B 37 A 62 B
13 B 38 B 63 D
14 D 39 A 64 C
15 C 40 C 65 D
16 D 41 B 66 B
17 A 42 C 67 D
18 A 43 C 68 B
19 B 44 B 69 D
20 B 45 D 70 A
21 D 46 B 71 C
22 C 47 B 72 C
23 B 48 B 73 B
24 B 49 C 74 D
25 D 50 A 75 D
158
June-2012
COMMERCE
Paper – II
marks. Attempt all the questions.
Which of the following denote the Public Enterprise is defined as

structural changes in Indian economy ?
Primary sector contribution has An organisation run by joint
gone down. efforts of Centre and State
Service sector contribution Governments.
has gone up. An organisation which caters to
Secondary sector has not the needs relating to public
changed much. utilities.
All of the above An organisation in which capital
is invested by public.
An organisation owned and
Broad Money has to be sensitized managed by public authorities
through : for definite set of public
CRR purposes.
SLR
Repo Rate Match List-I with List-II and select the
All of the above correct answer :
Which one is not an element of legal Measurement (a) Accrues to
environment ? of income the equity of
Act of Parliamentarians in Lok owners
Sabha (ii) Recognition (b) Recognition
Indian Contract Act, 1872 of expense of revenue
Indian Partnership Act, 1932 (iii) Basis of (c) Matching
Negotiable instruments Act, realization revenue with
1881 expenses
(iv) Identification (d) Accounting
Out of the following, which are four of revenue period
dimensions of Human Development Codes :
Index ? (i) (ii) (iii) (iv)
Life Expectancy (A) (a) (b) (c) (d)
Literacy Level
(B) (b) (a) (c) (d)
Success Rate of Marriages
(C) (c) (d) (a) (b)
Standard of Living
Crime Rate (D) (c) (d) (b) (a)
Corruption Level Consider the following items :
Economic Entitlement Debentures
Foreign Visits Prepaid rent
Codes : Interest accrued
Bank overdraft
(i), (ii), (vi) and (viii) Which of them are current liabilities ?
(i), (ii), (iv) and (vii) (i), (ii), (iii) and (iv)
(ii), (iii), (vi) and (vii) (iv)
(iii), (v), (vii) and (viii)
(i), (ii) and (iii)
Conversion cost is the sum of

159
Indirect wages and factory Which of the following refers to Perfect
overhead Competition ?
Direct wages, direct expenses There are restrictions on buyers
and factory overhead and sellers
Direct material cost and indirect There are no restrictions on
wages movement of goods
Prime cost and selling & There are no restrictions on
distribution overhead factors of production
Correct one is
only (i) and (ii)
(A) Assertion : Premium received on
issue of shares is credited to only (ii) and (iii)
share premium account but not to only (i) and (iii)
Profit and Loss account. only (i)
Reasoning : Since share
premium is not a trading profit, it
is not distributed to shareholders. Assertion (A): Total utility will be
maximum when marginal utility
Both (A) and (R) are true but (R) to price of respective products
is not correct explanation to (A). are equal.
(A) is false but (R) is correct.
Reason (R) : Deviation from this
Both (A) and (R) are true and (R) situation leads to reduction in
is correct explanation of (A). maximum utility.
(A) is correct but (R) is false. (A) and (R) are not correct.
(A) is correct but (R) is not
correct.
Consider the following :
(A) and (R) are correct.
Basic defensive and interval ratio (A) is incorrect, (R) is
Current ratio correct.
Superquick ratio
Quick ratio
Match List-I with List-II and select the
Arrange these ratios in sequence to correct answer.
reflect the liquidity in descending List – I List – II
order.
(i) Survival (a) Economic
Objective
(ii), (iv), (iii) and (i)
(ii) R.O.I (b) Natural Urge
(i), (ii), (iv) and (iii) (iii) Growth
Innovation (d)(c)Primary
Business
(iv), (ii), (iii) and (i) Objective
Purpose
(iii), (iv), (i) and (ii) Codes :
Normally Demand curve slopes

Upward
Downward
Horizontal
Vertical
160
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (iv) (iii) (ii) (i)
Consider the oligopoly models : SPSS

Sweezy’s kinked demand curve STATA
model MiniTab
Newman and Morgenstern Game All of the above
Theory model
Cournal’s duopoly model
Baumal’s sales maximisation
model
Arrange them in correct sequence as
per order of evolution.
(iv), (iii), (ii), (i)
(ii), (i), (iii), (iv)
(iii), (i), (ii), (iv)
(i), (iii), (ii), (iv)
Which of the following is not a restricted

random sampling technique ?
Stratified sampling
Simple random sampling
Systematic sampling
Multistage sampling
Classification of respondents only on the

basis of gender is an application of
Ordinal scale
Nominal scale
Interval scale
Ratio scale
Karl Pearson’s co-efficient of correlation

between two variables is
the product of their standard
deviations
the square root of the product of
their regression co-efficients
the co-variance between the
variables
None of the above
Statistical software packages for research

in social sciences include
161
F-test is used to test the significance
of the differences between/among
Two sample mean
More than two samples Identify the correct sequence of steps
involved in planning :
mean Variance of two Selecting the best course of
action
samples Establishing the sequence of
(B) and (C) Match the activities
Establishment of objectives
following Evaluating alternative courses
Determining
List-I alternative courses
List-II
(i) The(i), (ii), (iii), (iv) and (v)
(iii),Practice
(v), (iv),of(ii) (a)
and Henry
(i)
Management
(v), (iv), (iii), (ii) and Fayol
(i)
(ii) Philosophy of (b)
(iii), (v), (iv), (i) and (ii)F.W.
Management Taylor
Assertion (A) : One can be sure about
(iii) Scientific
future course of actions(c) Oliver
by
Management
making good plans. Sheldon
(iv) General and
Reasoning (d) Peter brings
(R) : Planning F
Industrial
certainty in future course of Drucker
actions of an organisation.
Administration
Codes (R): is correct but (A) is not
correct.
(i) (ii) (iii) (iv)
(A) (a)
(A) is (b)
correct(c)but (R)
(d) is not
correct.
(B) (d) (c) (b) (a)
Both (A)
(C) (d) (c) and(a)(R) are(b)correct.
Both (A)
(D) (c) (d) and(b)(R) are(a) not correct.
162
According to Kieth Devis, which one is All the activities involved in selling
not a barrier of communication ?
goods or services directly to final
Physical Barriers consumers for personal non-business
uses are done by
Technological Barriers
Wholesalers
Personal Barriers Retailers
Linguistic Barriers Mediators
Commission Agents
While establishing relation between

Maslow’s and Herzberg’s theories, To manage a business well is to manage
which Needs of Hierachy Theory will its future and to manage the future is to
fall under the Hygiene Factors ? manage information is termed as
Management information system
Self actualisation, esteem and Marketing information system
social needs
Future information system
Esteem, social and safety needs
General information system
Social, safety and physiological
needs
DAGMAR approach in marketing is
Only social needs used to measure
Public relations
Advertising results
Howard-Sueth model of consumer Selling volume
behaviour is popularly known as Consumer satisfaction
Machine Model
Human Model Which one is not an important objective
of Financial Management ?
Marketing Model Profit Maximisation
Purchase Model Wealth Maximisation
Value Maximisation
Maximisation of social benefits
To generate and facilitate any exchange
intended to satisfy human
Which one refers to cash inflow under
needs or wants such that the payback period method ?
satisfaction of these wants occur with
minimal detrimental impact on the Cash flow before depreciation
and taxes
natural environment is known as
Cash flow after depreciation and
Aggressive marketing taxes
Operating marketing Cash flow after depreciation but
before taxes
Green marketing Cash flow before depreciation
and after taxes
All of the above
The concept of present value is based on Which four are the factors influencing
the : the Human Resource Management of
Principle of compounding an organisation ?
Size of workforce
Principle of discounting Employee Expectations
(A) and (B) Composition of workforce
None of the above Political influence
Changes in technology
(i),(ii), (iii) and (v)
Cost of capital from all the sources of (i), (ii), (iv) and (v)
funds is called
Specific cost
Composite cost
Assertion (A) : One can not be sure
Implicit cost about the quality of appraisal on
the basis of length of service.
Simple Average cost
Reasoning (R) : Initial appraisal and
promotional appraisal are done
separately and differently since
the length of service is different.
Match the following with most suitable
option : (R) is correct but (A) is not
correct.
Modigiliani-(i) Commercial
(A) is correct but (R) is not
Miller papers Approach correct.
(A) and (R) both are correct.
Net Operating (ii) Working (A) and (R) both are not correct.
IncomeCapital
Approach Management
Which of the following are covered
(c) Short term (iii) Capital under the scope of Human Resource
Money Management ?
Structure
Market Forecasting Human Resource
Instrument Needs
Replacement Planning
(d) Factoring (iv) Arbitrage
Human Resource Dynamics
Codes : Human Resource Development
Planning
(a) (b) (c) (d)
Human Resource Audit
(A) (iv) (iii) (i) (ii) (i), (iii), (v)
(B) (iii) (iv) (i) (ii) (i), (ii), (iii), (iv)
(iii), (v)
(C) (iii) (ii) (i) (iv)
(i), (ii), (iii), (iv), (v)
(D) (iii) (ii) (iv) (i)
On which of the following, at the initial Read the following events :
stage, the Indian IT companies relying
more for getting good IT professionals
? Allowing convertibility of rupee
at the market rate in the current
account
Job Portals
Nationalisation of general
Placement Agencies insurance business
Establishment of IDBI
Campus Placement
Nationalisation of life insurance
All of the above business
Capital adequacy norms for

commercial banks
Statement (i) : Labour always get a Arrange the events in the ascending
major share of productivity order of their occurrence :
gains. (iv), (iii), (ii), (i), (v)
Statement (ii) : Partial stoppage of (v), (iv), (iii), (ii), (i)

work by workers amounts to
(i), (ii), (iii), (v), (iv)
strike.
(i), (v), (ii), (iv), (iii)
Statement (i) is true but (ii) is

false.
In India, the Commercial Banks are
given license of operation by
Statement (ii) is true but (i) is
false. The Government of India
The Ministry of Finance
Both statements are true.
Reserve Bank of India
Both statements are false.
Banking Companies Regulation
Act, 1949
Imperial Bank was established on

January 27, 1921 on the advise of The provisions of General Reserve in
Banking Companies are made keeping
in view the provisions of
J. M. Keynes Lord
Indian Companies Act, 1956
Illingworth King
Banking Companies Act, 1949
George V Winston SEBI Act, 1992
Statutory Auditor
Churchill
164
Which among the following is not true EPCG denotes
with regard to merchant banker ?
It can accept deposits. Export Potential and Credit

Guarantee
It can advance loans.
Earning Promotion and Credit
Guarantee
It can do other banking activities.
Export Promotion and Credit
It can be manager to a public Guarantee
issue.
Export Potential and Credit
(i), (ii) and (iii) Goods

Which one of the following matches
(i), (iii) and (iv) correspond to the Member and
Observer countries of the SAARC ?
(ii) and (iv) (i) India, Pakistan, Bangladesh,
Bhutan, Nepal, Sri Lanka,
Afghanistan, Maldive
Balance of Payments can be made Iran, China, Japan, USA, South

favourable if Korea, European Union
Exports are increased Pakistan, Nepal, India,

Bangladesh, Iran
Imports are increased
UK, USA, North Korea, South
Africa
Devaluation of money
(iii) and (iv)
(A) and (C)
(ii) and (iv)
(i) and (ii)

Which one is not an objective of IMF ? (ii) and (iii)
To promote international
monetary co-operation
Which one is not an international
To ensure balanced international organisation ?
trade SAARC
To finance productive efforts ASEM
according to peace-time ASEAN
requirement
CBDT
To ensure exchange rate stability
165
UGC - NET JUNE 2012
1 D 26 A
2 D 27 C
3 A 28 B
4 B 29 A
5 D 30 D
6 D 31 D
7 B 32 D
8 B 33 B
9 C 34 B
10 A 35 A
11 B 36 C
12 B 37 D
13 C 38 D
14 A 39 C
15 C 40 B
16 B 41 A
17 B 42 A
18 B 43 C
19 D 44 B
20 D 45 A
21 B 46 D
22 D 47 C
23 A 48 C
24 B 49 C
25 C 50 D
166
June-2012
COMMERCE
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks
each. All questions are compulsory.
If Opening Stock is ` 10,000, Net

Purchases ` 70,000, Wages ` Identify the true statement of the
2,500, Carriage inward ` 500 and following :
Closing Stock ` 15,000, what is the Balance Sheet is always
Manufacturing Cost ? prepared from the point of
(A) ` 65,000 (B) ` 83,000 view of the business but not
(C) ` 68,000 (D) ` 73,000 from that of the owners.
The financial relationship of
the business to its owners is
What does a high payout ratio indicate shown in the Balance Sheet.
?
Balance Sheet is always
A High Earning Per Share related to a period of time.
(EPS)
Codes :
The management is not
ploughing back enough profit. (i) and (ii)
The management is ploughing (ii) and (iii)
back profit.
(i) and (iii)
The company is earning high
profit. (i), (ii) and (iii)
Which one of the following statements

is true ? X and Y are partners in a firm sharing
profits in the ratios of 2 : 1. Z is
Capital expenditure does not admitted with a 1/3 profit sharing.
affect the profitability of a
What will be the new profit sharing
concern but revenue ratio of X, Y and Z ?
expenditure does.
(A) 3 : 3 : 3 (B) 4:3:2
Capital expenditure affects the
profitability of a concern (C) 4 : 2 : 3 (D) 2 : 3 : 4
directly but revenue
expenditure does not.
Capital expenditure affects the
profitability of a concern Which one of the following will not
affect the working capital ?
indirectly but revenue
expenditure affects directly. Realisation of cash from
debtors.
Both capital expenditure and
revenue expenditure affect the Sale of plant and machinery in
profitability of a concern cash.
directly.
Issue of equity shares.
Redemption of debentures.
167
Given below are two statements, one Match the items of List – I with the
other labelled as Reason (R) : items of List – II and select the
correct answer using the codes given
below the lists :
Assertion (A) : When a company
earns profit prior to its List – I List – II
incorporation, it is called (a) Leverage (i) Short-term
capital profit. Ratio solvency
Reason (R) : Capital profit cannot (b) Liquidity (ii) Earning
be used for distribution as Ratio capacity
dividend to the shareholders. (c) Turnover (iii) Relationship
Ratio between debt
In the context of the above two and equity
statements, which one of the
following is correct ? (d) Profitability (iv) Efficiency of
Ratio Asset
Codes : Management
(A) is correct, but (R) is Codes :
wrong. (a) (b) (c) (d)
Both (A) and (R) are correct. (ii) (i) (iv) (iii)
(iii) (ii)(i) (iv)
(A) is wrong, but (R) is (iv) (iii) (i) (ii)
correct.
(iii) (i) (iv) (ii)
Given below are two statements, one

Reconstruction of a company takes other labelled as Reason (R) :
place when
Assertion (A) : Sinking fund is a
(i) the company is charge against Profit and Loss
undercapitalised Account.
Reason (R) : Sinking fund is
company has incurred heavy created for repayment of a
losses which must be written long term liability.
off
In the context of the above two
the company is overcapitalised statements, which one of the
following is correct ?
Which one of the following is correct Codes :
?
(i) and (ii) only wrong.
(i) and (iii) only
(A) is wrong, but (R) is
(ii) and (iii) only correct.
All the above Both (A) and (R) are wrong.
Match List – I with List – II and select The main effect of inflation on the
the correct answer using the codes financial statement is
given below the lists :
List – I List – II Profits are understated
(a) Goodwill of (i) Current Overstatement of Assets
a company liability Adequacy of funds for
(b) Overdraft (ii) Fixed Assets replacement of assets
(c) Preliminary (iii) Reserves and Erosion of capital
Expenses Surplus
(d) Premium on (iv) Fictitious
Issue of Assets Present value of future earnings is a
Shares model of Human Resources
Codes : Accounting suggested by
(a) (b) (c) (d) Brauch Lev & ABA Schwartz
(ii) (i) (iv) (iii) Jaggi & Lau
(i) (ii) (iv) (iii) S.K. Chakraborty
(i) (ii) (iii) (iv) Eric Flamhaltz
(ii) (i) (iii) (iv)
Which element of the promotion mix

In India, which of the following is do wholesalers generally apply to
prepared on the guidelines of AS-3 obtain their promotional objective ?
(Accounting Standard – 3) ? Advertising
Balance Sheet of a Company
Personal Selling
Funds Flow Statement
Cash Flow Statement Trade Promotion
Consolidated Financial Direct Marketing

Statement
Who has given ‘fourteen Principles of

What is the correct sequence of the Management’ ?
following actions required for the
preparation of financial accounts ? Barnard
Trading accounts Henry Fayol
Making adjusting entries F.W. Taylor
Balance Sheet Flemming
Profit and Loss Account
Select the correct answer from the
codes given below : What is M.B.O ?
Codes : Management by Objective
(iv), (ii), (i), (iii)
Multiple Business Organisation
(ii), (iv), (iii), (i)
Management by Organisation
(ii), (i), (iv), (iii)
Multiplicity of Business
(iv), (ii), (iii), (i) Operations
Match items in List – II with items in What is mass marketing ?
List – I :
List – I List – II Offering the same products and
I. Mega 1. Advertising marketing mix to all
Marketing consumers.
Penetration 2. Kotler Offering variety of products to

Price the entire market.
III. Promotion 3. Low price Offering differentiated
Mix products to all customers.
IV. Customer 4. Post Purchase
Following concentrated
Satisfaction Behaviour marketing strategy.
Codes :
1 2 3 4
(A) I II III IV Which concept of marketing is based
(B) III I II IV on the assumption that superior
products sell themselves ?
(C) IV III II I
Production(B) Marketing
(D) III IV I II
(C) Societal (D) Product
Statement (A) : Sales promotion has a

strong impact on consumer
behaviour in rural India. 24. In broader sense, marketing
communication includes
Reason (R) : Rural people in India
give utmost significance to (A) Product (B) Price
sales promotion schemes.
(C) Place (D) All
Codes :
Statement (A) is correct but
Reason (R) is incorrect.
Physical distribution provides
Statement (A) is incorrect, but
Reason (R) is correct. Place utility
Both Statement (A) and Time utility
Reason (R) are correct.
Both Statement (A) and Place and Time utility
Reason (R) are incorrect.
Form utility
Market sub-divided on the basis of

behavioural characteristics is called What is relevant to place variable of
Segmentation marketing mix ?
Aggregation Branding
Precision
Price penetration
None of the above
Sales personnel motivation
None
Find incorrect statement :
Which one of the following is not in
Marketers arouse emotional sequence of personnel training
motives procedure ?
Marketers satisfy rational Instructor Preparation
motives
Present the task
Marketers formulate different
sales promotions for different Try out performance
motives
None of the above Training preparation
Follow up
Non-store marketing includes 1, 2, 3, 4, 5
Home selling
2, 1, 4, 3, 5
V.P.P.
Vending Machines 1, 4, 2, 3, 5
All of the above 3, 1, 2, 5, 4
What is customer delight ?

Performance equal to Under which method of performance
expectation
appraisal one person is compared
Performance less than with all others for the purpose of
expectation
placing them in a simple order of
Performance more than work ?
expectation
Expectation more than Grading
performance
Person to Person comparison
Which terms are often used inter- Ranking

changeably in marketing literature ?
None of the above
Concept, method, philosophy
Concept, approach, technique
Orientation, concept,
philosophy Which one of the following is not the
Philosophy, system, concept fundamental procedure that should
be considered for the collective
bargaining ?
Which one of the following is not the
operative function of HRM ? Prenegotiation phase
Development
Selection of Negotiators
Controlling
Compensation Tactic and Strategy of
Bargaining
Integration
None of the above
Assertion (A) : Inevitably the firm Assertion (A) : Business Economics is
must go to the external sources tool centrics facilitating decision
for lower entry jobs.
making in business.
Reason (R) : For
positions where Reason (R) : It provides an
analytical understanding of
required qualification/ economic activities.
experience are not met.
Codes :
Codes :
correct.
correct. Both (A) and (R) are correct.
(A) is true, but (R) is false. (A) is true, but (R) is false.


Demand has the following elements :
Quantity
Match the following items of List – I
and List – II : Price
Time
List – I List – II All the above
1. Asbestos I. Lung Cancer

A perfectly competitive firm attains
2. Benzene II. Cancer equilibrium when
3. Ethylene III. Leukemia AC = AR
Disbromide MR = MC
4. Kerosene IV. Acute MC = AC
Nervous System
TC = TR
Depression
The purpose of job evaluation is

Fixation of Responsibility
Codes :
Promotion
I II III IV
Wage Determination
(A) 4 2 3 1
Transfer to a better job
(B) 4 3 2 1
(C) 1 3 2 4
(D) 3 4 2 1
172
For testing of hypothesis H0 : M1 = The concept of ‘Rolling Plan’ in India
M2 and H1 : M1 < M2, the critical was introduced by the
value of Z at 5% level of BJP Government
significance when size of sample is Janta Government
more than 30 is
(A) 1.96 (B) 2.32 Congress Government
(C) 1.645 (D) 2.5758 All of the above
Which of the following is the non- Which one of the following is an

random method of selecting samples obstacle to globalisation ?
from a population ?
Wide base
Stratified Sampling
Quota Sampling Niche markets
Systematic Sampling Obsolescence
Cluster Sampling Competition
If the two regression coefficients are

and 0.2, then the value of ‘VSAT’ technology is first followed
for on-line trading by
coefficient of correlation is
(A) + 0.16 (B) – 0.40 (A) BSE (B) OTCEI
(C) – 0.16 (D) + 0.40 (C) NSE (D) ISE
Which one of the following is a Match the following :

relative measure of dispersion ?
Standard deviation List – I List – II
Variance Years Act
Coefficient of variation 1956(i) Consumer Protection Act
None of the above
1986(ii) Indian Companies Act
Assertion (A) : Internal factors of

1992(iii) Securities and Exchange
Board of India
business environment are
controllable factors. 2002(iv) Securitisation Act
Reason (R) : The company can Codes :
alter or modify such factors to
suit the environment.
Codes :
incorrect.
(A) is incorrect.
173
(a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iii) (i) (iv)
(D) (i) (iv) (iii) (ii)
174
The flagship project of Government of Which of the following is not included
India launched for generating in the assumptions on which Myron
guaranteed employment in rural Gordon proposed a model on stock
areas is known as valuation ?
(A) PMRY (B) MNREGA Retained earnings, the only
source of financing
(C) JRY (D) NREP Finite life of the firm
Taxes do not exist
Constant rate of return on
firm’s investment
The conflicts in project ranking in
capital budgeting as per NPV and
IRR may arise because of Match the following :
Size disparity (i) Factoring (a) Cash
Time disparity services Management
(ii) Economic (b) Receivable
Life disparity Order Management
Quantity
All the above
(iii) Commercial (c) Inventory
paper Management
(d) Working
The degree of financial leverage Capital
reflects the responsiveness of Financing
Codes :
Operating income to changes
in total revenue (ii) (iii)
EPS to changes in EBIT (a) (c) (b)

(c) (b) (a)
EPS to changes in total
revenue (b) (c) (d)
(b) (a) (c)
None of the above
Assertion (A) : International

business focuses on global
The overall capitalisation rate and the resources, opportunities to
cost of debt remain constant for all buy/sell worldwide.
degrees of financial leverage is Reason (R) : The efforts of IMF,
advocated by World Bank and WTO to
Traditional Approach liberalise their economies led
to globalisation.
Net Income Approach Codes :
Net Operating Income Both (A) and (R) are false.
Approach
M-M-Approach (A) is false, but (R) is true.
Match the items of List – I with items 60. Balance of Payment includes
of List – II : components
List – I List – II (A) Current Account, Capital
Wider Market 1. Modes of Account, Unilateral Payments
Entry Accounts, Official Settlement
Account
(ii) Turn key 2. Goal of
Projects International Revenue Account, P & L
Business Account, Capital Account,
Official Account
Expanding the 3. Advantages Trade Account, Activity
productionof Account, Revenue Account,
capacitiesInternational Currency Account
Business
Forex Account, Trade
(iv) Geocentric 4. Stage of Account, Funds Account
approach Globalisation
Codes :
Assertion(A) : International
(i) (ii) (iii) (iv) Monetary Fund was set up in
(A) 4 2 3 1 1944.
(B) 3 1 2 4
Reason (R) : To promote
(C) 1 2 3 4 international monetary
(D) 4 3 2 1 cooperation through a
permanent institution which
provides machinery for
BRICS includes consultation and collaboration
on international monetary
Bhutan, Romania, Indonesia, problems.
Chile and South Korea Codes :
Brazil, Russia, Indonesia, Both (A) and (R) are false.
Chile and Sudan
Brazil, Russia, India, China
and South Africa (A) is true, but (R) is false.
Britain, Russia, India, (R) is true, but (A) is false.
Czechoslovakia, Sri Lanka
The commercial banks do not perform

Out of the following, one is not related one function out of the following :
with WTO :
Mobilisation of savings
TRIPS
Giving Loans and Advances
Ministerial Conference
Issuing Currency Notes
TRIMS
Financing Priority Sectors
TRAI
There are two lists of items, match the Factoring and forfeiting have not taken
items of List – I with items of List –
II : off in the Indian economy due to
lack of expertise and experience.
List – I List – II One is not included in the factoring
services rendered.
Reserve Bank 1. NPA
of India Purchase of book debts and
receivables.
II. EXIM Bank 2. Facilitating
Small Scale Prepayment of debts partially
or fully
Industries
Giving advice
III. SIDBI 3. Credit Control
Covering the credit risk of the
IV. Capital 4. Export/Import suppliers
Adequacy Financing
Codes : Which one is not the form of FDI ?
I II III IV
Purchase of existing assets in
(A) 1 2 3 4 foreign currency
(B) 4 3 2 1 New Investment in property,
plant, equipment
(C) 2 3 4 1
Making investment in the
(D) 3 4 2 1 mutual funds
Transfer of many types of
assets
One of the items is not related with e-
banking :
Match the items of List – I with items
Demand Draft of List – II :
SPNS
ECS
ATM
Assertion (A) : The Treasury

Manager uses the derivatives
in the Bond market as well as
in Forex market.
Reason (R) : It helps risk coverage.
Codes :
1. Measures I. Globalisation
towards
globalization
2. Off-shoring II. FEMA
3. FERA III. Liberalise the
inflow of FDI
4. Mr. Aruthur IV. Uruguay
Dunkel Round
Codes :
1 2 3 4
(A) III I II IV
(B) II I III IV
(C) IV II I III
(D) I II IV III
Which one of the following is not the Which of the following is not a capital
advantage of MNCs to the host asset under capital gains head of income
country ? ?
Increase in social activity Stock in trade
Increase in economic activity
Goodwill of business
Utilisation of natural resources
Agricultural Land in Delhi
R & D efforts enhanced
Jewellery
India suffered from deficit balance both

in trade balance and net invisibles, Match the items of List – I with List –
II :
hence, took up a number of steps to
manage this problem. Which one is List – I List – II
not appropriate for this ? I. Tax 1. Making suitable
Export control Planning arrangement of
TDS
Current Account Convertibility
II. Tax 2. Understatement
Liberalised Export Policy Avoidance of Income
Unified Exchange Rate
Tax Evasion 3. Availing
deduction
under Section
Mr. James, a citizen of U.S., arrived in 10A of IT Act.
st
India for the first time on 1th July,
2010 and left for Nepal on 15 IV.Tax Admini- 4. Misinterpreting
December 2010. He arrived to India again stration the provisions
st of the IT Act
on 1 January 2011 and stayed till the end
of the financial year 2010-11. His
residential status for Codes :
the assessment year 2011-12 is I II III IV
Resident (ordinarily resident) (A) 2 1 4 3
Not ordinarily resident (B) 1 4 3 2
Non-resident (C) 3 4 2 1
None of the above (D) 4 1 3 2
Under the Income Tax Act, 1961

The value of free accommodation in unabsorbed depreciation can be
Delhi provided by employer in the carried forward for set-off purpose :
private sector is For 4 years
10% of salary
For 5 years
15% of salary
For 8 years
20% of salary
For unspecified period
25% of salary
UGC - NET JUNE 2012
1 C 26 C 51 D
2 B 27 D 52 B
3 C 28 D 53 C
4 A 29 C 54 B
5 C 30 C 55 C
6 A 31 B 56 A
7 B 32 C 57 B
8 C 33 C 58 C
9 D 34 D 59 D
10 C 35 D 60 A
11 A 36 C 61 B
12 C 37 B 62 C
13 C 38 D 63 D
14 D 39 B 64 A
15 A 40 C 65 B
16 C 41 C 66 C
17 B 42 B 67 C
18 A 43 D 68 A
19 B 44 C 69 A
20 A 45 A 70 A
21 A 46 B 71 B
22 A 47 C 72 B
23 D 48 C 73 A
24 D 49 A 74 C
25 C 50 B 75 D
178
Dec-2011
COMMERCE
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two
marks. Attempt all the questions.

By which Act, the government checks
restrictive trade practices ?
Books Authors
FEMA - 1999
a. India and i. Bhagwati. J.
Consumer Protection Act, Economic
1986 Reforms
Industrial Policy Act, 1991
b. Development ii. Chakravarty. S.
None of the above planning : The
Indian
In which year the new Industrial Experience
Policy was announced ?
c. India : iii. Drenz, J and
1997 Economic Amartya Sen
1951 Development
and Social
1991 Opportunity
1998
d. Fiscal Policy of iv. Chelliah, R.J.
Underdeveloped
countries.
The Narasimham Committee made
separate recommendations for the Codes :
reforms of
Manufacturing sector a b c d
Banking sector (A) i ii iii iv

Agriculture sector (B) ii iii iv i
Insurance Sector (C) iii iv ii i
(D) i iv iii ii
Assertion (A) : Disinvestment tends
to arouse opposition from
employees.
Reason (R) : It may increase the Which of the following accounting
cost of Production. equations is not correct ?
179
(A) Assets – Liabilities = Equity
(B) Assets – Equity = Liability
(C) Assets + Liabilities = Equity
(D) Liabilities + Equity =Assets
180
7. Which one of the following When demand curve is rectangular
statements is correct ?
Hyperbola, the elasticity of demand
Increases in liabilities are will be
credits and decreases are
debits. Perfectly elastic
Increases in assets are credits Unit elastic
and decreases are debits.
Perfectly inelastic
Increases in capital are debits
and decreases are credits. Highly elastic
Increases in expenses are
credits and decreases are
debits.
Opportunity cost is a term which
describes :
A and B are partners in a firm sharing A bargain price for a factor of
profit and loss in the ratio of 3 : 2. production.
They admit C into partnership for ¼
share and the new ratio between A Cost related to an optimum
and B is 2 : 1. The sacrificing ratio is level of production.
1:1 Average variable cost.
2:1
The cost of forgone
3:1 opportunities.
2:3
Arrange the following books in order

Arrange the following liabilities in the (year) in which they appeared.
order of company balance sheet.
Bank Overdraft a. Economic Theory and
Bank Loan Operations Analysis by W.J.
Share Capital Baumol.
Provision for Taxation An introduction to positive
i, ii, iii, iv Economics by R.G. Lipsey.
iv, iii, ii, i Economics by P. Samuelson.
iii, ii, i, iv
iii, ii, iv, i Managerial Economics by Joel
Dean.
(A) a, b, c, d (B) d, c, a, b
Intrinsic value of a share is given by
Total net assets (C) b, d, a, c (D) c, d, b, a
No. of shares
Total assets
No. of shares
Share capital Marginal revenue is at the
No. of shares Market quantity that generates maximum
capitalisation
No. of shares total revenue and negative beyond
that point.
(A) zero (B) +2
(C) + 1 (D) – 1
Assertion (A) :“Utility will be mean > median > mode mean
maximised when the marginal
< median < mode mean =
unit of expenditure in each
direction brings the same median = mode mean >
increment of utility.”
median < mode
Reason (R) : A consumer will try
to maximise his utility.
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
Questionnaire
Schedule
Interview
All the above
In a unimodal and symmetric

distribution, the relationship between
averages is like this.
Given the following tests :
(i) ‘Z’-test (ii) ‘t’-test
2
(iii) ‘F’-test (iv) ‘χ ’-test
The concept of degrees of
freedom is associated with
(i) and (ii)
(ii) and (iii)
(iii) and
(iv) (ii),
(iii) and
(iv)
Which one of the following is

not an accounting
software ?
(A) Tally (B) Miracle
(C) Profit (D) SPSS
E-marketing is
Buying and selling of
goods and services
through internet.
Buying of goods
through internet.
Selling of goods
through internet.
All of the above.
Match the items in List-I with

items in 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 iv. Functional
Munsterberg Theory
Codes :
a b c d
(A) i ii iii iv
(B) i ii iv iii
(C) iv iii ii i
(D) iii i iv ii
The main advantage of functional Match the following statements with
organization is their authors :
Simplicity
“Marketing mix is a i. Wheeler
pack of four sets of
Specialisation
variables, namely;
Experience product variables,
price variables,
promotion
Authority variables and place
variables”.
Which of the following is the most

democratic form of organisation ?
Line
Line and Staff
Functional
Committee
Plan made in the light of a

competitor’s plan is known as
Policy
Procedure
Strategy
Under-cover plan
A proposed organizational change may

create .
Emotional Turmoil & Tension
Problem of social
displacement
Fear of unknown
All of the above

b. “The marketing ii. Cundiff,
mix is the set of Still &
marketing tools the Govoni
firm uses to pursue
its marketing
objectives in the
target market.”
c. “Marketing is the iii. Mc Carthy
managerial process
by which products
are matched with
markets and
through which
transfers of
ownership are
affected.”
d. “Marketing is iv. Philip
concerned with all Kotler
the resources and
activities involved
in the flow of
goods and services
from producer to
consumer”.
Codes :
a b c d
(A) ii iv i iii
(B) i ii iv iii
(C) iv iii i ii
(D) iii iv ii i
Which one of the following is not the Read the following statements :
mode of Direct Distribution system ?
“The rate of return on
investment increases with the
Multiple shops shortage of working capital.”
Door to door selling
Broking agent ‘Net working capital is the
excess of current assets over
Direct mail order current liabilities.”
“Greater the size of the
Which one of the following is not business unit, larger will be the
matched correctly ? requirement of working
(A) Sales – Internal Sales capital.”
Portfolio Promotion “Working capital is also
Merchandise – Dealer known as circulating capital.”
AllowancePromotion
Which one of the following consists
Countand – Consumer of the correct statements ?
Recount of Promotion Stock (i), (ii) and (iii)
(D) Advertising – Market
Promotion (ii), (iii) and (iv)
(iii), (iv) and (i)
Assertion (A) : “Advertising plays a (i), (ii) and (iv)
vital role in selling
products/services.”
Reason (R) : “Sales promotion is Match the following :
incomplete without a good
advertising plan.” (a) Capital (i) Time
Codes : Budgeting adjusted
(A) is correct, but (R) is false. rate of
(A) is false, but (R) is correct. return
Both (A) and (R) are correct. Profitability (ii) Irreversible
Both (A) and (R) are false. Index
Internal rate (iii) Benefit/cost of
return
Which one of the following contains
the three elements of service (d) Capital (iv) Planning
marketing triangle ? investment capital
Management, Marketing decisions Expenditure
Agency and Consumer.
Codes :
Marketing Agency,
Government and Consumer. (a) (b) (c) (d)
Management, Employees and
Marketing Agency. (iv) (iii) (ii)(i)
Management, Employees and (i) (iv) (ii)(iii)
Consumer.
(iv) (iii) (i)(ii)
(ii)(i) (iii) (iv)
Which one of the following is correct ? Performance appraisal is
Liquidity ratios measure long Morale boosting
term solvency of a concern.
Inventory is a part of liquid Training and Development
assets. Activity
Rule of thumb for acid test Job Analysis
ratio is 2 : 1. None of the above
The amount of gross assets is
equal to net capital employed.
(i), (ii) and (iv) The mechanism to identify employee’s
growth potentials is done through
Job enrichment
(i), (ii), (iii) and (iv) Job evaluation
None of the above Assessment centre
Position Description
According to which of the following,
the firm’s market value is not
affected by capital structure ? Statements :
M-M Hypothesis
High morale always leads to
Net Income approach high productivity.
The Traditional view High morale need not
necessarily lead to high
None of the above productivity.
(i) is correct, (ii) is incorrect.
Modigliani and Miller’s dividend (i) is incorrect, (ii) is correct.
policy of a firm is
Both are correct
Relevant
Both are incorrect
Irrelevant
Unrealistic
None of the above Arrange the following in order :
Promotion
Performance appraisal
The concept of Quality circles is a
brain child of Recruitment
Karou Ishikawa Training and Development
Munchu (iii), (iv), (ii), (i)
Japanese Union for Scientists (iii), (ii), (i), (iv)
& Engineers
(i), (ii), (iii), (iv)
None of the above
(iii), (iv), (ii), (i)
184
Find out the odd one out of the Which of the following is the best
following :
example of Agreement between
State Bank of India oligopolists ?
Reserve Bank of India (A) GATT (B) OPEC
Union Bank of India
(C) WTO (D) UNIDO
Central Bank of India
SIDBI was set up in as a wholly 47. Factor Endowment Theory of

owned subsidiary of International Trade was propounded
by
1985 – EXIM
David Ricardo
1969 – RRBS
Bertil - Ohlin
1975 – IFCI
J.S. Mill
1990 – IDBI
C.P. Kindleberger
The most important reason for an

investor to prefer a Bank deposit is
Assertion (A) :The British
The credit worthiness of the established and developed
Bank.
Indian Railways.
The Bank does not invest in
the securities.
The Bank offers a guarantee. Reason (R) : The British are
All of the above. keenly interested in India’s
economic development.
Both (A) and (R) true.
Main objectives of CRR and SLR is to Both (A) and (R) are false.
ensure :
Liquidity position of Bank (A) is true, but (R) is false.
Financial position of Bank. (A) is false, but (R) is true.
Profit position of Bank
Only (i) is correct.
Only (ii) is correct. Which of the following is also known
Only (iii) is correct. as World Bank ?
All are correct. (A) IMF (B) IBRD
(C) ADB (D) IFC
NABARD has taken over the entire

functions of
ARDC ACD Special Economic Zones (SEZ) have
been created first time in the
of RBI
EXIM Policy – 2000
RPCD of RBI
EXIM Policy 2005
All of the above
185
Dec-2010
COMMERCE
Paper – II
(2) marks. Attempt all the questions.
Match the following two lists of
1. India abolished the quantitative statements.
restrictions on imports of 1429 items List – I List – II
in 2000 and 2001 as per the Rate at which RBI 1. Bank
commitment to which of the gives loans to rate
following ? Commercial Banks
by discounting bills
(A) South Asian Free Trade Rate at which RBI 2. Repo
Association (SAFTA) borrows from rate
Commercial Banks
General Agreement on Tariffs Prime
and Trade (GATT) lending
rate
WorldTrade Organisation Codes :
II
(WTO)
31
21
12
Non-Aligned Movement 32
The MRTP Act, 1969 was abolished in
1991
2002
Globalization is a term used to describe 2006
the process of removal of restrictions None of the above
on which of the following ? Read the following statements :
Foreign Trade Financial statements are only
interim reports.
Investment Financialstatements are
(A) and (B) above prepared on the basis of
realizable values.
None of the above
The preparation of financial

statements is not an ultimate aim.
When a company takes over another Certainassumptions are
one and clearly becomes a new necessary to prepare financial
owner, the action is called statements.
Merger combinations consists of all true
Acquisition statements ?
(i), (ii) and (iii)
Strategic Alliance (ii), (iii) and (iv)
None of the above (i), (iii) and (iv)
(i), (ii) and (iv)
Which of the following is not a 11. The various degrees of price
subsidiary book ?
elasticity of demand can be shown
Purchase Book on a single demand curve as per
which one of the following ?
Sales Book
Total outlay method
Bills Receivables Book
Proportional method
Assets Book Arc method
Geometrical method
Which of the following are the

application of funds ? Which one of the following is not
(i) Redemption of Preference correct about the price
share capital. discrimination by a monopolist, who
intends to
Payment of Dividend. maximise the sales/profit
Increase in working capital. share the consumer’s surplus
only (i) and (ii) increase the welfare of masses
only (ii) and (iii) reduce the welfare of masses
only (i) and (iii)
(i), (ii) and (iii) Returns to scale involve variations in
the quantities of the various factors
of production
Simultaneously, and/or
Accounting concepts are based on
Proportionately
Certain assumptions
Both (1) and (2) are correct
Certain facts and figures
(1) is correct and (2) is
Certain accounting records incorrect
Government guidelines (1) is incorrect and (2) is
correct
Both (1) and (2) are incorrect.
The main purpose of Cost Accounting
is to
The firm under perfect competition
assist management in decision will be in short-run equilibrium
making. when
maximise profits and minimise Rising marginal cost is equal
losses. to the minimum average cost
comply norms issued by the Marginal revenue is equal to
Government of India from rising marginal cost.
time to time. Average revenue is equal to
average cost
prepare cost accounts in line Marginal revenue is equal to
with the accounting standards.
187
Co-variance between two variables is
List – I List –
II
The average of the product of
(i) Law of demand (1) Giffen deviations taken from their
is fully goods averages.
applicable A is further divided by the
(ii) Law of demand (2) Veblon product of their standard
is not goods deviations.
applicable at A is further divided by the
all product of their arithmetic
(iii)Law of demand (3) Normal averages.
is partly goods None of the above
applicable
Statement – A : Standard error of
Codes : (ii) (iii) the mean is the
standard deviation
of the sampling
123 distribution of
mean.
231
Statement – B : Simple random
312
213
Statement – I : The heading for Averages between two sample

columns and rows groups.
are called caption Averages of more than two
and stub sample groups.
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.
F-test is used to test the significance of

the differences between
Co-efficientof correlation
between two sample groups.
Co-efficientof correlation
among more than two sample
groups.
188
sampling is
non- Which of the following has RDBMS ?
probability Access
sampling Excel
method. (i) and (ii)
only (i)
combination is correct ? only (ii)
Both A and B None of the above
are true. Both A
and B are false In which type of organization is
A is true and B ‘grapewine’ communication used ?
is false. A is Informal organization
false and B is Formal organization
true. Departmental organization
Matrix organization
189
In management science “Grid” refers to Trade Mark is :
Diverse managerial styles
Co-ordination a name, term, symbol or design
Communication which is intended to identify
the goods and services of a
Motivation
seller.
a brand that has been given

“SWOT” is used for
legal protection.
(A) Planning (B) Organising
givingprotection to the product
(C) Motivating (D) Controlling
and adding to it’s aesthetics
and sales appeal.
Which of the following pairs is not providing written information

matched ? about the product.
(A) Frederick – Scientific
Herzburg Management
Which of the following is not a part of
Henry Fayol– Modern Management strategic planning ?
(C) Max Weber – Bureaucracy Purposes and mission
(D) Philip Kotlar – Marketing Objectives
Choice of businesses
Which one of the following is not Social responsibility
covered under corporate governance ?
Corporate social responsibility
Business ethics Attitude means
Role of independent directors
Government monitoring Impulses,desires and
considerations of the buyer,
which induces him to purchase
Market gridding means a product
establishing and running a
web marketing facility
A sum total of the individuals’
a method of survey of expert’s
opinion. faith and feelings towards a
product.
managing brands and
developing brand equity The customer turning to his
an analytical technique
which facilitates dividing a environment/world of
market into segments. information around him.
Creating some relentness in the

mind of an individual.
WhichMatch
one ofthe
thefollowing
following: is not matched ?
(a) Supply chain (i) putting the
management product in the (a) Interest is a (i) Cost of
mind of the deductible debt
prospective
expense capital
buyer
(b) Product (ii) the process of (b) Realised- (ii) Cost of
positioning gathering, yield equity
filtering and approach capital
analysing
information (c) Extended (iii) Retained
relating to the yield earnings
marketing approach
environment.
(c) Marketing (iii) improving the (d) Dividend (iv) Cost of
environment performance of capitalization preference
analysis dealers approach share
through capital
sharpening of
their sales Codes :
skills and (a) and (i)
product
(b) and (ii)
knowledge
(d) Dealer (iv) larger in scope (c) and (iii)
training than both (d) and (iv)
physical and
marketing
logistics
Codes : The rate of discount at which NPV of a
(b) (c) (d) project becomes zero is also known
as
(i) (ii) (iii) (iv)
Average Rate of Return
(iv) (i) (ii) (iii)
Internal Rate of Return
(ii) (iv) (iii) (i)
Alternate Rate of Return
(iii) (iv) (i) (ii)
None of the above
Over capitalization may not be as a

result of which one of the following ? The dividend irrelevance theorem to
Promotion of a company with share valuation was propounded by
inflated assets James E. Walter
Applicationof low
Myron Gordon
capitalization rate
Modigliani and Miller
Shortage of capital None of the above
Liberal dividend policy
190
35. Assertion (A) : Assertions :
Management of
High morale leads to high
working capital refers to the productivity.
management of current assets Highmorale need not
and current liabilities. necessarily lead to high
Reason (R) : But the major thrust productivity.
of course, is on the Both (i) and (ii) are correct.
management of current assets ; Both (i) and (ii) are incorrect.
because current liabilities arise
in the context of current assets. (i) is correct and (ii) is
incorrect.
Codes :
Both (A) and (R) are incorrect. (i) is incorrect and (ii) is
correct.
(A) is correct and (R) is
incorrect. Statements :
Both (A) and (R) are correct. Fringe benefits, now-a-days,
(A) is incorrect, but (R) is are a significant component of
correct. “compensation”.
UnderPiece-rate plan,
employees are paid at a
Business plans designed to achieve the stipulated rate per hour of
organizational objectives is called work done by them
Human Resource Planning Both (i) and (ii) are correct.
Human Resource Forecasting Both (i) and (ii) are incorrect.
Strategic Plan
(i) is incorrect and (ii) is
Corporate Development Plan correct.
(i) is correct and (ii) is
“360” degree method relates to incorrect.
Performance appraisal Which one of the following is not an
instrument of credit control in the
Organization climate banking system ?
Employees morale Open market operations
Retrenchment Moral suasion
Cash Reserve Ratio
Match the following : Tax rates
(a) Adam (i) Subsistence
Smith Theory Match the following with their year of
(b) Karl (ii) Wages Fund establishment :
Marx Theory
(c) John (iii) The Surplus
Davidson Value Theory
(d) David (iv) Bargaining
Ricardo Theory
191
(a) IDBI (i) 1982
(b) IFCI (ii) 1964
(c) NABARD (iii) 1948
(d) ICICI (iv) 1955
Codes : (b) (c) (d) Codes : (b) (c) (d)
(ii) (iii) (iv) (i) (iii) (i) (iv) (ii)

(i) (ii) (iii) (iv) (iv) (ii) (i) (iii)
(iv) (i) (ii) (iii) (ii) (iii) (i) (iv)
(iii) (iv) (i) (ii) (i) (iii) (iv) (ii)
192
Which of the following is not a The following table shows cost per
function of a Rural Bank ?
unit of production of two goods,
To accept deposits wheat and cloth in two countries X
To waive loans To and Y with no transportation cost
grant advances and free trade :
X Y
To supply inputs to farmers Rs. Rs.
Wheat 50 350
Cloth 100 500
From which date have all Banks started
sharing their ATM free of cost for Which one of the following will take
transactions ? place ?
January 1, 2009 No trade will take place.
April 1, 2009 X will export wheat and import
cloth.
July 1, 2009 X will export cloth and import
September 1, 2009 wheat.
Thereis no enough information
to comment.
Which of the following is not the fund
based business of commercial banks A debit balance of payments occurs
? due to
D.P. Operations Low imports and high exports
High imports and low exports.
Loans
Both (i) and (ii) are correct.
Deposits Both (i) and (ii) are incorrect.
Discounting of Bills Only (i) is correct.
Only (ii) is correct.
Foreign Exchange and foreign

currencies in India are governed by 50. Match the following economic
SCRA Act institutions with the year of their
establishment :
Banking Regulation Act (a) World Bank (i) 1946
FEMA Act (b) International (ii) 1956
SEBI Act Finance
Corporation
(c) International (iii) 1960
The balance of payments of a country Development
on Current Account is equal to Agency
Balance of trade plus short Asian Development (iv) 1966
term capital flows. Bank
Codes :
Balance of trade plus net
invisible exports. (b) (c) (d)
Balance of payments minus (i) (ii) (iii) (iv)
capital flows. (i) (iii) (iv) (ii)
Balance of invisible trade plus (ii) (i) (iv) (iii)
imports. (iii) (i) (ii) (iv)
June-2010
COMMERCE
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying
two (2) marks. Attempt all the questions.
The concept of brought

Small to fore
Scale
1. Industries (SSIs) was 4. Match the following two lists of
by the statements.
(A) Industrial Policy Resolution, List – I List – II
1948 I. When one 1. Conglom-
(B) Industrial Policy Resolution, company eration
1956 purchases merger
(C) Industrial Policy Statement, another one.
1977
II. Merger 2. Consolida-
None of the above
(D) between two tion merger
companies
2. Which combination of the having no
following
factors has driven globalisation in
common
the recent past ?
business
I. Growth of multinational areas.
corporations. III. Merger 3. Purchase
II. Internationalisation of finance.
III. Increased international trade. between two merger
(A) I and II (B) I and III companies
that sell the
(C) II and III (D) I, II and III
same
products in
3. Assertion (A) : Privatisation
process leads to change in different
management with change in markets.
ownership. IV. Two 4. Market
Reason (R) : Change in companies extension
management is not a necessary are bought merger
condition for the process of and
privatisation.
combined
Which one of the following is under new
correct combination ?
entity.
Codes :
(A) Both (A) and (R) are correct. Codes :
(B) (A) is correct, but (R) is incorrect. I II III IV
(C) (A) is incorrect, but (R) is (A) 1 2 3 4
correct. (B) 2 3 1 4
(D) Both (A) and (R) are incorrect.
(C) 3 1 4 2
(D) 3 4 1 2
In which of the industrial policies were In the context of Standard Costing;
the following major changes Basic Standard is established for
introduced ?
short period
–Liberalisation of licensed capacity. current period
–Relaxation of industrial licensing. indefinite period
pre-defined period
–Industrialisation of backward areas.
Industrial Policy Resolution, Read the following statements :

1956.
(i) Marginal costing and
Industrial Policy Statement, Absorption costing are the
1977. same.
Industrial Policy of 1980. (ii) For decision making,
Industrial Policy of 1991. absorption costing is more
suitable than marginal costing.
Cost-volume-profit relationships
also denote break-even point.
Which of the following is not an
Accounting concept ? Marginal costing is based on
the distinction between fixed
Matching concept and variable costs.
Dual Aspect concept Which of the following
True and Fair concept combinations gives true statements
with regard to above ?
Going concern concept (A) (i) & (ii) (B) (ii) & (iii)
(C) (iii) & (iv) (D) (iv) & (ii)
Deficiency/Surplus Account in
liquidation of a company is called A consumer consuming two goods will
(A) List – C (B) List – D be in equilibrium, when the marginal
utilities from both goods are
(C) List – G (D) List – H
maximum possible positive
minimum possible positive
Which of the following statement is equal
not correct ? zero
P/V ratio can be improved by
reducing fixed cost.
Total production will be maximum
Contribution is also known as when
Gross margin. Marginal production is
P/V ratio can be improved by maximum.
increasing the selling price. Average production is
maximum.
Margin of safety can be
improved by reducing fixed Marginal production is zero.
cost.
Average production is equal to
the marginal production.
194
Which one of the following is not Under kinked demand model, the
matched properly ?
demand curve for the firm’s product
List – I List – II is drawn on the assumption that
I. High initial 1. Product All rivals charge the same

price which is charged by the
price to be line oligopolist.
pricing lowered later
All rivals charge a price
II. Prices to be 2. Differential independent of the price
charged by the oligopolist.
proportional to pricing
cost All rivals follow the
oligopolist upto certain price
Prices to be 3. Pioneer but beyond that they do not.
increased for pricing All oligopolists charge the

providing price as independent sellers.
profit
A graph of a cumulative frequency
IV. Prices to be 4. distribution is called
Incremental Ogive
different in pricing Frequency polygon
different
Pie diagram
markets
Histogram
(A) I and 3 (B) II and 1
(C) III and 4 (D) IV and 2 Which of the following tests is used to
test the significance of the co-
efficient of association ?
(A) Z-test (B) t-test
As per indifference curve and price 2
(C) χ -test (D) F-test
line, a consumer will not be in
equilibrium when
18. The total area of a normal
Ratios of marginal utilities and distribution between average value
prices of the respective goods 1.96 of standard deviation is
are equal.
(A) 95.45 % (B) 95 %
Ratio of marginal utilities of (C) 99 % (D) 68.34 %
the two goods is equal to the
ratio of their respective prices.
Which of the following is a relative
The marginal rate of measure of dispersion ?
substitution is equal to the ratio Standard deviation
of prices of the two goods. Variance
The marginal rate of Co-efficient of variation
substitution is decreasing. None of the above
195
20. ERP includes (i) SAP, and/or (ii) Staffing includes
Resource Planning.
Both (i) and (ii) (i) Training (ii) Appraisal
Only (i)
Placement (iv) Directing
(iii)
Only (ii)
Which of the following is correct ?
None of the above
(i) and (iii)
(i), (ii) and (iii)
Which one of the following was not
main contribution of F.W. Tailor ? (ii) and (iii)
Scientific management (i), (ii), (iii) and (iv)
Time and motion studies
Differential wage plan
Modern management Assertion (A) : Management is a
continuous process involving
the integration of all functions.
Match the items of List-I with items of List-II.
Reason (R) : Managers first plan,
List – I List – II then organise and finally
I. Hygiene 1. Abraham H. perform the function of
theory Maslow controlling.
II. Theory of 2. Victor Read the above statements and select
‘X’ and ‘Y’ Vroom the correct answer from the code
below :
III. Expectancy 3. Fredrick
Theory Herzberg Codes :
4. Doughlas Both (A) and (R) are correct;
Mcgregor and (R) is correct explanation
Codes : of (A).
I II III Both (A) and (R) are correct,
(A) 3 4 2 but (R) is not a correct
(B) 1 4 2 explanation of (A).
(C) 3 2 4 (A) is correct, but (R) is
(D) 1 2 4 incorrect.
(A) is incorrect, but (R) is
correct.
23. Which of the following combinations Exchange concept of marketing deals

consists of correct statements ? with
(i) Control and planning are Exchange of products between
interlinked. sellers and buyers covering
Control is not meant for men, distribution and price aspects.
but for activities. Mere appendage to production.
Control is a circular
movement. Achieving marketing success
(i) and (ii) through product attributes.
(i) and (iii) Aggressively promote and
(ii) and (iii) push the products.
(i), (ii) and (iii)
27. Who coined the expression
“Marketing Mix” ? Which of the following buying process
sequence is correct ?
Henry Fayol
James Culliton 1. Adoption 2. Legitimization
Peter Drucker 3. Attitude 4. Awareness
Abraham Maslow
4, 3, 2, 1
2, 3, 4, 1
Road blocking advertisement refers to
1, 2, 3, 4
Advertising a product by
blocking the road.
3, 4, 2, 1
Creating big blocks for
advertising a product.
Advertising a product on Discounted cash flow criteria for
multiple TV channels at the investment appraisal does not
same time. include
None of the above.
Net present value
Benefit-cost ratio
List – I List – II Accounting rate of return
1. Market i. Pricing high of Internal rate of return
segmentation a new product
initially.
2. Skimming ii. Process of Working capital represents the portion
price disaggregating of current assets financed through
a market into a long term funds. This indicates (1)
number of sub- net working capital and/or (2) gross
markets. working capital.
3. Multilevel iii. Translation of (1) is correct
marketing the marketing
plan into (2) is correct
marketing Both (1) and (2) are correct
performance.
Neither of the two is correct
4. Sales iv. Modified
management version of
direct
marketing. Dividend policy of a company mainly
concerns with
Codes :
dividend payout and/or
1 2 3 4
(A) ii i iv iii stability of dividend.
(B) iii i ii iv Only (i) is correct.
(C) i ii iii iv Only (ii) is correct.
(D) iv ii iii i
Both (i) and (ii) are correct.
Both (i) and (ii) are incorrect.
Which one of the following purposes
List – I List – II is not served by performance
I. The presence of 1. Super- evaluation ?
fixed cost in the leverage Decisions about promotions,
cost structure transfers and terminations.
of a firm. Centralisation and
II. The presence of 2. Operating decentralisation of decision
making authority.
fixed return leverage
funds in the Identification of training and
development needs.
capital structure
of a firm. Criterion against which
selection and development
III. Impact of 3. Financial programmes are validated.
changes in sales leverage
on the earnings Who has introduced the “Seven Point
available to Plan” for taking the best interview
shareholders. method ?
Codes : Milton L. Blum
I II III F. E. Burt
(A) 1 2 3 Prof. A. Rozar
(B) 2 3 1 Filippo
(C) 3 2 1
(D) 1 3 2
The last stage in a grievance redressal
procedure is handled by
Union
Which one of the following is not used
to estimate cost of equity capital ? Voluntary Arbitrator
External yield criterion H.R. Department
Dividend plus growth rate Grievance Committee
Equity capitalisation approach
Capital asset pricing model
The Commercial Banks in India are
governed by
Which of the following is not a Central Reserve Bank of India Act,
Trade Union in India ? 1934
B.M.S.(B) I.L.O. Indian Companie’s Act, 1956
(C) INTUC (D) AITUC Indian Banking Regulation
Act, 1949
Sequence the following in which they Securities and Exchange Board
are practised : of India Act, 1992
Promotion
Performance appraisal Which of the following limits the
Recruitment power of credit creation by
Training and Development Commercial Banks ?
(iii), (ii), (iv) (i) Fiscal Policy
(iii), (ii), (i), (iv) Banking Laws
(iii), (i), (iv), (ii) Business Pessimism
None of the above
(iii), (iv), (ii), (i)
Match the following with the years of
establishment/nationalisation. Which of the following is not an
List – I List – II International Financial Institution ?
(a) Reserve Bank of i. 1975 I.C.I.C.I.(B) I.M.F.
India (C) I.D.A. (D) World Bank
(b) Nationalisation ii. 1935
of14 Major
Commercial In balance of payment accounts, all
Banks goods exported and imported are
(c) Nationalisation iii. 1969 recorded in .
of 6 Commercial Capital Account
Banks Visible Account
Regional Rural iv. 1980 Invisible Account
Banks
Codes : Merchandise Account
(a) (b) (c) (d)
(A) i iii ii iv
(B) iii ii iv i The devaluation of currency of a
country is done when .
(C) iv iii i ii
(D) ii iii iv i It has adverse balance of
payments.
Capital adequacy norm helps to Banks It has favourable balance of
For strengthening capital base payments.
of Banks. Both (i) and (ii) are correct.
For sanctioning more loans. Both (i) and (ii) are incorrect.
Both (i) and (ii) are correct. Only (i) is correct.
Both (i) and (ii) are incorrect.
Only (ii) is correct.
(i) is correct, but (ii) is
incorrect.
(i) is incorrect, but (ii) is
correct. Match the following with the year of
establishment :
Which one of the following is the main List – I List – II
objective of Unit Trust of India ? (a) World Trade i. 1993
To mobilize the savings of Organisation
high income groups.
To mobilize the savings of low (b) Uruguay Round ii. 1995
and high income groups. Negotiation
To mobilize the savings of (c) W.T.O. – Trade iii. 1997
corporates. Policy Review
To mobilize the savings of low Body
and middle income groups.
(d) The Patents iv. 1999
Which of the following is the basic (Amendment)
objective of the World Bank ? Act.
To provide social services
To provide financial assistance Codes :
To promote economic growth (a) (b) (c) (d)
To eradicate poverty (A) i iii iv ii
(B) i iv iii ii
(C) ii i iii iv
(D) iv ii i iii
Dec-2009
COMMERCE
Paper – II
(2) marks. Attempt all the questions.
If the amount claimed by a consumer as compensation is Rs. 89 lacs, the case under
The Consumer Protection Act shall be filed with
District Consumer Redressal Forum
State Consumer Disputes Redressal Commission
National Consumer Disputes Redressal Commission
Supreme Court
Which of the following does not fall within the jurisdiction of MRTP Commission ?
Prevention of Monopolistic Trade Practices.
Prevention of Restrictive Trade Practices.
Prohibition of Unfair Trade Practices.
Regulation of Combinations.
Which of the following is not a part of the economic environment of business ?

(A) Competitive Environment (B) Economic System
(C) Changes in Patent Laws (D) None of these
Laissez faire policy is adopted in

Socialistic economic system
Capitalistic economic system
Mixed economic system
Communist economic system
Relaxing the restrictions and controls imposed on business and industry means
(A) Liberalisation (B) Privatisation
(C) Globalisation (D) None of these
A variable such as activity that causes cost over a given time is

(A) Cost Driver (B) Cost Behaviour
(C) Cost Centre (D) None of the above
200
The concept of budget that requires all levels to work from scratch is
(A) Flexible Budget (B) Total Budget
(C) Master Budget (D) Zero Base Budget
Accounting Standard on the “Effect of Changes in Foreign Exchange Rates” is

(A) AS 11 (B) AS 13
(C) AS 18 (D) None of the above
Land is not depreciable asset because

Its value always increases
There is no maintenance required
Life of land is unlimited
None of the above
The sales at which a firm would earn profit after tax @ 8% of sales, if fixed cost is
Rs. 45,000 ; selling price Rs. 50 per unit, variable cost Rs. 30 per unit and tax rate
20% :
(A) Rs. 90,000 (B) Rs. 1,50,000
(C) Rs. 1,68,000 (D) None of the above
The elasticity of demand for luxury goods is

(A) Infinite (B) More than one
(C) Less than one (D) Equal to one
Profits are maximised at a point where

(A) MR = MC (B) MR < MC
(C) MR > MC (D) AC > MC
The concept of “consumer surplus” was introduced and developed by

(A) E.A.G. Robinson (B) J.M. Keynes
(C) Lionel Robbins (D) Alfred Marshall
In Law of Variable Proportions, initially when MP rises

TP rises at a decreasing rate.
TP rises at an increasing rate.
AP rises less than proportionately.
AP rises more than proportionately.
Which one of the following statements is correct ?
Monopolist charges the maximum possible price.
Monopolist always makes (economic) profit.
Monopolist operates on an inelastic demand curve.
None of the above
The Central Processing Unit of a computer consists of

Input, Output and Processing.
Control Unit, Primary Storage and Secondary Storage.
Control Unit, Arithmetic-logic Unit and Primary Storage.
None of the above.
If the sample size increases, the sampling error

(A) Decreases (B) Increases
(C) Remains constant (D) None of the above
Goodness of fit of a distribution is tested by

(A) t-test (B) Chi-square test
(C) F-test (D) None of these
Probability of rejecting the null hypothesis when it is true, is called

(A) Type-II-error (B) Type-I-error
(C) Standard error (D) None of these
Standard error of mean is defined as

standard deviation of the sampling distribution of mean.
standard deviation of data.
inter-quartile range of the data.
none of these.
Who first propounded the principle of ‘unity of command’ ?

(A) F.W. Taylor (B) Elton Mayo
(C) Peter F. Drucker (D) Henry Fayol
Which element is not necessary in each objective under MBO Approach ?
(A) Time element (B) Cost element
(C) Human Relation element (D) Measurable element
Techniques of managerial control are useful in

selection of plant location.
identifying appropriate technology
profit planning
conducting shareholders’ meeting
The function of attracting, acquiring, retaining and developing human resources in

an organisation is called
(A) recruitment (B) induction
(C) training and development (D) staffing
In terms of Blake-Mouton’s managerial grid approach, a production oriented leader

will be one who adopts
(A) 1.1 style (B) 9.1 style
(C) 9.9 style (D) 5.5 style
The strategy of introducing a product with high introductory price is called

(A) penetration strategy (B) skimming strategy
(C) pull strategy (D) push strategy
The concept of four P’s as elements of marketing mix was given by

(A) Philip Kotler (B) W.J. Stanton
(C) E.J. McCarthy (D) Bruce J. Walker
Which out of the following is not a type of non-store retailing ?

(A) Limited line stores (B) Automatic vending
(C) Direct selling (D) Telemarketing
A product line strategy wherein a company adds a higher priced product to a line in
order to attract a broader market which helps the sale of its existing lower priced
products is called
(A) Trading up (B) Trading down
(C) Life cycle extension (D) Product line extension
Which of the following is not a tool of sales promotion ?

(A) Sales contests (B) Free gifts
(C) Point of purchase display (D) Public Relations
Use of fixed interest securities in the capital structure is called

(A) operating leverage (B) financial leverage
(C) overall leverage (D) none of the above
If NPV is positive, the IRR will be

(A) Positive (B) K = R
(C) K<R (D) None of the above
According to Walter, firm should pay 100% dividend if

(A) r>k (B) r = k
(C) r<k (D) none of the above
Sensitivity analysis is performed to

Ascertain risk
Determine profitability
Build scenario for risk profile
None of the above
Right shares enjoy preferential rights with regard to

(A) Payment of dividend (B) Payment of retained earnings
(C) Repayment of capital (D) None of the above
The Industrial Disputes Act, 1947 provides the following industrial relations
machinery for resolution of conflicts except
(A) Conciliation (B) Arbitration
(C) Negotiations (D) Adjudication
Job evaluation is a technique which aims at
Establishing fair and equitable pay structure.
Analysing requirement of updating technology.
Assessing safety requirement of jobs.
Improving productivity.
Induction is an integral part of

(A) Training (B) Selection
(C) Recruitment (D) None of the above
PIP test seeks to measure

IQ
Personality, Interest and Preferences
Quality of a product
Preferred Investment Plans
The Government of India introduced “The Workers’ Participation in Management”

Bill in Parliament in
(A) 1983 (B) 1988
(C) 1990 (D) 1981
The features of the Commercial Paper are

It is an unsecured money market instrument issued in the form of promissory
note.
The highly rated corporate borrowers can raise short term funds through this
instrument.
It is an additional instrument to the investing community.
All of the above
Banking ombudsman may reject the complaint

(A) immediately after receipt. (B) after hearing both parties.
(C) at any stage. (D) none of the above
Which of the following entities provide “Take out Finance” to banks engaged in
financing of infrastructure projects ?
(A) ICICI (B) SIDBI
(C) IDFC (D) RBI
Currency chest balance will be periodically verified by
(A) Bank’s own officials (B) RBI officials
(C) Both (A) and (B) (D) Officials of AG’s office
SEBI is
(A) Regulatory Authority (B) Statutory Authority
(C) Both (A) and (B) (D) None of these
The International Monetary Fund has estimated India’s contribution to World Gross
Domestic Product in Purchasing Power Parity (PPP) terms for 2007
(A) 4.6 percent (B) 6.4 percent
(C) 7.1 percent (D) 8.9 percent
The World Bank is known as

(A) IMF (B) IDA
(C) IFC (D) IBRD
“De-coupling” denotes
Indian market may be cut off from global markets so that it may not be
affected by global volatility.
separating the birds affected by bird-flu.
that markets are independent.
None of the above
Which of the country’s banking have been brought under “Sanctions by U.S.A.
recently” ?
(A) Iraq (B) North Korea
(C) Pakistan (D) Iran
How many member countries are there in the “World Customs Organisation” ?
(A) 160 (B) 162
(C) 172 (D) 180
June-2009
COMMERCE
PAPER—II
Note : This paper contains fifty (50) objective-type questions, each question carrying two
(2) marks. Attempt all of them.
Which of the following is not an objective of competition Act 2002 ?

Prohibition of abuse of dominant position
Prohibition of Restrictive Trade Practices
Prohibition of Anti Competitive Agreements
Regulation of combinations
Consumers have the right :

to be protected against goods and services that are hazardous to life and property.
to assured , wherever possible, access to a variety of goods and services at
notional prices.
Code :
Both (i) and (ii) are correct
Both (i) and (ii) are wrong
Only (i) is correct
Only (ii) is correct
Which of the following is not an element of the micro environment of business ?

(A) Suppliers (B) Competitors
(C) Trade Policy (D) Publics
Match the following legislations with the year of their enactment :

(a) Industries (Development and Regulation ) Act (i) 1969
(b) Foreign Exchange Management Act (ii) 1951
(c) Securities Exchange Board of India Act (iii) 1999
(d) Monopolies and Restrictive Trade Practices Act (iv) 1992
Codes :
(a) (b) (c) (d)
(i) (iii) (iv) (ii)
(i) (iv) (iii) (ii)
(ii) (iii) (iv) (i)
(D) (ii) (iii) (i) (iv)
Which of the following is not an instrument of monetary policy ?

(A) Deficit financing (B) Statutory Liquidity Ratio
(C) Cash Reserve Ratio (D) Open Market Operations
J—0809 2
207
th
A and B are partners sharing profits in the ratio of 2:3. They admit C for 1/4 share in the
business. The sacrificing ratio of A and B is :
(A) 3 : 1 (B) 1 : 4 (C) 2 : 3 (D) 1 : 1
Premium on redemption of debenture is :

(A) Personal Account (B) Real Account
(C) Nominal Account (D) None of the above
If profit and fixed cost are Rs. 80,000 and Rs 2,80,000 respectively, the total variable cost
and break-even sales are :
(A) Rs. 5,40,000 and Rs. 9,00,000 (B) Rs. 5,40,000 and Rs. 7,00,000
(C) Rs. 4,20,000 and Rs. 7,00,000 (D) Rs. 4,20,000 and Rs. 9,00,000
The extent to which an organization uses fixed cost in its cost structure is called :
(A) Overall leverage (B) Fixed leverage
(C) Financial leverage (D) Operating leverage
10. Direct costs are :

(A) Traceable to the cost object (B) Allocated to cost object
(C) Total cost of the cost object (D) None of the above
In a typical demand schedule, quantity demanded :

(A) Varies directly with price (B) Varies proportionately with price
(C) Varies inversely with price (D) Is independent of price
Opportunity cost is a term which describes :

A bargain price for a factor of production
Cost related to an optimum level of production
Average variable cost
None of the above
The principle which states that an input must be so allocated between various uses that
the value added by the last unit of input is the same in all its uses is called :
(A) Marginal Principle (B) Incremental Principle
(C) Equal–marginal Principle (D) Discounting Principle
An example of derived demand is :

(A) Money (B) Car
(C) Cigarette (D) Mobile phone
J—0809 4
“Kinked Demand curve approach “ is concerned with :
(A) Price Discrimination (B) Price Flexibility
(C) Price Rigidity (D) Dual Pricing
Karl Pearson’s coefficient of correlation between two variables X and Y is equal to :

the covariance between two variables
the product of their standard deviations
the square root of product of two regression coefficients.
None of the above
“Parameter “ refers to the characteristic of the :

(A) Population (B) Sample
(C) Both (D) None of these
If the probability of inclusion of every unit of the population in the sample is equal, it is
called :
(A) Simple Random Sampling (B) Stratified Random Sampling
(C) Systematic Sampling (D) None of these
For 332 contingency table, the degrees of freedom for testing the hypothesis is :
(A) 6 (B) 2 (C) 3 (D) 4
The “word length” of a computer is measured in :

(A) Bytes (B) Millimeters (C) Meters (D) Bits
‘Motivation Hygiene Theory ‘ was propounded by :

(A) Herzberg (B) Maslow
(C) Mc Gregor (D) Peter F Drucker
‘Grapevine’ communication is a type of :

(A) Formal communication (B) Informal communication
(C) Written communication (D) Vertical communication
‘Span of control’ refers to :

Controlling technique
Number of units under a company
Number of subordinates under a manager
Supply area of a company
J—0809 6
A written statement of main duties and responsibilities which a particular job entails is
called :
(A) Job evaluation (B) Job analysis
(C) Job description (D) None of the above
25. Elton Mayo is main contributor to :

(A) Classical approach (B) Bureaucracy
Modern Theory of Management (D) Human relations approach
Which one of the following is an example of non–store retailing ?

(A) Limited Line Stores (B) Discount Stores
(C) Tele Marketing (D) Super Markets
Promotional efforts directed primarily at end users so that they will ask middle men for
the product, is called :
(A) Pull strategy (B) Push strategy
(C) Single segment strategy (D) Penetration strategy
A product line strategy where in a company adds a lower priced products to a line to
reach a market that cannot afford higher priced items, is called :
(A) Trading up (B) Trading down
(C) Product Line Extension (D) Life cycle extension
Which is the step following the ‘test marketing’ in the process of new product
development ?
(A) Idea Screening (B) Prototype Development
(C) Business Analysis (D) Commercialisation
Which of the following is not a demographic basis of market segmentation ?

(A) Income (B) Life Style
(C) Occupation (D) Family Life Cycle
Taffler’s (1995) Z score does not include :

(A) Current ratio (B) Acid test ratio
(C) Stock turnover (D) None of the above
J—0809 8
210
Approximately, IRR is inverse of :
Pay back period
NPV
Adjusted Accounting Rate of Return
None of the above
Auction pricing is a superior method of price discovery because :

(A) All can participate (B) None can participate
(C) It Leads to speculation (D) None of the above
Cost of leasing is lower than :

(A) Cash credit (B) Hire purchase
(C) Bank Loan (D) None of the above
Market Efficiency is dependent on :

(A) Information (B) Accounts
(C) Technology (D) Management
The process of integrating the employees’ needs and aspirations with organisational
needs is called :
(A) Organisational Planning (B) Human Resource Planning
(C) Career Planning (D) Succession Planning
Productivity means :
An act of increasing the knowledge and skills of an employee for doing a particular job
Using the minimum amount of resources needed to produce goods and services
One’s skills, abilities in meeting the needs of the job which one is holding currently
The ratio of an organisation’s output to its inputs
Human Resource Department is :

(A) Line Department (B) Functional Department
(C) Authority Department (D) Service Department
Business Plans designed to achieve the organisation’s objectives is called :

(A) Human Resource Planning (B) Human Resources forecasts
(C) Strategic Plan (D) Corporate Development Plan
J—0809 10
211
A performance Appraisal System can be used for the following except :
Human Resource Planning
Tone up performance
Identify individuals with high potential
Discipline employees
Banking in India has its origin as early as period.

(A) Vedic (B) Moughal
(C) British (D) None of the above
The maturity period of Treasury Bill is :

(A) 91 days (B) 364 days
(C) (A) and (B) both (D) None of the above
“ Blue Card” denotes :

A Credit Card
A Debit Card
A Proposition by EU to attract highly qualified professionals from other countries
None of the above
“Repo Rate” refers to the rate at which :

RBI borrows short term money from the market
Banks keeps the money with RBI
Bills are discounted by RBI
Forex is purchased by RBI
‘Retail Banking’ means :

Credit facilities extended to retail traders
Providing personal banking services directly to the consumers
Collection of large number of dividend/interest warrants
Providing services to the employees of large organisations
J—0809 12
NOSTRO Account :
Refers to a current account denominated in a foreign currency maintained by a
bank in the currency of home country
Carries no interest
Provides for nominal interest on over night investments
All of the above
Which of the following is not a mode of foreign capital inflow to India ?

(A) FDI (B) FII
(C) NRI Accounts (D) None of the above
IMF has raised the quota and voting share of India which places India at the
place among 184 members of the organisation.
th th th th
(A) 10 (B) 11 (C) 12 (D) 13
Foreign Trade Policy 2008–09 forecasts the share of India’s trade in World Trade at :
(A) 1.2 % (B) 1.3 % (C) 1.4 % (D) 1.5 %
On the basis of the size and composition of external debt, World Bank has classified
India as a :
heavily indebted country
moderately indebted country
less indebted country
severely indebted country
oOo-
J—0809 14
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PAPER- II&III

SR. PAPERS PAGE

2 June -2015 (Paper-III) with Answer Key 13

The world’s first electronic stock market is :

The Human Development Index (HDI) is introduced by :

Examine the following statements and choose the correct code :

From the statements given below, identify the correct code :

If : Stock turnover ratio is 56 times

Average stock 58,000

Selling price 525% above cost

What is the amount of gross profit ?

A rectangular hyperbola shaped demand curve on all its points has :

Equal slopes of the price demand curve

Price elasticity equal to unity

Varying price elasticity

Both slope and price elasticity equal

Average cost is the minimum

Both marginal cost and average cost are equal

Marginal cost is higher than average cost

Which one of the following statements is false ?

Normally, a price demand curve slopes downward from left to right.

Economies of scale and economies of scope are the same.

Which of the following is not an accounting software package ?

J-0815 !HILAL AHMAD 8 Paper-II

Which one of the following statements is false ?

Match the items of List-I with List-II :

786!HILAL AHMAD 10 Paper-II

Areas of establishing objectives under MBO are :

Match the items of List-I with List-II :

(1) (i) (iv) (ii) (iii)

The service marketing mix is an extended marketing mix and includes :

Black box model in marketing relates to :

Items, considered part of the augmented product, do not include :

Which of the following is not a type of direct marketing ?

In certainty equivalent approach, adjusted cash flows are discounted at :

(1) Accounting Rate of Return (2) Internal Rate of Return

Combined leverage is calculated as :

Which of the following is not true with reference to capital budgeting ?

What is Economic Order Quantity ?

(1) Cost of an order (2) Cost of stock

Which of the following is not a basic objective of HRM ?

To select people who are recommended by the employees.

To select people from public employment exchanges.

To select people supplied by labour contractors.

Matching essential managers and essential positions is a step in the process of :

(1) Career Cycle (2) Succession Planning

The barriers to effective performance appraisal are :

Psychological blocks of managers

Faulty assumptions of the parties concerned

Faulty written communications

Who has developed the ‘Systems Approach’ of industrial relations ?

(1) John Dunlop (2) Garry S. Becker

In 1992, the banking sector reforms were introduced as per :

C. Rangarajan Committee Report

M. Narasimham Committee Report

Suresh Tandulkar Committee Report

Sukhamoy Chakrabarty Committee Report

Directly lends and monitors the rural borrowers